They make tons of revenue off of computer hardware, this is true.
However, the contribution margin on computers is next to nill. In
other words, they cost almost or as much to produce and sell as their
price on the shelf.
So why does dell and Apple sell these computers? Because these
computers will draw in other business in many forms. People will
definitely buy software for their mac, some of it being apple
software, which will bring in Apple more money with a higher
contribution margin. they will by all the matching peripherals, etc
etc. The computer is just to draw you in so you can become a more
profitable customer for them. That's all. Heck, you're local target
and walmart do the exact same thing.
Brian
On Jun 7, 2005, at 2:40 PM, Bruce Johnson wrote:
On Jun 7, 2005, at 10:07 AM, Kevin Rauer wrote:
And we all know that Hardware is a losing business
HAHAHAHHAHAHAHAHAHAHAHAHAHHA!!! <snort>
tell that to Dell, or Apple for that matter.
<snicker>
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