Android Tops 50% Share of Smartphone Sales, But Apple Still Dominating Profits

[alent1234]

A profit share graph seems very nebulous to me. Suppose that Symbian were generating a net loss. Their "profit share" could actually be a negative number - and theoretically Apple could claim "130%" of the smartphone profits as compared to their losses

running a business for profit share instead of market share is not a new concept

 

[BaldiMac]

You do realize that the internal components of an Apple computer is the same as you'd find in any other computer, right? The hard disc, RAM, graphic cards etc are all bulk standard ( In fact, graphic cards found in Apple PCs are often inferior to their Windows PC counter parts )

You do realize that the internal components that are the same as you'd find in any other computer are not the only things you are paying for, right?

 

[GenesisST]

Android is an excellent platform? We must have very different definitions of the word "Excellent".

To each his own, man.

I work with Android, but prefer iOS as a user.

 

[SeattleMoose]

Simple Economics Will Dictate Equilibrium

The Android market share will probably end up being the same as the Mac/PC ratio is today.

The "cheap" OS vs the more expensive and better designed OS.

There are more "less affluent" people so Android will "win" the numbers game.

Sit back and watch the fireworks...

 

[PlipPlop]

Another wrong claim?

Despite that the claim has nothing to do what the op said

How can there be valid claims for phones not out yet. Someone told me the iphone 5 battery lasts 6 mins and will require a Mac Pro to activate.

 

[Deter]

What are the benefits of Android's 50% market share?

How does Apple making alot of money benefit you?

 

[Mal]

You do realize that the internal components of an Apple computer is the same as you'd find in any other computer, right? The hard disc, RAM, graphic cards etc are all bulk standard ( In fact, graphic cards found in Apple PCs are often inferior to their Windows PC counter parts )

Proven false so many times on this forum that it's getting pathetic. Sure, the graphics cards are not as powerful, and the hard drive and RAM are stock, but those are minor components. The logic board is custom on every single Apple product, which makes a huge difference. The casing, power supplies, and heat distribution systems are also entirely custom, which affect far more than looks. Apple puts a great deal of effort into designing their computers, and there's a reason they have the best customer satisfaction rates in the industry, by a wide margin.

But this thread is about the phones. There are more Android phones out there, yet Apple is making more money than all the Android manufacturers combined. I think that says quite a bit about how good the phones are.

jW

 

[spazzcat]

"Problem" is a understatement.
Some people think iPhone is the only thing out there and that is scary.

I for one like my iP4 but choose HTC for everyday use. Everything on android gets done faster. Access to information, certain google tools and it's all on my screen without having to open app, wait for it to load, search the info I'm seeking and etc. Some people really don't get it but that's ok. I just wonder why they act like they know something when clearly they have no clue whatsoever.

My bother has an Andriod phone, more times then not, he asks me to look something up. I seldom see someone do stuff faster then me...

 

[PlipPlop]

The Android market share will probably end up being the same as the Mac/PC ratio is today.

The "cheap" OS vs the more expensive and better designed OS.

There are more "less affluent" people so Android will "win" the numbers game.

Sit back and watch the fireworks...

Windows is better than OS X and Android is better than ios. No wonder Apple are struggling to beat Androids numbers and are miles of the pace in desktop os.

 

[samcraig]

iOS market share is huge. Developers would be a fool to not develop for it. The other very important thing to remember is developers make more money of iOS then they do on Android...

I never said developers wouldn't develop apps for it. My point was that with 50% marketshare - developers wouldn't ignore it. IE - there's a benefit to good market share.

Yep, but none of the manufacturers have 50% market share.



Sure, but as I stated, my point is that Apple enjoys those benefits to a greater degree than Google/Android. So the fact that Android has a huge market share lead isn't as significant as it would seem.

My theory is that fragmentation is more of an issue for Android than has been made out to date. (And it has been a big issue to date.) There has already been some analyses that have included not-Android tablets in the Android market share numbers. To what extent does this happen with smartphones? But, in my theory, a more significant subset of Android users may be buying an Android phone and not using it as a smartphone to any significant extent.

