- 01-18-2007, 07:05 PM #2
- 01-18-2007, 07:24 PM #3
- 01-18-2007, 07:32 PM #4
Since they arent making any money on their Macs, apple is looking for a cash cow.
if they can sell these for 50% margin, they will continue to do so.
the price will drop if it doesnt sell and when/if they come out with a newer model (But how do you improve on perfection?)
- 01-18-2007, 07:40 PM #5
They are making money on the Mac. 28% growth in fact.
- 01-18-2007, 07:56 PM #6
- 01-18-2007, 10:46 PM #7
Yup, 1.6 Millions Mac in a quarter is no money. Yup record $7.1 billion in a quarter, must be those stupid macs. Yup, something like 28% profit margin on those stupid Macs, no money there.
Really, what a ridiculous comment. If you really hate Apple so much why spend time in an iPhone forum?
- 01-19-2007, 12:25 AM #8
- 01-19-2007, 12:43 AM #9
- 01-19-2007, 12:46 AM #10
The Mac has seen tremendous growth in the last year. 28% last quarter.
Even so, they posted a billion dollar profit. I would hardly say they "need" a cash cow. Which was my main point.
- 01-19-2007, 02:24 AM #11
- 01-19-2007, 02:34 AM #12
- 01-19-2007, 04:03 AM #13
- 01-19-2007, 04:22 AM #14
- 01-19-2007, 07:13 AM #15
bile? holy moly that's funny. one sided? ha. i own a wm Treo, i have owned palm os treos. i think they both suck, but i simply prefer wm5 over the other.
- 01-19-2007, 09:51 AM #16
Apple does not release profit margins at the product level, so checking their SEC filings or calling the Treasurer's office will likely yield nothing.
If you're not interested in this matter, you don't have to participate. But the profit margins on Apple's existing products are quite relevant to the thread and in determining the likelihood that Apple will reduce prices on the iPhone. The article's reasoning is based solely on the analysis that says the manufacturing costs are about half the retail price. It ignores R&D, marketing, distribution, and sales, which the company can't ignore.
- 01-19-2007, 11:00 AM #17
Keep in mind that the cost of the iPhone is not simply the hardware component cost. It must include the assembly cost. Each copy must also bear its pro-rata share of the software cost, where, incidentally, both the cost and value are. As Josh said on West Wing, "The second pill cost four cents but the first one $400M."
I will be surprised if the last iPhone mod 1.0 does not sell at the same MSRP as the first. What one can expect is that the function will go up, mostly software, and new cheaper models will follow. Look at the price history of the iPod.
- 01-19-2007, 11:29 AM #18
- 01-19-2007, 11:56 AM #19
this, the growth rate on Mac shipments was 28%, the average gross margin for the company was 31%, the Mac gross margin was less than that, and they don't release product line margin figures. If you say that Mac gross margins were 28% in the past, I'll take your word for it.
- 01-20-2007, 05:48 PM #20
Here is a source. I am guessing you can also find this on iSuppli as well. I didn't look around for it yet.
I was off a little by saying 50%. It is estimated at 44%. Which only increases since Apple doesn't have dynamic pricing like Dell and the other guys do. So their margin only increases over time if they use the same components.
iPod is the key naturally. They sell more of them. The Mac doesn't sell as many iPods.
Originally Posted by macrumors site
Lets look at it this way. 26mil iPods at $200 (average cost) = 4.2 billion dollars.
1.6mil Macs at $1500 = 2.4 bil.
I'll let you take whatever percentages off of those, the iPod still rakes in 2x as much as the Mac. But they are clearly still making money on those Macs, with margins at close to 50%, and raising, again, because Apple does not shift prices often during a product cycle.
- 01-20-2007, 10:20 PM #21
- 01-22-2007, 11:12 AM #22