Why Nobody Can Match the iPad’s Price

20 02 2011

The article addresses some analysis and theory behind the cost structure of building an iPad, or any Apple product. Its conclusion is that Apple is a very vertically integrated company that operate its retail store, hardware/software design, and online store. By having all the hardware/software R&D are done in-house, thus no technology license fees that will reflect onto the cost of the product. And by owning its retail store, Apple can sell their products at a better price compare to having them sold to 3rd-party retailer at wholesale price.

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