iPods v. Amazon

January 29, 2013

I’m almost certain that if Apple only made iPods, they’d still have more profit than Amazon over their most recent reported quarters.

Here’s some rough guessing math. In Apple’s most recent quarter, they made $13.1b in profit on $54.5 B in revenue. That’s a total operating profit margin of 24%. According to their numbers, they sold 12.7m iPods resulting in $2.143b in revenue. That’s an average of $1.68.74/iPod.

If the iPod carries a 24% profit margin (which I don’t think is unreasonable), that would mean Apple made $514.32m in profit on the iPod last quarter.

Amazon posted $405m in operating income last quarter and $97m in “net income gain”. I’m not sure what those numbers mean, but for Apple to match them with iPod profit, it’s margins would have to be 18.8% and 4.5% respectively.

So, in terms of profit, I think it’s pretty safe to say that the iPod had a better quarter than Amazon.

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