Re: A smallish boutique electronics seller (Score 1)

Yah but they didn't grow into lower profits. Even though their sales where down a little, they managed to increase their average profit over all the products sold. This is why they beat the 'expectations' on profit. What they can and will do is nudge up the prices and this works because they already have a huge market base. Think of the term 'nickle-and-diming', usually used for companies that add small extras costs to everything. Would people buy an iPhone for $50 more? Yes. Imaging what happens when you multiply the $50 by 10million iPhone sales? If you look, it really does appear that every new apple product in the last year has indeed increased in price. Sure, a sane company has to keep up with changing costs, but Apple always gets the best pricing on everything, so on most of the products it means a profit increase. With Apples user base, even small $50 increases will yield higher profits. The iPhone X did not sell in the numbers that were expected, BUT it had a price/profit margin high enough to boost profits. Cook most likely has a good grasp on how to increase profits without needing to redesign the wheel. Really, it's not like people are abandoning Apple because of a poor product. The Apple audience if now big enough, that most anything will be successful, even if the product doesn't look like success to share holders. Apple's services are also increasing in profits, and they are getting into Streaming and Content creation. I think more and more of their user base is buying into the services, because Apple is starting to show a presence in those markets. Price those services at or potentially above market and you have a new avenue of growth. TOM...