In the iPhone cost structure analysis I showed how revenues and costs for iPhone are probably allocated. The revenue per iPhone was shown to include $29 for revenue items “above” the price of the phone to the channel. This total includes Apple’s own iPhone accessory sales plus revenue from licensing the “Made for iPhone” trademark … Continue reading “Calculating Google's contribution to iPhone profitability”
Yesterday I presented the estimated Android income statement vis-à-vis Apple’s income statement. In this post I’ll compare Android as a part of Google’s overall business. Recall that Google has already been compared in terms of overall revenue, growth and profitability to Apple and Microsoft here. The argument can be made that mobility has not yet … Continue reading “Android’s contribution to Google”
Data is useful only when put in perspective. Yesterday’s post on the Android Income Statement showed how sales and revenues are captured and how costs are paid for that revenue. The data was shown for the entire calendar year 2011 and the maximum value in the vertical axis was $1.5 billion. Google has also reported … Continue reading “Android Revenues in Perspective”
Android has had unprecedented growth. Based on activation announcements, it’s possible to estimate that thus far, about 370 million Android devices have been activated. The total number of devices in use is a lower figure which depends on replacement rate and retirement rate. This total number of devices in use at year end is estimated … Continue reading “Android economics: An introduction”
Apple’s recent margins are nothing short of spectacular. It’s hard to convey just how remarkable 47% gross margin and 39% operating margins are. For a company that sells hardware these are simply unheard-of numbers. The best way I can illustrate this is by comparing Apple’s operating margins with those of two other platform-based companies, Google … Continue reading “Which is best: hardware, software or services?”
In August 2007, during the HD format wars between HD-DVD and Blu-ray format, Toshiba offered Paramount and Dreamworks $150 million to produce HD versions of their movies exclusively as HD-DVD.[1] This type of deal is equivalent to an “advance” offered to a book author. The DVD manufacturer pays studios up-front cash for the right to … Continue reading “Take the money and run”
Horace talks again with Dan Abrams about film budgeting, Kickstarter, pre-production, location, technology for production, and a surprise announcement. We also discuss the project-oriented nature of movie production vis-a-vis “pipelined” product development, the history of studios and how they evolved, Pixar and much. much more. via 5by5 | The Critical Path #32: Mockumentary. Show Notes … Continue reading “5by5 | The Critical Path #32: Mockumentary”
At the end of 2011 Apple’s net property, plant and equipment (PP&E) was $7.8 billion. This reflects $12.34 billion gross PP&E net accumulated depreciation and amortization of $4.5 billion. The depreciation and amortization increased by a total of $533 million and the gross PP&E increased by only $572 million. I say “only” because in the … Continue reading “The role of capital [1]”
Charles Arthur, writing for The Guardian, has noted that court filings seem to be revealing Google’s Android revenues. If this is the case, we have a significant breakthrough in understanding the economics of Android and the overall mobile platform strategy of Google. The new data is a reference to a settlement offer Google made to … Continue reading “Android Economics”
In terms of platforms, IDC expects a relatively dramatic shift between 2011 and 2016, with the once-dominant Windows on x86 platform, consisting of PCs running the Windows operating system on any x86-compatible CPU, slipping from a leading 35.9% share in 2011 down to 25.1% in 2016. The number of Android-based devices running on ARM CPUs, … Continue reading “Top-down vs. bottom-up: Which market analysis method is appropriate when disruption is knocking”
