Apple is making a killing at just $600 and Rush has no clue. China charges just $6.53 for manufacturing
It is not correct to say that whatever is not in the manufacturing costs is ‘profit’. Doesn’t Apple have thousands of employees in the US whose wages are paid by these products? Don’t they have rent, utilities, and taxes to pay?
Excellent post. Apple makes plenty of prift such as to be able to assemble in the US but they want that extra $12.
This is an ICV look at the product and doesn’t account for the $ spent on development. As an example for a $100M in sales site our material costs are $40M, our labor&overhead are $10M which translates to a profit of 50M except that we spend 20M on engineering and another 5-10 to develop and implemnet a new product. These type of analysis are incomplete and do not account for the investment aspect of business which is all done up front and not in the ICV calculation.