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To: aMorePerfectUnion
I help run an IT department and cost is the driving factor. Unless there is a need, ie special software, we always opt for a PC. This has been true for me for the past 20/30 years. I can think of only one instance when we had an Apple (a Mac) and that was when we used it to design labels.

Most programs run across multiple platforms so a person is not locked into Apple any longer.

Likewise, as a consumer, I chose the PC because it is the best value and the only reason I purchased an Apple product was because they made and make a really good music player. The complete solution and the bonus is that the consumer is no longer locked into the Apple file formats and DRM.

Your Lamborghini point is interesting and applicable to handhelds — many Lamborghini owners upgrade their “cars” to the newer model simply because they can afford to. And are not unhappy when their old >perfectly fine and working< “car” becomes “obsolete.” Likewise for cellphones. People seem to be okay with upgrading their phones every time a new model is released. Maybe because of incentives from their provider, maybe because it is fun. But it can be costly.

I am a frugal consumer and am always looking for the best value and to me upgrading every revision is foolish.

64 posted on 07/24/2015 10:12:58 AM PDT by dhs12345
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To: dhs12345

“I am a frugal consumer and am always looking for the best value and to me upgrading every revision is foolish.”

I tend to skip at least two upgrades before upgrading my equipment - sometimes more.

My main point remains that Apple has a tremendous profit share of several industries.

“While Apple has just 7% of the share of revenue, it’s grabbing 35% of the operating profit. Deutsche Bank attributes it to the strength of the Mac/MacBook lineup. Other companies are losing profit margins because they have to pay Microsoft for software.”

Read more: http://www.businessinsider.com/chart-of-the-day-revenue-vs-operating-profit-share-of-top-pc-vendors-2010-3#ixzz3gpjxP200

This is a fantastic business model. The goal of a business is to make a profit by creating value - as judged by the customer.

Against this is a telling statistic:

In 2014, the average profit of a Windows box manufacturer was just $14.87.

(http://bgr.com/2014/01/10/pc-profits-analysis-margins/)

That is a boatload of work and overhead to create $14.87 of profit per machine. This is why you can buy them cheaply. They are a commodity.

In all commodity businesses, only volume will count and average expenses continue to rise - healthcare, salary, operating expenses, fixed expenses. It sucks from a business point of view. It’s like being locked in a death spiral.

As a businessman and investor I will take the high profit margin business model for every business I buy or create. It makes life so much easier and operating the businesses more fun and profitable for us.

As a consumer/employee, I understand why you prefer to buy the commodity platforms. It is also why entire countries have switched to open source platforms.

I wish you the best.


65 posted on 07/24/2015 11:10:58 AM PDT by aMorePerfectUnion ( "Forward lies the crown, and onward is the goal.")
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