“What remains undocumented however is how the market looks when considering economic value. A more complete picture would be to show revenues, average selling price (or revenue/unit), operating margins/unit and percent of profit capture,” Dediu reports. “The only inference I made was with respect to Apple’s margins for the Mac. These are based on deriving a gross margin of 26% and adding an estimate of the SG&A and R&D “overhead” of 7.1% of sales, a figure which applies to the entire company. This yield an operating margin of 18.9%.”
Dediu reports, “If this estimate is considered then the operating profits from PC operations imply that Apple generates more profit than all the top 5 PC vendors combined. Assuming further that “other” vendors have the same profitability ratio as the top 5 combined yields a figure of 45% ‘profit capture of PC market’ for Apple. This is not as good as its performance in the phone market, where Apple has about 72%, but it’s not bad.”
Read more in the full article here.
MacDailyNews Take: So, who won the “war,” again?
As we have always said, even as many short-sightedly waved (and continue to wave) the white flag, the war is not over. And, yes, we shall prevail… No company is invincible. Not even Microsoft. – MacDailyNews Take, January 10, 2005
Apple Macintosh on the rise as Windows PC market plummets – April 11, 2013
Gartner: PC Market posts 11.2 percent decline in Q113; Apple Mac sales up 7.4 percent in U.S. – April 10, 2013
IDC: PC shipments post the steepest decline ever in a single quarter, down 13.9% in Q113 – April 10, 2013