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Description: It’s often an exciting time when Apple unveils a new iPhone, and this past week seemed true to form as Tim Cook introduced the iPhone 12. One surprise for some was that Apple is not going to be including any charging adapters or earbuds with the smartphones. With so many chargers and headphones already owned by potential users, Apple saw this move as one to cut electronic waste. The articles does note, however, that this will make a very small contribution to solving the problem.

Date:  October 16, 2020

Source:  wired.com

 Link: https://www.wired.com/story/apple-iphone-no-charger-gallium-nitride/

Discussion points:

1) Are you an Apple user or not? Why?

2) What do you think of this move by Apple to reduce e-waste?

3) In Wiley’s Financial Accounting: Tools for Business Decision-Making, Chapter 5, we can read how some business sectors are generally “low gross margin” while others are “high gross margin.” In which sector does Apple fall?

17 Responses to “Apple Cuts e-Waste?”

  1. Andrew MacDonald, Tevin Lewis, Jessie LeGrand

    1. Our team was fairly split between Apple users and non-users, the benefits of owning an Apple product being its easy accessibility and long product lifespan. For those who preferred other brands, the reasoning was that it was too expensive despite being the least durable and having the least powerful hardware compared to most of its large competitors. Furthermore, it is inconvenient to acquire more memory space, seek repairs, and Apple has been known to slowdown the software on older models.

    2. Although we all agreed that the sentiment of wanting to reduce electronic waste was good, we also all felt that it was more of a publicity stunt to gain public praise while avoiding any backlash for lower their manufacturing costs in the process. The fact that Apple makes its products/accessories so exclusive (e.g. specific chargers which can only be repaired by them), demonstrates their hypocrisy, as more harm may result from the excessive shipping that results.

    3. Apple falls under the high gross margin sector, as they are a luxury good that sells for a lot while constantly finding ways to cut down on their costs (e.g. manufacturing in countries that allow for cheaper labor, no longer producing any excess chargers/headphones to go in every Iphone box, etc).

    Reply
  2. Sophie Austin

    COMM 2101 Group 1: Sophie Austin, Montana Branch, Drew Besco, and Shashank Arvindan

    1) 3 people in our group use Apple on a daily basis. We originally started using Apple products in high school because many kids in high school were using Apple, and we wanted to fit in. The user interface is pretty straightforward and since we have been using Apple products for a long time it would be inconvenient to change companies now. 1 person is not an Apple user because they found that the features on other tech products are much more advanced for a lower price, and Apple products just aren’t worth the high price point.

    2) It appears to be a smart move by Apple because not only will they make more money from consumers buying charging ports and headphones in addition to the iPhone 12, but they also appear to be more eco-conscious. It’s a win-win for Apple because they make up for the potential loss of customers with the additional revenue of current consumers purchasing new chargers and headphones. Apple is also such an established and well-known company that they are unlikely to lose a substantial amount of customers due to this change.

    3) Apple falls into a “high gross margin” business sector because its stock has a low turnover rate as a tech company.

    Reply
  3. Gabriel Champagne, Alea Buchel, Davide Colonna

    1.

    In our group we are all apple users. While apple products are expensive the first time you buy them, they do have a high reselling value. That makes it cheaper for customers to buy newer products when they come out because they can sell their old devices for a relatively high price. Also, the synchronisation across different apple products allows customers to get the best use of the services apple offers. The different products work together like it wouldn’t be possible if you had an apple and e.g. a windows product. This is especially helpful when going to university for example where you can take your notes on the iPad and they synchronise to e.g. your MacBook right away so you have your notes on all your devices. I personally also continue to buy apple products because I never had any problems with the technology. Additionally, if the products are treated well, they can last for several years and still keep their high quality.

    2. In our opinion Apple’s move to save waste falls a little short. The reasoning is that they changed the adapter needed to charge your phone. Since it has been changed, consumers need to buy said adapter. Apple is still producing these, and is charging for them separately, so they aren’t really saving plastic, and even if they were, we do not think it was their main goal. We believe that they are simply doing this to increase sales due to the COVID-19 pandemic.

