It seems that Apple is doing very well with the segment of the computer users that are willing to spend more than $1000 for a computer.
I have to think he's being paid to spread FUD because he surely knows about that article and he surely won't call the bailout-grabbing GMC more successful than Mercedes simply because they pushed more units.
And you know this how? Apple has never broken down their Gross Margin to individual product lines.
Apples' 34% Total Gross Margin, which includes ALL products, may be one of the highest in the industry but no where near Intel (60%) and Microsoft (80%).
Anyone with a high school level math skill can easily calculate that Apple Gross Margin on their computers is about average for computers costing over $1000. Now it's almost a given that Apples' Gross Margin on their iPods and iPhones is anywhere from 40% to 50%. Most likely closer to 50%. iPods and iPhones constitute about 50% of Apple's Total Revenue. And Macs constitute about the other 50% of Total Revenue. (Software, iTunes and Apple care rounds it out to 100%) Simple maths tell us that Macs can't have a Gross Margin of 34%. It has to be in the 25% range. Otherwise their Total Gross Margin would be way above 34% if half their revenue that comes from iPods and iPhones already have a Gross Margin that is way above 40%.
Dell and HP on the otherhand has Gross Margins of about 15% on their computers. Now the vast majority of the computers they sell are below $1000. The Gross Margins on these computers are said to be in the high single digit. Now in order for them to get to a 15% Gross Margin for all computers sold, their $1000 and above computers got to have a Gross Margin of around 25%.
Simple math tells us that HP and Dell makes as much profit from selling a $2500 computer as Apple does. It's just that Apple don't sell computers with a less than 10% Gross Margin (at least it's assume that they don't) to bring down their Total Gross Margin. Now if HP and Dell stops selling $399 computers, their Gross Margin (for computers) would easily approach that of Apple's. But their Total Revenue would be way down. Maybe even below that of Apple's.
I'd wager that the non-Mac PC vendors are making a bigger profit on their high-end sales than Apple since they likely have to make up for the razor thin margins on the bottom end, don't have economics of scale working for them with Apple owning that higher-end and anyone looking at those items aren't likely looking at Macs, too, so they have more money than sense. hehe.
Seriously, with Macs we really do have to compare the higher-end profit in HW, OS and SW since Apple to get an accurate picture. You can't compare the profit Dell gets because Dell has likely overshot it's potential sales figures to investors, has sold mostly cheap items with little profit and has squandered a great deal more from bad management. Apple, on the hand, is likely to beat their own and the street's estimates making economics of scale increase their profit margin.
And you know this how? Apple has never broken down their Gross Margin to individual product lines.
Apples' 34% Total Gross Margin, which includes ALL products, may be one of the highest in the industry but no where near Intel (60%) and Microsoft (80%).
.
Well I never knew that Intel or Microsoft made computers. What are their model numbers please, I'm curious? \
Well I never knew that Intel or Microsoft made computers. What are their model numbers please, I'm curious? \
Did you somehow miss the "product line" reference? Product line as in, the things they make to sell, as in not necessarily, but conceivably could be computers, but just as likely to be something else but somehow related? Every other thing you post causes that old "disconnect" signal to go off.
"Your thought cannot be completed as expressed. Please hang up and try your thought later."
Why haven't I heard anyone mention that once done with your Mac and you're ready to upgrade, you can sell it for a nice chunk of change. IDK why someone would do that since it's a great hand-me-down for the kids (which I'll do with this one when the PB refreshes hit the streets) but, to each his own....
For example, I just checked Ebay for prices and bids for a 17" PowerBook G4 (a 6 year old laptop) which is one of my Macs I'm using right now, and prices/bids range from $355 (a current bid) to $750 (buy it now) loaded with software like the Adobe CS.
So enlighten me please, can you do that with ANY 6 year old IBM PC/Windows laptop? Umm, .
BTW, my PB G4 is running Leopard @ 1.5 GHz w/1 gig of ram and navigates ALL websites with ease except for the occasional hangup/beachball when loading Flash intensive or the larger pixel dimension video intensive sites. Thank G*d for Click to Flash.
