Choosing a computer might become complicated; therefore, it is essential to compare various models. For instance, the two major U.S. computer manufacturers, Acer and Apple, are appropriate variants for work and study usage. Moreover, it is vital to consider the gross profit ratio to understand companies’ productivity when comparing. Factors such as changes in sales, economics, and market stability can influence this aspect of merchandise companies. According to the formula, Apple’s gross profit ratio equals 9,8, while Acer’s is 7,2 (Weygandt et al., 2020). It is essential to examine other parameters of the two companies to determine the optionality of laptops.
Prices of Acer’s and Apple’s products vary – Apple’s computers are more expensive. Acer states free delivery and satisfaction of all criteria for safe shipping, while Apple has no information about delivery charges (Acer Group, 2020). Moreover, both Apple and Acer offer financing options, including venturing, trade receivables, and investments. In Apple, discounts are related to undelivered products, while in Acer, it is available for students. Acer provides warranties for its products when sold, and Apple gives limited warranties (Apple Inc., 2020). Furthermore, coupons are limited for both companies, and they do not deliver them directly. In Acer, installation is offered, and it is supplied by Acer Synergy Tech (Acer Group, 2020). In Apple’s report, there is no information about any provided installation. Additively, Acer offers Green Product Management which allows recycling, and there is no recycling information in Apple.
After considering Apple’s and Acer’s products, it is possible to answer why the ratio of Apple is higher. Probably, it is connected to brand image and customer loyalty, although according to 2020 reports, Apple concedes Acer in several parameters. It is worth mentioning that Apple and Acer manufacture cardinally different types of laptops, and their products are designed differently. Therefore, the brand’s recognizability, modernity, and popularity might determine the gross profit ratio. Overall, both companies’ products are perfect options for work and study; indeed, Acer is a more affordable and adjustable manufacturer of laptops.
References
Acer Group (2020). Acer Incorporated annual report. Acer.
Apple Inc. (2020). Apple annual report. Apple.
Weygandt, J. J., Kimmel, P.G., & Mitchell J.E. (2020). Accounting principles (14th ed.). Wiley.