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Old Jan 17, 2013, 07:57 AM   #26
ftaok
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Join Date: Jan 2002
Location: East Coast
Quote:
Originally Posted by inselstudent View Post
You always pay a premium for Apple products. Apple may have a smaller share in overall smartphone sales, but 75% of smartphone market profit is theirs. There doesn't have to be an actual reason for Apple to have such prices. It's just because people are willing I pay for it.
Apple captures the lion's share of mobile phone profits because of two reasons.

1. They sell a lot of iPhones.

2. iPhones are high-end phones.

If Samsung sold as many Galaxy S3/Note 2 devices as Apple sold iPhones, then Samsung would be getting a comparable share of the profits.

Samsung, however, chooses to manufacturer and sell low- and mid-tier smartphones which carry lower profits. Apple chooses not to sell in that market ... Aside from selling one and two year old models.
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