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Mulyahnto

macrumors member
Jun 19, 2006
54
0
Has anyone noticed that Microsoft used to be just 100x more profitable than Apple...

And now Apple has 3% market share compared to about 90% for Microsoft... yet, Apple made NEARLY 1/2 the total revenues of Microsoft for the last fiscal year??? Some 20Billion for Apple to almost $44Billion for Microsoft.

That has GOTTA be a slap in the face for Microsoft, wouldn't you say?

Just think how much money Apple would be making if IT had 90% of the marketshare instead... :eek: Would it be in the Trillions? :eek:

People have been debating this point everywhere. The main points are:

Apple makes Hardware + Software
Microsoft just makes Software

Software has a HUGE gross margin, because it costs so little to manufacture and a fairly big net margin because "programming and R/D" is not a volume dependent cost.
Hardware has a smaller gross margin, but a higher price point

The price of WinXP is about the same price of a iPod

Microsoft has consistently high profit due to high margins
Microsoft has a relatively low revenue due to lower price points of their product

For every PC sold, microsoft only has a equivalent revenue of $xxx (I would guess $100 or so, and so an equivalent gross profit of about $95 and net income of about $50.)

While for every Mac sold, Apple has an equivalent revenue of $xxx (I would guess $1,500 and an equivalent gross profit of about $500 and an equivalent net income of about $200).

I would say revenue indicates a RELATIVE SIZE of the company. While net income or net margin indicates the RELATIVE PERFORMANCE of the company.
 

ChrisA

macrumors G5
Jan 5, 2006
12,540
1,652
Redondo Beach, California
Wearing all those shuffles, JUST HOW MANY EARS DOES THAT PERSON HAVE!!!:eek: :D

Notice in the picture that only one of the iPods has an earphone cable plugged into it.

I've actually thought of buying a second Shuffle so I can keep a different kind of music on each one. I listen to more abstract stuff (Debussy, Coltrane, Bartok,... at work and more pop/rock at the gym
 

digitalbiker

macrumors 65816
Apr 24, 2002
1,374
0
The Road
People have been debating this point everywhere. The main points are:

Apple makes Hardware + Software
Microsoft just makes Software

Software has a HUGE gross margin, because it costs so little to manufacture and a fairly big net margin because "programming and R/D" is not a volume dependent cost.
Hardware has a smaller gross margin, but a higher price point


Maybe. But I think it is even simpler than that.

MS hasn't released a major piece of software to generate significant income in 5+ years.
All of the Office updates have been minor updates. All of the XP service pack updates have been free bug fixes. Sure they always sale product with every computer sold but the margins are much smaller and sales numbers are smaller.
MS has been putting a lot of R&D money in Vista. After the Vista release there will probably be a lot of users buying Vista within the first year of release. This will most likely boost MS profits.
Also MS has a number of loss-leader projects such as X-box to gain entry into the market. Those type project really hurt the bottom line in the beginning.

Also, it could also be perceived that Apple is greedier than MS. Apple raped it's customer base last year. Profits (not revenues) were much much larger than they have ever been in the history of the company. However if Apple puts the bulk of that money back into R&D I don't think many will mind. It's the flakey stock option deals with Board members and SJ that bother people when profits are at a record high.
 

CrackedButter

macrumors 68040
Jan 15, 2003
3,221
0
51st State of America
People have been debating this point everywhere. The main points are:

Apple makes Hardware + Software
Microsoft just makes Software

Software has a HUGE gross margin, because it costs so little to manufacture and a fairly big net margin because "programming and R/D" is not a volume dependent cost.
Hardware has a smaller gross margin, but a higher price point


Maybe. But I think it is even simpler than that.

MS hasn't released a major piece of software to generate significant income in 5+ years.
All of the Office updates have been minor updates. All of the XP service pack updates have been free bug fixes. Sure they always sale product with every computer sold but the margins are much smaller and sales numbers are smaller.
MS has been putting a lot of R&D money in Vista. After the Vista release there will probably be a lot of users buying Vista within the first year of release. This will most likely boost MS profits.
Also MS has a number of loss-leader projects such as X-box to gain entry into the market. Those type project really hurt the bottom line in the beginning.

