Apple overtakes Google, becomes first in yearly profit per employee

By Emil · 15 replies
May 18, 2011
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  1. Apple is now king in terms of yearly profit per employee. In fact, Cupertino is miles ahead of many tech companies, including Google, Microsoft, Intel, Cisco, eBay, Adobe, Yahoo, Oracle,…

    Read the whole story
  2. dedparrot

    dedparrot TS Rookie Posts: 67

    i thought i read it was Steam a couple of months ago.
  3. i'm sure they are sharing it with all their employees - not
  4. KG363

    KG363 TS Guru Posts: 515   +9

    Didn't you post that valve passed apple?
  5. Technochicken

    Technochicken TechSpot Paladin Posts: 729

    This does not take into account all the people involved in manufacturing Apple's products, though, since they are probably mostly Foxconn workers. Shouldn't the portion of Foxconn producing their products be counted? It seems unfair to compare Apple's per employee profits to Google's, for example, because Google employees themselves produce their products, while Apple's don't.
  6. Relic

    Relic TechSpot Chancellor Posts: 1,379   +16

    I'm guessing Pingdom is only looking at public tech companies, as this Forbes article which you guys covered paints a completely different picture. Valve is valued in the billions with ~250 employees, which should give them a clear lead.

    Ya, I'd imagine companies that outsource manufacturing like Apple will definitely look better with data skewed this way.
  7. gwailo247

    gwailo247 TechSpot Chancellor Posts: 2,010   +18

    Yep. Not too hard to see why Apple is on top of that list. Since those people slaving away in the factories don't count as employees, both companies are essentially "buying" finished hardware at rock bottom prices, and marking it up to sell to the American consumer.

    I am sure if they were to factor in the people making their hardware as employees, thus more accurately reflecting the reality of the situation, that number would drop by quite a bit. Since I doubt the average Apple employee makes half a million a year, there are probably 10 Chinese people hiding in the shadows of that particular statistic.
  8. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 2,886   +1,222

    Looks like Relic is right.. but some quick accounting definitions so we're all on the same page. The forbes article says Valve is valued in the billions, and revenue was in the high hundreds of millions. Profit is at $55 million

    Value of the company - estimate of what it could be sold for.
    Revenue - Money that came in through the door.
    Profit, - Money left over after paying all your taxes, bills and employees

    According to that forbes article Valve would be at $220,000 profit per employee (55 mil / 250). while apple is at $419,000, which means they must have had total PROFIT of $19.5 billion. I checked and they have reported $19.55 billion in profits over the last 12 months (april 10 through april 11). Note, that's not in 2010, like Valve's numbers, so we can't quite compare them. Apple over their fiscal year 2010 only had 11.44 billion in profit, or 245,493 per employee, assuming the same # of employees.

    So looks like Apple is tops, unless Valve really picked it up in 2011.
  9. Relic

    Relic TechSpot Chancellor Posts: 1,379   +16

    @milwaukeemike The $55 million figure is operating profit in 2005 on $70 million gross. As pointed out it's estimated that they earned ~billion in profit last year (2010), which I assume easily translates into the lower hundreds of millions on the operating side. That alone should put them over Apple per employee. But since Valve is private, they haven't exactly given out hard numbers here and I'm just speculating :) .
  10. TekGun

    TekGun TS Booster Posts: 162   +25

    Maybe if their products were priced, how can I put it, "fairly", there wouldn't be so much profit.
  11. Inarius03

    Inarius03 TS Member Posts: 25

    Not surprising at all to hear this. Actually, surprised that this is just now happening.
  12. @ technochicken
    That is irrelevent as it is PROFIT per employee, not REVENUE per employee. This means that foxconns costs (aka cost of sales) to apple is already taken out of the equation.

    Every one of these companies outsources contracts, particularly in the assembling of products.
  13. tonylukac

    tonylukac TS Evangelist Posts: 1,372   +69

    If say the employees make $50,000 a year now, they can make $450,000 a year and Apple would still make $100,000 profit per employee.
  14. Technochicken

    Technochicken TechSpot Paladin Posts: 729

    What I'm saying is that the numbers do not accurately reflect the number of people involved in producing Apple products. Here's a hypothetical situation: If Google outsourced it's coding, it would pay more in operating costs, as the employer of the coders would charge a commission. However, Google's profit per employee would be drastically higher, because it's employee base would be cut in half or more. In that situation, profit per employee is not a very meaningful number when comparing it to a company who produces their products in house. For Apple, along with other companies, like HP, Dell, ect, the same applies.
  15. captaincranky

    captaincranky TechSpot Addict Posts: 12,961   +2,516

    I think this stands as a " landmark tribute" to the stupidity of the American consumer.

    See, companies make the big bucks when you're dumb enough to pay the asking price.

    Not only that, people stand in line at apple product releases to do just that.

    Steve Jobs must have been a Nigerian Prince in another life.

    "If you don't have an iPhone, then you don't have an iPhone". Wull OK Stevie, I'll get right on that
  16. It's Humorous to me that we are comparing “Competitively,” a company who over charges for its products, with a company that does not charge at all for the majority of its products… Apple is like the guy who takes your shirt off your back, and you thank him for it…

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