    3. During our group discussion we came the the conclusion that Apple is a high gross margin, We discussed the fact that apple and the products they sell are consumer goods (such as iPhones and MacBooks) that may only need to be purchased every 2-4 years or so, as a comparison we used things such as a carton of milk which you may need to buy every week, or a tube of toothpaste which would need to be bought every few months. Given that comparison Apple would be a high gross margin. It’s also we known that the profit margins on apples electronics are very high, an iPhone 11 costs around $500 to manufacture, but they then sell it for upwards of $1000 (CAD) which means they profit double what they spent to manufacture the phone. In Apples case this is something that could be deemed necessary to keep the company in business, as the average consumer shops at an Apple Store maybe once per year, they need to maximize they income from that one visit.

    Reply
  4. Alexa Kastner, Myaella Letourneau, Jack Hooper

    1. All three of our group members are Apple users. 2 members use Apple products for both cellphones and laptops, because they like how easy it is to transfer information between all of their device, and can therefore have access to their information from any location. Our third member does not use an Apple computer but recently switched to having an Apple cellphone. Before, he had a Samsung phone and he believes that Apple’s phones are easier to navigate and have a better user interface. Overall, we find that, for phones especially, Apple’s technology works best for us.

    2. Our group believes that Apples move to reduce e-waste is a good idea, but is not as clear cut as it seems on the surface. We believe that this decision won’t change much unless other companies do the same and users do not revert to just buying new earbuds and charging blocks with every new phone. Because Apple is one of the leading brands in the technological world, this will hopefully encourage other large companies to do the same, and cut their e-waste. Our group did discuss how Apple may have had some ulterior motives, such as decreasing their costs associated with producing a phone but still charging the same price and then getting a higher profit margin, but we believe that, despite this, if users work with Apple to cut their consumption of charging blocks and earbuds, this move can make a positive impact. We also discussed how many users already have many chargers and earbuds at home, so realistically many users do not need the new charging block and wire. Overall, we believe that in the short run this may just seem like a marketing stunt, but if we all work together then this can have a positive impact in the future.

    3. Apple falls into the sector of high gross margin. Our group talked about how apple has relatively low costs associated with the production of their products, charge a much higher amount and still sell many devices. As such, if their gross profit is high relative to their sales, then consequently so will their gross profit margin. This idea is supported by an example in the textbook on page 5-26, where they discuss the iPhone XR; it costs Apple around US$450 to make, but it is sold for US$1,249, which “translates into a gross profit margin of 64.5% on that model.” Of course, Apple incurs other costs, but based off this information, and especially now since Apple is cutting their costs with the move to reduce e-waste, we concluded that Apple falls into the category of high gross margin.

    Reply
  5. Akhilesh Penta, Efe Onal, Jacob Myra

    1.
    In our group we all are apple users, iPhone, AirPods, MacBook, iPad are the products are used in our group. Two of our group members first smartphones were Apple one of us switched to Apple product later on and did not turn back to android.
    We believe at the time we bought we weren’t informed purchasers so we bought Apple products because of its popularity. However, at the time of our purchase, 6-7 years ago, our elders were using more Apple products than other ones as well and we believe that is because first years of Apple they were innovative and had brand new technology products. We think people stays as an Apple user because of features like iMessage and AirDrop, and we think its popularity is an important factor of decision process.
    2.
    We all agree the aim to reduce e-Waste is a great cause. However, we believe Apple had an ulterior motive for removing charger and EarPods. That is to increase profit from basically charging extra for essential products for a smartphone. Apple like other technological companies makes profit from selling new products and to do so they do not value durability and longevity of their products as much as other features. An essential part like charger needs replacement quite often, as all Apple users we changed more chargers than phones as the white plastic, cable insulation, rips so easily when it bends so it contradicts when they create products with short life span and they want to reduce e-Waste. For the EarPods we believe they want to increase sales for AirPods, by leaving people a choice between purchasing EarPods, AirPods (which are more expensive but trendy), and a different company’s headphone. We all own AirPods and we think when left with this choice most of Apple’s costumers will go with AirPods.
    3.
    We all agree that Apple falls under the “high gross margin” sector. As they produce luxury/expensive products for people who are able to afford. They are not bothered to produce products for people for from every income group.

    Reply
  6. Robbie Loughery, Siyun Chae, Nicolas Briere, and Johnathan Desrochers

    1. Robbie enjoys the convenience offered by using more than one Apple product in combination with others (apple watch, mac, airpods). He also has grown into the apple ecosystem over time coming from a family of iPhone users and with mac’s and iPads in the house. Siyun, appreciates the camera quality on her Samsung phone, she likes the colour of her current Samsung S10 (opalescent back).

