Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
Divorce, Maintenance, Personal Injury, Medical Negligence
Apple continues to do well. In its most recent results it indicated that its profit on gross revenue is 38.4%. That is astounding. Most people, when they go to their lawyer or their doctor, naturally look at the hourly rates, the fees and thinking all of that money is ending up in the lawyer’s pocket or the doctor’s pocket. In reality, especially in personal injury work, and especially if you are not touting as most of my firms competitors unethically do, 35% would be exceptional.
In other words, you would be lucky if, of every R100 that you are charged in fees, if R35 was profit and that would be before taxes and of course before individual taxes in the hands of whoever the individual is that owns the business.
For Apple to be running a business and making such huge profits is exceptional. Some of the way it does that is not exactly in the interest of the country where it originated, namely America. In other words, Apple makes its profits by having the highest priced cell phones and the lowest costs by largely employing people in factories in China to make its phones. In other words, the equivalent would be me advertising that people should come to my offices, but outsourcing all of the work done by most of my departments, apart from the attorneys that go to court, to call centres in India. That does happen already with some X-ray departments in South Africa and it is perfectly legitimate, but it is not that patriotic towards your own country and it is a good reminder that sometimes, and especially with bigger companies, it is just all about profit. It is about how that big beast can make more money and pay its shareholders more dividends and it does not matter about moral principles such as what the working conditions are like in China or whether or not there is democracy in China – it is simply get yourself the best deal you can from workers in a factory in a communist country.
Posted by Michael de Broglio on Monday 05-Mar-18
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Comments
Thabitha said:
on Thursday 12-Apr-18 10:25 AM
They will always make good profit in this way and selling for high price is their goal and making money
Sinead said:
on Tuesday 03-Apr-18 03:47 PM
Somebody asked me again if I would get and iPhone and I still won't. They will do well without me in any case. If they were more user friendly then maybe I would convert but I'd much rather go back to Samsung before switching to Apple products. Although, if I do consider doing Music more professionally, I will consider using a Macbook for production. I am still a long way off from that though.
Sharne said:
on Tuesday 27-Mar-18 07:57 AM
Appel Will always do well. They are always improving their product and expanding their range. Compared to other cellphones, they are the best.
Liz said:
on Friday 16-Mar-18 04:55 PM
Although Apple may run its business in a questionable manner. The product they provide is exceptional and it seems they will do anything in order to up their profits.
Ashleigh said:
on Wednesday 14-Mar-18 08:57 AM
Apple will always do well. If I could afford their product then I would really support them.
Michelle said:
on Friday 09-Mar-18 10:57 AM
I never had a doubt that Apple is not doing very good. They are definitely doing the best between all the companies that are making cell phones etc. I believe they are still busy growing. They will only do better also because they keep their clients happy and always entertained with new technology and updates other services do not provide.
Jolene said:
on Thursday 08-Mar-18 09:08 AM
We may not all agree with the way Apple runs their business but it was certainly a clever move and it is clearly working for them.
Jessica Apfel said:
on Thursday 08-Mar-18 08:17 AM
The outsourcing of employment has recently seen various strikes and protests, particularly within our Universities. Apple's employment strategies appear, on the face of it, to be appear unethical? But I suppose, if it is yielding such significant profit margins?
Prishani said:
on Wednesday 07-Mar-18 04:59 PM
I suppose with businesses such as Apple it is all about the profit and the turn over. Business owners and big companies like Apple have loads of people just working on clever tactics to minimise expenses and maximize profits! I am sure it involves lots of surveys and endless amounts of research!
Sarah said:
on Wednesday 07-Mar-18 10:34 AM
Apple is more profitable because Apple's sales and marketing organization is effective and its brand so powerful that Apple can spend a fraction of what its fiercest competitor does and still generate more revenue.
Zindy said:
on Wednesday 07-Mar-18 07:48 AM
Its a very good tactic they use to save costs and create jobs. I have heard a lot of good reviews from apple users but also more negative. I suppose any company just wants to be successful so do what works for you.
Daniella said:
on Tuesday 06-Mar-18 11:15 AM
Everyone can say that they will rather go with the cheaper option when doing something. Most of American products do originate from China. China is the world's largest exporter. However China is still a relatively poor country in terms of its standard of living, and that is why Apple or other companies profit from them.
Bianca R said:
on Tuesday 06-Mar-18 10:26 AM
Certainly very clever of Apple to be doing their manufacturing in China, and cutting unnecessary costs, but at the same time providing an income to the Chinese who are "working" for them. It is actually quite sad that Apple would not use their already profiting company to create more job opportunities in their own country?
Alexis said:
on Tuesday 06-Mar-18 09:25 AM
It is all in the brand and the work you put in to make sure you are at the top above all competitors. People trust Apple and Apple has positioned themselves in such a way that they are able to charge the price they do...and because of the loyalty, customers will buy their product at their asking price.
Michelle D said:
on Tuesday 06-Mar-18 08:19 AM
China itself has actually started imposing harsher tariffs on the outsourcing of other countries. It has begun a more nationalistic approach. China could become more competitive in the world market by promoting Chinese ideas and companies rather than merely assisting American based companies such as Apple. Therefore the Chinese government has started implementing more stringent rules and fees on foreign companies and factories manufacturing and exporting foreign products. Likewise South Africa should follow suit where appropriate. The economy of any country is greatly benefitted when Government and Business entities invest in the people of that country rather than foreign entities.
Megan said:
on Monday 05-Mar-18 04:45 PM
Already most products come from China and its not surprising that Apple would prefer using cheap labour in China. Surely if America decided to produce their phones in America, prices would increase significantly which may harm their sales. Productivity in China is doing amazingly, why would they think of changing that. Their current risk in China has proved to be more profitable.
Angelique Jurgens said:
on Monday 05-Mar-18 12:15 PM
So many workers also get exploited like that but for the companies it is great - cheap labour. Government should change their policies, while I understand foreigners also need opportunities but not in this case where they are actually working in their own country for another country per se. Apple clearly doesn't care about creating jobs in their country.
Jadine Richards said:
on Monday 05-Mar-18 11:45 AM
The sad reality is that practices such as the above are necessary in having that extremely profitable bottom line. Government should have more stringent policies regulating outsourcing to countries such as India or China as it essentially to their benefit to have their own people employed.
Bianca N said:
on Monday 05-Mar-18 08:45 AM
The profits are incredible, but the fact that the phones are made in China by factory workers who probably do not work in the most ideal conditions just shows that it really is all about money for a lot of companies. Apple is a huge company and I honestly think they can have their phones made in America, and at the same time create jobs for the citizens there. It would make a difference in the unemployment rate and help the economy grow even more.
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