I'm not trying to bash Android, just trying to create an explanation as to why Android's impact seems to be so much farther behind than it's market share. Of course, the other obvious and significant factor is the idea that Android users are less likely to purchase apps. Something that probably extends throughout the ecosystem, devaluing it overall.

I am just asking you to stop commenting on me.

I can't speak for android owners since I don't own any android devices. What you say makes sense. But I could also imagine that maybe the Android platform and phones come with so many features and apps already loaded that most general users don't feel the need to load any more. For example - I'm pretty sure the Galaxy S2 comes with a bunch of pre-loaded apps. Not just carrier and samsung apps - but ones that are in the marketplace. So again - maybe the average joe doesn't extend their phone beyond that. That doesn't mean they aren't using the phone as a smartphone at all.

As for fragmentation. I am pretty confident that it's a techy issue and most customers don't really care/understand it.

 

[Kaibelf]

yeah, sad thing is there is no "we" but "THEY own everyone in profits" - as consumers it makes no sense to celebrate it.

Incorrect. As long as Apple makes good money, they provide good support, good R&D, and keep the updates flowing for phones even a couple of years old. Their success DOES trickle down to their customers in the form of value. I wouldn't want to buy a phone on another platform that seems great, underperforms, and then is abandoned within a couple of months, which is the case with most other OEMs. Example: the MS Kin line. MS isn't hurting, but hell will freeze over before they support those phones, even though some people paid good money for them.

 

[Mal]

How does Apple making alot of money benefit you?

Oh yeah, this argument too.

See, when Apple is making money, they can continue to innovate and take chances and make better products, which I can then buy. So the benefit of me giving Apple my money is not only that I get to use the product I'm buying (which I wouldn't buy if it wasn't worth it to me), but I then will get more good products in the future from them.

Ignorance isn't bliss, apparently...

jW

 

[spazzcat]

How does Apple making alot of money benefit you?

Apple spends a good amount of money on R&D...

 

[0815]

It always puzzles me when apple fanboys get defensive about who leads a market (them not being the one) and then scream, "But we own everyone in profits". Most rational people would see that as a group of people collectively overpaying for something and actually enjoying doing so. If there weren't fanboys, apple would have to start it's own wireless carrier. Because the existing ones have a much smaller margin on iPhone vs. others.

I see it this way, that there are two categories for smart phone manufactures:

1. Manufactures that make cheap devices and sell them for more or less free don't make much money on them (often even 'loosing' money for the sakes of market share)

2. Manufactures that make high quality expensive devices also make lots of money with them

And if we look at the manufactures:

Android manufacture xyz: falls into [1] and [2] where [2] makes up for the losses that they make in [1]

Apple: only makes [2] and doesn't need to make up for losses

Bottom line: Apple makes more money not because the overcharge but because they don't have to recover from cheap/free phone sales.

If you say iPhone buyers overpay, than you also have to say that the buyers of high quality Android devices overpay.

 

[acidfast7]

I think that says quite a bit about how good the phones are.

Not really.

It illustrates endemic irrational purchasing.

I follow you on other Apple products, custom components and better quality, but an iPhone, in the US, locks you into 2 years / 1500 payments OR a 600-800 upfront cost. In Europe, when prepaid is bigger, an iPhone costs almost twice a Samsung Galaxy S II while having much inferior hardware ... the iP is not 4G/LTE compatible for example, which is ridiculous for that much money.

 

[nsayer]

In 2007 Steve Jobs said he was after only 1% marketshare. Obviously, marketshare is not what they are chasing.

That's not quite what he meant.

What he was saying was, "if all we got was 1% of the market, this is what that would mean..." and went on to show what at the time was a spectacularly successful sales scenario. Given that they blew past that 1% number quicker than anyone could have possibly imagined, even if it was an actual goal rather than just a moment of showmanship, it certainly wasn't one for very long.

If it was a goal, then Apple surely would have rested on their laurels, which they clearly haven't done either.

