well...

by Diamondcards - 11/3/11 9:00 AM

In Reply to: I think the point is, by mrmacfixit Moderator

I would analyze this more through financial analysis. Apple essentially sells to retailers or distributors like BestBuy or Amazon at a reduced price in very high volume. As opposed to the 1,000USD price at 700USD cost for an est of a 300USD profit margin, Apple sells to the distributors for, let's say...850USD. You would say that this is a disadvantageous position for Apple; but, keep in mind of the saved cost on logistics, inventory, local advertising, employees, and store facilities operations. That 150USD loss in profit margin gets quite a cushion after you factor these in. Even if the contracts are through another arrangement, the final figures should add up similarly. So... Apple could be losing a slight amount off their profit margin. Let's say 100USD after 50USD of saved costs to be fair although I'm sure the margin is less. Apple ends up selling 1000USD laptops for 100USD less than to home consumers. Yet, they are giving a mere 100USD discount to customers that are buying thousands - if not tens of thousands - at a time while promoting their other products. Let's also keep in mind that most products are much more than the 1,000USD figure I quoted. Essentially, you have a perfect sales method using 3 avenues. Apple's online store in this digital age, Apple stores only placed in high volume, upper-middle class locations, AND finally distributors that pose as their primary competition that were selling PC products but are including APPLE to consumers that chose to go to Best Buy for a PC instead of an Apple... yet.... ends up possibly walking out with an Apple. There you have it, folks. Near-full assimilation of the formerly PC dominated tech world into Apple's gigantic cloud, just as Steve had dreamed.

-Park