Pixel Envy

Written by Nick Heer.

Profit Margin of Error

Arik Hesseldahl, of Recode:

The latest report from the research firm IHS, due later today and shared exclusively with Re/code, shows that the base model of the iPad Air 2, the 16 gigabyte Wi-Fi version, which sells for $499, costs $275 to build, exactly one dollar higher than the previous base model. The top-end model, the 128GB LTE version, which sells for $829, costs $358.

Why is this being reported as though it were factual? These reports do not factor in research and development, nor do they account for software. Anyone worth their analysis salt knows that these reports are, at best, a rough estimate.