The Curious State of Apple Profit Margins, Snap Isn't Like Apple, Thursday Q&A

Today's Above Avalon email includes the following stories: 

  • The Curious State of Apple Profit Margins
  • Snap Isn't Like Apple
  • Thursday Q&A

We begin today's email by continuing the discussion kicked off in my article, "The Curious State of Apple Product Pricing." We go over some of the financial implications related to Apple's product pricing strategy. We address why Apple's gross profit margins are increasing as the company lowers entry-level product prices. The email then turns to Snap. We discuss why I don't think Snap is like Apple. There is a fundamental difference between the two companies that most people are ignoring. We end the email with the latest installment of member Q&A, and I answer the following questions from Above Avalon members: 

  • How would you explain Apple's Mac pricing strategy given your latest Apple pricing article?
  • Why isn't Apple utilizing Apple TV's potential?
  • When is Apple going to create a premium offering that combines Apple Music and their iTunes video catalog? 

These stories are available for Above Avalon members. To continue reading, click here.

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