There is a thought provoking article on cnnmoney.com in "Apple's outrageous profit sharing of the mobile industry."
It is said that "Apple's gross margin boasts about 50% and 30% + operating margin for its products for iPhone".
If you read the comments article you will learn that Apple makes these profits because selling high end items. In contrast, other handset makers are selling for mass market that can't or doesn't want to afford high prices.
This makes me question whether the position of Apple is scalable.How many people are there out there willing to pay high prices for a premium product? I suspect that Apple might already be reaching the vast majority of these people. so if Apple wants to climb they may need to sacrifice their profits as other handset OEMS.However, Apple in Apple, they could be happy to be confined to a relatively small but lucrative market.
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This entry was published on Wednesday, September 22, 2010 at 12: 50 pm and is filed under Mobile, iPhone, iPad. you can follow any responses to this entry through the RSS 2.0 feed. both comments and pings are currently closed.
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