It’s not (only) the cool design or the (un)cool software: it’s mainly the reduced (~60%) bill of material you see in the picture (compare it to an older iBook internals). And the 30% reduction in the packaging volume. The latter reduces complexity in costs of acquisition and management of the parts, plus the servicing costs after the sales. The former means 30% saving in the shipping costs.’ Brilliant.’ This is the kind of sustainable competitive advantage that MBA classes teach managers to aim for.’ I’m ready to bet will make Apple’s revenues skyrocket, even without increasing marketshare or total units shipped.
My architecture professors repeated ad infinitum that an image is worth a thousand words. Following is a pictures that clearly shows how Apple will dramatically increase its revenues in the next year: