Apple’s Profits in Perspective
Posted November 29th, 2012 @ 05:22pm by Erik J. Barzeski
This piece linked to here says:
- From October 2011 through September 2012, the combined net profit of Microsoft, Google, eBay, Yahoo, Facebook and Amazon was $34.4 billion. Apple alone made $7 billion more.
- In the same period, Dell, Asus, Intel, Acer, IBM, Lenovo and HP, i.e. virtually the entire PC industry, made $19.3 billion or less than half of Apple’s profit.
Uhm.
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Posted 03 Dec 2012 at 8:24am #
Yeah, it's wild isn't it? Apple is a monster. And, good for them!
Posted 03 Dec 2012 at 5:25pm #
It is not fair to compare an end customer manufacturer (B to C) to Intel (B to B). Intel, because of the fixed and well understood costs of semiconductor manufacturing are only able to command 50-70% gross margin on their products. B to B is much more fixed cost model. B to C, can demand 125-200% gross margins and if there is demand they can sell it.
Now in comparison to other manufacturers, like Dell and HP, totally fair and because of the clear advantage they have not a surprise. The huge advantage they have over Sony is even more surprising. Of course Sony is losing so much money selling TV's, iWonder if Apple will ever do anything like that?
Posted 03 Dec 2012 at 10:29pm #
Mike, they're not really being compared exactly, especially when Intel is added on to other direct comparisons.