Quote:
Originally Posted by Dave_S
Since Samsung's phones are of a generally higher quality and much higher performance, while being sold at a lower unit cost, would seem to indicate that Apple's realized profits border on the obscene.
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Samsung has produced over a hundred phones while Apple has produced 3. They are not "generally" of a higher quality or higher performance, although their new GSIII hardware generally has higher performance. (One can quibble about the software).
More to the point, producing a 100+ models costs a lot more than producing 3 models, while producing models that sell a lot tends to produce a higher profit margin on the phones in general because the fixed costs become a very small percentage of the cost. Every phone you produce has fixed costs, and producing 100+ leads to a lot of fixed costs.