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This is completely incorrect. Apple will feel the hurt if they lose a market with 17 million people. They won’t go out of business, but whoever was adjacent to

by bogwog 5y ago

This is completely incorrect. Apple will feel the hurt if they lose a market with 17 million people. They won’t go out of business, but whoever was adjacent to that decision will be losing their job.

scarface74 5y ago
Out of those 17 million (which when Apple was still giving out number of iPhones sold was about a quarter’s worth of sales in a low quarter)… - not all are buying iPhones - roughly 3 million of the population are under 15.
- bogwog 5y ago
  That doesn’t make a difference. The long term growth opportunities in a country are huge, and for a company the size Apple, any opportunity for growth is extremely valuable.
  - scarface74 5y ago
    If Apple sold a $1500 maxed out iPhone Pro to everyone above the age of 15 in the Netherlands, that a little over $2 billion in revenue - or 1/8th the amount that Google reportedly pays Apple every year to be the default search engine on Apple devices. Growth at all costs regardless of margin is what money losing unicorns do. Not what companies do that are worth 3 trillion dollars.
    - bogwog 5y ago
      The cost of losing an entire country is more than the hypothetical revenue of a year’s sales. Even ignoring the potential lifetime value of an Apple customer, that’s an entire country of children, engineers, businesses, influencers, etc who are not exposed to your products/brand. And Apple is not a money losing unicorn. They don’t sell anything at a loss, and they wouldn’t be selling at a loss even if they made a good faith effort to comply with these regulations. The question is what their margins look like: reasonable, or obscene? Apple is fighting to maintain the latter. Pulling out of the country would make them less money than complying.
      - scarface74 5y ago
        Apple has a revenue of $365 billion last year. No matter how you spin it - and I was being wildly optimistic saying every adult is going to buy the most expensive iPhone - Netherlands will never be more than 1% of Apple’s total revenue. An “entire” country that is less than half the population of Texas wouldn’t even be considered “material”.
        davidjytang 5y ago
        It's called "leaving money on the table" and Apple hates that.

by bogwog 5y ago

scarface74 5y ago

Out of those 17 million (which when Apple was still giving out number of iPhones sold was about a quarter’s worth of sales in a low quarter)… - not all are buying iPhones - roughly 3 million of the population are under 15.

bogwog 5y ago
That doesn’t make a difference. The long term growth opportunities in a country are huge, and for a company the size Apple, any opportunity for growth is extremely valuable.
- scarface74 5y ago
  If Apple sold a $1500 maxed out iPhone Pro to everyone above the age of 15 in the Netherlands, that a little over $2 billion in revenue - or 1/8th the amount that Google reportedly pays Apple every year to be the default search engine on Apple devices. Growth at all costs regardless of margin is what money losing unicorns do. Not what companies do that are worth 3 trillion dollars.
  - bogwog 5y ago
    The cost of losing an entire country is more than the hypothetical revenue of a year’s sales. Even ignoring the potential lifetime value of an Apple customer, that’s an entire country of children, engineers, businesses, influencers, etc who are not exposed to your products/brand. And Apple is not a money losing unicorn. They don’t sell anything at a loss, and they wouldn’t be selling at a loss even if they made a good faith effort to comply with these regulations. The question is what their margins look like: reasonable, or obscene? Apple is fighting to maintain the latter. Pulling out of the country would make them less money than complying.
    - scarface74 5y ago
      Apple has a revenue of $365 billion last year. No matter how you spin it - and I was being wildly optimistic saying every adult is going to buy the most expensive iPhone - Netherlands will never be more than 1% of Apple’s total revenue. An “entire” country that is less than half the population of Texas wouldn’t even be considered “material”.
      - davidjytang 5y ago
        It's called "leaving money on the table" and Apple hates that.