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Apple Employees to Receive 50% Off Apple Watch and Apple Watch Sport Models, $550 Off Gold Model

laurim said:
sigh. You said Apple financials are publicly available. I said yes but they aren't broken down by product so it doesn't help with the question whether a product's price is related to how much money is spent developing that particular product.
Click to expand...

That information is not available, likely not even within Apple. Most activities from research, design until sales are shared activities and quite impossible to allocate to a specific product. E.g. the research going into battery tech benefits all Apple products. There is no way a company would be able to charge those costs to the specific product. Another example is sales. It is quite difficult to allocate sales costs for combination sales (e.g. consumer buys Apple TV and Apple Watch) or unrealized sales. In addition most corporate employees work on multiple projects at once. Although some of their work will be product allocated, some of the work will be general research or development.

The metric that represents Apple's profit margin philosophy best is the one that you can look up in the financial report.

That "sigh" wasn't necessary. I didn't attack you in any way previously.
 
I think this a really nice gesture from Apple, and of course it will look good if loads of their staff wear the watch. I am sure most people who work for Apple would have bought one even with just the standard discount, or even without a discount at all. I don't work for Apple and will have to pay full price, but I think their staff deserve this little treat. It is beyond me, how people can be so mean and egoistic complaining about this discount for Apple's staff who work hard for them.
 
peterdevries said:
That information is not available, likely not even within Apple. Most activities from research, design until sales are shared activities and quite impossible to allocate to a specific product. E.g. the research going into battery tech benefits all Apple products. There is no way a company would be able to charge those costs to the specific product. Another example is sales. It is quite difficult to allocate sales costs for combination sales (e.g. consumer buys Apple TV and Apple Watch) or unrealized sales. In addition most corporate employees work on multiple projects at once. Although some of their work will be product allocated, some of the work will be general research or development.

The metric that represents Apple's profit margin philosophy best is the one that you can look up in the financial report.

That "sigh" wasn't necessary. I didn't attack you in any way previously.
Click to expand...

The sigh was for you having such an issue with me using your post to continue discussing this that you had to have me explain it to you.

I don't know where you have worked but where I have worked, every team working on a product has a distinct budget for everything they do. The team gets X dollars and has to justify their budget and why they might need more money. Other projects get less money to work with based on what the company thinks they can gain from the project. And when their project goes live they monitor sales and reaction. When I worked at P&G and on Bounty, I ONLY worked on Bounty. And only the particular style of Bounty I was responsible for (my Bounty was the change to the diamond pattern on the sheets. I was the one who called it "Quilted Bounty". That was before Quilted Northern came out but it hit the shelves after Quilted Northern so it probably looked like we copied it. See how THAT can happen? It was also supposed to be much stronger but I think they put that part off before launching it. I had moved on to another area of the company when it finally came out so I don't know for sure). You are right that some product development can overlap when they have shared parts but most products budgets are pretty independent. And profit margins will vary widely from product to product. I'm not surprised at all that the watch might have a large margin. It's a luxury item more than a standard tool like a computer. It SHOULD have a larger margin, like every other luxury product on earth.
 
Agthilian said:
Well yeah, but I personally think that the only reason to make a watch that costs $17k for instance is a desire to add a luxury goods component to their business.

Plus, anybody who can spend $17,000 on a watch is going to expect the $17,000 treatment to come with it. Like an appointment with a knowledgeable person to make sure they get the best buying/owning experience possible.

Like I said though, that's just my personal opinion.
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It's no different from the others except the gold.
 
so glad I grew out of my tech desire phase. Always needing the latest and greatest. I feel so much more free now :)
 
Smart move. Short of giving them a Watch for free, this is the next best thing.

Apple has to convince staff before customers that the Watch is worth the investment

How can they be enthusiastic about the "most personal device" Apple has ever sold if their experience with the product is limited to a few hours of hands-off training then brief, customer focused interactions?

On an unrelated note, did the space black SS always look that good?
 
Rogifan said:
Yeah I guess the iPhone must have been doomed too since many Apple employees were given one for free. And the same must be true then for the Google OEM products that are given away to developers at I/O. :rolleyes:
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I don't believe apple gave away iPhones to their workers at launch, or even any bigger discount than whatever normal staff discount they get. It was well after the launch when supplies were meeting demand and demand was dropping because they were already partway through the cycle.
 
