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Apple Continues to Take More Than Half of Mobile Phone Industry Profits
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I hope for Nokia's sake that the Microsoft sellout pays off.
Watching the old giants (Motorola, LG, Nokia, Sony) play second fiddle to the relative newcomers (Apple, HTC - who were little more than an ODM a few years ago) has been incredible.
Samsung Mobile have done well to keep up but some might say that a little of that is off Apple's back.
This is an amazing outcome that I would have never predicted in my younger days. Well played Apple!
I hope for Nokia's sake that the Microsoft sellout pays off.
Watching the old giants (Motorola, LG, Nokia, Sony) play second fiddle to the relative newcomers (Apple, HTC - who were little more than an ODM a few years ago) has been incredible.
Samsung Mobile have done well to keep up but some might say that a little of that is off Apple's back.
This is an amazing outcome that I would have never predicted in my younger days. Well played Apple!
Let me clarify my point. To some extent Apple will have strong sales of every iPhone that comes out.
But to truly dominate a competitive market, they had to put out a killer product. The iPhone 4 did that.
My point was that competition drives innovation (and as a byproduct marketshare/profits) more than the hardcore loyal fanbase. That fanbase is 'in the bag' for Apple and will stay loyal. It's growing that base that's a higher priority.
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I think Apple will take the title of the most profits over the most handsets sold as they've always positioned themselves and their products as upper-end. No junk.
It is important in court when Apple is up against Samsung etc. How can they claim to be the victim when the have more market share?
On the topic of loss leaders, I kinda wish Apple would bring back the xServe as a loss leader kind of thing. It was a great server for my company's needs. Plus, the integration between the server & client stuff was truly remarkable and made quite a few people want to get Macs and/or iDevices for home.
As I've said before, lack of profit/volume on a specific product does not equate to lack of importance. This product might not sell much, but other products that do sell well might depend on the product. Many people don't seem to understand that.
Companies that make money tend to stay in business, not lay off creative and talented employees, and thus continue to support current products and develop more new products better than the current ones.
Compare this to, say, Solyndra.
Apple is not listed among Corning customers who use Gorilla glass. So there is no evidence that iPhone has Gorilla glass. Quite opposite: http://www.youtube.com/watch?feature=player_detailpage&v=elKxgsrJFhw#t=88sevidence.
Retina display is already old LCD technology surpassed by Super AMOLED+ and Super AMOLED HD.
And again iPhone 4 (since we discuss last couple quoters profit margins) had cheaper 5mpx censor, no Gorilla glass, smaller old tech screen, twice less RAM, no 4G chip, no NFC cheap, no SD expansion, no FM radio, smaller battery, older A4 processor - all of these add up to a lower cost, cheaper iPhone, though Apple sells it for the same price as top Android phones equipped with more expensive components. That's were Apple high profit margins come from.
Making only one phone model keeps cost even lower.
iTunes and App Store don't make iPhone more expensive to make: they make money their own way - they pay for themselves, selling content.
So here is the great Apple business model:
inexpensive components + single product + sleek design + marketing hype.
The last two most essential for Apple brand. The last one is the most difficult to achieve.
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So a rich company can have no recourse if a poor company harms them? What a strange world that would be.
This isn't Communist Russia! Companies don't pass on savings. You seriously think that the reason competitors charge is because of some altruistic intention of "passing on savings?" It's nothing short of BS. Competitors are in it for profits as much as Apple is. Every company in the smartphone/tablet space would kill to be in Apple's position.
Producers of goods/services charge as much as the market is willing to pay. One product may be less expensive than another product, but that is not to say the producers of the less expensive product is "passing on savings."
