3 ms·
Is it a scandal to sell a cup of coffee for $3? It's water and coffee grounds. Is it a scandal that the large size is $1 more, but doesn't cost an extra $1 to p
by programminggeek 13y ago
Is it a scandal to sell a cup of coffee for $3? It's water and coffee grounds. Is it a scandal that the large size is $1 more, but doesn't cost an extra $1 to provide the extra liquid?
Apple is a business that sells products to make money. Not every business is Wal-Mart and Dell with razor thin margins.
Apple nearly killed itself by destroying its margins and cash in the 90's and only survived by cutting all the unprofitable businesses and focusing on where they could operate profitably. Apple has since spent nearly two decades building up their cash reserves and only selling products that have something like a 30+% margin on them (which is similar to software margins FWIW).
I think it's smart and a lot of people could learn from Apple's obvious business acumen. Get good at selling your product with enough profit margin that you can sustain a business doing it. Sell to the people who are willing to buy at the price you are willing to sell, and ignore the unprofitable potential customers and ignore the pundits.