Solomani said:
Probationary period. Any smart HR Department would refuse allowing you any such benefits until you've been with the company for 60-90 days in good standing.

Join the company, loot the benefits, and then immediately quit….. that tactic maybe worked back in the 1980s.
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You don't appreciate my jest?
 
Zachari said:
You don't appreciate my jest?
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Not to mention that it isn't that easy to get a job at the Apple Store. I applied there years ago after I got laid off and even with a chemical engineering degree and having used Apple products since '85 I didn't get the job. Maybe they thought I was overqualified and would soon leave for something better but who knows?
 
laurim said:
Not to mention that it isn't that easy to get a job at the Apple Store. I applied there years ago after I got laid off and even with a chemical engineering degree and having used Apple products since '85 I didn't get the job. Maybe they thought I was overqualified and would soon leave for something better but who knows?
Click to expand...

Apple Store does not hire you if they think you are overqualified, because you will only end up leaving them for a better job very soon. My friend applied years ago (for retail position) when a new Store opened in our area, and like myself, he graduated with a bachelor's degree B.S. years ago. He got the Apple Store interview (everyone who applied was at least given an interview), but they never called him back.

He was a bigger Mac nerd than I am, knew everything about Macs etc. But I told him that didn't matter. He was overqualified, and they that's why they probably threw his application out.
 
Solomani said:
Apple Store does not hire you if they think you are overqualified, because you will only end up leaving them for a better job very soon. My friend applied years ago (for retail position) when a new Store opened in our area, and like myself, he graduated with a bachelor's degree B.S. years ago. He got the Apple Store interview (everyone who applied was at least given an interview), but they never called him back.

He was a bigger Mac nerd than I am, knew everything about Macs etc. But I told him that didn't matter. He was overqualified, and they that's why they probably threw his application out.
Click to expand...

Thanks for that. I had thought maybe it was because I gave a bad answer when the interviewer asked me what I would do if someone wondered if they should move to Keynote rather than PowerPoint. I was honest (even though I hate PPT) and said I would first ask them their requirements in slide ware and take it from there. I know that even though Keynote is better overall, there are situations where sticking with PPT is the best answer (e.g., if they need integration with Excel data or need to easily share slides with other people using PPT). I figured maybe that wasn't aggressive enough selling :p

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powerhoster.com said:
Jesus Christ is the SON of GOD & promises you eternal life if you simply believe HIM.

He promised to also heal your body.
(Just ask Him)
Click to expand...

Thanks for sharing. I think Jesus was a regular human philosopher with good ideas many people should simply live by. No magical mysticism necessary and certainly no promise of a reward in the end. How about just being a good person for the sake of being a good person, knowing that everyone being a good person would help make the years of life we already have on earth be close enough to a "heaven"? I don't need 23 virgins in the afterlife are whatever else religious people are offering to be a "good girl". Like the almighty Nike says, "just do it!"
 
spectrumfox said:
If Apple was building the deck, it would cost a lot more than just an extra $500 for a $6000 deck, if their profits for the deck match their profit on every iPhone sold.
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i think you missed what i was saying.. i was responding to a post you made about parts cost for the iphone being 200 and retail price being 649..

my example just added a zero to it showing material costs for a deck at 2000 and final price of 6000 (or an apple deck at 6490).. and the basic steps to get there..

apple's profit margins are higher than most competitors.. but not that much higher.. maybe 1 - 2%

apple spends more money to offer a better experience.. walking into an apple store is a better shopping experience than buying from competitors (not saying this as fact for everyone.. just the apple mindset which is moreorless true for the majority..they're always getting voted best customer experience etc)..

but, you pay for that experience.. apple doesn't pay for the stores-> you do.. that's an added cost to their product.
they're also able to get a higher profit per unit.. maybe 15% instead of 13%.. (and, the profit is generally calculated last.. if they spend more on materials or stores or geniuses or whatever-> the cost already increases some.. then the profit goes on top and they're able to get an exponetially higher dollar amount since their margin is larger and the costs leading up to a sale are higher..

or, saying that another way.. say samsung and apple have the same profit margin on an item.. samsung profits $100 but apple profits $120 and the item costs consumers $40 more.. apple spends an extra $20 in order to charge an extra $40 at retail.. the apple product is more expensive to consumers, apple made more money than samsung, even though the profit margins are the same for both companies.

but really, apple is ultimately trying to sell you an experience be it through their sales team, service dept, or user experience.. anytime you do something involving apple or their products.
that is what allows them to charge higher profit% on top of higher priced items.

you can complain about it all you want.. i mean, i think everything is way overpriced and i'm not pro-capitalism or pro-corpratocracy.. but don't think for a minute that apple competitors aren't doing or trying to do the same thing apple is doing regarding getting your money.. you're screwed no matter which way you turn.. there's not a single corporation out there that has you, the consumer, as their #1 priority.


