[Tomchu]

http://digitimes.com/systems/a20060120PR201.html

Apple Computer’s first desktop PC to be based on an Intel-manufactured microprocessor carries a Bill of Materials (BOM) cost of US$873, according to preliminary data from iSuppli.

The new Apple iMac desktop PC is based on Intel's Core Duo microprocessor, marking a major departure for Apple, which has never used an Intel-made microprocessor in its PCs, instead opting to employ PowerPC chips made by IBM and Freescale over the past decade, said iSuppli. With the introduction of the new iMac, and the Intel-based MacBook Pro notebook PC, Apple has commenced a planned transition of all its notebook, desktop and server PCs to the Intel architecture, said the research firm.

iSuppli's teardown of the new iMac revealed that Apple also is using Intel's mobile 945 core-logic chipset to support the Core Duo microprocessor, said iSuppli, which estimated the cost of the microprocessor at US$265 and the two-device chipset at US$45. Together, the Intel microprocessor and Mobile 945 chipset account for 35 percent of the new iMac's total BOM, according to Andrew Rassweiler, teardown services manager and senior analyst for iSuppli.

The Intel chips in the iMac are designed for use in notebook PCs, rather than desktops, noted iSuppli, adding that it believes Apple's decision to use Intel's notebook-oriented solution in its desktop iMac was a logical move.

“Users want quiet and powerful machines,” said Matthew Wilkins, senior analyst for compute platforms research for iSuppli. “Intel is very focused on designing microprocessors that deliver the maximum performance without generating excessive heat or consuming huge amounts of power. For now, the Intel Core Duo fits that bill perfectly.”

Above the US$873 BOM, the iMac carries a US$25 manufacturing and test cost, adding up to an US$898 cost, said iSuppli, adding that the cost estimate does not account for other items included with the iMac, including the keyboard, the mouse and documentation. Apple is selling the low-end version of the Intel-based iMac analyzed in the cost breakdown for a suggested retail price of US$1,299, according to iSuppli.

These guys are always tearing apart Apple hardware to see how much it costs to make it. It appears that Apple is making about $400 USD per Intel iMac, minus the cost of a keyboard, mouse, and documentation/packaging.

[tinoproductions]

err....i think they make less than that!
do these machines order themselves?
deliver themselves, and just....cost of running a huge
business like apple???
wake up...400 usd sounds way too much!
and 3rd party retailers..their margin!

[Spliffdaddy]

Sounds like a reasonable profit. You have to factor-in the cost of warranty-related service, as well. Personally, I'd charge more than Apple for a similar product.

[baw]

...

[Cheesemaster]

Others picked up on the major missing piece, iSuppli doesn't include overhead. The other problem is that these people don't really know how much Apple is charged for the components, it's all guesstimates. The design help Apple got from Intel isn't figured in, and there are probably other royalties built in too.

[jwoods]

IF I am not mistaken, these are just the cost of the components. It doesn't include the overhead (packaging, shipping, end user support, etc.). I would be surprised if they make $150 on each one after it's all said and done.

These kind of comparisons have one goal. To try and prove that Apple overcharges for it's hardware. Let's see what Dell or Gateway or somebody profits per box. I think that would be a less subjective test. I do mean profit, not cost to build. I'd bet Dell makes more per box than Apple.

[mduell]

Originally Posted by Tomchu

http://digitimes.com/systems/a20060120PR201.html

iSuppli's teardown of the new iMac revealed that Apple also is using Intel's mobile 945 core-logic chipset to support the Core Duo microprocessor, said iSuppli, which estimated the cost of the microprocessor at US$265 and the two-device chipset at US$45. Together, the Intel microprocessor and Mobile 945 chipset account for 35 percent of the new iMac's total BOM, according to Andrew Rassweiler, teardown services manager and senior analyst for iSuppli.

If they're right, that's a 13% discount from list price.
So much for the rumors that Apple was getting huge price cuts from Intel.

[Tomchu]

I realize that there is overhead, as does iSuppli. Those very same arguments pop up every single time that they dissect some Apple hardware. :-/

They're not out to prove that Apple is "overcharging", they're just out to discover how much it really costs to make popular consumer hardware. They have sources of information that are better than your typical Google search, I know that much.

I thought it was just an interesting story -- no need to get all uppity about it. Geez.

[goofticket]

Originally Posted by Tomchu

http://digitimes.com/systems/a20060120PR201.html
These guys are always tearing apart Apple hardware to see how much it costs to make it. It appears that Apple is making about $400 USD per Intel iMac, minus the cost of a keyboard, mouse, and documentation/packaging.

And a PC costs $39.95?
Who cares, you are getting a very high quality product for the price.
Think how much Disney just paid for PIXAR!

[Tomchu]

Originally Posted by Tomchu

I thought it was just an interesting story -- no need to get all uppity about it. Geez.

Frick. Why are Mac users so god damned defensive about anything that even slightly smells of Apple being in the business of making money?

[jwoods]

Why do people post articles they know are going incite people?

What exactly did you expect to happen?

[Tomchu]

Pointing out how much the iMac costs in components is "trying to incite people"?

Lay off the crack, my friend.

[jwoods]

[production_coordinator]

That price seems fair...

[msuper69]

I challenge anyone to acquire the parts needed to build an iMac (or any other computer, appliance, car, etc.) and build it yourself. How much would that cost?

I'd say for the quality and longevity built-in to Macs, they are not a bad deal at all. I'm all for Apple making a good profit. Especially since they plow a lot of that profit back into research and development which benefits us all.