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More competitive pricing would reduce margins. Apple has chosen to pursue high margins and high profits rather than market share. That's how it accumulated roug
by scholia 11y ago
More competitive pricing would reduce margins. Apple has chosen to pursue high margins and high profits rather than market share. That's how it accumulated roughly $200 billion in cash.
- Aelinsaar 11y agoExactly. Does that leave them with the flexibility to fundamentally change their business model to narrower margins?
- scholia 11y agoIn theory, yes, but Apple sells premium products at premium prices and many people actually like paying more. There's inevitably a show-off element to it, but I think there's psychological research to show that people appreciate products more when they pay more for them. (But I can't find any evidence from a quick google....)