bsherman@mthvax.cs.miami.edu (Bob Sherman) (11/28/89)
We all know Apple computer is making lots of cash. But did you ever wonder
how well they pay the folks that run the company??? Well, here is the inside
scoop on that from a back issue of the San Jose Mercury News.
APPLE COMPUTER
John Sculley Chmn., Pres., CEO 2,479,000
Delbert W. Yocam Sr. VP 923,000 (retired 11/27/89)
Michael H. Spindler Sr. VP 792,000
Albert A. Eisenstat Sr. VP, Secy. 718,000
Jean-Louis Gassee Sr. VP 670,000
--
bsherman@mthvax.cs.miami.edu | bsherman@pro-exchange | MCI MAIL: BSHERMAN
>> Miami's Big Apple - 305-948-8000 - 24 hours - 300/1200 - PCP'able <<
>> Oldest Apple support board in Southeast. Now in it's ninth year. <<lsr@Apple.COM (Larry Rosenstein) (11/29/89)
In article <1154@umigw.MIAMI.EDU> bsherman@mthvax.cs.miami.edu (Bob Sherman) writes: > how well they pay the folks that run the company??? Well, here is the inside > scoop on that from a back issue of the San Jose Mercury News. If you want more details, then get a copy of the notice that preceeds the annual shareholders meeting. That provides a lot of info about executive compensation, stock options, loans, etc.
saa33413@uxa.cso.uiuc.edu (11/29/89)
Indeed, Apple is rolling in the dough. Here at the U of I, everything is (ugh) Macintosh. In MacWorld (I think it was MacWorld), they did a price analysis called, "Where Does Your Money Go?" (or something like that). They looked at what they figured it costs Apple to build a Mac SE with 1 MB RAM and a 20 MB hard disk. Such a machine (which is what I'm typing this on) lists for $3500, excluding the keyboard ($120 or $175, depending on the model you choose). MacWorld broke the machine into about eight components to get the materials cost. The hard disk, at $250, was the most expensive component. All the parts of the Mac SE (including keyboard) cost Apple only about $600! Simple arithmetic indicates that Apple is making an over 500% profit on the Mac SE! (Put that way, it's no wonder Apple Marketing loves the Mac and would like to dump the II--more profit! :-) ). Just thought you might be interested. ------------------------------------------------------------------------------- ! Scott Alfter ! Go ! McCoy: ...they don't exactly like you. ! ! alftersoft@uiuc.edu ! Illini ! Kirk: I know, Bones. The feeling's mutual. ! -------------------------------------------------------------------------------
yk4@cunixb.cc.columbia.edu (Yong Su Kim) (11/29/89)
Some more words from my roommate Jacob... About that "Apple is rolling in the dough" article... As astounding as these figures may seem, there are a few things you either didn't know or neglected to mention. First of all, while the cost of the components may only be $600 total, that's not going to be the true cost per unit. Those pieces have to be assembled, by paid workers, in a running manufacturing plant. Second, Apple doesn't get $3500 per Mac SE, the dealer does. The price Apple charges has to be much less, because they both have to make a profit. Third, now I don't know this for sure, but I'd imagine the cost/dealer price ratio of EVERY computer, including IBM's is a similarly high figure. Just thought you'd like to know. Jacob _____________________________________________________________________________ |Internet: yk4@cunixb.cc.columbia.edu ||||||||||||||Yong Su Kim|||||||||||||| |Bitnet : yk4@cunixc ||||||||The Korean from Hong Kong|||||| |UUCP : rutgers!columbia!cunixc!yk4 ||||||||||...Apple IIGS user...|||||||| |_______________________________________|||||||||||||||||||||||||||||||||||||||
fiddler%concertina@Sun.COM (Steve Hix) (11/30/89)
In article <113300187@uxa.cso.uiuc.edu>, saa33413@uxa.cso.uiuc.edu writes: > > Indeed, Apple is rolling in the dough. Here at the U of I, everything is (ugh) > Macintosh. In MacWorld (I think it was MacWorld), they did a price analysis > [...] > MacWorld broke the machine into about eight components to get the materials > cost. The hard disk, at $250, was the most expensive component. All the parts > of the Mac SE (including keyboard) cost Apple only about $600! Simple > arithmetic indicates that Apple is making an over 500% profit on the Mac SE! Last time I saw "real" figures, an Apple CPU (includes Macs and //'s) selling price was roughly 4-5 times the actual component/construction cost. Remember that Apple *doesn't* get all the money you spend: - Dealer mark-up takes out some. - Warehousing takes out some. - Transportation cost takes out some. - The box, packing foam, systems software, and manuals cost more than you would believe. - Advertising has to be paid for. - R&D has to be paid for (even Apple// R&D). - Employees have to be paid, and even the tech writers deserve to be paid *something*. - Overhead (rent, utilities, taxes,...) has to be covered. At one time, the marketing cost alone, per system, on the Apple//e was a bit more than Apple's cost for making the hardware. Like almost twice as much. > (Put that way, it's no wonder Apple Marketing loves the Mac and would like to > dump the II--more profit! :-) ). Nope. The Apple// generates about the same profit margins as the Mac line. (Have you looked at //gs list prices lately? They're not giving them away.) But, you say, "why do they charge so much when you could get a PC clone for about 50% more than the cost of the parts and assembly?" Well, two things, for starters: 1 - The clone make doesn't have the overhead that Apple does. And they're not doing much development work on the machines they sell, either. Try to get some support. (Yeah, try to get support from Apple some times, too. That's another issue, though.) How many ads do you see from low-priced clone makers other than maybe in Computer Shopper? 