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[cm07yaris]

I don't view it as fair or unfair but as a reasonable approach to reduce the cost of the item. I would rather pay less for an item because it doesn't come with features which I believe aren't essential for the type of device such as the iPad. They should absolutely be made as available accessories for those that need/want those features.

I think the introductory price point of $499 is also very aggressive in it's respective market.

http://www.digitimes.com/news/a20100129PD217.html

[tk-421]

Originally Posted by cm07yaris

I don't view it as fair or unfair but as a reasonable approach to reduce the cost of the item. I would rather pay less for an item because it doesn't come with features which I believe aren't essential for the type of device such as the iPad. They should absolutely be made as available accessories for those that need/want those features.

I think the introductory price point of $499 is also very aggressive in it's respective market.

Apple's strategy is not about keeping costs down (at least that's not their main focus). It costs less to make a standard port such as USB than it is to create a proprietary one (basically a matter of supply+demand).

Here's some proof of what I mean:

1. The estimated bill of materials (BOM) for the iPad is $290. That means Apple earns roughly a 40% profit on each unit. (More info: http://bit.ly/94uQyC)
2. They can make $100 Android netbooks (with WiFi, ethernet, and USB ports galore) nowadays. Sure, the iPad is faster and has a bigger screen, but is it worth paying roughly 4 times more than this netbook because of those two things?
3. If Apple's focus were to keep costs down, then this comment by Steve Jobs himself would be complete BS:

"What we want to do is deliver an increasing level of value to these customers, but there are some customers which we choose not to serve. We don't know how to make a $500 computer that's not a piece of junk; our DNA will not let us do that. We've seen great success by focusing on certain segments of the market and not trying to be everything to everybody, and you can expect us to stick with that winning strategy."

(More info: http://bit.ly/2MG4Wp)

And finally, regarding your last post:

Originally Posted by cm07yaris

Kindle DX Wireless Reading Device - $489.00
iPad 16GB - $499.00

Please check out the estimated BOM for the Kindle 2 (I couldn't find the BOM for the DX version): $185 for a $359 device (~$174 profit), as opposed to $290 for a $499 device (~ $209 profit). And remember that the Kindle already has 3G built in.