Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Archie Meeties who wrote (71265)	11/16/2007 9:12:36 AM
From: RealMuLan	Read Replies (3) \| Respond to of 116555

Hope you are being sarcastic since the high margin of some high tech companies have been there for DECADES! but the after tax earning has only been up for the last couple of years! BTW, RIMM is NOT a US company, so technically, it is NOT included in Vanguard number! RIMM can have such high margin is partly due to the increasing profit of the US companies, which count for 58% of their TOTAL sale, as well as the stupidity of the US gov. agencies and companies are willing to pay HIGH price for BB service. And now the US economy is slowing down, and company's profit getting squeezed, RIMM sale will be down too. Just look at their stock price. Labor counts at least 30% of the cost of a product, and Raw material and energy are somewhere bet. 20-30%, if not more. AAPL margin could NOT be that high without taking advantage of the SWEATSHOP labors in China! Microsoft monopoly forces many Chinese gov. agencies (1/3 of them) and individuals switch to Linux, which is NOT a bad thing at all. And keep in mind, ALL those new setup of the US companies in China have been enjoying FREE land (no more NOW), Cheap/Chinese Gov. subsidized energy, and DIRT cheap sweatshop labors!