I’m not sure if you’ve missed something, or the logic isn’t there for you.
Apple
averaging 47% profit margin does
not mean the iPhone has a 47% profit margin. That’s number one.
Number two: For the sake of argument let’s assume the $1000 iPhone has a 47% profit margin. That number means:
A) cost is $530 per phone, $470 profit. (My example before covers almost this exact value, so you should see where this is going).
B) $530 * 2.45 tariff = $1,298.50
C) Selling a phone that costs Apple $1,298.50 for $1000 results in, you guessed it, a loss!
That is oversimplified, of course, but it’s not oversimplified to the tune of $300.
Other things to keep in mind:
1. Your 47% figure is *gross* profit margins, not *net* profit margins. Gross generally doesn’t take into account operational costs, R&D, etc. This is a better number to determine when loss kicks in.
2. Apple’s *net* profit margins for 2024 were 24.3%.
3. Software and SaaS generally have a higher net profit margin than hardware, because it tends to scale better. This means it’s *likely* that the iPhone has a profit margin less than 24%, while services have a higher profit margin.
4. Apple doesn’t publish iPhone net profit margins. But if the full tariff is applied, the iPhone *net* profit margin would need to be 59.9% just to *break even*.
Feel free to explain your version of the math, instead of resulting to personal insults again.
That was not my argument at all. The argument you quoted was that being tolerant does not
automatically make one a fascist. My argument is backed up both by the definition of tolerant, but also by your own reply. “Good” people can do nothing. Evil may triumph, but being a pacifist, for example, doesn’t inherently make one evil.
If your words aren’t a reply to me, then we we agree
