What B&H said re my D800E

Started Apr 18, 2012 | Discussions thread
James Van Artsdalen
Regular MemberPosts: 319
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Apple doesn't manufacture anything; Foxconn does
In reply to Don89, Apr 18, 2012

Don89 wrote:

I think Apple is producing a product meeting the needs of their customer at the right price and quality. Sure the "Mfg" cost of an iPhone is probably $30-40 per unit, with bad management, $50 tops.

Probably a bit higher than than that. Foxconn's "transformation" costs are low but materials costs not especially so. Those high-tech chips & parts aren't free.

("transformation cost" is the cost of turning the materials flowing into a factory into the goods leaving the factory)

It's very important to remember that Apple doesn't manufacture anything - Foxconn owns or has possession of everything in the manufacturing process. I personally thinks it's more Foxconn has Apple where they want them rather than the other way around.

Nikon on the other hand does control their overseas production capabilities.

Finally, remember that Apple has an enormous cash pile and they can fund a pre-launch inventory of tens of millions of units, whereas Nikon simply doesn't have access to that amount of cash. Also, Apple has so much cash that overestimating demand on that scale is embarrassing but for anyone else it's bankruptcy.

My guess is that Nikon is producing as many D4 and D800 units as they can afford to, but demand has simply outrun everything they can do, especially after Canon's twin belly-flops.

Nikon may also be prioritizing D4-related production since the Olympics are right around the corner and it's literally "ship now or don't bother" for Olympics sales. D800 orders won't vanish right away since there aren't many competitors unless one believes a bunch of disgruntled D800 buyers will switch to the Leica S2.

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