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I'm surprised that the author didn't realize that Apple could generate revenues of $1 billion for every 100 million Dock Connector Adapters it sells for $10 ...
by huxley 14y ago
I'm surprised that the author didn't realize that Apple could generate revenues of $1 billion for every 100 million Dock Connector Adapters it sells for $10 ...
- Steko 14y agoThe ironic thing is the math is probably off. I'd guess at least half of the adapters will sell at wal-mart, target, amazon, etc. and I'd guess the wholesale cost is around six fifty. Exercise left to the reader.
- delinka 14y agoIf it's Apple-branded, the wholesale cost isn't that low. I'd expect more like $8.50. I tried the Apple reseller thing a number of years ago and you could buy systems cheaper as a student than as a reseller. You'll notice that the Walmart price on Apple items is barely under what you pay Apple directly. Apple likes to keep retailer margins very tight.
- Steko 14y agoI could totally be wrong but my understanding was that the markup on most Apple products was ~15% (as you say) but the markup on Apple's accessories (headphones, itunes cards) was nearly double that. Even in that case though, you're right that six fifty would be low-ish.