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How true is that? Apple hardware is expensive, yes. But Apple provides everything including research and design of every aspect of that product from the individ
by kobeya 9y ago
How true is that? Apple hardware is expensive, yes. But Apple provides everything including research and design of every aspect of that product from the individual chips (designed in house) to the highest level software services. Unlike Amazon, ongoing support and services is not paid for with a monthly subscription. I know Apple is profitable, but is it by THAT much? Their costs are much much higher than just the bill of materials.
- exolymph 9y agoApple is absolutely ludicrously profitable. Look it up.
- kobeya 9y agoThe number quoted for profitability is typically “gross margin” which does not include the extra costs I mentioned.
- kobeya 9y agoTo clarify, since the edit window expired, I bet that Apple books a lot of their expenses as infrastructure investment or other things that don’t factor in as costs in those profitability calculations. Accounting wise they made a huge profit and then reinvested that in their company. But their customers only bought that hardware at such high prices because of the value add these investments provide.. so in Apple’s fairly unique case I’m not sure standard accounting practices give a good view of the situation.
- empath75 9y agoApple's net income (ie, profits) is 20x higher than Amazons.