Aggressively Priced iPad Still a Cash Cow for Apple

[Guest]

Court documents that included unsealed Apple documents shed some light on Apple's individual product profit margins that are typically not provided by any company.

Aggressively Priced iPad Still a Cash Cow for Apple : Read more

 

[socalboomer]

so, in a market where Apple pretty much has the monopoly and uses that monopoly to ride massive margins, they get to use the courts to enforce that monopoly. . .

Nice.

 

[jimmyjohnz]

So Apple is suing their main part supplier for 2.53 Billion when Samsung is part of the reason they get such ridiculous profit margins? What are they playing at?

 

[A Bad Day]

[citation][nom]jimmyjohnz[/nom]So Apple is suing their main part supplier for 2.53 Billion when Samsung is part of the reason they get such ridiculous profit margins? What are they playing at?[/citation]

It's quite simple, they think Samsung needs them for the supply shipments' revenue.

 

[jivdis1x]

Another reason I hate the majority of apple user. They are the one that let Apple operate the way they do. I actually likes apple product but their pricing scheme is pure robbery. That is why i don't own any of their product.

 

[back_by_demand]

[citation][nom]A Bad Day[/nom]It's quite simple, they think Samsung needs them for the supply shipments' revenue.[/citation]
Of course Samsung tablets look like Apple tablets
...
Apple tablets are made from Samsung parts - DUH!!!!

 

[reprotected]

[citation][nom]jivdis1x[/nom]Another reason I hate the majority of apple user. They are the one that let Apple operate the way they do. I actually likes apple product but their pricing scheme is pure robbery. That is why i don't own any of their product.[/citation]
Apparently the argument can't be used the same for electricity and animal cruelty.

 

[Kryan]

Excuse me, but "Aggressively Priced iPad" sounds like it's...well aggressively priced, meaning a rival to other tablets in price. But then I saw Apple-fan-boi Perry wrote this, and it all made sense. 3000 dollars would seem a fair deal for an apple product to people like him.

The only thing aggressive about apple are their lawyers.

 

[teh_chem]

Apple makes profit. Lots of it. Slow news day?

 

[dgingeri]

wow, they are really screwing over their customers. I'm glad I'm not one.

 

[beayn]

[citation][nom]otacon72[/nom]Lower the price, sell more product, make even more profit... Apple fails basic economics.[/citation]
Being the biggest tech company and competing for the top spot of biggest company by market capital might mean something other than your conclusion here.

I'm no Apple fan, but they know how to turn a profit.

 

[nanchamp]

Why wouldn't they want to keep their company profitable? The above poster is absolutely wrong. The one thing I cant stand is a company under selling their brand. You end up getting crap like dell's gateway and acer. Apple is no where near perfect, but they are better than a lot of the other options for people who do not build their own or need a good laptop.

 

[Guest]

sell at any high price they want and attract people from the top pyramid--> regular Joe see it also want the product.....created the demand and became a iconic product others want to buy....still selling at the same price.....Joe pay the price...Joe happy...Apple happy...and its economics concept works very well....

 

[tomfreak]

Sooo I guess this further prove that point that Ipad is Apple most affordable product due to the lowest margin profit. The Ipad dominance in tablet market also prove apple that by putting aggressive pricing, they can sell more + earn more. So why does Apple still wanna sell their overprice iphone and macs?

So Apple when u gonna drop ur other product price by 30-40%?

 

[aznguy0028]

[citation][nom]otacon72[/nom]Lower the price, sell more product, make even more profit... Apple fails basic economics.[/citation]
Nope, that's what you don't understand. Apple is in a position where they don't need to do that. They don't need to make profit from moving massive amounts of units due to lower price (they can already move massive sales at high prices because of their image). Lowering prices tremendously to keep in line with other tablets would actually serve to hurt Apple by ruining the perceived "prestige" image of their products that their marketing team has worked so hard to earn. Don't fix what isn't broken.

