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Why would they bother making a device with presumably low margins? That doesn’t seem like their MO.
by cycrutchfield 9y ago
Why would they bother making a device with presumably low margins? That doesn’t seem like their MO.
- 40acres 9y agoApple is squeezing as much as they can get out of their existing user base. Look at home pod, the watch, and apple music -- all great services that basically need an iPhone to work. I could see them adding more services to compliment the iPhone but I'm not sure how much more they can get from their existing users. Android dominates by market share and eventually I can see Apple trying to shorten the gap.. I guess it really depends on how many more services they can provide around the iPhone.
- seanmcdirmid 9y agoApple has around 80% of the profits in the smart phone industry already. iPhone doesn't drive service monetization, rather services drive iPhone monetization, so unlike Google, Apple can't win with cheaper phones.