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“period expenses”: the key to determining profits
the profit gap between apple and huawei is not just a difference in brand or technology. according to statistics, apple's period expense rate is between 11% and 14% on average, while huawei's is as high as 40% during the same period. behind this lies the secret of apple and huawei's differentiated management strategies and r&d investment. analysis shows that apple has achieved low-cost operations through oem, procurement and odm strategies, and its period expense rate has been controlled at a reasonable level.
technological autonomy and market competition
apple's r&d costs are relatively low, but its product added value remains high. huawei, with its strong technical strength and independent r&d of core technologies, has taken a leading position in the market competition. apple chooses to outsource r&d and supplement its technological deficiencies through mergers and acquisitions. the strength of its products is based on independent r&d of core technologies and outsourced r&d of peripheral technologies.
global strategy and management excellence
apple's globalization strategy and management excellence enable it to effectively reduce costs. its oem, procurement and odm strategies enable it to achieve zero inventory operations, with inventory accounting for no more than 1.5%, reflecting its sophisticated operating strategy. huawei pays more attention to technological innovation and product development, with the pursuit of market leadership as its core driving force.
"the secret of profit"
apple's success and huawei's failure reflect the key factors in the market competition environment: management strategy, technological autonomy and market positioning.cross-border e-commercethe development trend will continue to drive global economic development, and companies will also need to constantly explore new management models and technological innovations to stand out in the competition.
