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

[Nunyabinez]

some one may have made this argument already. But you cant capture 104% of the profits. A profit by definition is
a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something. So if you operate at a loss, that's not a profit, and should not be included in profit calculations.

I sure hope you are not an accountant.
[doublepost=1478275982][/doublepost]

your one of those guys who is too smart for their own good, but i reckon you are correct on how it is calculated. the rest of the world recognizes that if a company lost $50 it made 0% of the profit and the other company then has made 100% of it if it profited at all.

in other words most would say the industry profited $100 in your example because your $50 loss is not considered a 'profit' but a 'loss' and I made 100% of that $100 'profit' and you incurred 100% of the $50 'loss'.

When you misuse "your" (You're) as your first word, we can pretty much assume your criticism of someone else should be taken with a grain of salt. Maybe you should get some skoolen, particularly an accounting course.

 

[Moorepheus]

I hope you steered him away from the Note 7. That could be very dangerous for him and the rest of your family, and would prevent him from flying on any airplanes with it. I hope you also prepared him for the loss of privacy since every one of his emails, with his most intimate thoughts, sent and received will be scanned and saved by Google, every search he makes will be recorded forever, every movie he watches and every post he makes on any topic will be recorded forever, every place he drives and every document he creates, everything heard by Google Assistant, every photo he takes of his family, etc., all will be saved in a dossier on him and owned by Google, and available to the government, hackers and advertisers.

Have to love your scare tactic, but fact is, the Android market share is growing, even with all these potential issues. And if you think that APPLE is not keeping information about you, your sadly mistaking.

 

[intofx]

LOL Yahoo's headline today was Google Android has 88% of the market. MR headline Apple has 104% of the profits.

 

[lkrupp]

Richest corporation getting richer. Hooray! All consumers everywhere should rejoice. Our fondest hopes are realized.

Maybe if we collaborate in this thread, we can figure out a way to grow that 104% to an even higher level? Why don't we all just send Apple a gift of $200 each for nothing? That should be a good start.

Is it Apple’s fault that Samsung, HTC, LG are losing money on phones? Maybe but many would say it’s their own fault. So much for Android’s worldwide dominance. Apparently the razor thin margin business model is not working out too well. Selling a lot for a little (market share) is the time honored model for commodities, except for the smartphone “commodity” market it would seem.

 

[groovyd]

I sure hope you are not an accountant.
[doublepost=1478275982][/doublepost]

When you misuse "your" (You're) as your first word, we can pretty much assume your criticism of someone else should be taken with a grain of salt. Maybe you should get some skoolen, particularly an accounting course.

lol... that is the most common and lamest of all internet forum arguments ever used. you spelled this wrong or misused a colloquial therefore nothing you said matters argument. you should be embarrassed but i am sure you aren't. this conversation is a complete waste of time even before it began but it was good for a laugh.

 

[H2SO4]

I sure hope you are not an accountant.

Hope what you like. S/he’s right.
This is obfuscating details for the purpose of massaging/confusing financials.
Let’s say that I am the last shopper left on earth and I only have $10. It is only possible therefore to make $10 in profit from the ‘market’. Let’s say that the last two manufacturers left, (Samsung and Apple), run at 100% efficiency
In scenario A I go into a shop and I buy an Apple bumper sticker at $8 and a Samsung one at $2.
In scenario B I go into a shop and I buy an Apple bumper sticker at $8. Now Samsung burnt down and is spending it’s money rebuilding. So I spend the renaming $2 on an Apple Biro.

Have Apple made 125% of the $10 I had?

 

[lkrupp]

LOL Yahoo's headline today was Google Android has 88% of the market. MR headline Apple has 104% of the profits.

Not even close to being relevant. Android is not a profit source for Google. Google makes money indirectly from Android with ad revenue and metadata mining. And even there Google makes more money on iOS than it does on Android. Strange but true.

 

[Michael Scrip]

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.

But there are HUNDREDS of smartphone manufacturers. Are they checking ALL of their balance sheets?

Or just a select few?

If you're gonna talk about the industry... you gotta talk about everyone.

I have no doubt Apple makes a lot of money from every phone they sell... but this claim still seems fishy.

 

[jopeppi]

The very best smartphones deserve all the profit.

This also does make Tim Cook's critics look pretty foolish.

That's great. They make so much money off of customers, little innovation, has their products built in China, which would do wonders if they built them here. I do feel guilty for giving them so much money, so I've held off from buying Apple's products for the last year. I will buy again when they bring some jobs here, and quit being so greedy.

 

[BlueMoon63]

Users ARE speaking with their wallets, they are saying they prefer Apple's products and are willing to pay for them. You are free to decide otherwise, but just because Apple doesn't do what YOU or some other people on these forums do, doesn't mean they are wrong, it means they have different priorities than pleasing you. If you don't like it, spend your money elsewhere, thats your choice.

