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Do iPhone 4/4S sales actually result in significantly lower profits for Apple? Those devices are sold at $200 off or $100 off the price of an iPhone 5, and I wo
by sandipc 13y ago
Do iPhone 4/4S sales actually result in significantly lower profits for Apple? Those devices are sold at $200 off or $100 off the price of an iPhone 5, and I would imagine the cost of manufacturing the older devices must have dropped significantly by now. (the iPhone 4 is going on 3 years old at this point!)
Also, one would expect a drop in sales of the '4S' (or '3GS') model when the "completely redesigned" iPhone 5 (or iPhone 4) is announced, relative to sales of the iPhone 4 when the 4S was released, or sales of the iPhone 3G when the 3GS was released. The release of the iPhone 5 makes the 4S look especially old, while the release of the 4S didn't really do that for the 4.
- MichaelApproved 13y ago"Do iPhone 4/4S sales actually result in significantly lower profits for Apple?" Not lower profits, lower profit margins. Edit: a really basic example that shows the difference in profit and profit margin is the calculation below. (Profit Margins) X (Revenue) = Profits.
- asdfdsa1234 13y agoCheck your math. If Apple made $100 on both a $400 item and an $800 item, the profit margin on the cheaper item would be twice that on the more expensive item.
- MichaelApproved 13y agoThere's nothing wrong with my math. It's still profit margin (25%) times revenue ($400) equals profit ($100). You're confusing a different concept with what I'm writing about. 25% x $400 = $100