August 2012
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Day August 22, 2012

Think small

We can put all of our products on the table you’re sitting at. Those products together sell $40 billion per year. No other company can make that claim except perhaps an oil company.

We are the most focused company that I know of, or have read of, or have any knowledge of.

We say no to good ideas every day; we say no to great ideas; to keep the number of things we focus on small in number.

Tim Cook said this in February 2010 at the Goldman Sachs technology conference.

Since then the only product that has been added to the kitchen table has been the iPad. The sales level however, has increased in proportions shown in the chart below.

The revenues are shown with their contributory products and the costs of those products. The payments for costs of sales as well as R&D, SG&A and Taxes are then subtracted revealing the Net Income (in green). This is done for the second quarters of 2010, 2011 and 2012.

Since Tim Cook made the analogy, the  table holding the products has not gotten any bigger but the sales level has more than doubled while profits have nearly tripled.

In his talk he cited revenues of $40 billion (for the pervious year, 2009). In the last twelve months Apple’s revenues were $148 billion.

Tim Cook went on: