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kcg | 11 years ago

They also disclose units shipped (1.15MM in 2011, 2.32MM in 2012 and 3.85MM in 2013).

A simple revenue/units calculation would imply that revenue per unit is increasing ($205 in 2011, $227 in 2012, $256 in 2013).

This is a primitive analysis for a number of reasons, but it suggests that pricing pressure is not the issue. The MD&A, on page 64, also states that higher product costs were the primary reason for the gross margin decreases in 2012 and 2013, and that there was a 14% increase in average selling price in 2012.

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mynegation|11 years ago

Depends on how you define "pricing pressure". By the similar calculation the average COGS per unit in 2011, 2012, and 2013 is $97.11, $128.67, $162.07 respectively. It grows faster than the revenue per unit. Which may mean upward price pressure from suppliers, downward price pressure from consumers, or both.

kcg|11 years ago

Yes. I took the question as asking whether absolute revenue per unit was going down or absolute COGS per unit was going up (or both).

Obviously there are different perspectives from which we can look at absolute and relative pricing pressure, and with everything in finance it depends on definitions.