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*LTD*

macrumors G4
Feb 5, 2009
10,703
1
Canada
Anyway, Amazing that apple takes that much of the profit in this space. Selling similar or often inferior parts for a premium price works well. I hope others don't follow, it will slow down innovation.

You're not selling a device. You're selling User Experience and the ecosystem that's built around it.

The competition has yet to learn this.
 

gri

macrumors 6502a
Jul 17, 2004
841
175
New York City, aka Big Apple
Pretty unbelievable for what the sales were in 2007

Yep - I actually miss those days where NOT everyone had an iPhone and the iPhone 1 was rare and people were curious to see it. I went with it to Europe to a meeting and people flocked around me... And from the first switching it on I knew that I would never have another phone again (at that time flip phone).
 

JAT

macrumors 603
Dec 31, 2001
6,473
124
Mpls, MN
Terrible OS? LMAO you just lost all credibility, which if you make statements like this frequently, your credibility wasn't that high anyway

Anyway, Amazing that apple takes that much of the profit in this space. Selling similar or often inferior parts for a premium price works well. I hope others don't follow, it will slow down innovation.
When did Apple start selling phone parts?
 

cotak

macrumors regular
Feb 24, 2011
224
0
Hopefully this will put an end to people mindlessly spouting off that Apple is a dying beast.

Except that saying Apple's success in the future is assured at this point is like the Romans saying Rome's empire will last forever during Trajan's rule.
 

wickerman1893

macrumors 6502
Dec 16, 2008
468
0
Yep - I actually miss those days where NOT everyone had an iPhone and the iPhone 1 was rare and people were curious to see it. I went with it to Europe to a meeting and people flocked around me... And from the first switching it on I knew that I would never have another phone again (at that time flip phone).

Exactly...I feel the same way. The feeling of being different and "supreme" to other phones was great. The phone is a lot better now...but it's so common that it takes away from the feeling a little.
 

cotak

macrumors regular
Feb 24, 2011
224
0
Wirelessly posted (Mozilla/5.0 (Linux; U; Android 4.0.1; en-us; Galaxy Nexus Build/ITL41F) AppleWebKit/534.30 (KHTML, like Gecko) Version/4.0 Mobile Safari/534.30)

Sell to joe and jane yes. Making money off it not so much even for apple.

It was always surprising to me how little apple gets from itunes. Vs their profits from phone hardware.
 

Analog Kid

macrumors G3
Mar 4, 2003
8,865
11,408
Wow, that chart is remarkable to look at. To see a titan like Nokia whither and die in 5 years is jaw dropping. Any business leader at risk of complacency needs to have this chart taped to their glasses-- this is what happens when you think you rule the world. You need to be proactive from beginning to end, because things can change too quickly to react.

I also love that this puts the lie to the model where success depends on shipping cheaper and cheaper crap in higher and higher volumes.
 

Exhale

macrumors 6502a
Sep 20, 2011
512
145
It was always surprising to me how little apple gets from itunes. Vs their profits from phone hardware.
Does the average customer even spend 100 dollars on iTunes services? 50 dollars? If you consider the 30% revenue straight as profit, that still adds up to a very small sum.
 

the8thark

macrumors 601
Apr 18, 2011
4,628
1,735
Apple reached 75% of profit share, nearly 40% of revenue share and 9% of units share.

So Apple make 75% of profits with 9% of the shipments (and sales). If that's not amazing I don't know what is. Apple worked out how to sell less of a product then the competition but make way more profit doing so.
 

firewood

macrumors G3
Jul 29, 2003
8,108
1,345
Silicon Valley
It was always surprising to me how little apple gets from itunes. Vs their profits from phone hardware.

If you have an iPhone, how much do you spend on apps?

Versus the amount you've spent on your iPhone(s) plus (in the U.S.) 2 years worth of your cellular bill payments (a big portion of which goes to the iPhone price subsidy, and thus Apple's profits).

----------

So Apple make 75% of profits with 9% of the shipments (and sales). If that's not amazing I don't know what is. Apple worked out how to sell less of a product then the competition but make way more profit doing so.

These percentages are not that far out of line. In lots of market categories and professions, one rule of thumb is that the top 20% of customers produce 80% of the profits. Apple is skimming half of the cream on top. After that, it's diminishing returns. Selling stuff to blokes who have no money for the best bling (and hoping to make it up in volume) for the companies below.
 

oliversl

macrumors 65816
Jun 29, 2007
1,498
426
Summary: every single mayor Phone vendor, had its profit declined in the last quarter, but not Apple.
 

vrDrew

macrumors 65816
Jan 31, 2010
1,376
13,412
Midlife, Midwest
Is the message bug part of that user experience that the competition has yet to learn?

Maybe you missed this part of the story:

This was an extremely rare situation that occurred when a retail employee did not follow the correct service procedure and used their personal SIM to help a customer who did not have a working SIM," Apple representative Natalie Harrison told The Loop. "This resulted in a temporary situation that has since been resolved by the employee.

You can probably get ANY machine to malfunction if you try hard enough, even an iPhone. And the several hundred thousand people who buy iPhones every day don't seem to be concerned (with good reason) about accidentally putting someone else's SIM card in their phones.

On the other hand, I see its taken Google almost three years to finally do something to help rid its Marketplace of malware.

So: One iPhone user gets some weird messages after a store employee disregarded procedure, while five million Android users get infected with Counterclank.

Same thing, right?
 

MattInOz

macrumors 68030
Jan 19, 2006
2,760
0
Sydney
Samsung's profit increased as well.

That's the trouble with share charts like this one; they're relative instead of showing actual amounts.

They also ignore overall market growth. They play to the silly notion for someone to win others must lose.
 

*LTD*

macrumors G4
Feb 5, 2009
10,703
1
Canada
What are Samsung's problems?

Android. Mitigated somewhat by going in Apple's direction. Do note that the only really successful OEM has chosen to approach a more vertical business model.

Unfortunately, Android on tablets, however, is proving to be a failure.
 

marksman

macrumors 603
Jun 4, 2007
5,764
5
Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_0 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9A334 Safari/7534.48.3)

Nothing short of amazing.
 
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