However, if volume is a bit lower but its own high margin vehicles with few incentives, there is more reason to increase output.
Essentially, Apple is the high-margin winner, since it actually makes substantial money from each unit sold.
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The DVD rental business is still a high margin one for the company.
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In addition to this, the high margin DVD business is declining.
The wholesaling of wireless broadband services is a low-margin, high-risk business.
But this time the stock market is at a recent recovery high so margin calls are hard to fathom.
Clayton Christensen says the mistake is getting too dependent on your high-margin products.
Gross margin is expected to be about 13%, at the high end of the previous guidance range of 11%-13%.
He also noted that Cisco is targeting a high-20% operating margin over the next 3-5 years versus the mid-20% target discussed last year.
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The basic idea is that yes, Apple is superb at making high end, high margin, products that people are willing to pay top dollar for.
It takes a Henry Ford to go ahead and cannibalise a high margin business but that democratizing innovation impulse is exactly what is now reshaping the world.
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The PC maker is scrambling to rebuild its business around high-margin services and sophisticated server-room gear.
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Samsung has that sewn up, and everybody else is looking at the scraps of the high-margin device marketplace.
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Sure, Apple is the growth machine, creating demand for high-margin electronics.
Its best hope is that the solar cell industry doesn't follow the curve of the dram market it is often compared with--a once high-margin technology that turned suddenly, brutally, into a low-profit commodity market.
This is because if high sales are only maintained by producing low margin vehicles and offer incentives then manufacturers have little interest in expand production.
Google is a hypergrowth, high-revenue, wildly high-margin company.
Moreover, transportation fuel costs are high around the world at a time when there is little margin for error in the economy.
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Most appear resigned to the gradual loss of high-margin switched-call revenues and are gambling that it is better to cannibalise your own revenues than to watch others do it for you.
Nikolay Sobolev, Severstal's finance chief, adds that a further twist to the strategy is for Severstal to build a dealer network to sell high-margin services, such as adapting its vehicles for school and hospitals, providing full-service leasing arrangements and offering credit terms with local banks.
The Pimco High Income Fund is a closed-end collection of junk bonds, bought on margin.
It is supposed to be enough to take on both IBM and Cisco in their high-margin businesses.
Analysts point out that the company is not particularly competitive in the pickup and SUV markets, which are still important high margin vehicles even with unit volumes well below the peaks of a few years ago.
International Business Machines ( IBM) is the company Hewlett Packard ( HPQ) secretly wants to be, one where high-margin service and software businesses support huge but slow-growing (at best) hardware divisions.
The company says it is a price is paying for transiting from lower-margin mass businesses, while it heads to a glorious future of high-value unified data center architectures and swift, insightful data management.
One high-ranking chemicals executive told me the scenario is surprisingly rosy for this notoriously low-margin business.
His company is going through a substantial restructuring which will see it shed its PC unit to concentrate on high-margin software business.
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The recovery continues to be driven by high margin products that are gaining a foothold among consumers, a further indication that the home entertainment market is rebounding and in a healthy state.
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