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Also, profit formulas aren't that simple. You have consider Apple's costs vs their revenue for each phone, and also their contract terms with providers vs other
by hellofunk 11y ago
Also, profit formulas aren't that simple. You have consider Apple's costs vs their revenue for each phone, and also their contract terms with providers vs other phones. I don't know the details. But perhaps Apple earns more for their phone contracts even if consumers pay the same. One thing we do know is that Apple leads the world in an extremely well-oiled production pipeline and network of suppliers that no doubt also helps keep their costs down and thus their profits high. I doubt Android manufacturers are operating at that same margin.
- josefresco 11y agoGood points. I would imagine that Apple has a better supply chain, and more aggressive/favorable terms with each provider than competing smartphone makers. I'm not sure it accounts for the entire difference. I wonder if there's a middle area or marketplace where people pay disproportionally more on average which helps this figure (92%) climb so high.
- noir_lord 11y ago> But perhaps Apple earns more for their phone contracts even if consumers pay the same. Considering the demand for iPhones a few years ago I'd be amazed if this wasn't the case, I suspect the carriers also pay a chunk of the advertising if it's an exclusive deal.