Forbes: Recession-proof Apple’s savvy product pricing will help 2Q earnings

In an article headlined “Recession-Proof Apple,” Forbes’ Brian Caulfield writes, “The company’s savvy product pricing will likely help its earnings.”

“The business model behind the iPod shuffle that Apple introduced last month is even better looking than its uncluttered exterior. The latest generation of Apple’s tiny music player is voice-controlled, so there’s no need for a display or click wheel,” Caulfield writes.

“Each 7.8-millimeter-thick gizmo has only 171 parts, down from 213 parts on the previous-generation device, according to technology researcher iSuppli. The El Segundo, Calif., outfit figures each Shuffle costs Apple just $21.77 to make,” Caulfield writes. “The result: iSuppli says the $79 iPod is one of Apple’s most profitable products.”

MacDailyNews Note: iSuppli’s teardowns do not include software and hardware development, manufacturing, marketing, or shipping costs.

Caulfield continues, “Such skillfully priced products are a big part of the reason analysts estimate the economic slump will take a modest 6% bite out of Apple’s earnings for the quarter ending in March. Analysts expect Apple on Wednesday to report net income of $982.3 million, or $1.09 cents per share, on revenues of $7.9 billion, according to a survey conducted by Thomson Reuters. During the corresponding quarter a year ago, Apple reported net income of $1 billion, or $1.16 per share, on revenues of $7.5 billion.”

Full article here.

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