I think you are wrong. The margins are likely between 35 and 40 percent, which is typical for many Apple products. Accessories are things like cables and cases, not a watch that is very expensive to make.
Keep in mind cost includes research, marketing, and warranty related costs as well as salaries. The margins are probably better for the more expensive models. The margins may improve overtime.
The cost of all those things you mention are paid for out of margin - and they definitely affect profit - but they don't affect the margin calculation. My understanding is that the margin is calculated by comparing what it costs Apple to manufacture - and what they receive from a sale.
I actually wanted to say 200-300% but I went conservative with the 70% "or more" estimate. Have you looked at the price of some of the watch bands? There's certainly some serious margin to be found there!!!
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The cost of all those things you mention are paid for out of margin - and they definitely affect profit - but they don't affect the margin calculation. My understanding is that the margin is calculated by comparing what it costs Apple to manufacture - and what they receive from a sale.
I actually wanted to say 200-300% but I went conservative with the 70% "or more" estimate. Have you looked at the price of some of the watch bands? There's certainly some serious margin to be found there!!!
Wow that is awesome. If any apple employee is on here and would be willing to use your employee discount I would make it worth your while. WIN/WIN