Re:OnePlus One – $299 CyanogenMod 'killer' smartphone
by slantyyz on Wednesday April 23, 2014 @01:54PM
(#7635657)
>> Just because revenue is reinvested doesn't mean it isn't revenue or a margin.
Your sentence is a little confusing, because calling something revenue means it is revenue. And while related, revenue is not the same as margin.
And please note that the bill of materials for a phone is only a part of the cost of goods sold, which as mentioned by others, also includes manufacturing, assembly, marketing, r&d and other costs. Those costs are generally not considered to be "reinvestment".
Just because revenue is reinvested doesn't mean it isn't revenue or a margin.
And, seeing as Apple has >$100,000,000,000 of cash and near cash, your "reinvestment" line is a total fantasy. Apple is printing cash with a massive profit margin, and reinvesting a tiny tiny tiny fraction of that money back into their business.