Gazelle selling price for an excellent condition iPhone 5S AT&T 16 GB is $369
Gazelle buying price is $175
Overhead cost $50
Profit $144
Profit margin 40%
Ridiculously higher than Apples 22% profit margin
Funny you use the good condition selling price yet used the excellent condition buying price.
Funny you began with $409... which clearly came out of your rectum. You didn't bother to look.
Funny that you compare Gazelle's margin on phones to the margin of Apple's entire company, which is highly objectionable. I understand that you don't think Gazelle should end up with the same margin as Apple has in its iPhone segment, and I am inclined to agree, but it is indeed that number that we should use for said comparison. If you want to say Gazelle's should be lower by some certain amount, then fine. But don't use the 22%.
Quote:
Originally Posted by sog35
You are confusing GROSS margin with PROFIT margin. iPhone gross margin is about 50% but profit margin is about 25%.
iPhone could be greater than 28% profit margin but maybe not. They are definitely not even close to 40% though.
I am not confusing anything. There you go pulling specific numbers (like 25%) out of your rectum again. I think the net profit is much higher than that for the iPhones and much lower than that for the combination of everything else.
Quote:
Originally Posted by sog35
Gazelle is in NO RISK of selling iPhones for less than they buy them for. They are buying iPhone6 for $325. No way they won't be able to sell them for less than $325 once the 6s comes out..
You missed my point again Sog, but that is no surprise. I'm saying that after the 6S launch Gazelle will most likely have to ask less for any used iPhone they sell than whatever they are currentlyasking when they sell the same phone, which means we have probably used the wrong number in our calculations of their net profit above.
Gazelle selling price for an excellent condition iPhone 5S AT
Funny you began with $409... which clearly came out of your rectum. You didn't bother to look.
Funny that you compare Gazelle's margin on phones to the margin of Apple's entire company, which is highly objectionable. I understand that you don't think Gazelle should end up with the same margin as Apple has in its iPhone segment, and I am inclined to agree, but it is indeed that number that we should use for said comparison. If you want to say Gazelle's should be lower by some certain amount, then fine. But don't use the 22%.
You are confusing GROSS margin with PROFIT margin. iPhone gross margin is about 50% but profit margin is about 25%.
iPhone could be greater than 28% profit margin but maybe not. They are definitely not even close to 40% though.
I am not confusing anything. There you go pulling specific numbers (like 25%) out of your rectum again. I think the net profit is much higher than that for the iPhones and much lower than that for the combination of everything else.
Gazelle is in NO RISK of selling iPhones for less than they buy them for. They are buying iPhone6 for $325. No way they won't be able to sell them for less than $325 once the 6s comes out..
You missed my point again Sog, but that is no surprise. I'm saying that after the 6S launch Gazelle will most likely have to ask less for any used iPhone they sell than whatever they are currentlyasking when they sell the same phone, which means we have probably used the wrong number in our calculations of their net profit above.
Comments
Nope.
Gazelle selling price for an excellent condition iPhone 5S AT&T 16 GB is $369
Gazelle buying price is $175
Overhead cost $50
Profit $144
Profit margin 40%
Ridiculously higher than Apples 22% profit margin
Funny you use the good condition selling price yet used the excellent condition buying price.
Funny you began with $409... which clearly came out of your rectum. You didn't bother to look.
Funny that you compare Gazelle's margin on phones to the margin of Apple's entire company, which is highly objectionable. I understand that you don't think Gazelle should end up with the same margin as Apple has in its iPhone segment, and I am inclined to agree, but it is indeed that number that we should use for said comparison. If you want to say Gazelle's should be lower by some certain amount, then fine. But don't use the 22%.
You are confusing GROSS margin with PROFIT margin. iPhone gross margin is about 50% but profit margin is about 25%.
iPhone could be greater than 28% profit margin but maybe not. They are definitely not even close to 40% though.
I am not confusing anything. There you go pulling specific numbers (like 25%) out of your rectum again. I think the net profit is much higher than that for the iPhones and much lower than that for the combination of everything else.
Gazelle is in NO RISK of selling iPhones for less than they buy them for. They are buying iPhone6 for $325. No way they won't be able to sell them for less than $325 once the 6s comes out..
You missed my point again Sog, but that is no surprise. I'm saying that after the 6S launch Gazelle will most likely have to ask less for any used iPhone they sell than whatever they are currently asking when they sell the same phone, which means we have probably used the wrong number in our calculations of their net profit above.
I got a great vid of sog35.
Apple most definitely Apple. Around the same cost plus 12 months Waranty vs 30 day limited Waranty w/Gazelle