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Apple Posts $18B Quarterly Profit, the Highest By Any Company, Ever
jmcbain writes: Yesterday, Apple reported its financial results for the quarter ending December 27, 2014. The company posted $18 billion in profit (on $74 billion in revenue), the largest quarterly profit by any company, ever. The previous record was $16 billion by Russia's Gazprom (the largest natural gas extractor in the world) in 2011. Apple sold 74.5 million iPhones last quarter, along with 5.5 million Macs and 21.4 million iPads.
Who runs on 4% margins that has any choice at all in it? There's nothing more moral or good business about razor thin margins. If you run at single digit margins you have absolutely no ability to invest in development.
Yes, they could still make more profit then anyone else -- because everyone else is putting out crap that isn't profitable, sustainable or with the economics of scale factoring into production.
That last bit is important. Samsung can match it, but they do so by making many products and they're suffering a lot lately on making money via that strategy. They're keeping share, absolutely, but making money is waning.
Apple margins are high relative to its bottom-feeding competitors partly because they are leveraging scale. They make very big deals over long terms, invest in suppliers and buy out supplies for years (Yes, at a premium rate, someone's going to mention the sapphire plant that went bust: they signed onto a deal they couldn't execute and you blame Apple? Please.)
As to the comment on taxes, I don't know what it means but it makes me think you don't know how taxes work.
because it trades on the US market, mayhap?
Simple rule: if you trade on the floor, you pay the fucking rent.
Political debates have me rolling my eyes so much I think I got optical whiplash. I should sue. - Foamy The Squirrel
$18 billion profit, but they can't afford to make their phones in a country with decent labour laws. Nope, can't do it. The numbers just don't add up I tell you. Apple are the apotheosis of psychopathic corporate greed, at the expense of any human decency.