Re:Amazon bares its computers
by dangrossman on Sunday November 17, 2013 @11:51PM
(#6752618)
I'm not sure what you think gross margin means. It's revenue minus COGS (computers, data centers, electricity) divided by revenue.
[ Parent
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Yes, gross margin is (revenue - COGS) / revenue. But per your parent comment, Amazon is not accounting for their AWS costs in COGS. Instead, it is primarily included in the technology and content expense line, which is below the gross margin.
If gross margin = 100%, then by definition COGS = 0. Thus, gross margin is a meaningless number in this case.