Friday, September 13, 2013
How Apple Identifies Inelastic Customers
I found this image on the interwebs and so can not verify its accuracy. But if it is correct then Apple 5s customers choosing 32GB over 16GB are paying $120 more for a product that costs ~$8 more to make. Those choosing 64GB over 32GB are paying $130 more for a product that costs ~$22 more to make. (Costs may differ due to access speed, etc., but not much.) Apple can still earn pretty hefty margins.