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post #21 of 23
I was actually surprised to see Google and Dell making the same amount of money and that IBM makes more than google or dell or Amazon.

Ironically, the reason why Foxcon is so inflated is because the majority of the money Apple makes goes towards them XD
post #22 of 23
Quote:
Originally Posted by Rookie1337 View Post

So you're saying that Apple hasn't differentiated itself enough but people are still willing to let it have the massive margins it enjoys? That is the one thing I never understood...if I were any supplier why would I let Apple dictate terms without me being able to raise my margins as well? Volume can only do so much. It's like the whole fiat money issue and why I find stories about how in some countries the people used (don't know if they still do) only except pristine bills without blemishes(folds, etc) because no one else would take blemished bills even though they are both equally backed for value by the governments. Just goes to show nothing is worth anything besides what people (are forced to) believe it's worth.

...because it's a commodity market. It's ALL about volumes. CPU manufacturing, displays, PCB assembly, speakers, cameras, sensors, DRAM, NAND... these are basically parts/services that have multiple suppliers that sell close enough substitutes. Your statements assume that these other companies don't know how to run a business... they do more so than you....

Many of Samsung's mobile products have basically reached Apple-level margins.

Quote:
Originally Posted by Stanri010 View Post

I was actually surprised to see Google and Dell making the same amount of money and that IBM makes more than google or dell or Amazon.

Ironically, the reason why Foxcon is so inflated is because the majority of the money Apple makes goes towards them XD

The labor cost of iPhones is only 5-8% of the cost of the phone.
Edited by DuckieHo - 11/17/13 at 7:50pm
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post #23 of 23
Quote:
Originally Posted by Rookie1337 View Post

So you're saying that Apple hasn't differentiated itself enough but people are still willing to let it have the massive margins it enjoys? That is the one thing I never understood...if I were any supplier why would I let Apple dictate terms without me being able to raise my margins as well? Volume can only do so much. It's like the whole fiat money issue and why I find stories about how in some countries the people used (don't know if they still do) only except pristine bills without blemishes(folds, etc) because no one else would take blemished bills even though they are both equally backed for value by the governments. Just goes to show nothing is worth anything besides what people (are forced to) believe it's worth.

Several reasons, really. A company's main goal is to make money, well if a company comes along with the opportunity of a lifetime i.e. Apple to Foxconn then you're going to have to bend a little to jump on it. A company like Apple is big enough that it can either find another supplier, or it can just decide to create its own manufacturing facilities and completely do away with Foxconn. Walmart is notorious for this. They've single handedly made companies go from boom to bust because the supplier of the products to Walmart's stores went with your idea.
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Overclock.net › Forums › Industry News › Technology and Science News › [dailymail] They make HOW much? Interactive infographic reveals astonishing amount top tech companies earn per second - and Samsung tops the list with £4,051