Here's something that will shock you to your very core: Even if Apple is making a profit on its App Store, it makes considerably more money selling iPhones and iPods! I know, right? RELATED: Rob Walker would like you to create these two apps.
Here's something that will shock you to your very core: Even if Apple is making a profit on its App Store, it makes considerably more money selling iPhones and iPods! I know, right? RELATED: Rob Walker would like you to create these two apps.
Another little factoid I picked up. For some reason, the headphones that come with your iPhone are magnetized. Put your headphones on your desk. Move one earbud (speaker facing inward) toward the speaker of the other earbud, and watch it dance away across your desk!
Fun and useless information!
It's really a counter-typical business model. Typically you have your low margin on the base unit and mark up the accessories like crazy. (A good old-school example would be the Kitchen-Aid mixer. You pay $269 (or somesuch) for this amazingly powerful and sturdy mixer, but the profit to the store selling it is about 20 points and the profit to KA is about the same. The accessories (Rotor Slicer & Shredder, Food Grinder, Fruit, Vegetable Strainer, et al) are typically marked up 60 to 70 points for all involved.)
Rod, Assistant Buyer, Kitchen Electrics, Macy's, 1992-4
A simpler example: the razor. Give away the handle, charge obscenely for the cartridges.
Well, yeah, but that makes it not about me.
Or printers and their ink cartridges.
Gopnick does not approve of this business model.