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|User Info||AAPL Halted After Earnings Release; entered at 2012-01-25 07:52:47|
Registered: 2008-07-07 In the Mountains
Aaron - they make their money from the sale of the goods. the margins are very high. the carriers pay full price (although no doubt a wholesale negotiated price, not the retail price) for the phones and sell it to you for much cheaper than retail (with a lockdown). Apple makes it's billions by producing it's goods for tens of dollars, and selling for hundreds. |
The music/app services are likely a net wash due to the cost of operating them, but are the enticing factor for people to buy the high margin consumer electronics.