iPad iPad Air and iPad Mini with Retina announced

[JTravers]

Originally Posted by afv011

Really? That's BS. Apple's iPads command around 40% profit margin for the base model, increasing significantly for models with higher memory.

Actually, your claim of 40% profit margins is BS. Apple probably has gross margins on iPads of around 30%. That would mean profit margins are even lower than that.

[afv011]

Originally Posted by JTravers

Actually, your claim of 40% profit margins is BS. Apple probably has gross margins on iPads of around 30%. That would mean profit margins are even lower than that.

Wow, somebody was digging up old threads, having a grudge, aren't we?

iPad Air profit margins reportedly range from 45 to 61 percent

[JTravers]

Originally Posted by afv011

Wow, somebody was digging up old threads, having a grudge, aren't we?

iPad Air profit margins reportedly range from 45 to 61 percent

Those writers never looked at Apple's financial statements and never tried to break down the margins by segment. Their estimates are guesses, and bad ones at that. Besides, they incorrectly used the term profit margin in their article when they really meant gross margin. Those are not the same thing.

Apple's company-wide profit margins are less than 40%. iPads are known to have much smaller margins than iPhones, and those two products make up the bulk of Apple's sales. Anyone claiming that Apple has 45-61% margins on iPads isn't familiar with Apple's financials. It simply isn't possible for them to make those profit margins unless you think they are lying on their financial statements.