Comment on iPhone Gross Profit MarginApple could really get slammed on Gross Margins given carrier negotiating leverage increasing against them. iPod, which dominates the MP3 market, was never above 30%. Apple will always have higher GMs than a typical CE company (i.e., 15-20%) b/c of brand premium, but not THAT much higher.
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Comment on iPhone Gross Profit Margin
Apple could really get slammed on Gross Margins given carrier negotiating leverage increasing against them. iPod, which dominates the MP3 market, was never above 30%. Apple will always have higher GMs than a typical CE company (i.e., 15-20%) b/c of brand premium, but not THAT much higher.