How Apple Makes the Big Bucks

Dennis Faas's picture

It only makes sense. The more that people purchase and enjoy a name-brand product, the more likely it is that they will remember that brand when shopping for other products.

This concept explains why Apple Inc. has recently recorded their highest sales figures ever for MacIntosh computers.

The results are confusing for many tech observers. Consumers normally wait instead of rushing out to purchase a brand-new computer before the introduction of a major upgrade. However, right now many are snapping up MacIntosh computers just as Apple is planning to launch their new Leopard X operating system. (Source:

Halo isn't just for video gamers

Analysts have called this recent trend the "halo effect," meaning that consumers enter an Apple store looking to purchase a new portable device but leave with a brand-new Mac.

After the introduction of the Leopard OS X, many believe that the appeal for purchasing a new Mac will be stronger than ever. The Leopard OS X will make desktop programs easier to find through such features as Time Machine, which allows users to flip through older versions of the same document. (Source:

The recent increase in consumer purchases of Apple iPods and iPhones has also helped pump up company revenue. Apple recently boasted figures like $6.2 billion in revenue and $904 million in net profit.

How'd they do it?

Apple sold 1.1 million iPhones during the last fiscal quarter, bringing the total to nearly 1.4 million.

There have been problems, however.  In North America, AT&T Inc. is the exclusive carrier of the Apple iPhone. Many users admitted to purchasing their iPhone with the intention of using them without an AT&T cell phone subscription. Whether they would like to admit it or not, the success of the iPhone is at least partially dependent on the success of AT&T. Apple currently receives $15 to $18 per month from AT&T for each service subscriber. (Source:

If there are no subscribers to the AT&T service, Apple loses this extra revenue.

Regardless, everything appears to be just peachy over at Apple.  After all, it takes a special kind of tech company to draw a consumer in for a $200 iPod and send them away with a $700 desktop PC.

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