Comment: Re:Anyone know... (Score 1) 520
how is Apple making the iPad so cheap? Nobody tries to go head to head with Apple. It's a waste of time. They're just too hip. So you fight on price or you fight on features. If the other tablet makers are neck & neck with Apple on price there must be a reason....
Two reasons: economies of scale, and Steve Jobs is an ass.
Apple can get good pricing because when they order a component and the manufacturer asks how many units they'd like, the answer is often "all of them." Apple doesn't usually get all of them, but they get a large percentage of the total manufacturing capacity of the vendor, they sometimes source from multiple vendors, and they still can't keep up with demand.
And, when Steve Jobs gets an answer he doesn't like, he doesn't just give up, he fights. He fought the record companies until they were willing to sell music online without DRM; he fought Verizon until they were willing to sell an iPhone without loading it full of crap and disabling half the features; fighting component vendors until they give the best possible price is an amusing diversion.
The original iPod shipped with a 5GB hard drive. At the time, digital cameras used exactly the same kind of hard drive. Photographers quickly figured this out and started buying iPods as fast as they could get their hands on them, because the full retail price of an iPod was cheaper than anywhere else they could buy a 5GB hard drive for their cameras. Jobs had to fight pretty hard to get the kind of pricing that would let Apple do that.