------
EDIT
but just some perspective on profit % and an attempt to show that they're not profiting upwards of 70% etc per phone.. (the numbers are rough.. for example only)

say they sold 160million phones last year at $500 each.

that's 80 billion in sales..

15% of 80 billion is $12,000,000,000

i don't think apple profited 12billion last year as an entire company/all products.. which shows their margins are less than 15%.. maybe 10%.. maybe even lower.

but certainly not 70% or 50% or whatever you're trying to claim.. you see?

---
edit2

they made $40billion profit last year O_O
so the iphone is not profiting less than 15%.. closer to 20% i imagine.
 
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laurim said:
Neither one of us knows Apple's finances. I only know what little I know from working in consumer research at Procter & Gamble. The main point is still true. A product's cost to manufacture is the sum total of everything it took to get it to market, not just the raw materials and some research. Everything down to the package it ships in plays into the price.
Click to expand...

What you are mentioning is sometimes called True Cost of Total Cost. Yes, count every bill paid from the guy having the idea in the company cafeteria to the cost of the paper recept printed to the customer. However, accounting wise, it is not like that.
 
Tsuchiya said:
Smart move. Short of giving them a Watch for free, this is the next best thing.

Apple has to convince staff before customers that the Watch is worth the investment

How can they be enthusiastic about the "most personal device" Apple has ever sold if their experience with the product is limited to a few hours of hands-off training then brief, customer focused interactions?

On an unrelated note, did the space black SS always look that good?
Click to expand...

Training more

----------
flat five said:
i think you missed what i was saying.. i was responding to a post you made about parts cost for the iphone being 200 and retail price being 649..

my example just added a zero to it showing material costs for a deck at 2000 and final price of 6000 (or an apple deck at 6490).. and the basic steps to get there..

apple's profit margins are higher than most competitors.. but not that much higher.. maybe 1 - 2%

apple spends more money to offer a better experience.. walking into an apple store is a better shopping experience than buying from competitors (not saying this as fact for everyone.. just the apple mindset which is moreorless true for the majority..they're always getting voted best customer experience etc)..

but, you pay for that experience.. apple doesn't pay for the stores-> you do.. that's an added cost to their product.
they're also able to get a higher profit per unit.. maybe 15% instead of 13%.. (and, the profit is generally calculated last.. if they spend more on materials or stores or geniuses or whatever-> the cost already increases some.. then the profit goes on top and they're able to get an exponetially higher dollar amount since their margin is larger and the costs leading up to a sale are higher..

or, saying that another way.. say samsung and apple have the same profit margin on an item.. samsung profits $100 but apple profits $120 and the item costs consumers $40 more.. apple spends an extra $20 in order to charge an extra $40 at retail.. the apple product is more expensive to consumers, apple made more money than samsung, even though the profit margins are the same for both companies.

but really, apple is ultimately trying to sell you an experience be it through their sales team, service dept, or user experience.. anytime you do something involving apple or their products.
that is what allows them to charge higher profit% on top of higher priced items.

you can complain about it all you want.. i mean, i think everything is way overpriced and i'm not pro-capitalism or pro-corpratocracy.. but don't think for a minute that apple competitors aren't doing or trying to do the same thing apple is doing regarding getting your money.. you're screwed no matter which way you turn.. there's not a single corporation out there that has you, the consumer, as their #1 priority.


------
EDIT
but just some perspective on profit % and an attempt to show that they're not profiting upwards of 70% etc per phone.. (the numbers are rough.. for example only)

say they sold 160million phones last year at $500 each.

that's 80 billion in sales..

15% of 80 billion is $12,000,000,000

i don't think apple profited 12billion last year as an entire company/all products.. which shows their margins are less than 15%.. maybe 10%.. maybe even lower.

but certainly not 70% or 50% or whatever you're trying to claim.. you see?

