Linked by Thom Holwerda on Thu 8th Nov 2012 12:52 UTC
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RE[2]: Good units sales - poor profit
by Tony Swash on Fri 9th Nov 2012 00:37
in reply to "RE: Good units sales - poor profit"
"An operating profit of $206 million on 8.7 billion. Thin margins.
Maybe because they're not fleecing their customers?
Oh, I forgot: we're living the post-PC era, tablets (i.e. iPads) are eating into the sales of PCs in general and laptops in particular, yadda yadda yadda. Either that, or the margins are way too thin, eh?
RT. "
The notion that any company that makes a good profit, and let's be honest here in this context that means Apple, is fleecing the customer is ludicrously childish.
If a company fleeces customers you don't see it's sales increasing above the average market growth rate year after year and you don't see it regularly topping surveys of customer satisfaction.
If you make a high value added and sought after product with a high reputation and as a company create a premium brand that not's fleecing, it's just good business.
RE[3]: Good units sales - poor profit
by kwan_e on Fri 9th Nov 2012 03:57
in reply to "RE[2]: Good units sales - poor profit"
RE[3]: Good units sales - poor profit
by karunko on Fri 9th Nov 2012 08:58
in reply to "RE[2]: Good units sales - poor profit"
If a company fleeces customers you don't see it's sales increasing above the average market growth rate year after year and you don't see it regularly topping surveys of customer satisfaction.
Psychology 101 explains that each time you spend a non trivial amount of money on a product you feel "naturally inclined" to be happy with your purchase. I'm not saying that the products themselves are not to good, mind you, but the same could be said about Lenovo, ASUS, Samsung, etc.
If you make a high value added and sought after product with a high reputation and as a company create a premium brand that not's fleecing, it's just good business.
Given that the parts are the same and prices are the same, if Apple makes a bigger profit on a sale it means that their customers are paying more. The fact that they are willing to do that doesn't change the fact that they are, in fact, paying more and no amount of spin doctoring is going to change that.
RT.
Edited 2012-11-09 09:02 UTC
RE[3]: Good units sales - poor profit
by zima on Thu 15th Nov 2012 23:18
in reply to "RE[2]: Good units sales - poor profit"
It's childish to overlook veblen goods, positional goods, how our perceptions of products work (for example http://news.stanford.edu/pr/2008/pr-wine-011608.html ); how a company might be doing decent despite the pricing of their products.
Anyway, a) I'm glad I'm getting a better deal with Lenovo b) Lenovo is about bigger things for China.




Member since:
2008-10-28
Maybe because they're not fleecing their customers?
Oh, I forgot: we're living the post-PC era, tablets (i.e. iPads) are eating into the sales of PCs in general and laptops in particular, yadda yadda yadda. Either that, or the margins are way too thin, eh?
RT.