Last thing....what's wrong with a company making a profit? You all talk like the principals are in the back room dividing the ~$30B in cash amongst themselves. Not the case. As a shareholder, I applaud their management of the company. I invested $17k with Apple back when Michael Dell said Apple should sell the company and give the money back to the shareholders..... and it's worth over $800k today.
Why haven't I heard anyone mention that once done with your Mac and you're ready to upgrade, you can sell it for a nice chunk of change. IDK why someone would do that since it's a great hand-me-down for the kids (which I'll do with this one when the PB refreshes hit the streets) but, to each his own....
For example, I just checked Ebay for prices and bids for a 17" PowerBook G4 (a 6 year old laptop) which is one of my Macs I'm using right now, and prices/bids range from $355 (a current bid) to $750 (buy it now) loaded with software like the Adobe CS.
So enlighten me please, can you do that with ANY 6 year old IBM PC/Windows laptop? Umm, .
BTW, my PB G4 is running Leopard @ 1.5 GHz w/1 gig of ram and navigates ALL websites with ease except for the occasional hangup/beachball when loading Flash intensive or the larger pixel dimension video intensive sites. Thank G*d for Click to Flash.
Last thing....what's wrong with a company making a profit? You all talk like the principals are in the back room dividing the ~$30B in cash amongst themselves. Not the case. As a shareholder, I applaud their management of the company. I invested $17k with Apple back when Michael Dell said Apple should sell the company and give the money back to the shareholders..... and it's worth over $800k today.
Win7 is fine. According to Mossberg, it is basically as good as OS X.
I have been running windows 7 since it was pre-released. Today I wiped my work system and installed XP Pro SP3. Windows 7 looked fairly pretty compared to XP but XP is still faster. I think that over time the speed on windows 7 will improve as drivers mature but just now the performance in XP still beats it.
Of course, I still have VM's on my iMac for XP, Vista and 7 for testing purposes which all run as fast as the windows box.
Comments
Really? Then how do you explain this?
http://www.betanews.com/joewilcox/ar...NPD/1248313624
It seems that Apple is doing very well with the segment of the computer users that are willing to spend more than $1000 for a computer.
I have to think he's being paid to spread FUD because he surely knows about that article and he surely won't call the bailout-grabbing GMC more successful than Mercedes simply because they pushed more units.
And you know this how? Apple has never broken down their Gross Margin to individual product lines.
Apples' 34% Total Gross Margin, which includes ALL products, may be one of the highest in the industry but no where near Intel (60%) and Microsoft (80%).
Anyone with a high school level math skill can easily calculate that Apple Gross Margin on their computers is about average for computers costing over $1000. Now it's almost a given that Apples' Gross Margin on their iPods and iPhones is anywhere from 40% to 50%. Most likely closer to 50%. iPods and iPhones constitute about 50% of Apple's Total Revenue. And Macs constitute about the other 50% of Total Revenue. (Software, iTunes and Apple care rounds it out to 100%) Simple maths tell us that Macs can't have a Gross Margin of 34%. It has to be in the 25% range. Otherwise their Total Gross Margin would be way above 34% if half their revenue that comes from iPods and iPhones already have a Gross Margin that is way above 40%.
Dell and HP on the otherhand has Gross Margins of about 15% on their computers. Now the vast majority of the computers they sell are below $1000. The Gross Margins on these computers are said to be in the high single digit. Now in order for them to get to a 15% Gross Margin for all computers sold, their $1000 and above computers got to have a Gross Margin of around 25%.
Simple math tells us that HP and Dell makes as much profit from selling a $2500 computer as Apple does. It's just that Apple don't sell computers with a less than 10% Gross Margin (at least it's assume that they don't) to bring down their Total Gross Margin. Now if HP and Dell stops selling $399 computers, their Gross Margin (for computers) would easily approach that of Apple's. But their Total Revenue would be way down. Maybe even below that of Apple's.
