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I agree. There is a great lesson to understand here about pricing and profiting from a premium product offering that customers enjoy.

• netcan 18y ago
  Definitely. Another thing to note is that apple haven't really done any black magic marketing (though they have done that too) to get their margins up. They simply differentiated effectively. Noone else has in that market so it seems like voodoo. But in most markets (batteries, soap, jeans, cars) you have differentiated brands that command different premiums. A mac is not comparable to a windows pc (in the minds of many consumers at least). So the get to raise their margins. Dell including XYZ = Toshiba including XYZ. The specs are the value, pretty much exactly. So, like petrol stations, they don't have margins. Another thing to note is that most price comparisons compare based on seller costs. Because in a competitive market that is what market prices reflect. The value to a consumer is necessarily higher (or they wouldn't buy) and it can be much higher. If the cost of production is $1000and & the value to the consumer is $10000, the machine will be priced somewhere between those two. The more competitive (less differentiated) the market is, the closer to $1000.