On Jun 9, 2005, at 10:22 AM, David wrote:

This is not something that I know much about, but having heard arguments whether Apple is a hardware company or software company, it seems to me
they are both.

Computer hardware accounted for 46% of their revenue last quarter. Hardware sales of all sorts accounted for 86% of their revenues.

'Software and other' (which doesn't include the iTMS) accounted for 7%.

(source <http://images.apple.com/pr/pdf/q205data_sum.pdf>)

There are no real arguments. Until Apple can find a way of replacing 85% of their revenues with software sales, they're most *definitely* a hardware company. Their software is an inducement to buy their hardware.

R&D costs for OS development and system development are roughly equal, I'd imagine, systems cost more to build, but OS'es sell for far, far less. I suspect that MS'es largest customers pay far south of $50 per copy of Windows they include with their systems. Our Campus MS license price (and we're not on their most generous plan by any means) is $54 for Windows XP Pro, $53 for Office.

--
Bruce Johnson

This is the sig who says 'Ni!'


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