Upgrade to SI Premium - Free Trial

No Matter the Industry, Apple (AAPL) Will Profit Big

April 17, 2013 10:33 AM
According to data compiled by Asymco, Apple garners about 45 percent of net profit in the PC sector. The number is surprising, given Apple isn't a top five seller of PCs (though it is number three in the U.S.). By comparison, profits at Hewlett-Packard (NYSE: HPQ), Dell (Nasdaq: DELL), Lenovo, Acer, and ASUStek make up about 33 percent of the PC segments profits.

A similar story could be said about its mobile devices, where Apple nets about 75 percent of profits amid holding a 15 percent smartphone market share.

Though the cost to manufacture a Mac isn't much more than what rivals are paying, but it sells its wares for a higher price, bolstering margins in the process.

While PC sales are falling, Apple could easily translate that profitable strategy to other markets, like a smart watch or smart TV.

Shares of Apple are down nearly 5 percent as some traders hit the "Sell" button Wednesday.

Categories

Insiders' Blog

Next Articles