Comment Re:How do you feel about Apple? (Score 2) 612
Apple is definitely not the most powerful company ever. Not disagreeing that some of their tactics (legal, technological, and ecosystem-lockin) are "evil", but their enormous size and profit is currently coming from enormous margins on incredibly popular consumer goods.
Profits != Power, per se. Exxon-Mobile, for example, is deeply involved in government policy, and they (and other oil companies) have enormous sway on environmental policy, military and foreign policy, and incredibly sway in many nations where they have oil production operations.
Meanwhile, arguably Microsoft is more powerful as well; despite their much lower market cap they are deeply entrenched in big areas, including servers (where they are basically the big alternative to Linux), they are a dominant force in the traditional gaming market (b/n XBox and their influence on PC gaming), and they're making interesting inroads in new areas like virtualization/cloud services. They've even managed to make some headway with Bing, rising to the #2 search engine spot. (Where Google still dominates; Google won the Bing challenge 5-0 when I took it.)
Apple is a very unique company though, and they do have certain "powers" that nearly no other company - at least US company - has, but most of them are hard to use for evil. For example, they're possibly the only company left in the US capable of doing the full-platform hardware/software design that they do. The Dells of the world have outsourced too much of their design to their supply chain and it makes them apparently unable to break new ground. If anything, I think the most likely company to rise up and produce their own hardware is actually likely to be Google, since they're actually willing to do engineering work that isn't purely in pursuit of a hardware profit.
FWIW, any honest comparison of Apple products on a price basis can't really conclude they are "incredibly overpriced". Apple has extreme control over their suppliers - Foxconn operates on a very thin margin, so much so that Apple basically had to directly approve pay raises for their workforce because their margins are so tight. Yes, they do have higher margins, and depending on the model, you -may- pay an extra $100 to $200 that goes to Apple's bottom line. Most of the rest is Apple picking superior hardware. Go check a teardown list.
Richman recalled that Apple amassed $4.976 billion in revenue from the sale of 3.76 million Macs during its previous quarter, yielding an average selling price of $1,323.40 per Mac. He then multiplied that figure by a 28% gross margin estimate for Mac sales from Jefferies & Co. -- which is still several hundred basis points below the company's reported average -- to arrive at a profit of $370.55 per Mac sold.
By comparison, HP’s Personal Systems Group brought in $9.415 billion in revenue and turned a profit of $533 million last quarter. The PC maker's operating margin, which doesn’t factor in overhead costs, came in at 5.66%.