    2. This move to reduce e-waste seems be another step apple is making towards their bigger goal. By aiming to be carbon neutral by the year 2030 Apple (mentioned on their website) continues to make strides in the right direction and with this change like mentioned in the article the boxes for the new iPhone 12’s will be quite smaller than previous models. The article talks about how Apple ships for demand and that the smaller boxes won’t have a large effect on their ability to move these units. After seeing that the iPhone 12 preorders have reached 2.2 million units in just the first 24 hours as compared to the previous iPhone 11 preorders from last year which sat at 800 thousand. The demand is definitely there and the ability to ship more units because of the smaller boxes is efficient. Over the last several years it has become very apparent that high profile companies such as Apple are trying to make it known that they are conscious of their negative impact on the environment over the last several decades and have been making pushes to prove to their fans that they are aware.

    3. We believe that Apple is indeed in the “high gross margin” sector. This is because some may consider Apple as a producer of luxury goods. The iPhone costing around $470 to manufacture returns a profit of over double the cost. They have decided to continue down the path of producing the iPhone SE with its redesign that came last year. With this new model of the iPhone they were able to keep the cost down (relative to the other models) by having a phone in the line up with the internals of it new flagship all while keeping the a shell similar to the prior iPhone 8.

    Reply
  7. Sarah Merriam, Jenna Miller, Kathryn McIntosh

    1) Yes, our group members are Apple users for several different reasons. One of the first reasons is because Apple products including the iPhone and MacBook are very functional and reliable sources of technology for everyday use. The design of the products is basic enough to allow for easy navigation and transition between apps. Apple products also run faster than its competing brands because Apple was designed in a way that removes possible viruses that can come up on the devices. This factor helps them to run much faster as well as work efficiently on a small amount of memory storage.
    2) Although the move to reduce e-waste by Apple is a potential factor that allows for the reduction of plastic waste, it could also be a way to increase consumer spending. Apple mentions that many of its users already own the chargers and earbuds so they feel as if they can cut it out of the inclusion within purchasing a new phone. However, with the new designs of Apple technology, many times the charging ports changing, making it necessary for consumers to obtain new chargers and earbuds. This new initiative could also be an advertising technique to promote Apple and its new eco-friendly approach to selling their products. Our group personally thinks that the price of the phone should potentially be reduced if these additional accessories are not being included due to the fact that they are charging the same amount after the removal of the charger and earbuds as to what they were before. In conclusion, this idea to reduce e-waste could potentially be beneficial, however there are many outside incentives that could have encouraged this transition.
    3) Apple’s gross margin amounts to approximately 38% and the brand falls under the high gross margin sector because it is a company that provides consumer goods. The products that are sold are not everyday purchases and instead only need to be replaced after years of use.

    Reply
  8. Hugo Power Rachel Price Dylan Rhyno

    1) All of our group members are users of Apple. There seem to be benefits to using Apple over other types of phones. This is shown by its easy functionality with other Iphones, any other apple products especially with apps such as Imessage. Apple products are generally consistent in quality overall also. Once you add in the fact that it’s such a popular good, where so many others also hold one, allows for extremely easy communication. Personally I plan to switch to another brand in some time, as I find Apple Iphones to decrease in quality over time, and the cost of repairs exceeds what I think they are actually worth.

    2)In theory I love the initiative that Apple took, with the state of our planet getting worse and worse every year, every little but helps especially from big companies like Apple. However, I don’t think Apple decided to make this move in terms of the environment. I believe they decided to do this for monetary purposes. By not including chargers and headphones, new apple consumers will have to purchase those separately which will help apple financially. The company made a similar move a few years ago by removing the AUX port of all apple products. By doing that, they forced consumers to buy new headphones and they largely benefitted from this move. All this to say, I am glad Apple decided to try and reduce their waste, however, I believe this was a financial move over an environmental one.

    3) 3. In chapter 5, we learned that gross profit margin is the percentage of gross profit earned for each dollar of sales. Apple is a business that falls under the high gross profit sector because they are able to sell their products at a high retail price, while reducing the cost of the materials and manufacturing. In addition, companies that have a low turnover often have a higher gross profit because they have fewer sales but a large revenue for each product sold. Apple has been able to effectively control their production cost relative to sales revenue, resulting in a high gross profit margin.

