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How much does it cost Apple?
- Thread starter imjoee
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$718 bill of materials estimated on the cheapest 2010 model.
https://www.computerworld.com/s/art...fitable_than_other_Apple_laptops_says_analyst
I'd bet that the current model is in the same range with 30% gross margins.
That's not true.
Apple's company wide gross margins are around 37%. And Mac margins are significantly lower than that.
That's probably close - look at how much less than MSRP they allow resellers like Best Buy, Amazon, and Microcenter sell them for. Not to mention the educational discount.
Just to be fair, there are also R&D, engineering, packaging, marketing/advertising shipping/freight, retail labor and other costs involved...yes, they make a profit on Macs, but they are certainly not the margin leader for Apple. You can't just take the cost of the parts and say that is what it cost Apple to make the product.
He must work for Walmart. ^)
Walmart's buyers are famous for pushing their suppliers to the limit. No! you cannot make 25 cents per widget, we will only give you 8 cents! Take it, or lose our big order!
we supply to walmart, trust me it is no joke. The standards which we have to meet are ridiculous. It's as strict as a 5 star brand, and pays like a 2 star brand.
but the good thing is they guarantee volume consistently and give 6 months projections so it allows our machines to produce running items on continuous cycles. It minimizes manual labor error, and takes away any inconsistencies due to a 1 formula path. We found that our grade B inventory reduced significantly, producing 1 set of items for Walmart, than catering to 10 diff. segments with 20 different products.
This is why we can sell to walmart at ridiculously cheap prices, and I guess they do this with every supplier and hence it is mutual benefit - thus they have been able to sell so cheap for so long.
Don't get me wrong, we still need the margin sales, not only volume... but Walmart really helps manufacturers cut cost.
I guess it also depends what industry you're in.
but the good thing is they guarantee volume consistently and give 6 months projections so it allows our machines to produce running items on continuous cycles. It minimizes manual labor error, and takes away any inconsistencies due to a 1 formula path. We found that our grade B inventory reduced significantly, producing 1 set of items for Walmart, than catering to 10 diff. segments with 20 different products.
This is why we can sell to walmart at ridiculously cheap prices, and I guess they do this with every supplier and hence it is mutual benefit - thus they have been able to sell so cheap for so long.
Don't get me wrong, we still need the margin sales, not only volume... but Walmart really helps manufacturers cut cost.
I guess it also depends what industry you're in.