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To: 2ndDivisionVet

For what they charge for their iPhones, I presume Apple has some wiggle room to hold prices even if their costs should rise.

A lot of people assume that all cost increases to a company will result in those costs being passed on to the consumer. That’s a false premise. A company has to remain competitive in the market and can’t charge too much above what their competitors charge. How much they can absorb really depends on their profit margins.

For some companies, market share is as or more important than profits.


4 posted on 09/08/2018 3:50:31 PM PDT by be-baw (still seeking...)
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To: be-baw

“””””A lot of people assume that all cost increases to a company will result in those costs being passed on to the consumer. That’s a false premise. A company has to remain competitive in the market and can’t charge too much above what their competitors charge. How much they can absorb really depends on their profit margins.””””””””””””””

I’ve made that same statement on this forum numerous times. The uninformed say taxes and any increases can just be added to the price and all is well. It doesn’t work like that.

Numerous FReepers have informed me that I am clueless. Most of those people have never run a business.


19 posted on 09/08/2018 5:19:31 PM PDT by shelterguy
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To: be-baw
For what they charge for their iPhones, I presume Apple has some wiggle room to hold prices even if their costs should rise.

Why should they? The same tariff that hits them will also hit their competition so it's not like this places them at a disadvantage.

37 posted on 09/09/2018 4:15:21 AM PDT by DoodleDawg
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