You are misunderstanding the way Apple prices things.... sure Apple gives a miniscule wholesale price, but that is not the whole story -- since they invert the wholesale/resell price relationship. Instead of "pricing" wholesale at 70% of suggested retail, they have a much higher wholesale price - but then offer "incentives" if the retailer only advertises at or above a set amount.... these incentives are a way to ensure uniformity in pricing but the end result is still the same.... after the incentive/kickback is paid off to the dealer.... the net result is the same.... the recorded revenue from the iPad will work out to be the same (wholesale - kickback/sales incentive [call it commission to reseller].
So if you are a business you can go in and negotiate a large sale at a discount, greater than that 3% to 5% but the reseller will never advertise to the general public less than the suggested price. It is the same sort of mechanism used by a few other and why you will never see a retailer advertise at lower than suggested price, but it does not mean that all the merchandise are sold at that price.
If what you were saying were correct, Apple retail would always be losing money and not making BILLIONS of dollars....
Comments
So if you are a business you can go in and negotiate a large sale at a discount, greater than that 3% to 5% but the reseller will never advertise to the general public less than the suggested price. It is the same sort of mechanism used by a few other and why you will never see a retailer advertise at lower than suggested price, but it does not mean that all the merchandise are sold at that price.
If what you were saying were correct, Apple retail would always be losing money and not making BILLIONS of dollars....