The recent news that The 64 GB iPhone 6s costs Apple only $234 in components is nothing surprising. In the past, we have had reports that Apple makes a ton of profit from selling their iProducts, and this is certainly one of the reasons they are reputed to be on Forbe’s World’s Most Valuable Brands , while they make astounding profit per unit, and in accessories, they also sell a quantum of those iProducts.
Samsung is also said to make similar margins on their flagship smartphone.There are many other products / services companies that make jaw dropping profits.
What I would want us to consider is if there is anything wrong / unethical in “excessive profiteering”, or making excessive profits.
Here is a definition of profiteering:
present participle of profiteer
The act of making an unreasonable profit not justified by the corresponding assumption of risk, or by doing so unethically
The love of money being the root of all wisdom, is there such a thing as excessive profit.. since abundant money answereth all things?
Fair enough, the purpose of setting up any business is to make profit, and that’s the report sheet for for_profit organizations. But where does profit making end and ethical considerations start?
If we assume that some businesses earn a disproportionately high levels of profits, how about professions / vocations that also earn ultra high income levels? Professions like Investment banking?
Besides, unless a company / service offers unique services, or is a monopoly, what would make people (continue to) pay disproportionate sums, therefore enabling stratospheric profit margins? Could then say that a service that earns humongous profit must be monopolistic or offering a unique / vital service?
Furthermore, if an organization like Apple or a highly paid surgeon gives back copiously to society through philanthropy, does this Robinhood action extinguish the ethical / moral question? After all, nothing is right, and nothing is wrong, but thinking makes it so.
Can we extrapolate excessive profiteering to include a billionaire in a predominantly impoverished Third World country, or a Pastor / President purchasing personal aircrafts when the.majority of the congregant / citizenry languish in penury.?