That tops the 14% average for companies in the S&P's 500 Index. Excluding interest, taxes, depreciation and amortization, Facebook Inc United States profit margin was 56% last year. That doesn't give the company much room for improvement, MrColin Gillis said. Jonathan Thaw, a spokesman for Facebook, declined to comment. For now, Facebook is operating in the mould of Apple, the world's most valuable company. While Apple develops plenty of its own technology, it lets outside developers create the apps that run on its iPhones and iPads. The approach keeps customers loyal to its hardware without Research&Developmen eating up as much revenue. Apple devoted 1.6% of sales to Research&Developmen last quarter. "We don't see any of the Research&Developmen spend by the application developers in Apple's numbers, but we see it in the result of the innovativeness," said mrRon Adner, professor at Dartmouth College, Hanover, NH 03755 USA.
Source: The Economic Times