3 ms·
I think you misunderstand. A company will just charge whatever price maximises profit, there's no reason to "maintain margin" or anything like that. If they tho
by Y_Y 5y ago
I think you misunderstand. A company will just charge whatever price maximises profit, there's no reason to "maintain margin" or anything like that. If they thought they could increase the price today and get a net gain after demand fell then they'd absolutely do it.
- judge2020 5y agoSure, but more people are happy paying after the fact (in the case of oculus, via ads and 30% of sales going to FB) that I’m highly doubtful that they would make the same overall profit if they did sell it for the actual price they want without getting any money on the backend, especially if that backend money never stops even 10 years after the initial purchase.
- mthoms 5y agoThey aren’t somehow entitled to make “the same overall profit”. You seem to think they are. It’s additional revenue. The phone itself is already hugely profitable. In fact, the original business model didn’t include App Store revenue at all, and Apple were perfectly happy with that.