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Despegaryesterday at 5:40 PM2 repliesview on HN

>Apple, as every market actor does, charges the absolute maximum price the market will bear for their products and not a penny less.

That price is much lower than it otherwise would be if the only revenue Apple could generate came from hardware. The opposite incentive exists today, where it actually benefits Apple to sell cheaper razors to make more money from the razor blades.


Replies

troupotoday at 1:58 PM

> That price is much lower than it otherwise would be if the only revenue Apple could generate came from hardware.

And that narrative is based on what exactly?

Apple's profit margin is 25% by the way.

rekoilyesterday at 7:32 PM

Only if consumers would pay it, which isn’t something we can really know.