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Technology Stocks : Apple Tankwatch -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (15931)	1/24/2012 7:54:04 PM
From: pyslent	Respond to of 32692

duplicate

To: Road Walker who wrote (15931)	1/24/2012 7:56:29 PM
From: pyslent	Respond to of 32692

" I don't think that math works, but not inclined to work it out this evening. " The iPhone currently carries a blended ASP of $650, and I'll assume a COGS of $300 (the BOM estimated at $188 isuppli.com If the iPhone were to drop to an ASP of $550, GM on the same COGS would still be 45% ($250/$550). Maybe overly simplistic, but it's worth noting that the company-wide GM is a huge drag on the iPhone business. Maybe they should think about spinning it out :). "A good question is: when/if Apple becomes a true cell phone company designing product specifically for each price point. Instead of the "hand me down" model. I'm not sure the current model works as the smartphone market matures. " I don't think Apple is interested in doing that. Companies like Samsung and Nokia live off the scale they get from selling entry level phones because it helps keep factories running and keeps component prices low. Apple doesn't need to control COGS because of their sick margins. They would not benefit from product lines that do not contribtue incremental profit, unless they worked like strategically a gateway drug (like how iPod shuffle locks people into iTunes).