I just bought a new iPhone 14… $360 with the rebate. I don’t see how Appl is going to make money giving phones away cheap. Basically it’s no better than my 11. But the battery was wearing out on my old iPhone
Was the rebate actually from Apple? It’s usually the carriers that offer them. It’s a tool to retain or attract customers.
I am already a T mobile customer. I don’t know why they give a discount. But I suspect Apple gives them a discount. Plus Apple has a lot of discount phones like the 12 and the SE that are free. i heard there was a 14 shortage … but not at my local Costco
They discount current customers, so people won’t switch to get a discount. Apple reports the phone ASP on their earnings release. It’s over $600/phone. The carriers subsidize them.
I pay $30/m for my Tmoblle service. How can they make money giving me $360?
You probably agreed to a 2-year deal or have to pay them money if you leave before 2 years. A portion of that $30/mo over 2 years goes towards the phone. They probably aren’t making much money off you. They market he profits off the upgrades. The phone insurance is a huge money machine.
T mobile has no contract. And they bought my old phone years ago for $500…and I never buy insurance. I think lots of tech companies loose money… stupidly hoping to make it up on volume
Correction, other than startups, established companies like AAPL, GOOGL…etc may loose gain(shrinking profits), but will not make loss.
If they make loss, then they struggle to survive like the way Sun Microsystem or NetSuite failed to survive.
However, AAPL is well placed, based on Warren Buffet holdings and high cash reserve. If it is going to make loss, you won’t see WB with it, he will get rid of it like the way he came out of GE or other companies.
I was referring to T mobile. I own Apple stock. They make their money on built in obsolescence. My phone was only 2 years old but the battery no longer functioned. Plus they have cult fans just like Musk.
WS still paying influencers to crash AAPL AAPL has increasing FCF + low (less than 10% of FCF) SBC. Why would long term investors sell?
There are two ways company stock price drops. 1) With index drop 2) Company performance drop.
When company performance is good (based on qtrly reports), AAPL may drop with indexes.
It comes down along with market. When S&P dropped, AAPL proportionately drop, but there are long wait investors buy at bottom and company buyback team also buy at that time.
Latest attack to crack AAPL…
The Zhengzhou campus was operating normally as of Wednesday evening, a Foxconn spokesperson said. The violence had erupted after a portion of recently arrived employees raised complaints about “work subsidies” – bonuses or payments on top of usual wages, Foxconn said in a statement.
Employees at the plant said protests started in a dormitory area near the factory on Tuesday evening, after they learned expected bonuses would be delayed.
AppleTV is sold at/near cost.
Foxconn has offered to pay newly recruited workers 10,000 yuan ($1,400) to quit and leave the world’s largest iPhone assembly factory, in an attempt to quell protests that saw hundreds clash with security forces at the compound in central China.
“Foxconn is a Taiwanese company,” he said. “Not only did it not spread Taiwan’s values of democracy and freedom to the mainland, it was assimilated by the Chinese Communist Party and became so cruel and inhumane. I feel very sad about it.”
I Guess he will eventually forced to make phone to enable starling network with phones !