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I'm happy if you want to talk net margins as long as we're comparing Apples to apples (digital to digital), so to speak. For most developers, Apple's gross mar
by CharlesW 3y ago
I'm happy if you want to talk net margins as long as we're comparing Apples to apples (digital to digital), so to speak.
For most developers, Apple's gross margin is 20% of what's considered a healthy minimum gross margin for SaaS companies, like the ones many of us work for.
- AnthonyMouse 3y agoThe most apt comparison here is Stripe or PayPal, but their gross margin is the aforementioned ~3%. Because it's processing payments for a third party, to compare it to something like AWS you would have to use the revenue of the service being provided to the customer as the base. So Facebook uses AWS, what percentage of Facebook's revenue does Amazon get? (Looks like ~0.2%, and that would be the equivalent of their gross margin.) Now, that number is going to vary all over the place because the proportion of value that a generic service represents for a given business is going to depend more on the business than the service. But that's kind of the point -- that's why AWS charges based on usage rather than a percent of their customer's revenue. Because nobody for whom that is a terrible deal would choose them if they used that pricing model in a competitive market.