Friday, April 27, 2012

How Much Profit and Why?

I saw yesterday Apple made $11.6B in profits from $35.2B in revenue. That is roughly about a 33% profit margin. Not bad if you can get it. A good profit for a water utility is around 12%. They sold around 30,000,000 iPhones last quarter for 1/2 of their profit. Just last year it was revealed that moving their iPhone manufacturing to China made them an extra $0.06 per phone or something like that. I can't find the number now. Let's use 0.50 per iPhone for discussion's sake. Let's see subtract $15,000,000 from $11,600,000 and you still make a boatload of money. If you round to three significant figures, the profit does not even change!!!!!! and how many American jobs has that lost? and in China the workers have to work 12-16 hour days and there have been deaths on the assembly line. For shame, Apple.

All numbers used in the were found in the newspaper or by use of the Google. What is the list price of an iPhone anyway when the margin is $167 per phone? Is list around $400 or so? and the free one you get you pay for in monthly service fees over the life of the contract.


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