Apple's margin
Macster389 said:
Most mfg Co's like to make a 20-30 percent Margin. On the G5 1.8 and 2.0 what do you think Apple's Margin is. My guess would be 60-75 percent.
As for the G5s, I can't speculate on the margin but would assume it to be in line with their margin on other products (somewhere in the mid to upper 20%, maybe low 30s). We'll have to wait and read the financial statements. But if we want to talk markup, what markup do you think MS gets on some of its products?
This from the Inquirer (
http://www.theinquirer.net/?article=12694)
Quote:
Three business units lost money. Its home and entertainment unit had revenues of $581 million but with costs of $854 million this unit had a net loss of $273 million. The unit dealing with mobile and embedded devices had revenue of $53 million but a net loss of $32 million. Finally its "Business Solutions" reported a loss of $79 million on revenue of $128 million.
Together these loss-making units generated $762 million in revenue but costs of $1164 million show a shortfall in revenue of about 35%. In particular the "home and entertainment" market is proving a tough nut for Microsoft to crack.
The business units that did not make a loss are far more interesting.
The smallest profit maker, its MSN unit, generated $58 million income on total revenue of $491 million. The server and tools unit made $370 million income and had revenues of $1866 million.
The two major units, together accounting for about 60% of revenue, were the "Information Worker" unit that deals with Office and other applications, and the "Client" unit that deals with the Windows operating system. These had revenue of $2287 million and $2809 million respectively and generated $1591 million and $2264 million.
Let's have a closer look at these profit-making units, especially at the operating costs of each unit and the profit generated as a percentage of the cost, the costs being easy to calculate by subtracting the income from the revenue.
The MSN unit had costs of $433 million and generated a profit of $58 million, which is a 12.2% profit on their outlay.
The Server and Tools unit had costs of $1496 million and generated $370 million, a 24.7% profit.
The Information Worker units, responsible for application software, had costs of just $696 million and that generated $1591 million, a profit of 228.6% of the money they spent.
The grand-daddy of them all was the unit responsible for Windows. It had costs of just $545 million but generated a profit of $2264 million, a staggering 415.4% profit on the money they put into it.
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