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No, that is extraordinary. Are you really comparing a software and IT company with a car manufacturer?
by Seanambers 5y ago
No, that is extraordinary.
Are you really comparing a software and IT company with a car manufacturer?
- touisteur 5y agoApple isn't a hardware company anymore?
- belval 5y agoIf you look at their where their 25% profit margins come from then no, they aren't a hardware company. If Apple tried to make a car tomorrow they would not have 25% margins on it. From a market valuation standpoint, this is also why Apple valuation is 44 times higher than Ford's.
- OneLessThing 5y agoI looked into it[1], their net profit margins were 32% last quarter. 36% gross margins on hardware products (iPhone, Mac, etc) and 70% gross margins on services (AppleCare, Cloud Services, etc.). However services only comprise 19% of their sales, the other 81% of their sales are from hardware products (mostly iPhones). Their service sales seem to all stem from them making the hardware. For example the AppStore walled garden is protected by the hardware, AppleCare services their hardware, and Cloud services are integrated into their devices, etc. It may be possible in the future for apple to get high margin "service" sales from an Apple Car App Store, buying games and movies for your self driving car, for example. Regardless I'd definitely consider Apple a hardware company. [1] https://www.apple.com/newsroom/pdfs/FY21_Q2_Consolidated_Financial_Statements.pdf https://www.apple.com/newsroom/pdfs/FY21_Q2_Consolidated_Fin...