It's absolutely essential to be able to differentiate between gross profit and net profit to establish unit economics, especially as the scale of a newly founded operation may drastically change relative to some amount of fixed capex or SG&A expense.
Of course. But here we're talking about the opportunity cost of the founders and other employees so gross profit isn't as relevant. Context matters and the context here is that the founders and employees would probably have a much higher take home split amongst all of them if they were to work in the wearables division of a large company like Google or Apple.
The difference between gross profit & net profit for companies like this is largely comprised of employee & founder salaries (SG&A and R&D). That delta is literally paying for their opportunity cost. Net profit is most relevant to shareholders.
What they call "gross profit" is not profit, by definition. It's certainly useful to track $revenue-$cost_of_goods, but you can't call that profit. People are free to use words incorrectly, but they shouldn't expect anyone else to go along with them.
Who chooses the "correct" use of words? Is it you? Wikipedia disagrees with you: https://en.wikipedia.org/wiki/Gross_margin. Maybe you should make your own encyclopedia.
you mean some person on wikipedia disagrees with him.
What they call "gross profit" is an accounting standard, defined in GAAP, and a standard part of every financial statement.
If we're talking about profit from the lens of a unit sale, we're usually talking about gross profit and gross margin.
You can't run a business based on dictionary definitions.
You most certainly can, and you should.
Please hire an accountant asap if you ever start a business. Things don't mean what you think they mean in accounting. You are wrong and insist you are right despite multiple people pointing it out to you.