Quote:
Originally Posted by jocampo
You make more money, 200% or more, with software, because is an intangible product.
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Software is expensive to write and maintain, the cost might not be in the final product but the cost of maintaining quality developers is not cheap. A PC chip cost a penny to make yet they sell for several hundred, a pbook cost $1-$2 to make yet sells for $20-$25. Because the cost is not so much in the material but the overhead. Software is no different.
Quote:
Originally Posted by jocampo
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.
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You give HP's too much credit. If there was any truth to what you said about HP's PC business he would still be HPs CEO. Instead what he was proposing was to sell one of HPs most lucrative businesses, sure it's not as profitable as the printer business, but it's still a $100B business. Not as profitable as it once was but still very profitable.