Microsoft FY2016-Q2. Revenue $23.8 bn, Op Income $6.0 bn, Net profit $5.0 bn. Beating expectations AGAIN.

[LurkerJ]

Mummelmann said:

Teeqoz said:

 

Microsoft is in businesses with way higher margin (software), while Sony is primarily in businesses with lower margins (hardware). Apple is basically the only hardware/electronics company that manages to maintain a very high operating margin.

It also obviously doesn't help that a lot of Sony's divisions have performed weakly, but in general, software has higher operating margins than hardware.

That's how one can easily see how overpriced Apple products are; look at their insane profit margins on hardware and it becomes clear that customers are paying a whole lot for brand and not really for components.

Apple hardware comes paired with their software, but who is counting?

The point Teeqoz is making applies to Apple too.