Apple Takes 104% of All Smartphone Profits Following Galaxy Note 7 Recall

[samcraig]

 

[Pulpdiction]

All this really serves to demonstrate to me is that Apple are clever at generating profit and people keep buying their products regardless of the poor value for money they represent. So pitched as a luxury product they've got their strategy perfectly placed to extract the maximum amount of money out of the marketplace for their product.

To me apple have always represented poor value for money, but I'm still an iphone user as I like the product - recognising I pay a significant premium for the privilege, but that novelty is well and truly worn off, for me and many of my friends and family which perhaps links well to the reduction in the number of phones they are selling. I literally know no one who has upgrade to an iphone 7 yet. If they want to maintain the number of handsets being sold they need to provide more incentive to do so. They've done this partially by offering their pay as you go purchase scheme but its the technology that needs to kick on a pace in order to convince me to upgrade.

 

[dumastudetto]

Not really. Nobody questions Tim's ability to turn a profit. Haters are always going to hate but more and more it's us loyal customers scratching our heads and going "What the heck?" over Apple's decisions of late.

You shouldn't really be scratching your head when you see reports like this one.

 

[Pilgrim1099]

You can sell a ton of devices, sometimes more than previous years, and still lose market share. Doesn't necessarily have a negative impact on your profitability, as Apple has demonstrated.

This is probably the one and only year we will see this phenomenon (unless Samsung screws up again next year). Still, let's just bask in this glorious moment and savour this moment for what it is.

To the victor belongs the spoils.

For Apple, it'll be about 5 minutes worth of glory and then back to Hell they go. Use your eyeballs. They are actually screwing it up.

Jobs did NOT believe in sales numbers. He believed in making great products. Cook believed the other way around. Until the Cookie Monster and his party of Executive Fools are gone, Apple will destroy itself in the process.

Just because it has a clean, pure and 'purdy' looking logo doesn't mean it's the best company with values. It's not. It's a facade. You need to learn about corporate branding and how they use white lies, or worse, to make themselves look good.

 

[DEMinSoCAL]

Your post suggested that Samsung was first and Apple was second, and that Apple claimed the lead only because Samsung stumbled.

As far as profits was concerned, Apple was never second. Apple has, and has always had, the lead in the race.

My post said that Apple's 104% only came at the expense of Samung's Note 7 debacle and wasn't earned. That's exactly what I said and what I meant.

 

[jayducharme]

Not sure why this is so difficult to understand.

Maybe it has something to do with our U.S. ejookashun sisstem.

 

[Kaibelf]

MacRumors do you even math?

More than you, it seems?

 

[Abazigal]

Ask any consumer if they would prefer lower prices and less corporate profit, or higher prices (lower value) and excessive corporate profits.

I know which I would rather prefer.

And yet despite those high asking prices, tons of people still buy the iPhone. Nobody twisted their arms into getting one. Clearly there is value in an iPhone despite its high price tag, or perhaps, precisely because of it.

Apple's profits is what happens when a company focuses on making the best product possible, then focuses on getting them into the hands of as many people as possible.

 

[deany]

All this really serves to demonstrate to me is that Apple are clever at generating profit and people keep buying their products regardless of the poor value for money they represent. So pitched as a luxury product they've got their strategy perfectly placed to extract the maximum amount of money out of the marketplace for their product.

To me apple have always represented poor value for money, but I'm still an iphone user as I like the product - recognising I pay a significant premium for the privilege, but that novelty is well and truly worn off, for me and many of my friends and family which perhaps links well to the reduction in the number of phones they are selling. I literally know no one who has upgrade to an iphone 7 yet. If they want to maintain the number of handsets being sold they need to provide more incentive to do so. They've done this partially by offering their pay as you go purchase scheme but its the technology that needs to kick on a pace in order to convince me to upgrade.

Great post 100% agree
(nine years iPhone user,
2 year old iPhone 6 waiting till June '17)

 

[Omega Mac]

A profitable Apple means protecting those profits is important. That means not putting in exploding batteries and undermining your profits. Samsung on the other hand, if willing to sell phones at a loss or very low margins what other poor standards are they willing to engage in?

Exploding batteries = poor standards.

You have to have standards. Profits demand standards. Desperation see standards sacrificed but for what gain?

Value is subjective until your phone explodes. Right now Apple phones are valued correctly. Note7 were not initially but eventually were.

 

[blackcrayon]

All this really serves to demonstrate to me is that Apple are clever at generating profit and people keep buying their products regardless of the poor value for money they represent. So pitched as a luxury product they've got their strategy perfectly placed to extract the maximum amount of money out of the marketplace for their product.

To me apple have always represented poor value for money, but I'm still an iphone user as I like the product - recognising I pay a significant premium for the privilege, but that novelty is well and truly worn off, for me and many of my friends and family which perhaps links well to the reduction in the number of phones they are selling. I literally know no one who has upgrade to an iphone 7 yet. If they want to maintain the number of handsets being sold they need to provide more incentive to do so. They've done this partially by offering their pay as you go purchase scheme but its the technology that needs to kick on a pace in order to convince me to upgrade.