Also, it could also be perceived that Apple is greedier than MS. Apple raped it's customer base last year. Profits (not revenues) were much much larger than they have ever been in the history of the company. However if Apple puts the bulk of that money back into R&D I don't think many will mind. It's the flakey stock option deals with Board members and SJ that bother people when profits are at a record high.

Just so you know, you can't rape the willing!
 

Porchland

macrumors 65816
Apr 26, 2004
1,076
2
Georgia
It's not the newest one. That would be the Airport Extreme base station. I don't think that this update warranted all this hoopla, though.

There's no hoopla. Apple refreshed the shuffle and put out a press release. Mac blogs and fanboys post about it. End of story.
 

bonze

macrumors newbie
Jul 19, 2002
7
3
Notice in the picture that only one of the iPods has an earphone cable plugged into it.

I've actually thought of buying a second Shuffle so I can keep a different kind of music on each one. I listen to more abstract stuff (Debussy, Coltrane, Bartok,... at work and more pop/rock at the gym

This suggests a new product idea: a clipon switchbox for earbuds. Of course, to match all the Shuffles that you'll be wearing, the switchbox would have to be rainbow-colored. (Shaped and colored like the original Apple logo?) :rolleyes:

Each color could be a button for the switch, and would color-code to the corresponding Shuffle.
 

KindredMAC

macrumors 6502a
Sep 23, 2003
975
218
Gotta chime in that I too am VERY surprised they did not release a Black one even for $99. Totally surprised....
 

mikeinternet

macrumors 6502a
Nov 1, 2006
630
2
Oaklnad, CA
...And by the way, any guys who are excited about orange, pink or even light blue and green shuffles need to be shot. Let me rephrase that, any guy who is excited about a shuffle period needs to be shot....

shoot me.

i love my shuffle. it's more than enough music for me to listen to on a regular day. and i don't even feel like i'm carrying anything at all. just drop it in my pocket with loose change. or clip it on my shirt riding my bike.

i'm not really particular to any one color. how about white?
 

Rychiar

macrumors 68020
May 16, 2006
2,435
5,409
Waterbury, CT
I still can't comprehend why anyone would ever want a shuffle. ther alltogether useless devices unless your poor and just want the supposed status of having an iPod. the whole benefit of mp3 players is being able to take your whole library in a nice neatly organized way:rolleyes:
 

Evangelion

macrumors 68040
Jan 10, 2005
3,374
147
for $10 more you can get a 1G refurb 1GB nano. I'd take that over a shuffle anyday. it's worth the $10 for the screen imo.

Then buy the refurbed Nano, no-one is stopping you. But if you want something smaller, cheaper and brand-new, there is the Shuffle. No, Nano is not 1:1 replacement for the Shuffle, and vice versa. That is why we have tons of people buing Shuffles instead of Nanos. And that is why we have tons of people buying Nanos instead of Shuffles.

Like it or not, there is a market for the Shuffle. And a huge one at that.
 

oldwatery

macrumors 6502a
Sep 16, 2003
950
621
Maui
Where's the computers?
Where's the software?

I've got a useless MBP that Apple cannot get to work right but thank goodness we have colored Shuffles:rolleyes:

This is SO lame:mad:
 

steve_hill4

macrumors 68000
May 15, 2005
1,856
0
NG9, England
Er, the link to the US store in the story actually links to iPod nanos, not the shuffles.

Anyway, great little story, but bring on the big boys.
 

jelloshotsrule

macrumors G3
Feb 7, 2002
9,596
4
serendipity
Where's the computers?
Where's the software?

I've got a useless MBP that Apple cannot get to work right but thank goodness we have colored Shuffles:rolleyes:

This is SO lame:mad:

yeah, it's always annoying when the repair man is called out to release a new product. why can't apple afford to hire different people to handle different things?!?!?!?! :rolleyes:
 

steve_hill4

macrumors 68000
May 15, 2005
1,856
0
NG9, England
yeah, it's always annoying when the repair man is called out to release a new product. why can't apple afford to hire different people to handle different things?!?!?!?! :rolleyes:

Or it could be argued that too much focus within Apple's R&D and product releases are for iPods and other non-Mac hardware and software. I know they ain't a computer manufacturer alone anymore, but people around here would like to see better servicing, more reliable machines from the get-go and quicker updates to the hardware/software packages for Macs.

I personally agree with many of these arguments, but also like to see more significant iPod updates than merely new colours.
 
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