Ken: Given the long-term contracts, high profit margins, and protection from competition, what is this company worth?
Several readers assert that Apple will simply use low end components and preserve its high profit margins.
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Why High Profit Margins Could Be Bad for the Bull Market originally appeared in the Daily Reckoning.
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Ford and GM built a strategy around SUVs and their high profit margins.
Those big inventories encouraged by the cartel have been processed by refiners, who have been enjoying high profit margins.
The high profit margins pay for the assembly and there is sufficient capital to pay for sales and marketing efforts.
As the company says, its first dollar invested is its last dollar and it therefore enjoys very high profit margins (around 70%-75%).
To maintain its technological edge and high profit margins, however, it must balance low-cost manufacturing abroad with the high-tech precision it achieves in Japan.
This could be a reflection of industries coming into and falling of out favor as well as the fact that high profit margins attract competitors.
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Meanwhile, despite their faster growth potential, high profit margins and little to no debt, many technology companies are trading at valuations below that of the broader market, he says.
Analysts have continued to forecast rapid earnings growth and high profit margins even in the face of rising energy and food costs and stagnant U.S. and falling European incomes.
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She suggested schools might be under pressure from pupils and parents to re-introduce certain foods and that some might be tempted by the high profit margins she said there were on sweet or fatty snacks.
To be sure the stock market values high tech companies so highly (incredibly, Microsoft ranks second in terms of market capitalization, lagging only Exxon), partly because of their high profit margins and prospects for future growth.
For Apple, high profit-margins and invincible loyalty are the most valuable resources in the world.
Those who thought the market was overvalued cited high corporate profit margins, gas prices and the economy as their rationale.
Microsoft has traditionally enjoyed very high operating profit margins on its enterprise software products like the Office suite as the incremental costs of producing one more copy of the software are very low.
Discounts may boost volume, but at a high cost to profit margins.
They sported high valuations on top of very high earnings, with profit margins at multi-decade highs.
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Mr Frost is a liquidator and says he sees the challenges facing licensed venues already struggling with high rents and low profit margins.
Some dealerships in Brazil have been under investigation for price collusion, whereas models are sold at nearly exact sticker prices to keep profit margins high.
Then there is the impact of new technology which has allowed online newcomers such as Egg, and Smile, to offer rates which threaten to reduce existing High Street banks' profit margins.
Sterling is so unsustainably high that importers are merely building up profit margins, curbing the anti-inflationary effects of a high pound and the inflationary impact of a fall.
Even so, though mining profits are down because of lower commodity prices, profit margins remain high.
Professional graphics are high profit margin products that typically having 2x -3x the profit margins of desktop graphics cards.
Whether its profit margins are too high is a matter for debate - though it should be said that profits were actually down last year.
And even when a hot new title comes out, High Street shops find that their profit margins are under threat from supermarkets offering cut-price deals.
Net profit margins also rank high in North America.
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The New York Fed released its manufacturing survey for New York state Tuesday, showing that manufacturing is expanding in February, but a high index metric points to weakening profit margins for manufacturers.
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If the profit margins aren't high enough, a price raise could be enacted with little resistance.
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