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**Drysnyaty** · 09-07-2007, 03:06 PM

Originally posted by Tingkai
As for the price cut itself, I don't think it is a result of low sales.

Besides, what's important is profit, not number of units sold. Woh. You make profit by selling things at higher prices. Why would they drop the price if the phones were selling.
So Apple probably looked at the initial sales info and decided they could make more money by dropping the price and selling high volumes at a lower profit rate, rather than selling low volumes at a high profit rate. No. They want to maximize profit for the product not the time period. Dropping the price means when there are customer that will pay more they make less profit. They drop the price for the product after most every customer that will pay at the current price has already bought the product.

09-07-2007, 03:06 PM	#26
Drysnyaty Join Date Oct 2005 Posts 569 Senior Member	Originally posted by Tingkai As for the price cut itself, I don't think it is a result of low sales. Besides, what's important is profit, not number of units sold. Woh. You make profit by selling things at higher prices. Why would they drop the price if the phones were selling. So Apple probably looked at the initial sales info and decided they could make more money by dropping the price and selling high volumes at a lower profit rate, rather than selling low volumes at a high profit rate. No. They want to maximize profit for the product not the time period. Dropping the price means when there are customer that will pay more they make less profit. They drop the price for the product after most every customer that will pay at the current price has already bought the product.
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