On Jun 8, 2005, at 11:15 AM, Bruce Johnson wrote:
Let me note something:
Apple is a hardware company
Apple is a hardware company
<snip>
Apple is a hardware company
Apple is a hardware company
ALL software sales last quarter for Apple were only 7% of their
total revenues.
I agree with what you are saying Bruce, in fact you are always spot-
on with your posts. But, there are some things to think about,
ponder if you will. I doubt any of this will happen, but it could be
*possible*.
You can't only look at total revenues, you have to look at net
revenues. Of course their hardware line will have much higher total
revenues because the OS doesn't cost $3000. What you have to look at
is profit margin and percentages. I'm positive the profit margin on
the OS is MUCH higher than it is (in percentage) on the hardware.
Once you sell enough copies to offset paying the programmers, the
rest is pure profit. Hardware always costs money. Especially in
smaller quantities. *IF* they make OS X to run on non-apple
hardware, *AND* marketed it properly, they could actually knock a
dent in M$s market share, possibly even overtaking it somewhere WAY
down the road. Of course M$ would try to squash them and pull all
support for Office on OSX, but you can't tell me that companies like
Adobe couldn't write a brilliant word processor and spreadsheet
programs and have full import/export capabilities with Office.
Microsoft is a worldwide giant for one reason, because they own the
desktop OS market. They didn't make all that money on hardware. The
profit is there. All I'm saying is it is *possible* for Apple to
actually compete with M$ in the OS market, but they have to
advertise. There are greater numbers of sales to be made in OS's
than there are computers. I've owned a LOT more OS's than I have
computers. There is much more profit margin (net) in OS's than there
is in hardware. The computer hardware market is such a cut-throat
market, very, very slim margins. Bottom line is that there is just
more profit in OS's than there is in hardware if you look at the
number of sales and the % of profit. Sure, they make more gross
revenue from hardware right now, but it could be drastically opposite
if they played their cards right. They have an OS now capable of
battling M$ and winning. I doubt they have the marketing for it though.
Like I said, I'm not disagreeing with you, I know Apple is a hardware
company and will probably stay that way. These are just some of the
things I think about, "what if's".
Rad...
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