I take it that you didn't go to business school.
Anywhoo, the teardown is production cost only. Not that Apple doesn't take a healthy margin, but many costs are not included in the teardown number, like the R&D to design the phone, marketing and advertising, distribution, support, etc.
Yes, but those are all considered administration and sales cost. The fact is the Gross margin is exceptionally high to cover their exceptionally high marketing costs. Yes marketing that is really how Apple did it not technology. Sorry tried it hated it, actually tried all the OS bb, Symbian, iOS but for me none beat Android interface. everyone talks about how apple improved their user experience sorry but the only thing they I can see is how apple fans are brainwashed by the marketing.
Especially with the product placement in every movie and TV show that is a big hit. it's called product association, you enjoyed the movie and the main characters all used apple iPhone or MacBook, so you need one now. Marketing is where Apple truly excelled over all the competition.
There is a perception among the foolish who believes the more expensive the item the better it is. Or worse "look at me, I can afford to buy this really expensive (but inferior ) phone and I am cool " and it make me look like I got money but don't worry that I don't have much else....
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