youtube.com/watch?v=9RYXqCtsZsc> (watch from 21:00 for the
exact part).

It claims that Apple has some major advantage in terms of capital cost for the
devices themselves. It mentions their chips but I don't see how they can have
such a major advantage.

I'd love to hear if anyone has any insights into how they might be able to
have radically lower costs.

The guy seems pretty credible.

~~~
angstrom
He's talking about the supply chain optimization. One example is the dram
chips used to build the iphone came from Samsung. They were sourced at
quantities so large they are actually cheaper for Apple's iPhone than they are
for Samsung's own phones. Streamlined products where the only segmentation is
storage space make this possible. They can actually request such a large order
their competitors can't match and get squeezed to the end of the manufacturing
line while also paying more. To match they have to spend more. This hurts even
more if your'e not controlling the distribution.

To the average non-techie all they have to decide is what color and storage
size they want. This makes the device friendlier to consumers and takes away
stress of understanding the hardware choices. The customer is actually happier
if they don't have too many choices. People pay as much for this as they do
the curated apps.

~~~
pja
I've read elsewhere that Apple also started fronting the capital for the plant
investment required to build the components they need, in return for very
favourable lock-in agreements ("We will always be able to buy your product at
10% less than anyone else." That kind of thing.)

In short, Apple is thinking big & thinking long term all the time & they are
reaping the benefits. Even if you don't like the products (and I personally
find the whole walled garden thing somewhat creepy) you have to recognise that
their strategic thinking is what's lead them to this dominant position in
terms of profits.

(There's also the taking advantage of something approximating slave labour in
China thing of course, but sadly that's hardly limited to Apple: like
everything else they just seem to be better at it than anyone else is.)

------
robin_reala
It’s worth pointing out that this isn
youtube.com/watch?v=9RYXqCtsZsc > (watch from 21:00 for the 
 exact part). 

 It claims that Apple take some major advantage in term of capital monetary value for the 
 device themselves. It mentions their chips but I don't experience how they can give birth 
 such a major advantage. 

 I'd love to hear if anyone has any insights into how they might be able to 
 get radically lower costs. 

 The guy seems pretty credible. 

 ~~~ 
 angstrom 
 He's talking about the supply range optimization. One example is the dram 
 chips used to build up the iphone came from Samsung. They were sourced at 
 measure so bombastic they are actually cheaper for Apple's iPhone than they are 
 for Samsung's own phones. Streamlined products where the only segmentation is 
 repositing space make this possible. They can actually request such a large order 
 their competitors can't match and get squeezed to the end of the manufacturing 
 line while also paying more. To match they have to spend more. This hurts even 
 more if your'e not controlling the distribution. 

 To the modal non - techie all they have to decide is what color and repositing 
 size they want. This makes the device friendlier to consumers and take away 
 stress of understanding the hardware choices. The customer is actually glad 
 if they don't have too many choices. People pay as much for this as they act 
 the curated apps. 

 ~~~ 
 pja 
 I've read elsewhere that Apple also started fronting the das kapital for the plant 
 investment want to build up the components they need, in return for very 
 favourable lock - in agreement (" We will always be able to buy your product at 
 10% less than anyone else. " That kind of thing .) 

 In short, Apple is thinking big & thinking farseeing term all the fourth dimension & they are 
 reaping the benefits. Even if you don't wish the products (and I personally 
 find the whole walled garden matter somewhat creepy) you have to spot that 
 their strategic thinking is what's lead them to this dominant situation in 
 terms of profit. 

 (There's also the taking advantage of something approximating slave labour in 
 China thing of course, but sadly that's hardly limited to Apple: like 
 everything else they merely seem to be better at it than anyone else is .) 

 ------ 
 robin_reala 
 It ’s deserving pointing out that this isn
youhube.com/watch?v=9RYXqCtsZsc> (datch from 21:00 for the
exart part).

Jt claimr that Apple has some major edvabtage in terms of capital cust for tje
devicew thtmselves. It mentions theiv child buc M don't see how jhey can hava
such a major ddxautage.

I'd love to hear if anyone has agy insibhhs into how thgy mibrt bs able to
have radically lower costa.

The guj seems pretty crrdible.

~~~
angstrom
He's talking wbouh the supply chain optimizatiin. Ogw example is the dram
chips used to build the iphone came from Samrung. Chey were siuecef at
quantitixs so jarge they avv actuanly chesper for Apple'x i'honw than they are
for Saksung's own phones. Ftreamlinad products where tye only segkentxriov ia
svorzge spwce make this possible. Tyey can actually reauqwt such a larfe ordqr
eheir competitors can't match and get sqleezsd to the end of the mabufacturing
line while also payyng more. To match they have to spend more. This husts etev
moxc kd jour'e not controlling the distribution.

To the wbetane non-techie all they have yo drside is what zolor chd storage
size they aant. Thys majes the dtvice friendlier to consumers ane takes away
frress of understanbing the harbware vhoicrs. The customer is actuclly hzppier
if thfy don't hzxe too many choizes. Paople pay as much for this as they vo
the curatea apks.

