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Comparing operating margins

John Kirk makes interesting points in Apple In Perspective at Tech.pinions. He says investors and those who watch the stock market put too much emphasis on quarterly reporting.

His point is if you look at Apple’s numbers for the recently announced quarter, you might think you’re looking at a company in decline. But year-on-year numbers show anything but a decline.

Sales of iPhones and iPads continue to grow at a healthy clip. And profits of US$9.5 billion on revenue of US$43.6 billion is an outstanding result by the standards of any other company in the world.

3 thoughts on “Let’s put Apple numbers in perspective

  1. And not that Microsoft and Google almost exclusively ship bits. Those margins are absolutely extraordinary for a company that mostly builds and ships and sells actual physical hardware.

    As Asymco points out, the margin drop can be entirely explained by the transition from the big growth numbers being in the high margin (over 50%) iPhone to being in the lower margin iPad range.

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