 

[southernshark]

[citation][nom]nanchamp[/nom]Why wouldn't they want to keep their company profitable? The above poster is absolutely wrong. The one thing I cant stand is a company under selling their brand. You end up getting crap like dell's gateway and acer. Apple is no where near perfect, but they are better than a lot of the other options for people who do not build their own or need a good laptop.[/citation]

So True!! Dell and Gateway define low end crap.

 

[A Bad Day]

[citation][nom]otacon72[/nom]Lower the price, sell more product, make even more profit... Apple fails basic economics.[/citation]

Why lower price if your brand loyalty/recognition is so powerful that you can load a slightly modified 4G phone onto the market at full price and still make a killing?

 

[radon_antila]

[citation][nom]otacon72[/nom]Lower the price, sell more product, make even more profit... Apple fails basic economics.[/citation]Except that Apple's products has proven to be inelastic. That is basic economics.

 

[tomfreak]

[citation][nom]A Bad Day[/nom]Why lower price if your brand loyalty/recognition is so powerful that you can load a slightly modified 4G phone onto the market at full price and still make a killing?[/citation]Cause they can make even more money?

With the amount of Apple hater these days I pretty sure a lot of them are fence sitter. I dont mind become All out Apple if their pricing is about the same as other OEM.

 

[belardo]

[citation][nom]Tomfreak[/nom]So why does Apple still wanna sell their overprice iphone and macs? So Apple when u gonna drop ur other product price by 30-40%?[/citation]
Where do you come up with this crap? iPhone4s = $200 (iPhone4 = $100) gee, same price as $200 Samsung Galaxy SIII and HTC One X. The Lumia900 is $50 because nobody is buying them at $100. SAMSUNG Galaxy Tab 2 (10.1) 16GB = $400... just like the faster iPad2.

The Mac computers are a bit on the high side, but not much more than a top end HP, Dell or Thinkpad. Apple doesn't need nor want a huge market share - they are already a huge company with only 7% of the desktop market... I'm sure they'd love to grow that to 20% or so, but not like MS.

BTW: Im not thrilled or impressed with apples law-suit happy lawyers.

 

[teh_chem]

[citation][nom]otacon72[/nom]Lower the price, sell more product, make even more profit... Apple fails basic economics.[/citation]
You fail basic business philosophies. Look up brand dilution.

 

[kartu]

Samsung's smartphone market is already twice that of Apple's.
We'll see similar picture on tablet front sooner or later, stinky legal system abuses by Apple can't stop inevitable.

 

[eddieroolz]

[citation][nom]A Bad Day[/nom]It's quite simple, they think Samsung needs them for the supply shipments' revenue.[/citation]

And that's quite true. Samsung needs Apple to maintain current profits, at least until their line of phones become recognizable enough that they can cut Apple loose.

 

[eddieroolz]

[citation][nom]back_by_demand[/nom]Of course Samsung tablets look like Apple tablets...Apple tablets are made from Samsung parts - DUH!!!![/citation]

I hope that was sarcasm, because that's a pretty poor excuse.

 

[hate machine]

[citation][nom]belardo[/nom]Where do you come up with this crap? iPhone4s = $200 (iPhone4 = $100) gee, same price as $200 Samsung Galaxy SIII and HTC One X. The Lumia900 is $50 because nobody is buying them at $100. SAMSUNG Galaxy Tab 2 (10.1) 16GB = $400... just like the faster iPad2.The Mac computers are a bit on the high side, but not much more than a top end HP, Dell or Thinkpad. Apple doesn't need nor want a huge market share - they are already a huge company with only 7% of the desktop market... I'm sure they'd love to grow that to 20% or so, but not like MS.BTW: Im not thrilled or impressed with apples law-suit happy lawyers.[/citation]

Look at non subsidized MSRP... you know the price Apple actually charges and not the carrier, then come back.