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0 pointszer0zzz1y ago0 comments

Is steamdeck sold at cost? From what I know Apple has a rule that everything must be sold at 40% margins. That is prob the main reason.

0 comments

makeitdouble1y ago

> From what I know Apple has a rule that everything must be sold at 40% margins.

As for all rules, it's a rule except when it's not. On the top of my head Apple TV [0] had a 20% predicted margin presumably because they wanted to actually sell them.

Otherwise 40% margin is usually calculated against the BOM, which doesn't mean 40% of actual profit when the product is sold.

In that respect we have no idea of the actual margin on a macbook air for instance, it could be 10% when including their operating costs and marketing, or it could 60% if they negociated prices way below the estimated BOM for instance.

It's just to say: Apple sells at 8Gb because they want to, at the end of the day nothing is stopping them to play with their margin or the product price.

[0] https://www.reuters.com/article/idUSN06424767/

talldayo1y ago

As a consumer I really cannot be made to care why it's the case. This artificial price tiering is stupid and everyone has been calling it a scam for years. Apple clearly knows they're in the wrong, but continues because they know nobody can stop them.

andruby1y ago

From a business perspective it's not _stupid_. It sucks for us customers, but it's "smart" from a business point of view.

Until they get serious competition, I doubt they'll change their practices.

And while I hate the overpriced memory upgrades, I still prefer paying extra, rather than Apple switching to a Ad-based business model like Google (and potentially OpenAI in the future)

talldayo1y ago

> From a business perspective it's not _stupid_. It sucks for us customers, but it's "smart" from a business point of view.

Well, I'm not a business. I appreciate smart consumer choices and I applaud any company that doesn't have to be forced into doing the right thing.

> I still prefer paying extra, rather than Apple switching to a Ad-based business model like Google (and potentially OpenAI in the future)

Oh you sweet summer child. You think Apple doesn't also have an ad-based business model on top of that?

I switched to Linux after MacOS Mojave, and I do not miss any of this brouhaha one bit. It's almost rich hearing people talk about how few ads MacOS has, when it's constantly begging you to try or pay for Apple software services. Even Android isn't as ad-ridden as MacOS, the only victory Apple can claim is relative to Windows (which is a grim reflection of MacOS's eventual service-dominated fate).

You should try out Linux, though. It's a culture shock, trying to get work done with no inbuilt advertisement whatsoever. I could never go back to Mac or Windows and be this productive.

1 more reply

pjmlp1y ago

Yes they can, buy something else.

talldayo1y ago

I've been doing that for six fucking years and not a single thing has changed. The base memory and storage has not changed in that time. During that same amount of time:

- Macs transitioned to Apple Silicon, got rid of dGPU memory

- Baseline Macbook Air models increased in price by $100

- AI became a realistic and usable technology

- Gaming is slightly feasible with GPTK

Of course we shouldn't be starting at 8 gigs of memory. This is highway robbery and the only thing you can say in defense is "buy something else then"

1 more reply

brandall101y ago

It's been speculated that base config macbooks essentially act as loss leaders for higher end configs, so overall, probably sales across the line net somewhere around that. The cost of the upgrades themselves can get to multiple times the actual market cost.

breuleux1y ago

I feel like this is very obviously what they are doing: they have a small margin on the entry config where people are a lot more price-aware, and jack up the upgrade costs to get a fat margin on configs bought by orgs and power users who generally care less about how much it costs. Frankly, I'd do the same thing.

scottyah1y ago

I always thought the products like the $700 computer wheels[1] and $1,000 monitor stands[2] are made exclusively for the companies who are trying to signal their wealth. For anyone who knows how much these accessories cost, walking into an office where all the workstations have these components puts out a message of wealth (much like standing desks, Herman Miller chairs, expensive art, super espresso machines, etc).

I don't think it tarnishes their reputation as long as the products are both actually good quality and there are inexpensive alternatives. Why not get some easy cash while letting your customers display their vanity? It reminds me of the "I am rich" app[3].

[1] https://www.apple.com/shop/product/MX572ZM/A/apple-mac-pro-w... [2] https://www.apple.com/shop/product/MWUG2LL/A/pro-stand [3] https://en.wikipedia.org/wiki/I_Am_Rich

1 more reply

creshal1y ago

40% margin on parts that cost tens of dollars isn't going to have a huge impact on the sticker price of devices costing hundreds to thousands.

j / k navigate · click thread line to collapse

0 comments

makeitdouble1y ago

> From what I know Apple has a rule that everything must be sold at 40% margins.

As for all rules, it's a rule except when it's not. On the top of my head Apple TV [0] had a 20% predicted margin presumably because they wanted to actually sell them.

Otherwise 40% margin is usually calculated against the BOM, which doesn't mean 40% of actual profit when the product is sold.

It's just to say: Apple sells at 8Gb because they want to, at the end of the day nothing is stopping them to play with their margin or the product price.

[0] https://www.reuters.com/article/idUSN06424767/

talldayo1y ago

andruby1y ago

From a business perspective it's not _stupid_. It sucks for us customers, but it's "smart" from a business point of view.

Until they get serious competition, I doubt they'll change their practices.

And while I hate the overpriced memory upgrades, I still prefer paying extra, rather than Apple switching to a Ad-based business model like Google (and potentially OpenAI in the future)

talldayo1y ago

> From a business perspective it's not _stupid_. It sucks for us customers, but it's "smart" from a business point of view.

Well, I'm not a business. I appreciate smart consumer choices and I applaud any company that doesn't have to be forced into doing the right thing.

> I still prefer paying extra, rather than Apple switching to a Ad-based business model like Google (and potentially OpenAI in the future)

Oh you sweet summer child. You think Apple doesn't also have an ad-based business model on top of that?

You should try out Linux, though. It's a culture shock, trying to get work done with no inbuilt advertisement whatsoever. I could never go back to Mac or Windows and be this productive.

1 more reply

pjmlp1y ago

Yes they can, buy something else.

talldayo1y ago

I've been doing that for six fucking years and not a single thing has changed. The base memory and storage has not changed in that time. During that same amount of time:

- Macs transitioned to Apple Silicon, got rid of dGPU memory

- Baseline Macbook Air models increased in price by $100

- AI became a realistic and usable technology

- Gaming is slightly feasible with GPTK

Of course we shouldn't be starting at 8 gigs of memory. This is highway robbery and the only thing you can say in defense is "buy something else then"

1 more reply

brandall101y ago

breuleux1y ago

scottyah1y ago

[1] https://www.apple.com/shop/product/MX572ZM/A/apple-mac-pro-w... [2] https://www.apple.com/shop/product/MWUG2LL/A/pro-stand [3] https://en.wikipedia.org/wiki/I_Am_Rich

1 more reply

creshal1y ago

40% margin on parts that cost tens of dollars isn't going to have a huge impact on the sticker price of devices costing hundreds to thousands.

j / k navigate · click thread line to collapse