Basic business accounting says that cost equals land, labor and capital. If the cost is 25%, there is already consideration for development and all the other factors you brought up.
Abdul -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of JOHN PANARESE Sent: Thursday, August 31, 2006 2:16 PM To: General discussions on all topics relating to the use of Mac OS X by theblind Subject: Re: Apple's profit centers was:Re: Running Tiger on PC hardwareillegal? 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 > > >
