Originally Posted by Slomo4shO
Originally Posted by pcfoo Warning: Spoiler! (Click to show)
They make lots of money, sure, but most of it is thrown back into the company.
They don't make 200% of profit for each GPU sold.
You realize that the table that you are showing depicts a reduction in cost of revenue(higher gross margins) and a reduction in R&D budget relative to total revenues? If you add back the 2.6% for restructuring and misc that only shows up in 2016 back into income before taxes, the net income would actually be 14.8-14.9%. The table would shows the exact opposite of what you are trying to imply
Also, I never said 200% profits, I said 250% product markup...
Ok, its hopeless... what am I trying to imply? That all the R&D for Pascal and the lithographic shrink came the last minute?
When did i give a % # for you to add 2.6% and "destroy my argument" as the other forum warriors achieved?
How can you claim that R&D that was paid for in 2014 is not capitalized upon in 2016? There is always a lag in investment overhead in those fields. What happens today was planned for years ahead.
As for the product markup, again, nVidia takes home a 12-15%. That's it. The "product" feeds all the OEMs and all the foundries and all their markups. They do not deliver the product directly to the end user.
When they will, and perhaps they could, they could have much higher margins, like Apple does, but even for them the actual markup of the iPhone when you compare mere production cost and you neglect R&D and marketing, is not looking at the trees and forgetting about the forest.
/topic for me. I am not trying to prove anything to anyone. Zip up gents. You pee too far for me. You won.Edited by pcfoo - 6/17/16 at 10:14pm