... the key point is that if you sell 40m iPhone Nanos (and presume for the moment that you actually can) at $250 at a 20% gross margin, that generates $2bn a quarter in gross profit for a company that reported almost $15bn gross profit last quarter. That is, a blockbuster iPhone that doubles Apples market share adds just 15% to gross profit, before allowing for the inevitable cannibalisation of the high-end product. Factor that in and you probably only add 5-10% ... [but], such a phone would sell, and sell well, and take a big chunk of the most valuable Android customers.
Posted on: Mon, 11 Aug 2014 08:52:24 +0000
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