4 ms·
Is it predatory? Apple must turn a profit somewhere and charging a bit more to their high-end customers to give a bit more of a break to their low-end customer
by hajile 3y ago
Is it predatory?
Apple must turn a profit somewhere and charging a bit more to their high-end customers to give a bit more of a break to their low-end customers isn't a terrible method.
If you hate Apple's pricing, you have WAY more companies to hate on first.
Apple has a gross margin of 44%.
Amazon has gross margin of 46%
AMD has a gross margin of 47%
IBM has a gross margin of 54%.
Microsoft has a gross margin of 71%.
Oracle has a gross margin of 72%
Nvidia has a gross margin of 74%.
Meta has a gross margin of 78%
- pasttense01 3y ago"Amazon has gross margin of 46%" Reference please? Amazon has massive retail sales and it's not even making a profit on this much of the time--and the rest of the time it's low.
- hajile 3y agoI just considered the top Google hits for some big tech companies. This particular one is from this site. https://finbox.com/NASDAQGS:AMZN/explorer/gp_margin/ https://finbox.com/NASDAQGS:AMZN/explorer/gp_margin/
- DonnyV 3y agoYou need to add references for all these numbers. I find it hard to believe Microsoft has a gross margin of 71%.
- hajile 3y agoI literally just looked at the Google default results. In this case, here's your source. Those margins plus the AI bubble are why MS stock prices are so high. https://ycharts.com/companies/MSFT/gross_profit_margin https://ycharts.com/companies/MSFT/gross_profit_margin
- abattleofwords 3y agoThis is misleading. Gross margin excludes operating expenses and taxes. Net margin or operating margin is more meaningful. Here's now the operating margins stack up for Q3 2023 Nvidia 57.5% https://www.nasdaq.com/market-activity/stocks/nvda/financials https://www.nasdaq.com/market-activity/stocks/nvda/financial... Microsoft 47.6% https://www.nasdaq.com/market-activity/stocks/msft/financials https://www.nasdaq.com/market-activity/stocks/msft/financial... Meta 40.2% https://www.nasdaq.com/market-activity/stocks/meta/financials https://www.nasdaq.com/market-activity/stocks/meta/financial... Apple 30.1% https://www.nasdaq.com/market-activity/stocks/aapl/financials https://www.nasdaq.com/market-activity/stocks/aapl/financial... Google 27.8% https://www.nasdaq.com/market-activity/stocks/goog/financials https://www.nasdaq.com/market-activity/stocks/goog/financial... IBM 14% https://www.nasdaq.com/market-activity/stocks/ibm/financials https://www.nasdaq.com/market-activity/stocks/ibm/financials Amazon 7.8% https://www.nasdaq.com/market-activity/stocks/amzn/financials https://www.nasdaq.com/market-activity/stocks/amzn/financial... AMD 3.8% https://www.nasdaq.com/market-activity/stocks/amd/financials https://www.nasdaq.com/market-activity/stocks/amd/financials Apple is still extremely profitable for a company that primarily makes and sells hardware. Nvidia has a higher margin but that's because of the AI boom.