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I just gave you a link that shows that the costs of warehousing and shipping are much closer to £20 than £200. The cost for their retail stores may have decreas
by lorenzhs 10y ago
I just gave you a link that shows that the costs of warehousing and shipping are much closer to £20 than £200. The cost for their retail stores may have decreased, but even then it's certainly not £200 per device.
- blowski 10y agoI don't work for Apple, so I have no idea of their costs. I did however work for a medium-sized company with a similar business model (design in US, build in China, drop-ship worldwide). While they were nowhere near the size of Apple (total market cap was about $2 billion) their costs of operating in the UK were certainly a lot higher than 1% per unit - they were typically around 20%. I realise that Apple has astronomically large economies of scale, but they also do a lot of UK advertising and have a lot of physical stores. A lot of the costs for the firm I was working for were on things like customer service, wastage (as in fixing and replacing broken units), rates (UK local government tax on commercial properties), etc.