Or, it means Apple's competitors are not very clever and are selling at a loss. Their problem is similar to the PC industry, it's hard to compete on hardware alone when you're using someone else's software, and you're actually criticized half the time for attempting to do anything with software. And with Microsoft entering further into the PC business, and Google entering more seriously into the phone business, most of these companies should be even more scared.

If you're calling out Apple for not keeping pace on technology you'd really have to call out the entire industry. There really isn't anyone doing much better overall (usually those types of debates end up being "which feature do you think is most important". E.g. Apple hasn't switched to top of the line LCDs yet, but most of their competitors are using far inferior SoCs, etc.

 

[Abazigal]

For Apple, it'll be about 5 minutes worth of glory and then back to Hell they go. Use your eyeballs. They are actually screwing it up.

Jobs did NOT believe in sales numbers. He believed in making great products. Cook believed the other way around. Until the Cookie Monster and his party of Executive Fools are gone, Apple will destroy itself in the process.

Just because it has a clean, pure and 'purdy' looking logo doesn't mean it's the best company with values. It's not. It's a facade. You need to learn about corporate branding and how they use white lies, or worse, to make themselves look good.

Jobs believed that if you made great products, good sales would follow.

How do you think the iPhone is able to sell in the quantities it does today, if not because it is precisely that - a great product which people are happy to pay good money for?

I fail to see what has changed here.

 

[DEMinSoCAL]

And yet despite those high asking prices, tons of people still buy the iPhone. Nobody twisted their arms into getting one. Clearly there is value in an iPhone despite its high price tag, or perhaps, precisely because of it.

Apple's profits is what happens when a company focuses on making the best product possible, then focuses on getting them into the hands of as many people as possible.

I only bought mine this year because my carrier was giving me an absurd amount of money in trade for my old phone. Sort of a bribe, but it worked out for me. I'm sure it worked out for a huge number of people on ATT, Verizon, and T-Mobile, too. Otherwise, it wasn't a good value (to me) and I would not have bought it.

Of course the next quarter sales figures will show how many iPhone 7's were sold...but no mention of how many were given away for free.

 

[Pilgrim1099]

Nokia is dead.

Blackberry no longer makes its own phones.

Sony has issued a timeline for a potential exit.

Microsoft has no plans for a smartphone anytime soon.

HTC is back to being a contract manufacturer for Google.

LG just can't seem to make a profit.

This is Apple lapping the pack multiple times over, then adding insult to injury by moondancing backwards past the finish line while the rest of the competition is struggling just to hobble past the starting line.

You are darn right it's a VICTORY.

Nokia? BS. They're still around.

Blackberry? BS. They're still around.

Microsoft? BS. They're still making them but changing them up as Surface phones. Remember Panos Panay's Surface Studio? Wouldn't surprise me if this same man will be involved with that.

HTC? BS. They still make their own phones but also are contracted to make the Google Pixel phones because Google wanted Huawei originally but changed their minds.

Oh, and HTC's Vive DESTROYS anything VR-related. I've seen it. I've experienced it. I know what I'm talking about. There is NO way Apple's computers can handle VR tech. You will have to wait about 5-10 years for that to happen because your beloved Cookie Monster wants to go the route of AR. It's a dumb a$$ move.

LG? They're still here. Deal with it.

Lapping, my a$$. Hardly.

 

[Nefilim]

All this really serves to demonstrate to me is that Apple are clever at generating profit and people keep buying their products regardless of the poor value for money they represent. So pitched as a luxury product they've got their strategy perfectly placed to extract the maximum amount of money out of the marketplace for their product.

To me apple have always represented poor value for money, but I'm still an iphone user as I like the product - recognising I pay a significant premium for the privilege, but that novelty is well and truly worn off, for me and many of my friends and family which perhaps links well to the reduction in the number of phones they are selling. I literally know no one who has upgrade to an iphone 7 yet. If they want to maintain the number of handsets being sold they need to provide more incentive to do so. They've done this partially by offering their pay as you go purchase scheme but its the technology that needs to kick on a pace in order to convince me to upgrade.

So what is causing users to abandon competitors like LG and HTC, according to the article, they also are experiencing losses?

 

[Crispy Duck]

[QUOTE="deany, post: 23861409, member: 738333"
2 year old iPhone 6 waiting till June '17)[/QUOTE]

Ditto

 

[Pilgrim1099]

Jobs believed that if you made great products, good sales would follow.

How do you think the iPhone is able to sell in the quantities it does today, if not because it is precisely that - a great product which people are happy to pay good money for?

I fail to see what has changed here.

Yes, if you make good products to the mark of excellence and perfection ( almost ), good sales will follow. Cook viewed things the other way around due to his 'number crunching' background. That is the problem. Cook's definition of making good products was not quite close to what Jobs had in mind. Schiller should be blamed for that as well.

