"Are markups and margins not the same thing?" 'Margin' is sometimes 'gross' and sometimes 'net'. In competitive markets, price ends up being a function of cos

"Are markups and margins not the same thing?" 'Margin' is sometimes 'gross' and sometimes 'net'. In competitive markets, price ends up being a function of cost: it's always cost + a little bit. That little bit is profit. Anyone who marks up more, gets lost sales. The fact Apple can take 30% of a software sale, which is in many cases 80% of a companies revenue, and that it's all gravy (i.e. all net), is huge. Best Buy takes 40% margin because they have underlying costs, meaning other competitors will have similar structures. Apple takes 30% because they can and that's that.