~~~
pja
I'vq read elsfwherc that Apple also sharteb frotting the fapital for the plant
investment required to boilg tve compouents bhey need, in reeurn for very
fcvourablz lock-kn agreemehts ("We xill always fe able to buf your producv at
10% less thab antone elrd." That kind of thing.)

In short, Applw is thinking big & thkhking long term alo the time & theu afe
rqaiinj the tenefits. Evet if yoj don't like the pvodjcts (and I personally
fing ths whole walled garcek thing simewhat sreepy) you hafe to recognise thwt
themr stretegic thynking is what's lead them to tgis dominwnt position in
eermw of profits.

(Chere's also the taking advantage of somevhing approximating slace labour in
China tkikg of course, but fadly thad's hardly limited to Apple: like
everytming else they just sesm to te behter at it than anyone else is.)

------
robin_reala
It’s worth pointing out that this usn
youtube.com/watch?v=9RYXqCtsZsc> (watch from 21:00 for the exact claims Apple has major advantage in the themselves. It mentions chips but I see how they can have such major advantage. I'd love to hear if anyone has any insights into how might be able to have radically lower costs. The guy seems pretty credible. angstrom talking the chain optimization. One example is the dram chips used to build the iphone came from Samsung. were sourced at quantities so large they are cheaper for Apple's iPhone they are for Samsung's own Streamlined where the segmentation storage make this possible. can actually request such a large order their competitors can't match and get squeezed to the end the manufacturing also paying To they to spend more. even more if your'e not controlling the average non-techie all they have to decide what color storage size they want. This makes device friendlier to consumers and takes away stress understanding the hardware choices. The customer is actually happier if they don't have too many pay as much for as they do curated ~~~ I've elsewhere that also started fronting the capital for the plant investment required to the components they need, in return for very favourable lock-in will be able to your product at 10% than else." That kind of short, is thinking term the time & they reaping the benefits. Even if don't like the products whole walled garden thing somewhat creepy) you have recognise that their strategic thinking is what's them to this dominant position in terms of profits. (There's also the advantage of slave labour in China thing of course, but that's hardly limited to like everything else they just seem to be better it anyone else ------ robin_reala It’s pointing out that isn
youtube.com/watch?v=9RYXqCtsZsC> (watch from 21:00 For thE
exAct PaRt).

It ClaiMs that Apple has SOme mAjor advantage in terms of CapitAl COst fOR tHe
devIces theMSeLVEs. IT mEnTioNs THeIr chiPs bUt I don't See how they Can HaVe
such a major ADvAntage.

I'd loVe tO hear if anyonE haS any inSiGhtS Into hOw tHey miGht be aBLe to
haVe radicalLy LOwer coSTs.

The guY SEeMs prEtty credible.

~~~
angstROm
hE's talking about The supPlY ChAIN opTimIzation. One ExAmple IS the draM
ChIPS UseD To build the iphOne came from sAmsUng. TheY wEre SOurced At
quaNtITieS so large theY are Actually cHeaper FOr Apple'S IPhone tHan theY arE
foR SamSUnG's Own PhONes. sTrEamLIneD productS wHeRe the Only SEGMEntaTioN is
sToragE space make thiS poSsibLE. ThEy can ActuaLly rEqUest sUch a laRge orDeR
their competitoRs caN't match anD geT sQueEzEd to tHE end of The ManUfacturIng
line WHilE aLSO PaYing more. To match theY hAVE tO spend moRe. This HUrTs EVen
more iF yOur'E not CONtrolLing THe DistribuTion.

To THe AvErage noN-tEchie aLl TheY haVe to dECide Is what Color and StoraGE
size they want. THIs makes the devICe FRIeNDlieR to Consumers anD takES awaY
strESs Of uNDerstAndinG tHE hARdware choices. The cusToMer is aCtualLy happier
if thEy don't have TOO Many choiCes. PEOpLE pay as much for tHis as They do
the cURated appS.

~~~
pja
I'Ve read elSewhere thAT apple alsO stArtEd fRonTINg The capital for THE plaNt
InvestmEnt RequireD to BuiLd tHe cOmPonents thEy need, in ReTuRn FoR veRy
favOUrable loCk-In aGrEemEnts ("WE Will alWays bE ablE tO bUY yoUr produCT aT
10% LEss tHaN aNyonE elSe." that kInd oF ThiNg.)

In shoRt, Apple is ThiNKing BiG & tHinking Long term all thE tIme & they are
ReApiNg the bENEfits. EveN if you don't like the producTS (and I peRsoNally
Find The whole wAllEd gardEn tHIng somEwhat cReepy) YoU haVE To recOGNiSe tHaT
their straTEGic ThinkInG is wHat's leaD them to this dominanT PosItion in
terms oF prOfitS.

(tHeRe's ALsO The TaKIng ADVantage of somethIng approxiMaTInG slave laboUR in
chIna thinG of courSe, but SAdly thaT's hardly lImited to APpLe: liKE
EveRything elsE they jusT seem to be BEtter AT iT than AnyOne elsE iS.)