---
edit2

they made $40billion profit last year O_O
so the iphone is not profiting less than 15%.. closer to 20% i imagine.
Click to expand...

Apple's operative margin moves between 38-39%, and the ASP for the iPhone the last quarter was 687 aprox. The margin growths the years they're selling the "S" models interations
 
Last edited:
haha... oh good...

"Thanks for for the hard work you put in to making the product, but now its out you Apple employees, that work with us, have to pay for it too."

lol

Good god man..... are you serious ?

Doesn't Apple get enough money from customers, they must also charge their employees (even a discount), but still get them to pay for one...

They should be free naturally.... or at least give them more of 50% if they insist on a charge.... Is that what you get for all your hard work ? :p
 
nando87 said:
Apple's operative margin moves between 38-39%
Click to expand...

i don't think that to be true of the iphone itself.. i believe the margin to be lower.
the numbers just don't add up. (at least numbers i randomly find on the internet ;) )

$40billion net profit:
http://techcrunch.com/2014/10/20/apple-earnings-q4-2014/

169 million iphones sold:
http://www.statista.com/statistics/263401/global-apple-iphone-sales-since-3rd-quarter-2007/

$687 average sales price:
(you)

-----
$116 billion iphone revenue (units * asp)

$44billion profit (116billion * 38% margin)

that's higher than their total profit on all products for the year.
 
flat five said:
i don't think that to be true of the iphone itself.. i believe the margin to be lower.
the numbers just don't add up. (at least numbers i randomly find on the internet ;) )

$40billion net profit:
http://techcrunch.com/2014/10/20/apple-earnings-q4-2014/

169 million iphones sold:
http://www.statista.com/statistics/263401/global-apple-iphone-sales-since-3rd-quarter-2007/

$687 average sales price:
(you)

-----
$116 billion iphone revenue (units * asp)

$44billion profit (116billion * 38% margin)

that's higher than their total profit on all products for the year.
Click to expand...

Press release for investors, q4 2014:

CUPERTINO, Calif.--(BUSINESS WIRE)-- Apple® today announced financial results for its fiscal 2015 first quarter ended December 27, 2014. The Company posted record quarterly revenue of $74.6 billion and record quarterly net profit of $18 billion, or $3.06 per diluted share. These results compare to revenue of $57.6 billion and net profit of $13.1 billion, or $2.07 per diluted share, in the year-ago quarter. Gross margin was 39.9 percent compared to 37.9 percent in the year-ago quarter. International sales accounted for 65 percent of the quarters revenue.

The results were fueled by all-time record revenue from iPhone® and Mac® sales as well as record performance of the App Store . iPhone unit sales of 74.5 million also set a new record.

Wed like to thank our customers for an incredible quarter, which saw demand for Apple (AAPL) products soar to an all-time high, said Tim Cook, Apples CEO. Our revenue grew 30 percent over last year to $74.6 billion, and the execution by our teams to achieve these results was simply phenomenal.

Our exceptional results produced EPS growth of 48 percent over last year, and $33.7 billion in operating cash flow during the quarter, an all-time record, said Luca Maestri, Apples CFO. We spent over $8 billion on our capital return program, bringing total returns to investors to almost $103 billion, over $57 billion of which occurred in just the last 12 months.

Apple is providing the following guidance for its fiscal 2015 second quarter:

" revenue between $52 billion and $55 billion

" gross margin between 38.5 percent and 39.5 percent

" operating expenses between $5.4 billion and $5.5 billion

" other income/(expense) of $350 million

" tax rate of 26.3 percent

Apples board of directors has declared a cash dividend of $.47 per share of the Companys common stock. The dividend is payable on February 12, 2015, to shareholders of record as of the close of business on February 9, 2015.

Apple will provide live streaming of its Q1 2015 financial results conference call beginning at 2:00 p.m. PST on January 27, 2015 at www.apple.com/quicktime/qtv/earningsq115. This webcast will also be available for replay for approximately two weeks thereafter.


If you want more detailed info I can post it. You have to consider that the products imply the cost of assemblers and foundries, between others, processes which are outsourced, and which have their own margins too, so not every penny from the iPhone goes to Apple, obviously, there's a chain of value added
 
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