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Would they really raise prices though? They have $800 billion. They're still the 3rd largest company on the planet. They charge $1000 for their flagship. They
by djsumdog 7y ago
Would they really raise prices though? They have $800 billion. They're still the 3rd largest company on the planet. They charge $1000 for their flagship. They could probably easily eat that cost, still generate profit (although less profit) on the hardware and still spin that to make their shareholders happy.
Their phones are already at a premium and there is a diminishing return on customers if they keep hiking prices.
- mruts 7y agoGrowth of Iphone sales has stagnated, making Wall St more than a little upset. I suspect this is why we are seeing more investment in the Mac Pro, the Ipad, and OSX after being ignored for so long. I doubt Apple would be willing to lower their profit margins in such an environment. Apple’s P/E is already well below the S&P 500 (16 vs 21) and I don’t think they want to slip into value territory any time soon.
- solarkraft 7y ago> although less profit You mentioned the problem. Maybe they could eat a few % with some spin, but I'm not sure shareholders would be okay with much more.
- djsumdog 7y agoThis is what I don't get. That's insane. You cannot have infinite growth. At some point, sales will drop. A growing number of people want to fix rather than replace and consume. How does our society change the goal posts, where increased sales and profits are no longer an end goal? They can't be forever. There isn't room for the 4th largest company to grow larger. It'll just be perpetually switching places with Microsoft, Amazon and Alphabet.