From: Brian Pearce (bpearce_at_cloud9.net)
Date: Tue Jun 14 2005 - 11:35:06 PDT
>> True, but the profit margin on software is SO much higher then on
>> hardware.
>
> Is it? I know that a lot of people take that sort of statement at face
> value, but don't programmers have to pay food and rent, too? I'd
> like to see
> something to back those assumptions up.
I can't offer you hard and fast figures (for the most part, even
Apple is quiet about such details), but look at it this way: Apple
consistently makes much, *much* more money on sales of hardware than
software.
Overall, margins on hardware have been running at about 25% (give or
take) as far back as I can recall following the quarterly reports.
It's entirely possible the margins on software are comparable (Apple
doesn't make such information available), but Apple doesn't sell
nearly enough of it to make as much money as they do on hardware, and
they're not likely to do so in the forseeable future.
BRIAN/bpearce_at_cloud9.net
<http://www.redjacketpress.com>
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