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Originally Posted by sorge
Hmmm all seems pretty standard......
Revenue - Marginal Cost(175 apparently)= Contribution margin
Contribution Margin is then used to pay off fixed cost, such RnD, adversiting, replacing bad units.....and so on.
After that they get.....profit....the Iphone cost about the same to make and it costs more.
Thats not even a high mark up.....only 250ish%. Go buy a 6 dollar aux cable in a store and there you have a real mark up.
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but there hasnt been much adverstising....u only see it on websites much of which google owns somewhat or atleast the domains.....its not like the iphone or droid that get so many tv ads