Comment by fkyoureadthedoc

2 years ago

It's like that everywhere unfortunately. You get a client with enough disparity in size and they are pretty much calling the shots. Can't even imagine that scaled up to Apple size.

It’s not though. My company partners with several other Apple sized and larger tech companies. Some are better than others, and we have running jokes about the ones that like to try to throw around their weight. Because, as you might expect, they are unpleasant to work with.

  • From experience, the size doesn’t matter as much as the delta in revenue, or size of that client’s project vs. typical projects. And on the flip side some of the clients that paid least were the hardest to get to sign off on projects, but at least those don’t actually think they’re entitled to harass your team.

  • how many tech companies are apple sized or larger? i think youre full of shit.

    • Microsoft, Amazon, Google, Meta, OpenAI, Intel, Nvidia, AMD, Netflix just to name a few.

    • very few companies sign an agreement with "Apple". You sell a good or service to a single person, small group or maybe a department. There are countless customers this size, the difference is do they treat you like they are the embodiment of "Apple"? We have lots of big, well-known clients and for the most part they do not.

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It should be based in size of contract, not size of company. If Apple wants to buy a stick of bubble gum from me, they go to the back of the line like everyone else. If my contract with Apple represents 80% of revenues for the year, yeah, they own me.

  • > If Apple wants to buy a stick of bubble gum from me, they go to the back of the line like everyone else

    Unless you're the people I've worked for, you would drop everything for the chance to impress Apple.

    But my comment did have the false assumption that the contract size would be large.

    • It's a trap! The notion that doing well on a small contract will net you bigger and bigger ones is a nice fantasy, but I've not seen it play out. I have seen it crush a lot of hopes and dreams, though.

      The reality is (IMHO) running a small contract and running a big one requires different skills sets, procedures in place, etc. Doing well at one will not guarantee doing well at another, and I think they know it.

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> Can't even imagine that scaled up to Apple size.

Have you ever dealt with a big government? Then you can imagine, Apple doesn't have as much weight as typical governments but it is close.

  • Typical how? Weight as defined how? Here is one way of looking at it.

    First, look at purchasing power of various governments. See https://www.cia.gov/the-world-factbook/field/real-gdp-purcha....

    > Real GDP (purchasing power parity): GDP (purchasing power parity) compares the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States.

    Second, look at COGS for Apple: "Apple annual cost of goods sold for 2021 was $212.981B" according to https://www.macrotrends.net/stocks/charts/AAPL/apple/cost-go.... COGS is arguably "close enough" to a nation-state's GDP to make for a useful comparison.

    Given the above two, if Apple were a country with a GDP matching its COGS, it would rank about 66th, using a mix of 2022/2021 numbers from the sources above:

        1  China           $24,861B
        2  United States   $21,132B
        3  India            $9,279B
        4  Japan            $5,126B
        5  Germany          $4,523B
        6  Russia           $4,027B
        7  Indonesia        $3,246B
        8  United Kingdom   $3,136B
        9  Brazil           $3,128B
        10 France           $3,048B
        11 Turkey           $2,817B
        12 Italy            $2,478B
        13 Mexico           $2,418B
        14 South Korea      $2,289B
        15 Canada           $1,832B
        ...
        36 Switzerland        $618B
        37 Belgium            $600B
        38 Sweden             $580B
        39 Singapore          $578B
        40 Ireland            $516B
        ...
        63 Kenya              $251B
        64 New Zealand        $220B
        65 Burma              $217B
        66 Dominican Republic $207B
        67 Angola             $204B
        68 Kuwait             $192B
        69 Ecuador            $190B
        70 Belarus            $184B
        ...
        150 Namibia            $23.1B
        151 Kosovo             $21.2B
        152 South Sudan        $20.0B
        153 Iceland            $20.0B
        154 Somalia            $19.4B
        ...
        220 Palau             $248M
        221 Falkland Islands  $206M
        222 Anguilla          $175M
        223 Montserrat        $167M
        224 Nauru             $149M
        225 Wallis and Futuna  $60M
        226 Tuvalu             $55.2M
        227 Saint Helena...    $31.1M
        228 Niue               $18.7M
        229 Tokelau             $7.7M
        

    But I wouldn't stop here. What happens if we compare Apple's COGS with the _technology spend_ of each of the nation-states above? If we estimate that 10% of GDP is technology-related, making it comparable to Apple, then Apple's ranking would be 15th on the list, right in front of Canada.