Quote:
Originally Posted by mersfire
Companies do make money on hardware. If no one made money on hardware, we wouldn't be able to participate on this forum using our computers/laptops/tablets/smartphones, etc. Software does have a lower barrier of entry (for the most part), but look at companies like Dell, HP, Intel, HTC, Samsung, Lenovo, etc - all hardware companies - and all have successful, and mostly profitable hardware businesses.
In the tablet space, it seems that companies outside of Apple are finding it difficult to make money, but we can't use this one example to over generalize that there is no money to be made in making hardware.
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Depends of the type of hardware.
You make more money, 200% or more, with software, because is an intangible product. People can download software thousand of times from a web server or link and the company keeps making money from it. Music is a good example. Apps, another one. There is no production line or hardware's logistic involve on that, which it is, with tablets, PCs, laptops, etc.
You will be surprise how little money HP makes selling PCs, one of the reason why previous CEO thought about selling the whole business unit. It is not profitable anymore, not like used to be. Not if you want to sell an affordable device, which ranges on the 500 bucks.
Apple is the exception to the rule. But Apple products are not cheap by any means.