Spot any errors? let me know, but Unleash your pedant politely please.

Monday 18 May 2009

Profit per head. Tech stock

The $210K profit per head at Google figures are interesting (as John Gruber points out).

Apple's not known for talking small profits and Microsoft pride take pride associating themselves with cheap so what's going on here ?

I have a few initial thoughts…

1 - Microsoft doesn't have stores. Although the Apple stores must bring in lot of revenue, they're also a massive overhead.

2 - Apple isn't in enterprise, and this is where Microsoft gets its profit. Money for old rope with Office and Exchange and Windows volume licenses.

3 - The data is based on 'employees', but that's not the same as staff. It probably excludes contract staff. Those companies using lots of contractors might be showing artificially high numbers using this measurement. I've no idea whether Microsoft, Google or Apple uses a lot of contact staff (I suspect not), but I bet a few of the companies listed do.

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