> I thought that Apple sold iPhones at a wholesale discount to retailers, so shouldn't they be able to make a profit at even lower prices? Competition doesn't a

> I thought that Apple sold iPhones at a wholesale discount to retailers, so shouldn't they be able to make a profit at even lower prices? Competition doesn't appear to have brought prices down to marginal cost here. I think Apple restricts the price their products can be sold at. If you sell at lower prices then you won't sell them anymore. Often agreements like this restrict the advertised price which is why you see things where you must add it to your cart to see the price [1]. [1] http://www.virginmobileusa.com/shop/cell-phones/iphone-phones/ http://www.virginmobileusa.com/shop/cell-phones/iphone-phone...