    Reply
  9. Emily Mitchell, Jean-Luc Melanson, Noah McCarthy

    1) in our group, we all use apple products. We love how easy it is it is to transfer information from device to device through iCloud, and we also love the modern design and easy to use operating system that makes it easy to navigate. It is also advantageous to have an iPhone in this day and age because of Apple’s “iMessage” feature that allows its users to stay connected through their messaging app.

    2) Apple’s attempt to reduce e-waste has the right idea, but we think that it proves inadequate. They will not be including chargers within their phone packaging, however they will still be producing them to sell, so no electronic waste is truly being limited. People still need to charge their phones, and Apple chargers do not have the best rep for how long they last, so, despite not getting a free charger, there will still be a pretty high demand for them.

    3) Gross margin = (Total Revenue – COGS)/Total Revenue). The higher the gross margin, the more capital a company retains on each dollar of sales. Gross margin is one of the most important factors for a tech company. A high profit margin means that a company can make a reasonable profit on sales. With that being said, Apple would fall under “high gross margin,” as they produce quite expensive products at a relatively low cost to their company. For example, they will not be including chargers with the new phones, but we all know that they will not lower their price in spite of this.

    Reply
  10. Hugo Power Rachel Price Dylan Rhyno

    1) All of our group members are users of Apple. There seem to be benefits to using Apple over other types of phones. This is shown by its easy functionality with other Iphones, any other apple products especially with apps such as Imessage. Apple products are generally consistent in quality overall also. Once you add in the fact that it’s such a popular good, where so many others also hold one, allows for extremely easy communication. Personally I plan to switch to another brand in some time, as I find Apple Iphones to decrease in quality over time, and the cost of repairs exceeds what I think they are actually worth.

    2) In theory I love the initiative that Apple took, with the state of our planet getting worse and worse every year, every little but helps especially from big companies like Apple. However, I don’t think Apple decided to make this move in terms of the environment. I believe they decided to do this for monetary purposes. By not including chargers and headphones, new apple consumers will have to purchase those separately which will help apple financially. The company made a similar move a few years ago by removing the AUX port of all apple products. By doing that, they forced consumers to buy new headphones and they largely benefitted from this move. All this to say, I am glad Apple decided to try and reduce their waste, however, I believe this was a financial move over an environmental one.

    3) 3. In chapter 5, we learned that gross profit margin is the percentage of gross profit earned for each dollar of sales. Apple is a business that falls under the high gross profit sector because they are able to sell their products at a high retail price, while reducing the cost of the materials and manufacturing. In addition, companies that have a low turnover often have a higher gross profit because they have fewer sales but a large revenue for each product sold. Apple has been able to effectively control their production cost relative to sales revenue, resulting in a high gross profit margin.

    Reply
  11. Sarah Merriam, Jenna Miller, Kathryn McIntosh

    1) Yes, our group members are Apple users for several different reasons. One of the first reasons is because Apple products including the iPhone and MacBook are very functional and reliable sources of technology for everyday use. The design of the products is basic enough to allow for easy navigation and transition between apps. Apple products also run faster than its competing brands because Apple was designed in a way that removes possible viruses that can come up on the devices. This factor helps them to run much faster as well as work efficiently on a small amount of memory storage.

    2) Although the move to reduce e-waste by Apple is a potential factor that allows for the reduction of plastic waste, it could also be a way to increase consumer spending. Apple mentions that many of its users already own the chargers and earbuds so they feel as if they can cut it out of the inclusion within purchasing a new phone. However, with the new designs of Apple technology, many times the charging ports changing, making it necessary for consumers to obtain new chargers and earbuds. This new initiative could also be an advertising technique to promote Apple and its new eco-friendly approach to selling their products. Our group personally thinks that the price of the phone should potentially be reduced if these additional accessories are not being included due to the fact that they are charging the same amount after the removal of the charger and earbuds as to what they were before. In conclusion, this idea to reduce e-waste could potentially be beneficial, however there are many outside incentives that could have encouraged this transition.

    3) Apple’s gross margin amounts to approximately 38% and the brand falls under the high gross margin sector because it is a company that provides consumer goods. The products that are sold are not everyday purchases and instead only need to be replaced after years of use.

