Originally Posted by iGrumble
I'm not good with USD, but I'll try to convert in my head. I think Photoshop is the kind of thing that would be most profitable in the $75-$99 range, comparable with other single applications - it's actually $700-$1000
. CS is $1700-$2600
, rather higher than you mentioned. Microsoft's Office goes from $150 to $680
and really their "ultimate" edition is crammed with features. Even Final Cut Studio is only $1000
. So yes, Adobe's pricing is a bit disproportionate. CS would be saner value at about 3/4 of its current price; PS is massively overpriced.
To be frank, I think Adobe either has some massive internal cost management problems or is obsessed with profit per unit over cumulative profit. Actually, why am I speculating about that? I was just on their quarterly results page. $70M costs versus $800M revenue
means it's about 90% profit for them. Unless I'm misreading it?
Get your facts straight, pal.
First, if you only want to spend a hundred bucks on Photoshop, then buy photoshop elements. If you only think it's worth $99, you're probably looking for something like an "iWork" sort of casual version of it, and Elements totally fits the bill.
Also, the design standard suite is $1300 for 4 programs. ($333 per app).
Design Premium is $1900 for 8 apps, or $213 per app. If you consider Flash Pro + Catalyst as a single app, it's still just $270 per app.
Master collection is $2600 for 11+ apps, so $236 per app.
Compare that to Final Cut Studio, which is basically 3 programs for $1000, or Logic Studio, which is $500 for basically 2 programs, and it all looks very even.
Microsoft Office is only $100 per program, but it also straddles the line between professional and consumer, so it has to be priced lower. (similar to where Photoshop Elements or Final Cut Express lies).
And you are misreading that PDF.
Look on "Condensed Consolidated Balance Sheets" - 3 months ending March 5 2010 shows gross profits of $769,332,000, operating expenses of $592,499,00, for an operating income of $176,833,000 and after taxes a net income of $127,154,000.
Thats a 16% profit margin, which I think is pretty fair to the shareholders. I assume Apple's is similar. They're publicly traded companies, after all...