[benoau]

> Assume a 55% profit margins, and $1200 ASP, you're looking at $28,160 in profit from making iPhones instead. No wonder Apple discontinued the M3 Ultra 512GB.

How would that work? They purchase 512GB from Samsung and then it doesn't matter if that's like 128x 4GB or 4x 128GB?

[Schiendelman]

It's likely the capacity they have reserved can be in different combinations.

[bel8]

Note that this reserved capacity now has competition from OpenAI, Anthropic, xAI, Meta, Microsoft, Chinese data centers and so on, all willing to pay premium.

If comapnies keep spending half a macbook neo worth of subscription on AI plans monthly per person, Apple is going to have a hard time competing.

[airstrike]

That's a very big if, though. There's been extensive news coverage about companies increasingly trying to move away from tokenmaxxing