Originally Posted by ConradJoe
OK, but the point is the same. Does anybody check the profitability of an item prior to purchase? My point was that consumers don't use manufacturer profitability as a factor in making purchases, maybe except for exceptional situations.
I don't think people here argue that they buy
Apple products because Apple is profitable. Usually profitability is brought up when somebody argues that Apple is "losing." Profitability is a sign of sustainability and longevity. Being the most profitable vendor means that Apple isn't going anywhere. It means it has leverage. Having the most marketshare does not
mean the same thing. A company can have the most marketshare and be failing. I think it's disingenuous to suggest that people here think that Apple's profitability is part of a purchasing consideration or to imply that that's the only thing people should be concerned about.
That said, having high-margins does not
mean, as you imply, that Apple is screwing people. Some markets are high-margin, some are low-margin. In low-margin markets an item is priced close to its component costs whereas in high-margin markets the value is perceived to be in something else. Quite clearly, people don't buy iPhones because they want a touchscreen, a CPU, a battery and a camera, plus assembly. They're buying the latest OS version and the promise of regular updates. They're buying access to a well-stocked, curated app market. They're buying into a set of services. They're buying exceptional support. They're buying into a media ecosystem. They're buying into an incredible track record of innovation, much of which has been delivered to existing users free of cost. And, yes, they're buying into a brand and everything that comes with that. The value of those things has little to do with the cost of hardware components or
the cost of the components plus the cost of running the services.