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by jannes 5 days ago
Props to them for making it this far into the crisis without raising prices.

It had even led to some anomalies where Apple machines were a better price than similar Windows machines.

4 comments

> Props to them for making it this far into the crisis without raising prices.

Yeah, it's a laudable miracle that this $4T+ company could survive this long without raising prices on such razor-thin margins.

The iPhone is also a vehicle to hook people into the Apple ecosystem, where Services like the App Store bring in 40% of all gross profit with margins of 75%.
> Services

Wonder if those costs will increase too as storage price is going up.

most of it is near zero marginal cost.
Move from 2TB to 6TB stings tho
> without raising prices.

Because they were already selling memory at crisis prices when it was dirt cheap.

And now they want those crazy margins again.

Their products were so overpriced to begin with they had plenty of buffer to swallow supply price hikes like this for some time.
It's nothing special, high-margin product prices are less sensitive to the costs.
Is that it, or did Apple negotiate long term contracts with suppliers?

Tim Apple has never been one to shy away from squeezing out another dollar.

It could be that too. But just seeing Apple not raise prices on the face of it, that could be purely from taking lower margins. I'd have to dig into the last earnings call.
Apple hasn't had many models constrained by supply instil recently (Neo, Mini and possibly studio). The ram shortage doesn't seem have have hit them until quite recently. Existing agreements? They pay more to be prioritised?