Can you guess what Apple’s profit margin is on an iPhone?
The infographic, below, tears down the entire iPhone by each component.
Are you surprised by Apple’s slice?
I think this can be a tad deceiving.
Although this is Apple’s “profit,” this doesn’t take into considering research and development. I’ve always thought Apple customers are not necessarily paying a higher price for laptops, smartphones and tablets, as much as they are investing into the innovation of their next Apple purchase.
Is it the, “Cult of Mac?” Or is it really the, “Investment in Apple?”
[via BitRebels]
Christoph Fischer says
I’d definitely vote for the “Cult of Mac” option. For years now, I’ve watched colleagues and friends join the Apple hype, investing twice or more the money for a product that could do basically the same things my generic-branded appliances could do. Of course, the Apple ones were shiny and polished — and came with vendor lock-in for the next purchase. In a setting where church workers are not paid very high salaries, I’m not sure that is a responsible way of handling your money… Yes, I’ve seen some families having to cut back in some area or other in order to be able to pay Daddy’s new glossy Apple toy.
I know I’m in a minority with this view. Apple’s PR department made sure of that. So, bring on the flames…
jmgreenhill says
I agree with you. There is a dark side to how apple does business that is usually overlooked. To be honest it’s in every company especially consumer electronics. But the fact that they continually set records on earnings with no shareholder dividends and limited philanthropic work (although I have heard of more recently) makes it hard to buy into the Apple investment idea. Add in the closed system and anti competitive practices and I’m really turned off
Eric Dye says
Good points.
Eric Dye says
How do you feel about this, then? 😉