Mary Branscombe (marypcb) wrote,
Mary Branscombe
marypcb

Apple is a hardware company - with the best margins ever

Apple makes its money from the hardware - and it has margins the rest of the industry only dreams of. When Mac margins fell from 28 to 26%, Apple called an all-hands meeting, the iPhone 3GS margin might be as high as 60%; most PC manufacturers are down to single digit or in-the-teens margins. So Apple can promise more generous ebook deals (and while we're at it, can I predict that the latest Amazonfail will turn out to be cockup rather than anti-Macmillan conspiracy?) and make the money on the iPad. how much money? According to one analyst, 43% on Wi-Fi models and 52% or even 55% on 3G models. I've said for a while that Apple wouldn't touch the netbook market unless it could find a way to do it with much better margins, and margins don't come much better than this...
Tags: apple, numbers, technology
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