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Why does Apple charge so much for their products?
Bringing in huge profits for Apple. Apple’s reputation and brand allow it to charge a premium for its high-end products like the iPhone 11 Pro Max. And adding memory or storage to these products increases the cost even more. Because of this “Apple Tax” Apple products are often more expensive than its competitors.
What is the margin of an Apple reseller?
“Apple has cut margins on the iPhone X from 6.5\% to 4.5\% for large retailers like us, and if a customer pays by card, which is usually the case, the margin reduces to almost 1.5-2\%,” said Subhash Chandra, managing director at Sangeetha Mobiles, which has 400 stores across the country.
How does Apple reseller make money?
On average, resellers pay about 92\% of Apple’s retail prices. It’s lower for AppleCare at about 56\% but higher for iPhones where they basically pay full price, but the carrier pays them heavily so they actually make more money selling iPhones. So retailers get about an 8\% discount.
How much margin does Apple give retailers?
On average, when selling Apple products as a reseller, the margins are 8\%. Some products had margins as high as 40\% (AppleCare Protection Plan) and some were much lower to the point where a sale was losing money. Resellers that match Apple’s education discount lose money on every sale.
What is the profit margin on iPhones?
Apple’s gross margin for Q2 2021 was 42.5\%, achieved in large part through a strong iPhone sales mix. The gross margin has remained at around 38\% for years, but strong sales across each product line boosted the profits to a new second quarter high.
How much do Apple resellers make in India?
The Indian Wire Previously, the Apple offered a 6.5 percent profit for the third party retailers, which means, if a seller sells a 256 GB Apple iPhone X, he will receive a profit of ₹6,5000 (considering the price tag of ₹102,000).