Apple Makes More Money Selling One Mac Than HP Does Selling Seven PCs

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Posted June 24, 2011 at 2:13pm by iClarified

Apple makes more money from selling one Mac computer than HP makes from selling seven PCs, according to research done by Matt Richman, a fifteen year old high school student.

Richmond notes that last quarter Apple brought in $4.976 billion in revenue from selling 3.76 million Macs with an average price of $1,323.40. At a 28% gross margin estimated by Jefferies analyst Peter Misek, Apple makes $370.55 for every Mac sold.

HP's PC Group brought in $9.415 billion in revenue and turned $533 in profit last quarter. Their operating margin was 5.66%. Richmond notes that if HP spent 1% of their total revenue on operations then their profit margin was 6.66%; however, he used an generous 8% profit margin for his calculations.

The average selling price of a Mac increased 5.71% over the last two quarters. If we apply that growth rate to NPD’s data that says the ASP of a PC was $615 in November, then the ASP of a PC today is $650.12. Multiply that number by an 8% profit margin and HP makes $52.00 for every PC they sell.

So Apple makes more money selling one computer than HP does selling seven!

Read More [via AppleInsider]

Apple Makes More Money Selling One Mac Than HP Does Selling Seven PCs

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Mr yogi - June 26, 2011 at 6:41am

I have to admit apple products last long although over priced. Someone should Do a 3 year study between a Mac laptop and a Dell/hp laptop and see how their performance is over time. I'd like to see that.

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Lomisz - June 25, 2011 at 11:25pm

My grandma has told me that Dell makes more money per computer than Apple. Eat that Jobs.

smate333 - June 25, 2011 at 7:39pm

Being a PC "assembler" as HP, one could assume most of the profit goes to pay for software licensing, which expense no longer can be redirected on the consumer if the company's intention is to stay competitive on the free market, striving to stay alive. Apple's success could be thanked for clever marketing, flawless design, reliable functionality and the opportunity to be inter-platform compatible while securing sole ownership of Mac OS. Windows' "licensability" ironically locked in Apple's huge success on the intel platform, giving confidence to consumers to buy. Unfortunately Jobs is sick and probably gone soon, which will end this phenomenal story. Next big thing: Mind Controlled Operation, because we've become so lazy we don't even want to pick up the remote anymore:)

DigiHead - June 24, 2011 at 6:53pm

even this is true, what makes me laugh is "according to research done by Matt Richman, a FIFTEEN YEAR old high school student." :D:D:D:D According to my grandma and aunt Bettie - computers are evil! :D:D:D:D

Some guy - June 24, 2011 at 3:38pm

You would think their product was built to last a decade...overpriced piece of shit! Stay away from Apple products if you're hoping your goods would last

DacksMac - June 24, 2011 at 4:04pm

@Some guy - Funny you would say that, you obviously have no clue what you are talking about. But keep up the good work. In reality, Apple is known for the length their products last, that is whats so interesting about your backwards comment.

DacksMac - June 24, 2011 at 3:35pm

I would buy a Mac computer with Windows 7 running on it. I just like the look, feel, and design of the MBP's and iMac's. OS X or Win7, I like them both. But every HP or Dell laptop I have bought are "ok" quality and can't take any beating. I also hate how HP's video cards on their laptop's always come un-soldered from the motherboard overtime, rending the motherboard useless. Both HP's bought have done this though my GF's HP is fine.

DodgerKing - June 24, 2011 at 2:27pm

Makes sense. They cater to two different demographics. But the important question is, does HD sale more than 7 times as many PCs as Apple. If so, then what HP is doing is working.

DodgerKing - June 24, 2011 at 2:30pm

With that said, even though I am a Windows PC guy, I stay away from HP as much as possible. There are companies that make much better laptops: Sony, ASUS, ex. For desktops I build my own and no company can make a better desktop PC (Mac or Windows) for less money and higher performing parts than one built yourself. For full disclosure I do own an iPhone (best smart phone with ATT) and an iPad (best tablet at the time I bought it)

audrys - June 24, 2011 at 3:01pm

its because apple products are overpriced. ripping people off.

DodgerKing - June 24, 2011 at 4:29pm

BTW, I meant, "HP" sales, not "HD" sales