Question for lowendtalk/box providers: What's your margin?

vero

@raindog308 said:
Well that's true for many manufacturers in the strict sense. But regardless, Apple is the initial seller of the finished product, so it's irrelevant whether they own the factory or not.

Partly, because that's where things get ambiguous if you still state, that "Manufacturers are always going to have higher margins than infrastructure providers". I'm not completely sure what is exactly infrastructure provider, but it also applies to phone carriers I guess, who are doing well enough. Those, who create any type of infrastructure should also be considered manufacturers? Or you call infrastructure providers some resellers on LET?

MichaelCee

Wait, you're meant to make a profit doing this?

NoComment

@stefeman said:
Nobody in his right mind would share this. If its too much, people will call you a rip-off or expensive. Too little and you will lose credibility and reliability in the eyes of others.

So what do you have to say about digitalocean making 50%+ profit margin?

ditlev

@smallbibi said:

@stefeman said:
Nobody in his right mind would share this. If its too much, people will call you a rip-off or expensive. Too little and you will lose credibility and reliability in the eyes of others.

So what do you have to say about digitalocean making 50%+ profit margin?

They are not though - it’s their gross margin, not profits. Biiiig difference

From their S1

We generated net losses attributable to common stockholders of $36.0 million, $40.4 million and $43.6 million for the years ended December 31, 2018, 2019 and 2020, respectively. As of December 31, 2020, we had an accumulated deficit of $167.0 million.

So actually quite the opposite of profitability:)
The more they sell, the more they loose

Francisco

Unsure being ~50% is so LET it hurts.

God bless.

Francisco

deank

Troll bless.

Deank

ditlev

@raindog308 said:

@ditlev said: That is quite aggressive

Usually though don't companies want to depreciate faster, so they get more benefit up front?

Yup - though, if you want to drive up your EBITDA's this is the way to do it.
Like, in OnApp we do not capitalise our development efforts, but if we did it would add another +20 points to the EBITDA.

Mr_Tom

@SmallWeb said: Wait, you're meant to make a profit doing this?

Beat me to it

qps

https://www.amazon.com/Maruchan-Instant-Lunch-Chicken-Flavor/dp/B00MIK4GCS/

Still less than $7 - that's all the profit you need.