Apple (NASDAQ: AAPL ) upsells commoditized components better than anyone. In its iDevice lineup, the company charges $100 for incremental levels of additional storage, most of which goes straight to margins. In its Mac lineup, Apple does upsell Intel (NASDAQ: INTC ) processors in Macs, typically for $200 to $300. Again, most of that price increase goes to pad margins since Intel's processor prices don't climb that dramatically.
In the video below, Fool contributor Evan Niu, CFA, explains why he thinks Apple should pursue this margin-boosting strategy.
There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. Eric Bleeker, The Motley Fool's senior technology analyst and managing bureau chief, is prepared to fill you in on both reasons to buy and sell Apple and the opportunities left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.