Friday, October 07, 2011

The Difference Between American and Asian Companies

I received daily email blast from Motley Fools which I usually do not read except for something interesting. The demise of Steve Jobs dominated the headlines both in print and net. Motley Fools has an analysis of Apple's future. What I find interesting is the table which I reproduce below. It also highlight the profit margins of the different global companies.

Japanese is the lowest at 1.7%, next is Chinese/Taiwanese at 2.1%, Samsung is Korean and surprising is much better than HP. The highest are both American which is IBM and Apple. Quite simply American companies demands much higher profit margins than Asian companies.


What threats remain
Still, threats remain. The largest threat to Apple right now is reduced nimbleness because of size. There are only five technology companies in the world with higher sales than Apple.

Company Trailing Sales (millions) Profit Margin

Samsung $148,472 8.7%
Hewlett-Packard $127,969 7.3%
Hon Hai (Foxconn) $114,891 2.1%
Hitachi (NYSE: HIT ) $103,842 1.7%
IBM (NYSE: IBM ) $102,341 14.7%
Apple $100,322 23.5%

Source: Capital IQ, a division of Standard & Poor's.

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