 

[Strozzascotte]

Nokia? BS. They're still around.

Blackberry? BS. They're still around.

Microsoft? BS. They're still making them but changing them up as Surface phones. Remember Panos Panay's Surface Studio? Wouldn't surprise me if this same man will be involved with that.

HTC? BS. They still make their own phones but also are contracted to make the Google Pixel phones because Google wanted Huawei originally but changed their minds.

Oh, and HTC's Vive DESTROYS anything VR-related. I've seen it. I've experienced it. I know what I'm talking about. There is NO way Apple's computers can handle VR tech. You will have to wait about 5-10 years for that to happen because your beloved Cookie Monster wants to go the route of AR. It's a dumb a$$ move.

LG? They're still here. Deal with it.

Lapping, my a$$. Hardly.

Wow! You showed 104% of hate of the entire thread. Good job.

 

[Rogifan]

Market share is the means. Profit is the end.

Ask any company out there if they would rather have Samsung's market share or Apple's profits.

I know which I would rather prefer.

Any company would want the right mix of both. Say 10 people spend $2K on a new MBP. That's $20K in revenue But what if pricing it $300 cheaper would get 20 people to buy instead of 10? That's an extra $14K in revenue. I know which I would prefer.

 

[NT1440]

Jobs believed that if you made great products, good sales would follow.

How do you think the iPhone is able to sell in the quantities it does today, if not because it is precisely that - a great product which people are happy to pay good money for?

I fail to see what has changed here.

But it doesn't even have a removable battery so clearly people buy millions of them because of marketing, not because its the best phone experience around. /S

 

[bbeagle]

Again, a race where the leader falls out of the race and the 2nd place runner walks across the finish line and is celebrated. Rah-rah-rah, indeed.

Apple has always been 1st place in this race, by a LARGE MARGIN. This is about PROFITS not SALES.

Last year, Apple held 94% of the profits - before this whole Note 7 fiasco.

 

[Abazigal]

Nokia? BS. They're still around.

Blackberry? BS. They're still around.

Microsoft? BS. They're still making them but changing them up as Surface phones. Remember Panos Panay's Surface Studio? Wouldn't surprise me if this same man will be involved with that.

HTC? BS. They still make their own phones but also are contracted to make the Google Pixel phones because Google wanted Huawei originally but changed their minds.

Oh, and HTC's Vive DESTROYS anything VR-related. I've seen it. I've experienced it. I know what I'm talking about. There is NO way Apple's computers can handle VR tech. You will have to wait about 5-10 years for that to happen because your beloved Cookie Monster wants to go the route of AR. It's a dumb a$$ move.

LG? They're still here. Deal with it.

Lapping, my a$$. Hardly.

http://www.theverge.com/2015/6/17/8796783/the-final-nail-in-nokias-coffin

http://www.theverge.com/2016/9/28/13088362/blackberry-stop-making-phones

http://www.digitaltrends.com/mobile/sony-may-quit-mobile-business/

http://www.theverge.com/2016/3/30/11333378/microsoft-windows-phone-windows-mobile-plans

http://www.forbes.com/sites/ralphje...ts-moribund-smartphone-business/#5ae3d33d3795

http://arstechnica.co.uk/business/2...vision-profits-collapse-by-96-year-over-year/

https://9to5google.com/2016/10/27/lg-q3-earnings-mobile-division/

The competition is practically dropping like flies here.

 

[AlphaHumanus]

If we are in the same industry and I make $100 but you lose $50 (or make a -$50 profit), the total profit across the entire industry (your "profit", and my profit) is $50, because your loss pulls the total profit for the industry backwards. So my percentage of the industry's profit is the profit I made divided by the industry profit times 100 (to convert from decimal to percent) or ($100/$50)*100=200%. Therefore I made 200% of the industry profit. In this case the iPhone is almost the ONLY phone that actually makes money. Samsungs profit share was 0.9% and HTC and LG lost money. That's what happens when you sell millions of devices at a loss.

Thank you.

 

[apolloa]

Apple will do anything including questionable tactics to force the price of the iPhone to never be discounted, hence it makes massive profits from it, Samsung will let carriers and retailers dicsount their products hence the bigger market share, they make less money but globally are the more popular device.
It's not surprising Apple makes so much, it is ripping off its customers almost. Then again I've bought two iPhone 7s now.....
In fact I think the fact Apple sell less phones then Samsung yet makes more money is the perfect clear picture of how overpriced they are.

 

[NT1440]

Apple will do anything including questionable tactics to force the price of the iPhone to never be discounted, hence it makes massive profits from it, Samsung will let carriers and retailers dicsount their products hence the bigger market share, they make less money but globally are the more popular device.
It's not surprising Apple makes so much, it is ripping off its customers almost. Then again I've bought two iPhone 7s now.....
In fact I think the fact Apple sell less phones then Samsung yet makes more money is the perfect clear picture of how overpriced they are.

Or....one business model is wholesale volume sales, and one is lower volume high margins sales........