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XM financial trouble
"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. |
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