4 ms·
"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 sh
by MichaelApproved 14y 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 14y 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 14y 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