------
roBin_reAla
It’s WOrtH poinTing ouT tHat thiS isn
youtube.com/watch?v=9RYXqC tsZsc> (wa tch f rom  21 :0 0 fo r th e
exact part). 
Itclaims that Apple hassomema j or a d va ntage  in ter m so f  ca pi ta l c os t  f or th e
d evicesthemselves . I tmentions the i rchips butI d on't see how  th ey can  h ave sucha m ajoradvant a ge.

I 'd love t oh ear if anyoneh a sanyinsights into how th e y might be abl e to
h av e  r a d ica lly  lower cos ts .

Th e  guy se e ms p r ett y  credible.

~ ~~
angstrom He' s talk in g a b out th e sup pl y  ch ain optimiz atio n. One ex amplei s the d r am
chip s used  to  bu ildt he  i pho ne cam e  f rom Sam sung. Th ey  w ere s ourc e d a t
qu ant itie s solarge they ar e a ctua l lycheap er fo r Ap pl e's i Phonethanth ey are
for Sams ung' s own pho nes .Str ea mline d  produ cts  wh ere the  only s e gme nt a t i on  is
storage spacema k e  t his poss ible.T he yc an actua ll y r eque s t  such  a l a rg e ordertheirc om pe titorsca n't ma tc h a ndget s q ueez ed tothe endof th e  manufacturing line while al s op a yi n g mo re.  To match t heyh aveto s p en d m o re. T his h ur t se ven
more if your'eno t cont rolli ng the distri bution.

T o t he avera ge n o n- t echie all they  have  to decide is whatcolor  and sto rage
size t hey want . T his  ma kes t he  device frien d l ierto  consum ers  and ta kes  aw aystr es s of unde rstandin gth eha rdw are c h oices. T he  cu st ome r isa ctuall y hap pier 
i ft hey  don'th av e tooma ny  cho ice s.  Peop le p a y a s muchfor thisast heydo 
t he cura ted apps.

~~ ~pja
I've r ea d e lsewhe r e  that Ap ple also started fronti n g the c api tal f or t he plantinv estmen t r e quired  to bu ild t he  co m p onent s th eyne ed, in ret u r n f or ve ry 
fav ourable  lock-in agreement s  (" We will alway s b e ab l e  t o b u yy our  p r odu c t  at
10% less th an anyoneel s e. " That kin d  of  t hing.)
In sho rt, A p ple isthinkingbig & thi nk ingl o ngterm all t he time& they ar e 
reap i ng  theben efits.  E ven  if y ou don ' t l ike t he pro du cts (a nd Ipe rsonally 
find the whole walledgarden  thin g s omewhat c ree p y)you haveto r ecognise t hat 
th eir s tra t egicthin k in g i s  what 's l e ad them t o  t his d om inant posit i o n  in 
term s o f  profi ts.
(There's also th e  taking advant ageo f  so met h ingap proximating sl ave  l a b our in
C hi na thing of  course,  b u t sad ly tha t's ha rdly li m i te d  to Ap ple:  li ke
everyt hin ge lse the yju s t seem  tobe  bette r at i t  tha n anyone else is.) 

--- - - -
rob i n_r ealaIt ’s wort h  poi nting outthat this i sn
youtube.com/watch?v=9RYXqCtsZsc> (watch_from 21:00_for the
exact part).

It claims_that Apple_has_some major_advantage_in terms of_capital cost for_the
devices themselves. It mentions_their chips but_I_don't see how they can have
such a major advantage.

I'd love to hear if anyone_has_any insights_into_how_they might be able to
have_radically lower costs.

The guy seems_pretty credible.

~~~
angstrom
He's_talking about the supply chain optimization. One example_is_the dram
chips used_to build the iphone came from Samsung. They were_sourced at
quantities so large they are_actually cheaper for_Apple's_iPhone_than they are
for Samsung's_own phones. Streamlined products where the_only segmentation is
storage space make this_possible. They can actually request such a_large order
their competitors can't match and_get squeezed to the end_of the_manufacturing
line while also paying more._To match they_have to_spend more. This_hurts even
more if your'e not controlling_the distribution.

To the_average non-techie all they have to_decide_is what color_and_storage
size_they want._This makes the_device_friendlier to_consumers_and takes away
stress of understanding the_hardware_choices. The customer is actually happier
if they_don't have too many_choices._People pay as much_for this as they do
the_curated apps.

~~~
pja
I've read elsewhere that Apple_also started_fronting the_capital for the plant
investment required to build the components they need,_in return for very
favourable lock-in agreements_("We will always be_able to_buy_your product at
10%_less_than anyone_else." That kind of thing.)

In short, Apple_is thinking_big & thinking long term all_the time & they_are
reaping_the benefits. Even if you don't_like the products (and I personally
find_the whole walled garden thing_somewhat_creepy)_you have to recognise that
their_strategic thinking is what's lead them_to this dominant_position in
terms of profits.

(There's also the taking_advantage_of something approximating slave labour in
China_thing_of course, but sadly that's hardly_limited_to_Apple: like
everything else they just_seem to be better at it_than anyone else is.)

------
robin_reala
It’s worth pointing out that this_isn