4 ms·

This is almost nothing like the very low margin auto business. Apple makes ~35-40% margins on the devices at time of sale, and make additional profits on servic

• est31 6y ago
  What if they want to change that and make massive profits on repairs as well? You can't do that if you have competitors undercutting you. Once they are gone you can charge what you want.
  • npunt 6y ago
    It's in Apple's best interest to maintain high customer satisfaction, because that's how they get repeat business. This question is in the same vein as hypothetical questions like 'what prevents Apple from violating people's privacy to sell/use their data'. The answer is always the same: pick a business model that aligns customer and company interests, and these things won't happen. Apple thinks in long term customer relationships measured in customer lifetime value, which can be 10s of thousands of dollars over decades of customer relationship. To sacrifice that for a few extra bucks on screen repair would be really dumb.
    • ClumsyPilot 6y ago
      > 10s of thousands of dollars over decades of customer relationship. To sacrifice that for a few extra bucks on screen repair would be really dumb. Have we never seen management prioritise short term gains and next quarterly report over long term profits? Think of 2008 and the Boeing disasters. Almost everyone involved knew that this will blow up one day, and yet they kept going.
      • npunt 6y ago
        You're making a general point about a specific company. Look at the history of Apple, what it says, how it acts, and how that has changed or not over the past 44 years. It's always possible to conjure up the hundreds of ways businesses can fail, but I don't think it adds anything meaningful to the issue at hand.
  • justinclift 6y ago
    > Once they are gone you can charge what you want. They appear to be well into doing that, and making solid efforts into ensuring it continues.