Quote:
Originally Posted by Hack&Lube
Keep in mind, Apple also makes money on their software, application, and entertainment ecosystems. Most electronics companies sell hardware at near break-even to make money off their ecosystems. Others without this ecosystem have to rely on tiny margins on their electronics products alone. Apple has both.
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Last year every 16GB wifi only tablet was selling for $499. How is it that Apple can manufacture their tablet with a 35% gross profit margin while everyone else is making their tablet just to break even? Are these other electronic companies paying that much more to the employees than Apple?