Comment

Why It Matters that Apple is the Number 1 Smart Phone Manufacturer

23
Buck7/28/2011 8:52:15 pm PDT

re: #20 Obdicut

Why are you leaving out Microsoft’s much higher overhead and just looking at gross profit? What use is gross profit?

(Your first stupid question) What use is gross profit when discussing who the profitable tech company in the world is? Ummmm Duh….

However, I will bite. In fact I am leaving nothing out. I certainly didn’t think I had to copy everything into the post. I did a link back for any details.

However…MichaelJ said “the most profitable tech company in the entire world.”

Profitable is one of those words that can mean simply more dollars of profit, or a higher percentage of profit.

I posted both a Gross Profit, and Net Profit comparison. And included the ratios so that the comparison would be fair.

Basically tech hardware manufacturing is almost never as profitable as software. Microsoft sells a lot of software with almost a zero COG. Just the cost of a sticker (or paper) with a licence on it. That is profitable. Microsoft is a huge licencor. It is being said that almost $30 of every Android phone sold is a MSFT licence fee. Again zero COG, almost all profit.

Now did that fully answer your first question?