    Reply
  12. Lucy Poole, Hunter Morley, Nana Kwabena Asare Nti

    1. Yes! We are all Apple users. For most of us, it is convenient to stick with the name type of phone/same operating system to be able to easily carry over data even when you replace your phone. It’s also convenient, now that many of us are in online classes, to be able to access everything on both a phone and laptop, if you are a Macbook user. I find it really useful to be able to be working on something on my phone and then easily transfer it over to my computer. Apple tends to have very loyal customers who will continue to purchase their products – which likely means that a change, like this one to reduce e-waste, won’t make people change to a different company even though it might be slightly inconvenient.

    2. This move by Apple is a very strategic way to help cut the use of materials used for making earbuds and chargers as well as the waste that would be produced. Since many of Apple’s customers already own chargers and ear buds from previous Apple products, another charger would just be useless and a waste of resources. Big companies like Apple are one of the primary resource users and this move happened because of the growing understanding and educating of how serious climate change is. On the other hand, this is also a great way for Apple to make more money by selling the accessories separately. If it is someone’s first time purchasing an Apple product, they will need to buy the charger and earbuds in addition to the device they want. This move by Apple also makes me wonder if they will make more chargers to sell separately to make up for the loss of not including them in the box with the device. Apple is trying to figure out ways to still make money well also taking the safety of the environment into consideration.

    3. Apple are high gross profit margin because over the years, they have produced profits from the sale of their products that are above the costs incurred when these products are manufactured. Apple is a low turnover business, which means they have a lot of benefits in relation to costs.

    Reply
  13. Ryan Richard, Alex Smith, Kevinique Stubbs

    1. Our group is split between being apple users and not apple users. Our perspectives are:

    Alex: “I am an apple user because I found there product had the best design seven years ago when I got an iPod and have not felt the need to switch since.”

    Ryan: “Personally, I think that there are android phones that outperform apple at a better price, and like the easier customization features that Apple does not have. In particular, Android one, which teams with Google, has really a really nice display and doesn’t have all the bloatware that different manufacturers like Samsung have. ”

    2. At first, it is definitely a little confusing as they seem to be giving competitors an advantage over them. However, once you look into the reasoning behind it, it seems like a good idea. We think that it is good to cut down on electronic waste (or any waste, really) but Apple isn’t really doing a lot of that in this change. It almost appears as if they are adding another revenue stream as consumers will then have to purchase the charger separately (since we all know how long they last).

    3. Since a high gross margin company is one that has high profits, we think that this is the category that Apple would fall under. Seeing as they sell luxury goods that are sold at high prices (as well as being able to cut on costs), it is easy to see why their share price is as high as it is being a result of such high margins.

    Reply
  14. justin vogels

    Group members- Chloe Viola, Roland Von Harpe and Justin Vogels
    1- All three group members use apple products. For us the reason we initially got an apple product was that our parents already had apple products, and it is easy to sync content between products from the same company, so we also got apple products. Also, once you have one apple product it is also easier to sync data between the two so this led to us buying even more apple products.
    2- While we all agree that the decision made by apple comes from a good place, the only motivation behind it is not just to improve the company’s carbon footprint. By eliminating the charging port they are forcing people to buy new wireless chargers, which increase the carbon footprint. It seems that this is more an attempt by apple to increase revenue by selling more wireless chargers, but are using environmental concerns as a way to better present the changes to the public.
    3- We feel that apple is a high gross margin company. This is because of the powerful brand they have created is so widely recognizable and accepted. People are willing to pay more for an apple product simply because t is apple, and so they make more money. Also a technology device is not something that you will purchase often, like food. For this reason apple needs to make a higher profit on each item sold, so they have a higher gross margin.

    Reply
  15. Keara Mahaney, Xinyi Li, Liv Lopez

    From our discussion we discovered that ⅔s of our group uses Apple, whereas ⅓ uses Windows. The two of us who are Apple users like the software and the way all our devices are connected.
    One of us who aren’t Apple user, finds Android and Windows easier to navigate in general. Fewer restrictions on transferring file between devices and more choices. Because Apple is such a monopoly, finding Apple to be generally overpriced due to its popularity and the fact that if you were to change one of your devices to Apple, you’ll have to change it all to be undesirable.
    On the consumer side of things, we think Apple’s move to remove the USB adapter is frustrating. Consumers are spending a large amount of money on their devices and expect every accessory they need in the box instead of spending more on another adapter. While it is true many consumers already have USB adapters, most don’t have the new USB-C adapter the industry is switching over to. From Apple’s perspective this business move is good for many reasons. First of all, they won’t have to pay for the extra accessory for each phone, which will save them a large amount of money. This is also decreasing shipping and packaging costs for them. Overall, this is not likely going to reduce waste that much due to the fact that not many people have the USB-C converters which will end up with more emissions from shipping when they are purchased separately.
    Apple falls within the “High Gross Margin” sector because they sell a number of very expensive products but manufacture at a large enough scale where they make a very high profit off of each unit sold.

