True, but you need to have a product that people are willing to buy at 30-45% margins.
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Apple and Samsung Claim 99% of Profits Among Top Mobile Phone Vendors
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True, but you need to have a product that people are willing to buy at 30-45% margins.
The whole android vs ios battle just annoys me. Yes, iPhone was the first, yes it has a ******** of patents, yes android copied some things and yes, iOS copied some (less) things (notifications anyone). Let the courts decide and love your own choice of device.
Why do both android and ios enthusiasts (not use the f-word) feel the need to bash the other side to the point of wanting to obliterated them? (I have Android-using colleagues and I read these forums).
There's a market for both. period. I myself prefer iPhone, but don't care if my neighbour or my wife prefers Android. It's a phone, not a statement on your person.
rant over, nothing to see here.
Why do both android and ios enthusiasts (not use the f-word) feel the need to bash the other side to the point of wanting to obliterated them? (I have Android-using colleagues and I read these forums).
There's a market for both. period. I myself prefer iPhone, but don't care if my neighbour or my wife prefers Android. It's a phone, not a statement on your person.
rant over, nothing to see here.
Not surpised that Apple takes so much. They only play in the high end market and are able to keep there phone prices artificially inflated. They do this by ince a year only release so they do not have to drop the price.
Still more money than most of us will ever see in our life time.
Still more money than most of us will ever see in our life time.
How is that going to help innovation? There would be nothing else in the market for Apple to compare themselves with. It wouldn't work.
... and people wonder why we are in economic distress. It wasn't the housing market its because Americans buy things they can't pay for in the long run.
When you have a great product, great manufacturing/pipelining expertise, great self-built ecosystem leading to absolutely low outsource engineering costs, profits margins are easy to come.
On another note, you're statement is statistically wrong. If you're selling only 10 times with a profit margin of 35-40%, your profits would be neglible or it would be more of a loss, with respect to engineering & manufacturing costs. Given Apple sells millions of these things, given the products are just amazing, Apple makes good profits.
But, I smell burn!
Same goes for people in the Europe. There's no need to treat them as a stereotype. Also, America is not the entire world.
I don't agree with that. I think apple pushes itself. If they have a good innovation, they don't wait for the competition to catch up. And if they don't, they don't implement something half assed just because someone else has it (look at blu-ray and USB 3 on the Mac side).
Just looking at the chart, Apple has hurt Nokia the most. They are almost opposite images of one another.
If this is directed at me, you totally misread my comment -- which is ironic, considering.
Back in 2007 (at the start of the chart), I never would have thought Nokia would have suffered the way it has.
What a demise.
What a demise.
Agreed. But android isn't supposed to be a money spinner, much as google search website is free. But its gets you into the Google sphere and they make money on your data. Totally different model to Apple.
Agreed totally.
MMI is up and down. The economy is hitting a lot of phone makers hard, because the profit margin on non-smartphones is terrible right now. Apple only makes smartphones, so they avoid that pitfall.
The good news is that MMI still has 3 billion saved up in the bank. So even if they kept losing a 100 million dollar on 2+ billion in sales like this past quarter, they could survive on their cash reserve for at least two dozen more quarters before running out of time and money. That's what, six years?
Considering that others would have cheaper (or non-existent) royalty fees, and often make more phones, I actually don't think Apple has much of a manufacturing cost advantage. I think it's that Apple can command a higher premium right now. The question is, for how long?
As that report commented:
Some carriers have recently backed off from offering an iPhone subsidy because of the expense, and a few analysts predict that trend will grow. The effect that has is that buyers in many parts of the world (especially with today's economy) look towards smartphones with a non-contract price under $300.
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Imagine what it will look like 5 years from now.Back in 2007 (at the start of the chart), I never would have thought Nokia would have suffered the way it has.
What a demise.
Consumers are fickle... no one can hold the top spot forever.
Google is losing massive amounts of money on Android. They haven't come anywhere close to earning from Android the $12.5 Billion spent on Motorola (which they bought to prevent the Android ecosystem from collapsing, as Motorola was threatening to start suing all the other Android manufacturers).
Never mind the cost of buying Android itself and all the R&D and marketing costs associated with it since, not to mention defending the Oracle/Java case.
Android has been and continues to be a cash sinkhole for Google.
Android isn't making Google very much (see the documents in the Oracle/Google patent trial) and iOS bring about 2/3 of the mobile profits for Google.
Google would have been better off not buying Moto (which they actually haven't yet) and not having burned bridges with Apple.
It's really $9.5 billion, since it includes getting $3 billion in MMI cash.
If they got it just for MMI's 24,000 patents, that's about $400K per patent. Some of those patents are getting FRAND payments to the tune of 2.25% of phones made around the world.
Note that Apple paid $2.6 billion towards the deal for 6,000 Nortel patents, or about $430K per patent.
The difference is, Google also got a settop box and phone manufacturer to play with, along with the patents. They could either dump or sell those parts, keep the patents, and come out looking good.
I am not buying it. I don't personally have a Motorola device but the razr and razr Max are selling very well.