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I agree, but only partially. Many companies thrive on 10% or less operating margins. Amazon, Walmart come to mind. I'm not saying AAPL shouldn't make a profit,
by sami36 14y ago
I agree, but only partially. Many companies thrive on 10% or less operating margins. Amazon, Walmart come to mind. I'm not saying AAPL shouldn't make a profit, I'm saying it's going to have to come down a little.
Now, as far as GOOG selling their tables at cost. It's because Google is not a hardware company & does not expect their margins to come from devices. If you step back a little to contemplate the entirety of their business plan, you'll see that the see devices as conduits for their services & that's where their profits comes from, ad impressions.So, the fact they're selling their devices to break-even is only a piece of the puzzle.