Apple faces 'cheap' threat yet again!
Success always comes at a heavy price, especially when it is a company like Apple. In the recent past, the company has fought criticism in all forms. Initially, people fretted about the quality of plastic used on iPods. And now, the 'cheap' angle has resurfaced again. This time around, the entire ruckus is about the components used in the device.
With a touch of credibility introduced into the accusation, thanks to the 'teardown' conducted by analyst firm iSuppli, Apple would have to battle it out big-time to stave off the threat posed by this new development.
If iSuppli has to be believed, Apple manufactures 4GB ipods for less than $60, only to sell them for $150. And the 8GB models, which are priced at $200, are manufactured for less than $83.
Additionally, Apple has also been accused of 'forcing' competition among suppliers like Intel and Micron to ensure that its production costs stay low.
Even if iSuppli's accusation is true, it wouldn't surprise most of us; two reasons for that.
One - companies have to factor in R & D and brand management costs. So, the initial profit margin has to be high enough to compensate for the eventual marketing expenditure.
Two - iPods across the world (except a few isolated cases!) show no signs of their 'corrupt souls'. As long as they continue to work well, Apple can breathe easy.
Moreover, it would be foolhardy to accuse a company of trying to 'widen its profit margin' when the rest of the industry is following the same goddamn path to success.
Via: Therawfeed
