Friday, December 07, 2012

HEARD ON THE STREET: Apple's Soft Core Is Its Strength - WSJ.com

From an Apple hardware/software value assessment

“And that is largely due to the secret sauce inside the iPhone, which isn't really a handset so much as a computer with software that makes calls—and plays music, offers games, gives directions, takes photos, provides Web access and more. Wrapped in a svelte yet sturdy hardware shell stamped with Apple's powerful brand, the iPhone 5 commands an average price well above $600 when excluding the subsidies some wireless carriers provide to customers. And the iPhone's gross profit margins are huge: about 50% for the fiscal year ending next September, estimates analyst Rob Cihra of Evercore.”

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HEARD ON THE STREET: Apple's Soft Core Is Its Strength - WSJ.com

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