profit margins

How will Google's attempt to devalue hardware hurt Apple?

With Google’s recent release of the updated Nexus 7 tablet at $229, a lot of comparisons have been made between it and other low priced tablets on the market. It sure seems like Google wants to put pressure on vendors to offer solid specs with affordable price tags for consumers. After all, this helps sell more devices, and that increases the potential market for Google services, which is where the search giant makes its profit. This isn't dissimilar to how the race-to-the-bottom in App Store pricing has commoditized software, which benefits Apple's hardware-centric revenue model. But it does prompt the question, will it force down prices, or catalyze a price war, such that nobody really makes any money on hardware? And if so, what will become of Apple's business model?

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Apple makes twice the profit margins on U.S. iPhone sales as it does iPad

It appears that Apple is making huge profit margins on United States iPhone sales according to figures revealed in a court filing yesterday. Apple never reveals its profit margins on any of its products individually, for obvious reasons, so this revelation spotted by Reuters makes interesting reading.

Apple Inc earned gross margins of 49 to 58 percent on its U.S. iPhone sales between April 2010 and the end of March 2012.

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