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Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them. Business, that's easily defined - it's other people's money.
Apple’s New IPhone Also Brings New Business Model.
Apple Inc. has dramatically changed the business model behind its iPhone in a gamble that counts on higher volume sales replacing iPhone revenue now received by Apple on a recurring basis. Starting July 11, carriers will sell a new third-generation iPhone for $200 (RM600 ++) less than it has charged for older versions. Apple will then collect all of the initial sale price, it’s believed, while operators will then keep 100% of the fees consumers pay to use the device.
Under the business model in place for a year now, carriers paid Apple a percentage of both the higher iPhone price and the fees consumers would then pay carriers over the life of their contracts. Apple also signaled Monday that it has shed another vestige of its old iPhone sales model. In a securities filing, Apple disclosed that agreements it has reached with scores of other carriers are “generally not exclusive with a specific carrier.”
Under the former business model, Apple reached exclusive deals that allowed only one operator per country to sell the phone. That strategy, while building up demand, was criticized as cloistering the iPhone from a potential huge audience. The changes will begin to take effect next month when the 3G iPhone goes on sale. Third generation, or 3G, refers to cell phones that are compatible with some of the world’s fastest wireless Internet networks.
In the same filing Monday, Apple said it will continue to receive a cut of service fees supporting the older version of the iPhone that’s been on sale for a year. Now everyone can have their own IPhone!!!
Economic depression cannot be cured by legislative action or executive pronouncement. Economic wounds must be healed by the action of the cells of the economic body - the producers and consumers themselves. One more thing is in the business world, everyone is paid in two coins: cash and experience. Take the experience first; the cash will come later. Remember, a business that makes nothing but money is a poor business.
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