7 ms·
So you're saying it's not a "tax" per say and that the hardware premiums actually go to R&D on next gen systems? Apple's profit margin says otherwise. :) > Ap
by smlacy 3y ago
So you're saying it's not a "tax" per say and that the hardware premiums actually go to R&D on next gen systems?
Apple's profit margin says otherwise. :)
> Apple net profit margin as of March 31, 2023 is 24.49%.
- jonny_eh 3y agoIs that their net profit margin on hardware?
- gjsman-1000 3y agoWell, that's actually not out of line for tech. Microsoft is 34.62%, NVIDIA is 28.41%, and Google is 20.58%.
- reaperman 3y agoLowering the price 10% won’t be a game changer for the vast majority of people who would buy these to put in a linux desktop/workstation/server.
- jakear 3y agoWhere exactly do you think they get the money to make payroll if not by selling goods and services?
- breuleux 3y agoMy understanding is that the profits are accumulated in a cash/low-risk investment reserve, which serves several purposes: hedging against the ~100B of debt they apparently hold, ensuring smooth operation in a downturn, and also enabling the acquisition of valuable companies or talent, such as P.A. Semi in 2008. Let's put it this way: it would be a lot harder for Apple to do what it wants if it didn't have a stupendous amount of cash to fund it. That money pile means that they can shoulder the risks of their own plans, and the fact that they just pile on more and more profit every year just means these plans are largely successful.
- joshuahutt 3y agoYou perfectly articulated my reaction to all of the complaints. It seems like people believe companies should aim for as close to zero profit margin as possible, as if margin is immoral waste akin to greed, and not fuel for for the business.
- deleted 3y ago[deleted]
- nightski 3y agoIts not that it is immoral, just that it indicates management lacks the imagination of what to do with it which can be problematic if it is a competitive industry.
- stephencanon 3y agoIntel's profit margins have historically been higher.
- BowBun 3y agoWhat does this even mean, with the sarcastic smiley face? Since when are margins and R&D mutually exclusive?
- ask_b123 3y agoA bit unrelated, but it is "per se".
- jbverschoor 3y agoHardware or including software?
- skippyboxedhero 3y agoRattling the cage, very naughty.