Re:Heavy is the Head that wears the AirPods Max
by otterley on Friday December 11, 2020 @03:37PM
(#25390640)
> We know the price of the combined 3, and we know the price of the 1 unique unit, that gives us a very accurate idea of the retail price of the 2 matching units.
There is no retail price because you can't buy them retail new. That's the only point I'm trying to make here. I don't contend your math is incorrect in the abstract, but in the real world, it's irrelevant. That's all.
Case in point: A quick eBay search shows that a used working AirPod is about $45. If you are correct, and only the abstract math matters, why would anyone pay $45 for a used working AirPod when, as you claim, it is only worth $40 new? Is the market that irrational? I kind of doubt it.
I also don't contend that the original is worth $50 to Apple (this was a best-case high water mark). It's almost certainly worth less because their incremental cost is less.
I'm strictly speaking in terms of real markets as they are observable today. Heck, even a non-working AirPod is still worth about $10 on the open market. Exchange it with Apple for $49 (assuming the battery is the only problem) and that makes the market value of a new (-ish?) unit $59. (This makes Apple's goodwill worth about $15 per unit.)
There is no retail price because you can't buy them retail new. That's the only point I'm trying to make here. I don't contend your math is incorrect in the abstract, but in the real world, it's irrelevant. That's all.
Case in point: A quick eBay search shows that a used working AirPod is about $45. If you are correct, and only the abstract math matters, why would anyone pay $45 for a used working AirPod when, as you claim, it is only worth $40 new? Is the market that irrational? I kind of doubt it.
I also don't contend that the original is worth $50 to Apple (this was a best-case high water mark). It's almost certainly worth less because their incremental cost is less.
I'm strictly speaking in terms of real markets as they are observable today. Heck, even a non-working AirPod is still worth about $10 on the open market. Exchange it with Apple for $49 (assuming the battery is the only problem) and that makes the market value of a new (-ish?) unit $59. (This makes Apple's goodwill worth about $15 per unit.)