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.
Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends and owns shares of Apple and Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.