Why Low Margin Car Industry Attracts Apple Inc

Apple is one of the most profitable company on the planet and now it wants to expand its profile of operation to build its own Apple iCar. But a lot of people are questioning this move and are terming it unwise since automobile industry is believed to run on very low margin/profits.

Apple vs Competitors photo-credit: Statista.com

Now Vox has come out with a counter point which seems to be pretty valid. It states that even the phone and pc manufacturing was traditionally thought to be a low margin business before Apple jumped into it and proved everyone wrong. This was made possible due to the twin strategy of efficient manufacturing and sacrificing market share to gain pricing power and has earned Apple billions of dollars that its competitors can only dream of. See the above chart comparing profits earned by Apple versus its closest competitors like Asus, Hp, Dell in the pc segment. We feel somehow Apple knows all the right tricks to run a money spinning business.

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