Econ mobile profit margin is 10%, and they are selling a very fungible product that lots of competitors are also selling (they have little pricing power).
Tech company profit margins are 20%+, and they are selling products which have much higher moats, and benefit from network effects. And less liability.
Good point, and 20+% is a huge understatement. SAAS companies that are public are mostly in the 70-90% range. Also, add how easy distribution of software is compared to physical products.
Tech company profit margins are 20%+, and they are selling products which have much higher moats, and benefit from network effects. And less liability.