 

[Kaibelf]

Windows is better than OS X and Android is better than ios. No wonder Apple are struggling to beat Androids numbers and are miles of the pace in desktop os.

Windows 7? Wasn't it called OSX Tiger once? And how is Apple "struggling" at all? They are making cash hand over fist, while Android handset makers are paying MS a per-unit stipend to avoid being cratered by patent suits because they were too lazy to invest in their own R&D and got caught up.

 

[BaldiMac]

How does Apple making alot of money benefit you?

Well, the obvious answer is that it insures the future viability of the platform that I have invested in.

 

[kas23]

Since Google depends on shear numbers, not profits, it appears Google is winning the "thermonuclear war".

 

[samcraig]

But this thread is about the phones. There are more Android phones out there, yet Apple is making more money than all the Android manufacturers combined. I think that says quite a bit about how good the phones are.

jW

And I don't see this (thread) as an "argument" about good or bad phones. It's a report. One that says quite simply that Android has over 50% marketshare. That's all it says. It doesn't speak to quality or individual use cases/experiences of various phones.

People (in here) are making that an issue.

 

[spazzcat]

I never said developers wouldn't develop apps for it. My point was that with 50% marketshare - developers wouldn't ignore it. IE - there's a benefit to good market share.



I can't speak for android owners since I don't own any android devices. What you say makes sense. But I could also imagine that maybe the Android platform and phones come with so many features and apps already loaded that most general users don't feel the need to load any more. For example - I'm pretty sure the Galaxy S2 comes with a bunch of pre-loaded apps. Not just carrier and samsung apps - but ones that are in the marketplace. So again - maybe the average joe doesn't extend their phone beyond that. That doesn't mean they aren't using the phone as a smartphone at all.

As for fragmentation. I am pretty confident that it's a techy issue and most customers don't really care/understand it.

Not if they can't make money. End of the day it's about selling apps. I have no issues with Andriod, if there was no iPhone, I would be using it. But I want to know how many Andriod users have even bought an app?

 

[Kaibelf]

and then there's those who rationalize it. You are right, everyone determines "value" for themselves. Clearly what these numbers indicate is more than half see value in Android. I encourage anyone with "fanboyism" to read a book titled "The Upside of Irrationality" by Dan Ariely

What they see is "buy one get one free."

 

[Stella]

not true for MBP's

Really? I'm interested to know - what higher quality components do Apple use in MBP compared to equivalent windows based laptops. The hard disc, RAM, display etc seem to be bulk standard, they don't seem to be of higher quality.

I look forward to your reply ( I'm not being sarcastic or anything )

 

[ghettochris]

2.5 Billion last year, and its expected to double to 5 Billion in the next year, not including revenue from in-app adverts through their acquisition of AdMob.

2.5 billion off android for google vs. around 10 billion or so for apple from ios. By every account other than smart phone market-share apple seems to be winning. It will be interesting to follow this in the future. Apple mostly profits from the hardware, I guessing google didn't bank much off the nexus, especially because they had someone else make it for them, so 2.5 B not bad for software deals.

 

[rmwebs]

I never said developers wouldn't develop apps for it. My point was that with 50% marketshare - developers wouldn't ignore it. IE - there's a benefit to good market share.

I can throw a small bit of info out there regarding development on the two platforms.

I developed exclusively on iOS until around 5 months ago. I ported one of my apps to Android, and its in the market.

I've got 6 apps in the iTunes App Store, and 2 in the Android Market.

The 2 android apps makes approx. 45% of the profit made from all my iOS apps. Based on this, (for me) Android is a more profitable platform. This wasn't the case for the first month or two, however recently I've seen a dramatic increase in Android app purchases.

My stats are also not warped by advertorials as I dont pay for any advertising for any of my apps, and dont promote one platform over the other, its simply worked out that the Android apps have had a decent number of downloads.

Obviously you cant read too much into this....it would be interesting to see other multi-platform developers statistics however as it would help grasp a general idea of platform usage trends.