"Matt Barrow" wrote in message
...

"Jonathan Goodish" wrote in message
...


A few years ago, I read an article that analyzed the costs involved in
producing an Apple iMac. While the iMac sold for around $1000 at the
time, the analysis concluded that Apple was making a windfall profit
because parts costs were only around $250. The analysis completely
ignored the costs of doing business: marketing, R&D, manufacturing,
distribution, etc. In reality, Apple's profit was much smaller on a
per-unit basis than the article suggested.

Those articles are common, evidently written by "journalists" rather than
anyone who's ever run a company. Another similar version is the 50 cents
of chemicals it takes to produce major pharmacuticals. Yeah, like they
just materialize in the right combination...

I might add that selling to individual customers DIRECTLY is very different
than (generally) placing ads and having sales reps wait for calls so they
can sign up new customers.