Could rising iPod sales hurt Apple's margins? [Archive]

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MacBytes

Oct 21, 2005, 03:28 PM

jholzner

Oct 21, 2005, 03:34 PM

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Category: Opinion/Interviews
Link: Could rising iPod sales hurt Apple's margins? (http://www.macbytes.com/link.php?sid=20051021152854)

Posted on MacBytes.com (http://www.macbytes.com)
Approved by Mudbug

I just read that the gross margins on the new iPod are around 50%. On top of that they compared sequential quarters instead of year over year which I believe was up. Plus, Mac sales are also on the rise and their software business keeps growing which offers higher margins. The only thing I really see hurting their gross margins is the iTMS which they get maybe a nickle from each $.99 song sold.

shamino

Oct 21, 2005, 05:35 PM

I wonder why anybody pays attention to market analysists.

They're the only people who could ever claim that record sales better than all your competitors combined could somehow be a bad thing.

If Apple secured 100% of the market and ran everybody else out of the music player industry, they'd probably claim that it's proof of some impending bankrupcy.

dontmatter

Oct 22, 2005, 03:03 AM

hey now, don't be so quick to hate.

that said... dudes, if mac revenue stays the same, with the same margins (or as the case actually is, grows, with growing margins) and another buisness is added in with lower margins, but still a hell of a lot of money being made... HELL of a lot... where is there a problem? you've still got those high profits from the mac, you just got another company to invest in for free, though, and they're doing enormous volume at not shabby profits in the least, either.

the purpose of this is that they can kind of back it up, and it runs exactly opposite to the theme on a hot topic (ipod is apple's failure vs. Success) and so increases readership. But at a lower profit margin? ;-)