Good assessment.
Apple, in large part, is a luxury brand. Their biggest and most important advertisement is their users - people who want and can afford a glamorous, high end lifestyle, and their acolytes. So these are the people Apple caters to. If your phone is more than a year or two out of date, you are no longer a customer who functions to represent the luxury Apple brand - you are just a follower, who contributes insignificantly to the company’s revenue stream. So keeping parts on hand to repair your phone, and employees trained to do the repair, is money down the drain.
seeaya@lemmy.world 3 weeks ago
Apple’s actually somewhat of an exception here. They actually make most of their profit from hardware, not services. In the first half of this year, Apple has made $167 billion in product sales, and $53 billion in services sales. Their cost of sales for products was $103 billion for products, and $13 billion for services. That gives $64 billion in profit from products and $40 billion in profit from services. So about 62% of Apple’s profit comes from product sales.
Teardown reports of iPhones indicate that an iPhone 15 costs $423 to make but costs $799, giving a profit margin of about 47%. This doesn’t account for shipping though, so the actual margin will be a bit lower.
Apple profits source Teardown source
otacon239@lemmy.world 3 weeks ago
I stand corrected. You learn something new every day.