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How were they calculating operating margins? Lots of Apple bashers love screaming about how Apple has huge margins because the cult will buy any old iPoo, yada
by Stormbringer 15y ago
How were they calculating operating margins?
Lots of Apple bashers love screaming about how Apple has huge margins because the cult will buy any old iPoo, yada yada reality distortion field.
But on the Apple financials call they pretty consistently come in just under 30% on their product margins, and these guys (asymco) have them peaking at almost 50%.
Is this based on some backyard analyst's estimated component cost breakdown? In which case it is a worthless guesstimate, or is it based on official numbers?
- batiudrami 15y agoIt wouldn't surprise me though. In Australia I can get a Nexus S for AU$29 a month, while the absolute cheapest I can get an iPhone 4 is AU$47/mo (same plan/inclusions, both over 24 months), with a total cost difference of AU$432. Internally, they're essentially the same phone. The iPhone is a better built phone to be sure, but I find it hard to believe that it costs that kind of difference. But hey, people still buy them so I can't see the pricing structure changing for the moment.
- ikono 15y agoI think the number you're referring to is Apple's gross margin where as this number being quoted by asymco is iPhone gross margin.