Apple's profitability

John Allan jallan at freeuk.com
Fri Mar 14 03:04:59 PST 2003


The problem is, whereas Apple's share is 35% or what, the dealer only gets 3
to 5%.

Think about this, it is incredible! The shop that sells you that new Mac is
only making 50 or 70 bucks on it.

Every wondered why they really are not interested in all your questions /
after care problems / always try and force add ons and insurance policies in
the package !?!

In no other industry, short of high end banking, oil and art dealing could
such small margins be sustained. It is mad for resellers, worse for small
independents.

I cant see how purchaseprogram.com can do it with Apples, short of selling
Grey Imports. In some markets this would work, such as over priced Europe.
In the Wintel world it would work as manufacturers regularly dump last week
models but with Apple they don¹t even do that significantly, just offer
special deals before they are about to realise a better model for cheaper. [
make a mental note to dodge those Golden Cupertino Carrots ... ]


Even bulk buy wont give that much margin as Apple are closing down on that
too.

Is it a charity of do they be they make their money re-investing all the
deposits / cash they hold like Paypal?

A free 2c ...

john


> Anyways the article talked about Apple's profitablity vs. their revenue.
> 
> Apparently at the best of times they maintain a 35% margin on the highend
> G4s.
> 
> That said, there is no way Marbella is going to get the prices they list.
> 
> Ed



More information about the Cube mailing list