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If it were actually cheap and sold at a price with very little to no profit and was simply used as a tool by Apple to gain market share, it could have worked ou

If it were actually cheap and sold at a price with very little to no profit and was simply used as a tool by Apple to gain market share, it could have worked out very well. But no, they thought they could resell old components with little added extra but an increased version number to the masses. The reality distortion field has its limits.

simonh 13y ago
iPhone sales are stronger than ever before. They're selling the high margin, high end models hand over fist. And the answer to solving this terrible predicament they find themselves in is to sell the lower end phones at cost?
- pavlov 13y ago
  Increasing margins and profits are not a predictor of success in this business: ''We are experiencing marked improvements in our gross margins as a result of lower component costs and strong sales of the computers we introduced a year ago,'' John Sculley, Apple's chairman and chief executive, said in a statement. ''At the same time, we continue to focus on managing the growth in our operating expenses.'' http://www.nytimes.com/1990/04/19/business/company-earnings-apple-s-profits-rebound-on-strong-foreign-sales.html http://www.nytimes.com/1990/04/19/business/company-earnings-...
- adventured 13y ago
  Apple's margins are falling, and will continue to for years to come as their elaborate subsidy ride comes to an end. Carriers will not be willing to bend over endlessly for a company with ever shrinking market share.
madeofpalk 13y ago
> very little to no profit and was simply used as a tool by Apple to gain market share, it could have worked out very well Not not sure Apple is interested in this 'race-to-the-bottom' contest.
- pearjuice 13y ago
  It is not a race-to-the-bottom contest but expanding your market. Note that Apple is not only about iPhones. When they have a growing iPhone-user-base, their iTunes division and iCloud division will grow with it.
  - kybernetyk 13y ago
    > Note that Apple is not only about iPhones. Actually it is. Well actually it is about hardware sales. iTunes is contributing only ~5% to the revenue while iPhone sales alone are over 50%. So giving hardware away for cheap and making it up in volume won't really work. http://www.macrumors.com/2012/01/24/apple-reports-best-quarter-ever-in-q1-2012-13-06-billion-profit-on-46-33-billion-in-revenue/ http://www.macrumors.com/2012/01/24/apple-reports-best-quart...

simonh 13y ago

iPhone sales are stronger than ever before. They're selling the high margin, high end models hand over fist. And the answer to solving this terrible predicament they find themselves in is to sell the lower end phones at cost?

pavlov 13y ago
Increasing margins and profits are not a predictor of success in this business: ''We are experiencing marked improvements in our gross margins as a result of lower component costs and strong sales of the computers we introduced a year ago,'' John Sculley, Apple's chairman and chief executive, said in a statement. ''At the same time, we continue to focus on managing the growth in our operating expenses.'' http://www.nytimes.com/1990/04/19/business/company-earnings-apple-s-profits-rebound-on-strong-foreign-sales.html http://www.nytimes.com/1990/04/19/business/company-earnings-...
adventured 13y ago
Apple's margins are falling, and will continue to for years to come as their elaborate subsidy ride comes to an end. Carriers will not be willing to bend over endlessly for a company with ever shrinking market share.

madeofpalk 13y ago

> very little to no profit and was simply used as a tool by Apple to gain market share, it could have worked out very well Not not sure Apple is interested in this 'race-to-the-bottom' contest.

pearjuice 13y ago
It is not a race-to-the-bottom contest but expanding your market. Note that Apple is not only about iPhones. When they have a growing iPhone-user-base, their iTunes division and iCloud division will grow with it.
- kybernetyk 13y ago
  > Note that Apple is not only about iPhones. Actually it is. Well actually it is about hardware sales. iTunes is contributing only ~5% to the revenue while iPhone sales alone are over 50%. So giving hardware away for cheap and making it up in volume won't really work. http://www.macrumors.com/2012/01/24/apple-reports-best-quarter-ever-in-q1-2012-13-06-billion-profit-on-46-33-billion-in-revenue/ http://www.macrumors.com/2012/01/24/apple-reports-best-quart...