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Why would Apple destroy their amazing profit margins by buying a company that has razor thin margins at best? There is no chance that Apple will buy Square, th
by steven2012 13y ago
Why would Apple destroy their amazing profit margins by buying a company that has razor thin margins at best? There is no chance that Apple will buy Square, they are much more disciplined in terms of watching their financial numbers than that.
- ianhawes 13y agoApple has amazing profit margins in their hardware business. Don't forget that they run iTunes and the App Store on razor thin margins and have made that work better than anyone else.
- steven2012 13y agoRazor thin? You're terribly mistaken. They take 30% on iTunes and the App Store. Payments company take BASIS POINTS. If you can make 100 basis points, you're doing better than Square or Stripe, maybe even combined.
- ianhawes 13y agoI'm not mistaken at all. Outside analysis has suggested that iTunes & App Store aren't all that profitable at all[1][2] because they still have to meet the minimum transactions for processing credit & debit cards, which includes a flat fee of up to 25 cents. [1] http://www.quora.com/Payment-Processing/How-does-Apple-do-payments-so-well?share=1 http://www.quora.com/Payment-Processing/How-does-Apple-do-pa... [2] http://bits.blogs.nytimes.com/2008/08/11/steve-jobs-tries-to-downplay-the-itunes-stores-profit/ http://bits.blogs.nytimes.com/2008/08/11/steve-jobs-tries-to...