Cost Management Insights: SG&A Expenses for Applied Materials, Inc. and VMware, Inc.

Navigating SG&A Expenses: A Tale of Two Tech Giants

In the ever-evolving landscape of technology, cost management remains a pivotal factor for success. Over the past decade, Applied Materials, Inc. and VMware, Inc. have demonstrated contrasting strategies in managing their Selling, General, and Administrative (SG&A) expenses. From 2014 to 2023, VMware's SG&A expenses surged by approximately 147%, peaking at over $5.5 billion in 2023. In contrast, Applied Materials saw a more moderate increase of around 83%, reaching nearly $1.8 billion in the same year. This divergence highlights VMware's aggressive expansion and investment in administrative capabilities, while Applied Materials maintains a more conservative approach. Notably, data for 2024 is incomplete, suggesting potential shifts in strategy. As these industry leaders continue to innovate, their cost management strategies will undoubtedly play a crucial role in shaping their competitive edge.