Re:Apple's warning is a bad omen for Wall Street bulls
by Retric on Thursday January 03, 2019 @01:24AM
(#18813271)
Premium is not nessisarily luxury.
Anyway, the average tells you a lot. To simify, if the cars sold for 20k, 20k, 20k, 20k ... with one selling for X million. The that X million car eats up 16/36 = 44.5% of the value. Further, if the margin is low on 20k cars and high on X million dollar cars then itβs more profitable to just sell the one car.
You can play with these numbers, but generally the median is well below the average. So, by revenue 50+% of the market is for 40+k vechile which a premium product. At least compared to a 16k Yaris which gets you from A to B just fine.
Anyway, the average tells you a lot. To simify, if the cars sold for 20k, 20k, 20k, 20k ... with one selling for X million. The that X million car eats up 16/36 = 44.5% of the value. Further, if the margin is low on 20k cars and high on X million dollar cars then itβs more profitable to just sell the one car.
You can play with these numbers, but generally the median is well below the average. So, by revenue 50+% of the market is for 40+k vechile which a premium product. At least compared to a 16k Yaris which gets you from A to B just fine.