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by rimjongun 2151 days ago
Apple silicon.
1 comments

How much is an i3? Surely well under $200.
A saving of $100 from BOM would translate to $200 reduction in SRP. Remember this isn't just CPU, but CPU + Chipset and other smaller components.

Apple could easily make that saving and more. You can also look at iPad Pro selling price as reference.

This. Also, there is a possibility Apple is willing to forego some profit (make only 70% rather than 100% profit) as a strategy to seed the market in order to give developers an incentive to adopt ARM faster.
Their push into services would be helped by having more volume products. I'm suspect this is why the iPhone SE was priced so low.
They already have distributed cheap developer machines.

And their profit on Mac hardware is only 15-20%. You may price at double build costs, but there is still design, R&D, testing, sales, marketing, distribution, support, warranty costs and admin overhead to be accounted for.

An i3 laptop has more Intel silicon in it than just the i3.

It also requires more energy, which means larger batteries, which means more dollars.

https://www.google.com/amp/s/www.wsj.com/amp/articles/apple-...

>The new Mac processors will shave $75 to $150 off the cost of building a computer, estimate analysts, who say Apple can pass those savings on to customers and shareholders.

$200-300. Intel's site doesn't list a price for the exact part that's in the current Air, but a similar part is $281.

https://ark.intel.com/content/www/us/en/ark/products/196588/...

Apple doesn't pay anywhere near full retail.
Sure, but if Apple saves $100 in material costs, this means something like $200 less on the list price. The build and parts costs are usually less then half of the sales price.
The quoted price is not retail, it is volume pricing at 1,000 units for direct customers.