I think of Apple as akin to a warehouse club like Costco or Sam's.
These "clubs" sell a high margin membership, and you get to buy low-margin toilet paper 50 rolls at a time.
Likewise, Apple sells digital media, which is a relatively low-margin business. But by doing so, they get you to buy high-margin hardware and services.
These "clubs" sell a high margin membership, and you get to buy low-margin toilet paper 50 rolls at a time.
Likewise, Apple sells digital media, which is a relatively low-margin business. But by doing so, they get you to buy high-margin hardware and services.