2 - People will pay the extra for Apple's products. As long as that holds true, don't expect to see closeout prices. (But watch out if you do: Apple will be going down for the count.) All the above doesn't make me like paying the money much better, but I can live with it. I know what the consequences of prices cut in half would be. (And there's always someplace to go to get some sort of worthwhile discount...if you're willing to pay the price for the lower price.) TANSTAAFL! ------------ "...Then anyone who leaves behind him a written manual, and likewise anyone who receives it, in the belief that such writing will be clear and certain, must be exceedingly simple-minded..." Plato, _Phaedrus_ 275d
jazzman@claris.com (Sydney R. Polk) (11/30/89)
From article <113300187@uxa.cso.uiuc.edu>, by saa33413@uxa.cso.uiuc.edu: > > Indeed, Apple is rolling in the dough. Here at the U of I, everything is (ugh) > Macintosh. In MacWorld (I think it was MacWorld), they did a price analysis > called, "Where Does Your Money Go?" (or something like that). They looked at > what they figured it costs Apple to build a Mac SE with 1 MB RAM and a 20 MB > hard disk. Such a machine (which is what I'm typing this on) lists for $3500, > excluding the keyboard ($120 or $175, depending on the model you choose). > > MacWorld broke the machine into about eight components to get the materials > cost. The hard disk, at $250, was the most expensive component. All the parts > of the Mac SE (including keyboard) cost Apple only about $600! Simple > arithmetic indicates that Apple is making an over 500% profit on the Mac SE! > (Put that way, it's no wonder Apple Marketing loves the Mac and would like to > dump the II--more profit! :-) ). I think that this is a slight oversimplification. Apple still has to pay someone to make the damn thing, someone to sell them, and someone to write all of that neat nifty toolbox stuff. They also have to pay some liscencing on stuff they don't own (like the toolbox). On top of this, if they didn't make a profit, they could not do R&D. (And if you don't think that R&D is important, I suggest you look at System 5 on the GS. This took a HELL of a lot of work). By the way, just in case you get the wrong idea, I have nothing to do with Apple proper. They make hardware, I write software. We make our own decisions. This is just another one of those "Gee, look, someone's making money, and I am not." type of letters. These are very annoying. Let's face it, we are past the days where two guys in an apartment or dorm roon can do anything significant in the computer industry. It takes an AWFUL LOT of work to get anything done in this industry now, and there is a lot of labor-intensive overhead. Once you take that into account, a couple of thousand for a computer is about right. Jeez. You'd think people wanted computers for free or something. -- Syd Polk | Wherever you go, there you are. jazzman@claris.com | Let the music be your light. GO 'STROS! | These opinions are mine. Any resemblence to other GO RICE! | opinions, real or fictitious, is purely coincidence.
hlb@loral.UUCP (11/30/89)
In article <5461@internal.Apple.COM> lsr@Apple.COM (Larry Rosenstein) writes: > >If you want more details, then get a copy of the notice that preceeds the >annual shareholders meeting. That provides a lot of info about executive >compensation, stock options, loans, etc. This notice is referred to as the proxy statement. In addition, one may want to review the 10K statement which although filed with the SEC along with the annaul it may be sent out upon request only. Also, the annual, 10K and proxy statement is available to anyone upon request to the company, no just shareholders. t t upon formal request to the
saa33413@uxa.cso.uiuc.edu (12/01/89)
Sorry, but it was not my intention to cap on Apple. I will concede that I forgot to include dealer overhead, etc. Nonetheless, Apple still pulls in about $2700 for a Mac SE with 1 MB and a 20 MB HD. Even after they take care of their overhead, they still have a mean profit, though. As for the money that goes into a II, I was a bit surprised. A IIe takes twice as much money in overhead as in parts? I suppose the computer industry is no different than, say, an electronic repair shop that charges a pittance for parts and a fortune for labor. ------------------------------------------------------------------------------- ! Scott Alfter ! Go ! McCoy: ...they don't exactly like you. ! ! alftersoft@uiuc.edu ! Illini ! Kirk: I know, Bones. The feeling's mutual. ! -------------------------------------------------------------------------------