PCMacUser said:
Well I'd like to see it ported to PC. I don't care about Apple's hardware sales, and I'm sure Apple don't either. You can make a lot more money selling software than hardware. Ask Bill Gates.
Basic Economics, further broken down for the hard of thinking:
Hardware revenue on CPU sales:
Total - 1,046,000 units ($1.6 billion)
iMac - 456,000 units ($620 million)
iBook - 271,000 units ($297 million)
Power Mac - 167,000 units ($381 million)
PowerBook - 152,000 ($307 million)
Hardware revenue on iPods and music:
iPod - 4,580,000 units ($1.211 billion)
"Other Music Products" - unknown units ($177 million)
Other hardware (peripherals, etc.):
Total - unknown units ($284 million)
Software sales:
Total - unknown units ($213 million)
To put this in perspective, the PowerBook and iBook lines are
separately worth almost half again what the software division is. The PowerMac line is edging towards doubling it and the iMac is almost
triple the revenue of the software division. Jesus, man, the peripherals like Airport and other gadgets make more money than the software division. That's
all software, too, and not just the operating system...
If Apple were to succeed on software alone, they'd have to make up nearly two billion dollars in sales at a rate of growth even more expansive than the iPod has had. The software division would have to explode to roughly nine times its profitability in a single quarter just to eat the loss of hardware revenue.