So are they using a third party bank because otherwise accounting standards would mean the "sale" would be stretched over 24 months and earnings would also be divided into 24 small morsels. Because that would crater the next quarter's earning numbers wouldn't it? This way that bank "buys" the phone all at once, then leases it to own to the end user. But Apple's been paid up front.
Google is working hard in more and more cities to lay in fiber and take over the internet pipes. I'm not sure how they intend to make their money...but then maybe Google doesn't either. They are more inclined to buy the barge first and then figure out where to sail it.
Not to mention that all that fiber laying may soon be obsolete:
... The kids will no-longer be willing to accept a hand-me-down from the parents or grandparents.
Quote:
Originally Posted by dasanman69
If more people start getting an iPhone yearly instead of every 2 years than the supply of 1 yr old iPhones is going to be higher, so the price is likely to decrease.
I'd say the largest chunk will be headed outside of the US for resale in the developing world - both growing the market by being more affordable up front there, but probably also giving the company as high or higher than Apple's usual margins, so paying the next model forward with a double profit transaction off of one device, plus keeping up the sale of the latest model at the same time - without oversaturating the developed world markets with refurbs.
Brill.
Tim C. gets a lot of hits around here, but this is great sales and marketing management.
Comments
Isn't that how they do most of their HW products?
Google is working hard in more and more cities to lay in fiber and take over the internet pipes. I'm not sure how they intend to make their money...but then maybe Google doesn't either. They are more inclined to buy the barge first and then figure out where to sail it.
Not to mention that all that fiber laying may soon be obsolete:
http://www.techradar.com/us/news/phone-and-communications/mobile-phones/verizon-is-testing-a-5g-network-that-s-faster-than-google-fiber-1303800
... The kids will no-longer be willing to accept a hand-me-down from the parents or grandparents.
If more people start getting an iPhone yearly instead of every 2 years than the supply of 1 yr old iPhones is going to be higher, so the price is likely to decrease.
I'd say the largest chunk will be headed outside of the US for resale in the developing world - both growing the market by being more affordable up front there, but probably also giving the company as high or higher than Apple's usual margins, so paying the next model forward with a double profit transaction off of one device, plus keeping up the sale of the latest model at the same time - without oversaturating the developed world markets with refurbs.
Brill.
Tim C. gets a lot of hits around here, but this is great sales and marketing management.