Apple thrives by going upscale: It is Economics 101
Wednesday September 26, 2018. 11:47 PM , from Mac Daily News
“It is Economics 101. The best business model involves strong sales and high profit margins,” Jon Markman writes for Forbes. “Sadly, the combination almost never happens.”
“Apple almost got there last quarter. The Cupertino, Calif., iPhone-maker reported third-quarter financial results that show its plan to remake itself as a luxury brand is paying off. Newer models will push the brand further upmarket,” Markman writes. “Investors should cheer and sit back. This could last a while.”
“It is a great luxury business, championed by iPhone, and limited only by how much customers are willing to pay for Apple products and services,” Markman writes. “In July, Apple began shipping its latest MacBook Pro laptop. The super thin aluminum unibody is packed with the latest Intel core i9 processor, Apple’s T2 chip for Touch ID, disk encryption, audio and video processing, and digital assistant functionality. Fully loaded, the price tag is $6,699. Apple is selling a laptop at a 40% premium to a comparable Dell. Let that sink in.”
MacDailyNews Take: Dell can’t run macOS and their products are crap, as if designed by blind arthritic apes. Dell ought to pay their sufferers for the pain and suffering they’ll have to endure. Microsoft should subsidize them to cover their loathsome part of the deal.
Markman writes, “By all accounts, that product has real issues with the keyboard and heat throttling, a process that kills computing power because its nifty new microprocessor gets hot enough to cook scrambled eggs.”
MacDailyNews Take: By all accounts except for the true ones, that is. The keyboard is subjective. Many people absolutely love it.
Markman writes, “Apple is building a business in the mold of big European luxury brands, only bigger.”
Read more in the full article here.
MacDailyNews Take: Newsflash: Apple sells premium products at premium prices to premium customers. – MacDailyNews, October 23, 2012
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