If you ever wonder how AAPL, Apple’s ticker symbol on Nasdaq, has done in the last 5 years. It started out at around $40 per share five years ago. It’s currently priced at about $130. That’s 3 times the value. Part of the reason why Apple has so much revenue, they place a huge markup on their products. Consider the latest and greatest, the iWatch. According to Geek.com article, the iWatch costs only $83.70 to manufacture. As the article mentions, it does not put into account the cost of development, support, packaging, etc. If you put that aside for a moment, the cheapest iWatch you can buy from Apple retails for $349, a 76% markup. That’s the just cost of using Apple products. In spite of the cost, consumers still buy Apple products for quality and support. I think consumers value that. That’s the reason why people still flock to buy Apple products. But 76% is a crazy value.
I read there’s a two month wait for the iWatch. That’s a long time to wait for an order. I’m not sure if Apple purposely designed this to create demand or maybe there are manufacturing issues indeed. Probably the latter. Nevertheless, it’s a long time to wait.