This changes everything.
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Apple Takes 104% of All Smartphone Profits Following Galaxy Note 7 Recall
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This changes everything.
Let's say you have two companies in a market. A makes $1.1 million profit. B loses $100,000. The total profit in the market is one million. A makes more profit than the total profit in the market - that can of course only be possible if everyone else together makes losses. In this case, A makes 110% of the profits, and B makes -10%, which adds up to exactly 100%.
It has happened several times in the past that Apple and Samsung together had more than 100% profits of the total smartphone market, which means everyone else lost money.
Now the hard maths... obviously some people must now come out of their holes and claim that Apple products must be too expensive. But in my example, let's say A reduces their prices, and they make only $200,000 profit as a result. Now they make $200,000 out of a total of $100,000 profits. That's 200%, and not 110%. So they almost doubled their percentage of the profit, while actually the profits went down in a massive way. The "other 100%" just means that everyone else added together loses money.
On the other hand, if A manages to double its profit, while the others lose the same amount, then next year A might have $2.2 million out of a total of $2.1 million profits, which is only 104.76% instead of 110%.
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That is why every time I see reports of the percentage of phones using android I scratch my head because what does it matter if they have market saturation there is not a profitable business model with the other smart phone manufacturers.
Business is about profits not popularity or units sold.
Business is about profits not popularity or units sold.
It's rather the perfect clear picture of a company focused on the high end with perfect supply chain and no need to peddle low range models just to brag about marketshare.
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OPEN MESSAGE TO APPLE REGARDING MACBOOK PRO
Apple, please include 2-3 FREE dongles with the new Macbook Pro until USB-C devices are widespread.
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It would send a signal that Apple understands the seriousness of the situation:
1) with USB-C only, the new laptop is pretty much unusable for most PRO users in 2016
2) it is only usable if the customer spends another $150-$400 on docking stations and adaptors. Since you considerably raised prices, this extra would make the total amount pretty much unjustifiable.
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If you are serious about keeping your pro user base then please comment on the situation publicly.
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LIKE IT IF YOU AGREE
(sorry that I posted here on iPhone forum, but I would like this message to reach them)
Apple, please include 2-3 FREE dongles with the new Macbook Pro until USB-C devices are widespread.
.
It would send a signal that Apple understands the seriousness of the situation:
1) with USB-C only, the new laptop is pretty much unusable for most PRO users in 2016
2) it is only usable if the customer spends another $150-$400 on docking stations and adaptors. Since you considerably raised prices, this extra would make the total amount pretty much unjustifiable.
.
If you are serious about keeping your pro user base then please comment on the situation publicly.
.
LIKE IT IF YOU AGREE
(sorry that I posted here on iPhone forum, but I would like this message to reach them)
It doesn't change the fact that they are still here. They're not dropping like flies. Some are shifting strategies but are not dropping out.
If you think iPhone is going to stay #1 forever, you're in for a very rude awakening.
Of course. There's always a lull in sales right before Apple releases new products.
It's actually worse. "Market share" counts the number of phones. Whether it's $25 or $1,000, it's one phone. But the company selling the $25 phone must make forty for each of the $1,000 phones to make the same revenue.
Back in the day, Pepsi figured out that Coke counted the number of bottles sold to determine market share. So they started selling bigger bottles, and for a long time Coke didn't notice that Pepsi's revenues were sneaking past theirs, because they were counting bottles.
I know. I'm just getting really sick of all the Apple bashing on this site, both in the articles as well as the comments.
the problem with the phones, is Apple has reached saturation so that lull will continue. What change however was Samsung's phones exploding. I think the bump in the phone sales will be a temporary phenomenon because there are many people who prefer Android over iOS.
As for the laptops, that was certainly waiting for the newer models.
USB-C to USB-A adapters cost about $5 each, and less than $10 if you want to buy from one of the better brands. That price might come down as the need for them becomes more widespread. This seems like a non-issue for the folks who can afford to buy a $1,500 to $3,000 laptop. The cost should certainly be meaningless to any PRO user.
That's wrong. A loss is not a profit. The total profit is still $10. Of which Apple made $10 out of $10 total profit made.
When you are technically still in business but barely bringing in any profits, I say that qualifies as "dropping like flies".
Who knows what the future may bring. I daresay one thing though - people bet against Apple to their own detriment.
Like I said, let's just savour this moment. Apple has earned its victory fair and square, loathe as many here may be to admit it.
I don't have any numbers to back it up, but my sense is that there are many people who prefer "cheap" over iOS, not necessarily "Android". Low-end Android devices have essentially taken the place of feature phones, and there are still plenty of people who simply want a "phone".
But yes, I agree with you that this particular bump was probably due to external circumstances and is most likely temporary.
Marketshare doesn't put money in the pockets of shareholders, revenue does. If you have a retirement account with mutual funds, there's a good chance you're an Apple shareholder and indirectly benefiting from its success.
Sell all the $10 android smart phones you want... if you don't make money at it, marketshare is useless.
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Walk into a Walmart electronics section and skim through the myriad $10 to $50 prepaid phones.
What OS are they all running?
That buyer isn't choosing between iOS and Android, they're choosing between a $30 phone and a $20 phone.
Funny that another terrible recall blunder somehow gets the anti-apple spin in a market they're not even in..
You're preaching to the choir. It was meant as sarcasm. As I mentioned a bit earlier, I'm just getting really tired of all the Apple bashing on this site. I come here because I like Apple products, but it seems like the majority of visitors simply come to complain.
The weird thing is that you are drawing the wrong conclusion. You continue to use your iPhone 6 because it was good value for the money. Your continued use of the iPhone 6 is not evidence that the 7 is a bad product, it is evidence that the 6 was a great product. And you are waiting, rationally, until June 2017 to buy a new iPhone because Apple delivered such great value in your current iPhone. Your story is a story of Apple's success, not failure.
Now if an Android phone came out that was so cheap and compelling that it made you ditch your iPhone 6, then we'd have a story about Apple's failure. The Google Pixel is out and is arguably the best Android ever made. But you haven't ditched your iPhone 6. If Google can't poach customers from folks using an iPhone 6, that is an issue.
Really? Like there isn't any phone makers aside from Samsung and Apple right now?
That's exactly my point. Again, I don't have any numbers to back it up, but I suspect that there is always going to be a lot more interest in a $30 device than a $300 device.
Ditto[/QUOTE]
Another story of Apple's success. Android manufactures can't convince you to ditch a two year old phone. And you are waiting to see the release of the next iPhone before you replace your three year old smartphone. If Samsung can't convince you and folks like you to part with an iPhone 6 when it releases the Galaxy 8 that will be bad news for Samsung. If customers start having the expectation that Smartphones are three year products that get software support during that entire time (much like computer consumers who are expecting to get five+ years from their computers), then Android manufacturers are in big trouble. Lots of them can't manufacture to that standard and they don't have ability or desire to provide software and security updates on their products for that long.