And profits in fact are a highly variable thing. Microsoft had 49 billion in cash from profits, going into the 2000s but now they face a quite different scenario.
I prefer arguments based on some historical data and trends over the last century; such critical thinking and arguments tend to bear out in reality of the markets. The last century is littered with tech and non-tech corpses of companies with very high margins, refusing to even indulge low end markets their customers are flocking to (I mentioned Kodak and Polaroid specifically but there are 100s of examples in last 100 years). What we call "disruptive forces" the book "Cross The Chasm" documents this well and how dangerous it can be to dismiss competitors with lower margins taking new customers at an alarming rate, and starting to cut down the high profit market % winners in the long term. Android phones by the numbers and all marketing history threaten the iPhones market big time over the next 3-10 years maybe even enough to cause a collapse in the high profits Apple enjoy if not countered soon before its too late.On Tue, Jun 25, 2013 at 4:48 PM, Jim Saklad <jimdoc@icloud.com> wrote:
> At 0% profit Samsung wont cut it. Google will make money in the play store. Samsung will need profits to survive. Apple had both hardware profits and App Store profits and media store profits and Macintosh profits and iPod profits to fall back on. Me thinks they will do just fine.> KLM
For the 4th quarter of 2012, Samsung's profit almost exactly matched Apple's, at $8.3 billion.
Apple did it, however, with a 40% margin.
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Jim Saklad mailto:jimdoc@icloud.com
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