I'd wager that the non-Mac PC vendors are making a bigger profit on their high-end sales than Apple since they likely have to make up for the razor thin margins on the bottom end, don't have economics of scale working for them with Apple owning that higher-end and anyone looking at those items aren't likely looking at Macs, too, so they have more money than sense.
Seriously, with Macs we really do have to compare the higher-end profit in HW, OS and SW since Apple to get an accurate picture. You can't compare the profit Dell gets because Dell has likely overshot it's potential sales figures to investors, has sold mostly cheap items with little profit and has squandered a great deal more from bad management. Apple, on the hand, is likely to beat their own and the street's estimates making economics of scale increase their profit margin.
And you know this how? Apple has never broken down their Gross Margin to individual product lines.
Apples' 34% Total Gross Margin, which includes ALL products, may be one of the highest in the industry but no where near Intel (60%) and Microsoft (80%).
.
Well I never knew that Intel or Microsoft made computers. What are their model numbers please, I'm curious?
Well I never knew that Intel or Microsoft made computers. What are their model numbers please, I'm curious?
Did you somehow miss the "product line" reference? Product line as in, the things they make to sell, as in not necessarily, but conceivably could be computers, but just as likely to be something else but somehow related? Every other thing you post causes that old "disconnect" signal to go off.
"Your thought cannot be completed as expressed. Please hang up and try your thought later."
total cost of ownership tells a different story
Thank you.
Why haven't I heard anyone mention that once done with your Mac and you're ready to upgrade, you can sell it for a nice chunk of change. IDK why someone would do that since it's a great hand-me-down for the kids (which I'll do with this one when the PB refreshes hit the streets) but, to each his own....
For example, I just checked Ebay for prices and bids for a 17" PowerBook G4 (a 6 year old laptop) which is one of my Macs I'm using right now, and prices/bids range from $355 (a current bid) to $750 (buy it now) loaded with software like the Adobe CS.
So enlighten me please, can you do that with ANY 6 year old IBM PC/Windows laptop? Umm,
BTW, my PB G4 is running Leopard @ 1.5 GHz w/1 gig of ram and navigates ALL websites with ease except for the occasional hangup/beachball when loading Flash intensive or the larger pixel dimension video intensive sites. Thank G*d for Click to Flash.
Last thing....what's wrong with a company making a profit? You all talk like the principals are in the back room dividing the ~$30B in cash amongst themselves. Not the case. As a shareholder, I applaud their management of the company.
http://www.loopinsight.com/2009/10/0...-shareholders/
Thank you.
Why haven't I heard anyone mention that once done with your Mac and you're ready to upgrade, you can sell it for a nice chunk of change. IDK why someone would do that since it's a great hand-me-down for the kids (which I'll do with this one when the PB refreshes hit the streets) but, to each his own....
For example, I just checked Ebay for prices and bids for a 17" PowerBook G4 (a 6 year old laptop) which is one of my Macs I'm using right now, and prices/bids range from $355 (a current bid) to $750 (buy it now) loaded with software like the Adobe CS.
So enlighten me please, can you do that with ANY 6 year old IBM PC/Windows laptop? Umm,
BTW, my PB G4 is running Leopard @ 1.5 GHz w/1 gig of ram and navigates ALL websites with ease except for the occasional hangup/beachball when loading Flash intensive or the larger pixel dimension video intensive sites. Thank G*d for Click to Flash.
Last thing....what's wrong with a company making a profit? You all talk like the principals are in the back room dividing the ~$30B in cash amongst themselves. Not the case. As a shareholder, I applaud their management of the company.
http://www.loopinsight.com/2009/10/0...-shareholders/
Thank you for a sane post.
Macs hold their value quite nicely.
Win7 is fine. According to Mossberg, it is basically as good as OS X.
I have been running windows 7 since it was pre-released. Today I wiped my work system and installed XP Pro SP3. Windows 7 looked fairly pretty compared to XP but XP is still faster. I think that over time the speed on windows 7 will improve as drivers mature but just now the performance in XP still beats it.
Of course, I still have VM's on my iMac for XP, Vista and 7 for testing purposes which all run as fast as the windows box.