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Once Apple can put the tech that would justify a jump from 4 to 5 and retain their (50% of ASP!) margin, they will. Idly, I wonder if they're getting a suffici
by jfb 15y ago
Once Apple can put the tech that would justify a jump from 4 to 5 and retain their (50% of ASP!) margin, they will.
Idly, I wonder if they're getting a sufficient cut from the carriers to make the 3GS at no cost profitable, or if rather this is what they mean to do with their cash hoard: chase market share AND increase profitability.
DISCLAIMER: I used to work for Apple. I have no specific knowledge about the phone.
- djloche 15y agoThe prices you saw are the carrier subsidized prices. The carriers buy the phones from apple and then subsidize the cost, and try to make a profit over the length of the contract. The presentation was a little bit sloppy, because previous presentations would have footnoted that these were with a new 2 year contract prices, not "we're selling these phones at these prices".
- jfb 15y agoI understand that part. I'm just amazed that the demand for the 3GS is sufficient, and AT&T desperate enough, for Apple to retain the tooling to build them.