> When a company has profit margins of 24.27%, as Apple does for the last quarter, they are not competing on price. Companies that compete on price typically have profit margins down around 5% (see Dell, Walmart).
The iPad is seriously competing on price. This both elated and worried AAPL investors, who are worried about gross margin as well as sales.
So, Apple can and will compete on price in one market (iPad) while being nosebleed premium in other markets (Mac Pro).
Regarding iPhone, there are no BOGO (buy-one, get-one offers) while every other manufacturer offers those, and the Average Selling Price (ASP) is a nosebleed $600+ and hasn't come down over 3+ years... this is money that Apple makes per unit.
Apple is both luxury AND competes on price - they're incredibly flexible for such a large company.
"Regarding iPhone, there are no BOGO (buy-one, get-one offers) while every other manufacturer offers those, and the Average Selling Price (ASP) is a nosebleed $600+ and hasn't come down over 3+ years... this is money that Apple makes per unit."
The iPad is seriously competing on price. This both elated and worried AAPL investors, who are worried about gross margin as well as sales.
So, Apple can and will compete on price in one market (iPad) while being nosebleed premium in other markets (Mac Pro).
Regarding iPhone, there are no BOGO (buy-one, get-one offers) while every other manufacturer offers those, and the Average Selling Price (ASP) is a nosebleed $600+ and hasn't come down over 3+ years... this is money that Apple makes per unit.
Apple is both luxury AND competes on price - they're incredibly flexible for such a large company.