    Reply
  16. Paige Matchett, Jackson Major, Tara MacKinnon

    1. Everyone in our group are Apple users. We have all agreed that Apple is our manufacturer because the products are always very reliable. Due to this reliability, we are all able to use Apple as our phone, laptop, and headphone suppliers. This allows us to have the dependable products that we need in order to be successful throughout our university careers, as technology is a large portion of our learning – especially during this year with online education. Another reason why we prefer Apple over other companies is because of the design. Apple products are designed to have a very sleek, simplistic style, while still being very easy to use. When you have multiple Apple products, it is extremely easy to sync them together and transfer information. This is another reason why choosing this company as our supplier for all our technology needs is an easy choice. Apple has properly adapted their products to fit the ever-changing environment, which is something we have all been able to experience first-hand through the purchase of multiple different Apple products throughout the years (i.e. iPhone 3 to iPhone 12).
    2. The move by Apple to reduce e-waste is smart from their perspective. The company will be offering less product for the same price and reduce their production need for these extra materials. This is generally a good idea, as most people who purchase the newest Apple products will already have multiple chargers and headphones from their previous purchases. This will reduce the company’s e-waste, and as stated in the article, allow Apple to ship up to 70% more products per pallet. Therefore, the efficiency behind this choice is evident. Nonetheless, this choice does pose an issue for individuals outside of Apple’s market. If people decide to switch from their previous manufacturer to Apple, purchase a phone, and receive no corresponding headphones or charger (charging block) – it is likely they will not be very impressed. With that being said, Apple would still have to produce chargers/charging blocks to sell. Therefore, the waste they claim to eliminate may not be as significant as they believe.
    3. Apple would fall into the sector of high gross profit margin. This is because, as we learned in Chapter 5, technology companies have a relatively low turnover period for their products. This means that their products usually last for a long period of time, thus, consumers do not need to continually purchase them. Therefore, by charging high prices and producing less products over a period of time, Apple will be able to maintain a high gross profit margin. To demonstrate this with an equation, gross profit margin = gross profit/sales. So, if Apple is gaining more profit by providing less materials (i.e. headphones and charging block), their corresponding gross profit will be larger than previous years and their sales will be relatively similar. Thus, by selling expensive products for a relatively low cost to the company (= high profit), the gross profit margin will be high.

    Reply
  17. Ben Hopper, Chris Minuk, Will Fenton

    1) Are you an Apple user or not? Why?
    I use Samsung because it has more features, in my opinion, and it is easier to use compare to Apple. For example, with Samsung, you can just download basically anything on your phone through the web, but Apple cannot.
    2) What do you think of this move by Apple to reduce e-waste?
    It was a smart move for Apple to reduce e-waste because that is something that sets them aside from the competition and when they market that to the consumers that is a very good look for apple. E-waste is the chemicals and materials that make up your device such as lead or mercury which are harmful to us and the e-waste ends up in our air, soil and water and causes significant damage to the atmosphere. Another thing that Apple does well in this category is how they didn’t just reduce the amount of e-waste and then said that is good enough, Apple is continuously working on this issue and are constantly bettering themselves. This is a very good move not just for Apple but for the world as a whole because humans are breathing in less e-waste and there is overall just less e-waste harming the atmosphere and there is less in the air surrounding us which is so important due to how many people use Apple products in this world.
    3) In Wiley’s Financial Accounting: Tools for Business Decision-Making, Chapter 5, we can read how some business sectors are generally “low gross margin” while others are “high gross margin.” In which sector does Apple fall?
    Apple, as well as many other technology companies, has a relatively high gross profit margin when compared to other sectors. This is because the high-tech sector is considered a low-turnover industry, where products can sit in inventory for extended periods of time before being sold. These businesses often deal in expensive/luxury goods, and can therefore charge a markup for premium products. Apple is a clear benefactor of this, charging high markups for its products even in comparison to its competitors. All of this results in having a high gross margin.

    Reply

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