Apple’s best practice in margin control

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The power of margin decision

Looking back 1996, apple is in the crisis of low gross margin of 9.8%. In 1997, Jobs returned to Apple as CEO after the company’s acquisition of NeXT. Timothy Donald Cook joined Apple in March 1998 as a senior vice president for worldwide operations, and then served as the executive vice president for worldwide sales and operations. He was made the chief executive on August 24, 2011, prior to Jobs’ death in October of that year. 

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Targeted production make sales efficient

There was 350 products in 1995 generating US$11,062 million , which had gross margin of 25.8% and 14.3%(US$1,583M) of selling admin cost. Whereas in 1999, there is only 10 products generating US$6,134M with US$996M of admin cost(declined 38.1%). Targeted production did not change the gross margin of production but that totall changed efficiency of selling.


When apple’s revenue came back to >US$10 billion in 2005, gross margin was still controlled around 29%, selling cost is 


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