Xcritu

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Xcritu
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  • Apple rumored to sell Apple TV 4K, HomePod at cost

    XcrituXcritu
    Technically maybe a loss or break-even. But in reality they made millions.
    They mass produce components to get bulk discounts.
    Ex. Out of those 50,000,000 million chips it produced. It used 40 million for new items. Then after producing a new range of chips it’s stuck with 10 million old chips.  Many manufactures may write it off as a loss and destroy them.

    But no, apple uses them in their hi-tech speakers, hence preventing a loss.

    They don’t need a 30% margin. Not destroying those components but rather dumping them even at cost price is a win for them.

    Would you rather write a 10 million USD loss for those chips or maybe 500,000 USD in manufacturing costs?
    williamlondonwatto_cobra