Re:Tesla races past $100B in market valuation
by akiselev on Wednesday January 22, 2020 @12:15PM
(#22119556)
The gross margin for hardware is calculated as revenue minus COGS - literally the parts, assembly, packaging, and distribution. Software is considered an R&D expense.
A 30% COGS is a benchmark for most hardware products and how much you can invest in software depends on how expensive your product is and how many you sell. Since Apple sells a lot at a premium price point, they've got a lot more room in their budget for software R&D. Capital equipment like cars, machinery, power plants, etc are a whole different beast however.
A 30% COGS is a benchmark for most hardware products and how much you can invest in software depends on how expensive your product is and how many you sell. Since Apple sells a lot at a premium price point, they've got a lot more room in their budget for software R&D. Capital equipment like cars, machinery, power plants, etc are a whole different beast however.