Ok, from a case by case example, you are correct and I think I
did even mention that in one of my responses. There is a major
difference between profit margins in hardware and software. You
DO have to consider a lot more than just development cost, but you
also cannot overlook the fact that more money is generated, by far,
from hardware sales. In your example, you'd have to sell 5 software
packages per every system to match the money you make. From the
perspective of a business, I get more excited when I get sales for
hardware than software. Yes, I make bigger margins, by and large, on
the screen readers and such, but the dollar amounts are greater and
have a bigger impact with a hardware sale. Multiply that by Apple's
standards and the hardware is what is their bread and butter.
Anyway, just my two cents. I'd be curious, as the OS itself was
the software in this topic, how much is actually a profit to Apple
with a sale of $130 per copy. With the OS, I bet it isn't 75 percent
by any stretch when you consider all the costs that go into
development and inclusions.
Take Care
John D. Panarese
Managing Director
Technologies for the Visually Impaired, Inc.
9 Nolan Court
Hauppauge, NY 11788
Tel/Fax, (631) 724-4479
Email, [EMAIL PROTECTED] net
Internet, http://www.tvi-web.com
AUTHORIZED DISTRIBUTORS FOR PORTSET SYSTEMS LTD, COMPSOLUTIONS VA,
PREMIER ASSISTIVE TECHNOLOGIES, INDEX, PAPENMEIER, REPRO-TRONICS,
DUXBURY, DANCING DOTS AND OTHER PRODUCTS FOR THE BLIND AND VISUALLY
IMPAIRED
AUTHORIZED APPLE BUSINESS ASSOCIATE
MAC VOICEOVER TRAINING AND SALES
On Aug 31, 2006, at 1:12 PM, John Denning wrote:
After catching up on the posts in this thread I'd like to add a bit
more. And I changed the subject.
I think there is some confusion between "revenue" and "net profit."
I can build a computer and sell it for $1,500.00 and each and every
one I build costs me $1200 to build. I made $300 or 20% mark up.
If I sell software let's say my per unit cost are $20, I have it in
a nice package for that high of a cost. I sell it for $80. I made
$60 per unit or 75% margin.
No I didn't add development costs, both are high. But the bottom
line software distribution is dirt cheap. That's why anyone who is
a clever programmer with a cool product can open up shop on the
internet and distribute via the web and his costs are negligible.
He or she might make $98%.
On Aug 31, 2006, at 12:22 PM, John Denning wrote:
Apple does indeed make money on hardware, but software has a MUCH
greater profit margin. I'd bet that apple's greatest net profit
centers are it's software products, not it's hardware.
On Aug 28, 2006, at 8:29 PM, Access Curmudgeon wrote:
Apple makes money selling hardware, the profit on OS X is really
pretty marginal compared to that, although I am sure it pays for
itself.
- JD -
John Denning
AIM: [EMAIL PROTECTED]
A+ MCSA MCSE
And glad to be a Mac snob again!
Roswell, GA
- JD -
John Denning
AIM: [EMAIL PROTECTED]
A+ MCSA MCSE
And glad to be a Mac snob again!
Roswell, GA
