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A comment on Apple’s Relentless Strategy, Execution, and Point of View. Parent comment

Re:Apple’s Relentless Strategy, Execution, and Point of View by harpratap on Monday June 29, 2020 @07:19AM (#23676469)
> Apple nets as much money selling digital goods as Samsung does from its entire line of business.

Can I see source for this claim? Both Samsung Electronics and Apple do $200B+ revenue every year.

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Re:Apple’s Relentless Strategy, Execution, and Point of View by culturestate on Monday June 29, 2020 @07:53AM (#23676698)
It's not a perfect comparison but with the most recent easily google-able quarters:

Samsung Q419 net operating profit: KRW 7.16 trillion (US$5.92 billion) [1]

Apple Q220 services revenue (net cost of sales): US$8.6 billion [2]

1. https://news.samsung.com/global/samsung-electronics-announce...

2. https://www.apple.com/newsroom/pdfs/FY20_Q2_Consolidated_Fin...

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Re:Apple’s Relentless Strategy, Execution, and Point of View by harpratap on Monday June 29, 2020 @11:48AM (#23678642)
Why are you comparing revenues to profits?
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Re:Apple’s Relentless Strategy, Execution, and Point of View by culturestate on Monday June 29, 2020 @08:05PM (#23685007)
Because I'm trying to quickly compare net income across two businesses that operate under different accounting rules in varied industries but if we want to be pedantic about it and proportionally attribute OpEx to services, too:

Apple services net sales: $13.3B

Apple services cost of sales: ($4.6B)

Apple OpEx, 14%[1]: ($1.3B)

That's ~$7.4 billion in net income from services, which is as close to a 1:1 expression of services' contribution to "operating profit" as you can reasonably get in the five-minute financial analysis I'm willing to perform for an HN comment. For reference, Apple booked $11.25B profit for this quarter overall.

1. Services account for 14% of the total cost of sales, so I attribute the same amount in OpEx.

[ Parent | on HN ]