01-16-2013, 04:34 AM
space-time wrote:
They figured out where the maximum profit curve is.
Write a book and sell for $1000, very few people will buy, you won't get rich. Sell the book for $2 which is just slightly more than what it costs you to print it, you sell a lot of books but again you don't get rich.
Now sell the book for $29.95, about 1 million people buy it and you are rich.
Apple does exactly the same thing IMHO.
But to continue your analogy, what if someone else begins selling a comparable (at least in enough people's minds) book for $19.95? So now your market share decreases, your net profits go down, and Wall Street gets nervous so your stock price drops. I'm not suggesting that Apple reduce the quality of their products; I wonder if they should reduce their profit margins a bit in order to stay on top. What good is all their money in the bank doing them?