You nailed it... People here (pro or con Apple) are probably some of the smartest, up to date, tech people around. We whine about what has been removed or lacking innovation and Tim Cook must go... yet, shareholders will ultimately want share growth and since Tim took over, the stock is up way higher than Steve ever reached. Yet, he will need to continue to get back to the 52 week high...
Apple removes the headphone jack on the iPhone and the outrage is insane, yet there are other smartphones now showing that they will remove the headphone jack - samsung included. People are outraged at the removal of ports or the lack of a glowing logo and apple will still sell millions of laptops and iphones with enormous profit margins.
[doublepost=1478277013][/doublepost]

That's great. They make so much money off of customers, little innovation, has their products built in China, which would do wonders if they built them here. I do feel guilty for giving them so much money, so I've held off from buying Apple's products for the last year. I will buy again when they bring some jobs here, and quit being so greedy.

You will be waiting a very long time. Might want to start pricing out Windows garbage.

 

[BlargKing]

I hope you steered him away from the Note 7. That could be very dangerous for him and the rest of your family, and would prevent him from flying on any airplanes with it. I hope you also prepared him for the loss of privacy since every one of his emails, with his most intimate thoughts, sent and received will be scanned and saved by Google, every search he makes will be recorded forever, every movie he watches and every post he makes on any topic will be recorded forever, every place he drives and every document he creates, everything heard by Google Assistant, every photo he takes of his family, etc., all will be saved in a dossier on him and owned by Google, and available to the government, hackers and advertisers.

Galaxy S7. Not Note S7. We'll be fine.

Here, you're going to need this:

 

[brianlbaker]

Apple accounted for over 100 percent of smartphone industry profits in the third quarter of this year, according to estimates published by BMO Capital Markets on Thursday.

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

I don't think you understand how percentages work.

 

[gavroche]

Richest corporation getting richer. Hooray! All consumers everywhere should rejoice. Our fondest hopes are realized.

Maybe if we collaborate in this thread, we can figure out a way to grow that 104% to an even higher level? Why don't we all just send Apple a gift of $200 each for nothing? That should be a good start.

Come up with a better reason to hate a company than that they are doing well.

 

[Shlooky]

I don't think you understand how percentages work.

They don't need to, but the site where this article came from sure does...
http://www.investors.com/news/techn...abs-104-of-smartphone-industry-profit-in-q3/+

 

[2457282]

I am pretty sure this is how it was calculated

10^1.373=23.605
√ 23.605=4.858
4.858€ = 4.858$
sin(4.858) = -0.989
lg function Error() { [native code] } = NaN
acos(NaN) = NaN
104%

edit: @keysofanxiety

This explains everything.

 

[tito2020]

Word hasn't gotten around that 100% is where it ends.

word on the street google rocked ios by 88%

 

[calebkingston]

Word hasn't gotten around that 100% is where it ends.

Exactly! I was wondering if I was the only dumb one. What does 104% market share mean and how can samsung have the other .09%?? I didn't know there was more?!

 

[Michael Scrip]

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".

Exactly.

Not all Android phones are cheap... but cheap phones are running Android.

If you have $700 to spend on a phone... you can buy an Android phone or an iPhone.

But if you only have $200 to spend on a phone... it will have to be Android.

Most of the billion phones sold every year are in the $200 category.

And since Apple doesn't sell a $200 phone... Android is what people are getting.

 

[gavroche]

Even if the note hadn't been recalled Samsung only would have made like 5% of the smartphone profits. Apple is the only handset maker that doesn't sell a single device at a loss, (which is how a business is supposed to be run) so they make all the money with their tiny slice of the market share. It's called winning.
[doublepost=1478262329][/doublepost]
Word obviously also hasn't gotten around that people just don't understand math
[doublepost=1478262399][/doublepost]
Math never barely makes sense. It's either correct or it isn't. In this case it's a straightforward addition and division problem. 5th grade level.

He meant thay that their math was barely understandable. Reading comprehension, fourth grade level.

 

[PlainviewX]

I think you better check that math again. - T-Bone, Arrested Development

 

[lederermc]

Maths was never my strong point.

Could somebody explain this in simple terms? How it's calculated?

I assume Samsung had a loss. Thus, sum of profits is less than Apple's profits.

 

[gnasher729]

The 104% does not refer to market share, but to profits. If someone else has negative profit, the percentage can go over 100.

In theory a company could have a 104% market share - if the only competitor had to do a recall and take more devices back than they were selling.

 

[Michael Scrip]

Doesn't mean it's a good business strategy, but companies selling at a loss will take away from your sales and profits. Say you have a nice restaurant. Next door some clueless dolt opens a restaurant, selling good food at loss making prices. That will hurt you for the six months until he goes bankrupt. Or even afterwards, people ask "why do you sell this dinner for $30, when <competitor> sold for $20?"

That's true in theory...

But in practice... the companies selling phones at a loss are in the $100-200 category.

Apple's phones, however, are in the ~$600 category.

I can't imagine there is anyone cross-shopping between an iPhone and a cheap Android phone from a no-name Chinese company.

There are literally hundreds of companies selling cheap Android phones today. I can't imagine those have much of an effect on Apple's operation.

 

[amegicfox]

this is what Tim Cook, Schiller and Ive care, not magsafe or your new MacBook.

Apple has the culture of money now, not products

 

[Michael Scrip]

LOL Yahoo's headline today was Google Android has 88% of the market. MR headline Apple has 104% of the profits.

Yes... because they are talking about two totally different things.

Android has 88% market share since 88 out of every 100 phones sold today are running Android.

At the same time... Apple has 104% of smartphone profits because they make a lot of profit while everyone else has losses.

Again... two different measurements.