They [Amazon] differ from Apple in that Apple, while they make money elsewhere, almost all profits come from the hardware.
That is an unintentionally loaded statement, I expect. For one, you sound to be unaware that ITunes and services alone has more revenue with higher margins than all of Amazon. That segment is growing north of 20%. Second, people that don't understand Apple's strategy and business model make the mistake of categorizing it as a hardware company because of its income statement. It is a bean counter mistake to do that. To understand Apple, you need to shed your bean counter hat and put on a strategy hat. Then you'll realize that while Amazon uses hardware to sell low margin products, Apple uses its ecosystem of products and services to sell high margin, premium branded hardware. Without the sticky, highly functional ecosystem, it would be just a hardware company and without wings, a plane would be a bus. |
