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High product margins are usually signs of monopolistic powers used, otherwise profits would slowly move towards cost as time goes forward. This has not been th
by Jommi 6y ago
High product margins are usually signs of monopolistic powers used, otherwise profits would slowly move towards cost as time goes forward.
This has not been the case with Apple.
- CamelCaseName 6y agoThis is only true of products with substitutes. The extreme example being commodities. Pretty much any luxury brand has high product margins, but certainly not for lack of competition.
- Jommi 6y agoExactly, and luxury brands are characterized by their electivity. While and appstore has formed to become something close to a virtual public good.
- lancepioch 6y agoGoogle has basically the same profit margins with their Pixel phones compared to Apple and Android has 85% market share. Yeah you can sideload any app you want on your Android, but I've heard of no even half serious 3rd party competitors to the Play store. Not sure what the point is here.
- askafriend 6y agoWhat do you think of coffee?
- Jommi 6y agoThat I can make it myself at home and it comes to around 10cents? Or get it from a cafe, and value my time at around 2-3€ per cup