Adam wroteth:

>Just because Apple can't build a sub-$500 computer that's

1) The cheapest MacBook is $1000.

2) The unsubsidized prize of the iPhone is....?

 A) Around $600?

 B) Around $700

Apple's Hong Kong store HK$5400 price (for 8GB) converted to US $.

3) An iPod Touch (8GB) costs $229.

We know that the Apple is raking in profits hand-over-fist on the iPhone, so it doesn't actually cost them anywhere near $600 to develop/build/ship/sell. But that's the price. Where is the room for a $500 or $800 iPhone/MacTablet? That's already the unsubsidized iPhone.

So, for consumers/business to be able to spend $500-$800 for an iPhone/MacTablet device, either Apple would have to accept drastically lower profit margins than they get for the iPhone, or they'd have the continue to get a carrier supplied subsidies.

Do you want to pay $500-$800 for a iPhone/MacTablet and also pay the monthly carrier costs that they charge iPhone users? Is there a big enough market for that, when the iPhone can be had at $200 and a carrier-free MacBook at $1000?

Or, are you willing to pay at the high end of that range (>$650) at the same time that Apple is willing to accept lower profit margins?

Adam concludeth:

>So, I have to say that I'm not buying the rumor, much

I'm not buying the rumor, either. And I'm not sure that Adam would buy the device at the cost it inevitably have. I know that I wouldn't.

(Obviously, I am talking about the next 6-12 months. Further down the road, who knows what might happen to prices. I can imagine a $49 subsidized iPhone, leaving room for $500-$800 iPhone/MacTablet that people might buy. But that ain't happening soon, if ever. In fact, I think that a $800 MacBook would happen first.)

--