On the flip side, consumers pay exactly how much a product is worth to them. If they think that a product is not worth the money they pay for it, they won't purchase that product. This is the definition of "overpriced." The price of the product is greater than its value. If a consumer is willing to pay for a product, then he/she does not think that it's overpriced.
there are periodic sales for other phones but right before the SGS 2 came out the Galaxy was still $199 at the AT&T store
and the iphone is always $199 whether you are a new customer or upgrade. no games where the carriers give lower prices to new customers only
Ummm no it was not. I am not sure what the hell you were smoking. The captivate (AT&T GalaxyS) has been under a 100 on contract since around January 2011. $50 and free over the summer. AT&T mew customer and renewal have had the same deal for a while. That has been the case for a long time for all the carriers.
Really that is pretty bad messing up with your facts there.
What were you smoking when you said apple is not passing on the profits and savings? Or when you implied android phones are lowering in price because oems want to reward their customers?
Really bad understanding of economics and business there.
What is your favorite oil company? Would you smile while paying $10 gallon for gas so they could keep drilling and supply you with that wonderful gasoline? Exxon is a great example of how to run a business too. How about your electric company? Are they doing ok too? Wouldn't you feel better if they raised your rates so that they had some extra capital in case of an emergency? I'm pretty sure an unbiased, open minded individual such as your self would feel this way, but one never knows.
In some countries they do pay over $10/gallon. Especially if the cheaper alternatives (used cooking oil? fermented elephant dung?) will ruin your engine.
Prices depend on the alternatives, and how well those alternatives might serve most customer's desires.
LOL dude wtf are you talking about?
There is no comparison at all. We're talking about tech products we enjoy, and folks like it when they do well, for reasons already given.
LTD...are you...are you...like...a robot? I'm just wondering, cuz most of your responses sound like something you'd get out of a canned marketing machine.
"LTD, will I like cherry in my coke"?
"...I don't know what you mean by that statement. Apple is the greatest company in the world, and everyone loves the goods they provide. How does your question pertain to that"?
Now don't get me wrong. I'm totally cool with you being a robot. One of my best friends is a robot. I'm just asking here.
"LTD, will I like cherry in my coke"?
"...I don't know what you mean by that statement. Apple is the greatest company in the world, and everyone loves the goods they provide. How does your question pertain to that"?
Now don't get me wrong. I'm totally cool with you being a robot. One of my best friends is a robot. I'm just asking here.
Another play with numbers!
Another example of what we can do with stats to your own advantage.
"Apple raked in 52% of the overall profits during the quarter, down slightly from 57% in the second calendar quarter but up from 47% in the year-ago quarter that also had the then-new iPhone 4 on the market."
It doesnt' matter the profit is down 5%, what matters most is it is more than 50%.
Cool. Let's hear what we want to hear.
http://theforbittenfruit.ndnlfn.com/decline-of-the-apple-empire/
Another example of what we can do with stats to your own advantage.
"Apple raked in 52% of the overall profits during the quarter, down slightly from 57% in the second calendar quarter but up from 47% in the year-ago quarter that also had the then-new iPhone 4 on the market."
It doesnt' matter the profit is down 5%, what matters most is it is more than 50%.
Cool. Let's hear what we want to hear.
http://theforbittenfruit.ndnlfn.com/decline-of-the-apple-empire/
I like Exxon. I want to pay more for gas so they make a bigger profit and continue to provide me with top quality petroleum products. I enjoy driving. What's the difference?
That went on for 5 pages? Jesus. What a waste of time
I'm sure you'll update that drivel after next quarter when all those delayed sales come into the current quarter, right? Nah.
Yes and no. While the xserve was not a terrible server, people just simply didn't want them, which is fine. They live on and are supported by another company, but something tells me that Steve Jobs had one of his visions and realized that the days of people keeping in-house racks was going to be on the decline, and eventually xserve would be a withered leaf in the Apple tree.
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I can pay the same amount today as I paid for an iPhone 3 years ago, but the new one will be better. Right now, Exxon offers the same gas as they used to, but it costs more.
Exxon's costs are higher today than they were a few years ago. Apple's costs are less than they were before. Apples profit margins increased. Exxon needs more capital to keep supplying us with gas as oil becomes more expensive to produce. If they don't make a big profit, they won't be able to meet the demand for gas and the world will come to a halt.