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

[applezulu]

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?

There are negative numbers.

Try this:

You have three companies in a widget category. Company A reports a profit of $100. Company B just breaks even, so profit is $0. Company C loses money, so their profit is negative, at -$4. Total profit in the category is $100+$0+(-$4)=$96. Company A made $100 in a category where $96 total profit was made. $100/$96=104.2%.

So therefore, company A made 104.2% of the total profit earned in that widget category.

P.S. Even if companies B and C hold 80% of the total widget market, this all means they're selling a lot of widgets at cost or at a loss. If I'm buying stock, I want stock in company A. If I'm buying widgets, I'd also look pretty hard at company A, because they seem to be the only ones who don't have to give their widgets away to get people to take them.

 

[thisisnotmyname]

Came here for "Apple is doomed" posts. Leaving disappointed.

 

[JohnArtist]

1. Samsung explodes.
2. 104% funky math
3. ????
4. Profit!

 

[Michael Scrip]

Came here for "Apple is doomed" posts. Leaving disappointed.

True... Apple seems to be doing very, very well.

We gotta wonder how long other companies can keep selling phones at a loss though.

 

[applezulu]

1. Samsung explodes.
2. 104% funky math
3. ????
4. Profit!

See the explanation two posts above your comment. The math is not funky. It just contains negative numbers.

 

[intofx]

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.

Obviously they are two different measurements. More people would see Yahoo's headline and say apple is failing while the facts show that Apple is the most profitable despite the smaller market share. Thats why I started the sentence with LOL

 

[Time Less]

Meanwhile my brother just sold his iPhone 6 and used the money towards a Galaxy S7.

Cool story bruh.

 

[slimothy]

Lol I'ma send them an email real quick letting them know that it stops at 100%.

 

[Michael Scrip]

Obviously they are two different measurements. More people would see Yahoo's headline and say apple is failing while the facts show that Apple is the most profitable despite the smaller market share. Thats why I started the sentence with LOL

Thanks for the explanation

 

[6836838]

I agree with those stats 110%

 

[Nunyabinez]

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?

No, you are both wrong. If I had $50 profit from selling widget X and lost $10 on widget Y, how much profit did I make? I made $40 profit. What percentage of the profit I made did product X represent? It was 125% of my profit.

While I hate the appeal to authority as a method to argue a point, I am a business professor with 20+ years of industry experience. Your example was in nominal dollars not in percentages. These financials are only confusing if you don't understand finance and accounting.

 

[bbeagle]

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?!

You seem to be TRYING to act confused.

Market Share can't be more than 100%.

But we're not discussing 'Market Share' - we're discussing PROFITS.

You can only have PROFITS above 100% if some people in the market are losing money.

I open a lemonade stand and spend $25 on lemonade, glasses, pitcher, sugar. I sell $15 worth of lemonade. My PROFIT was -$10.

You open a lemonade stand and spend $25 on the same items, but sell $45 of lemonade. Your PROFIT is $20.

Total amount of money made by both me and you: -$10 + $20 = $10.

You made $20, so you just made 200% of the PROFIT.

Very simple.

As far as 'Market Share' goes, I sold $15, you sold $45, so I have 25% market share, and you have 75% market share.

It's super impressive that Apple has a 12% market share compared to all others having an 88% market share, but Apple's profits are > 100%.

 

[normanfox]

This is why users should be mad at users, not Apple. We continue to pay a high premium (hence high profit) for products with user experience compromises. If consumers spoke with their wallets, Apple would backtrack on some of these design decisions that don't benefit the user. Case in point was the iPod Shuffle with no buttons.

Carriers are to blame as well. If it weren't for the free iPhone 7 trade-up offer from AT&T, I would have kept my iPhone 6 for another year, mainly because I didn't want a phone without a headphone jack. But I caved because I wanted 32GB, better camera, and better processor for no additional cost to me. Apple still got their full profit too I'd imagine. One more example of the "not good, but trying to get used to it" cycle that we rarely had with Apple products, but is now all too familiar for me (dongles, 12" Macbook keyboard, Apple TV 4 remote, etc.).

how can you blame on the users or Carriers? since iphone 7 is a hot item, users wants it. and carriers use it to compete each other, starting with Tmobile. If tmobile did not offer trade-in, they did not gain new customers. if ATT did not offer the trade-in promo, they would lose customers to tmobil. Same to Sprint and Verzion.

Tmobile would not offer this promo if iphone sucks and no one wants it. Why did they not use Galaxy phone for their promo? because it is not a hot item.

in other words, iphone 7 is truly a hot item that many wants. plain and simple. there is no spin around it, nor marketing.

if you think iphone 7 did not offer much, well blame on mobile tech maturity. don't expect major innovation like iphone 3G and iphone 4 when mobile tech was at its infancy.

 

[davidwes]

There are negative numbers.

Try this:

You have three companies in a widget category. Company A reports a profit of $100. Company B just breaks even, so profit is $0. Company C loses money, so their profit is negative, at -$4. Total profit in the category is $100+$0+(-$4)=$96. Company A made $100 in a category where $96 total profit was made. $100/$96=104.2%.

So therefore, company A made 104.2% of the total profit earned in that widget category.

P.S. Even if companies B and C hold 80% of the total widget market, this all means they're selling a lot of widgets at cost or at a loss. If I'm buying stock, I want stock in company A. If I'm buying widgets, I'd also look pretty hard at company A, because they seem to be the only ones who don't have to give their widgets away to get people to take them.

Thank you. I was getting concerned by the education of people on this forum. I'm also concerned how they seem to think that even though they are in the wrong, everyone like you who is right is an idiot.

 

[Nunyabinez]

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.

Are you serious? When someone attacks someone for being "too smart for their own good" and can't spell and uses "rekon," only an idiot would place any credence in what they have to say. You are free to infer what you want from that. The complete waste of time was your comment.

 

[BlargKing]

Cool story bruh.

I know right? Dope as ****.

 

[NissanGuy23]

Apple makes 10 dollars.
Samsung looses 2 dollars

Total profit is now 8 dollars.

Apples share of total profit is now 10/8 = 125%.

Apple profit is 10 dollars

Samsung doesnt make a profit (loses money)

Total profit it 10 dollars, apple has 100% of the profit

im still confused

 

[rasputin1969]

Although I love Apple, I'm worried about this.

Apple have to be worried about it too.

There are many different definitions of monopoly but I can think of none better than over 100% profits for the sector.

 

[Koodauw]

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.

I am not, but I can understand words.

 

[applezulu]

Apple profit is 10 dollars

Samsung doesnt make a profit (loses money)

Total profit it 10 dollars, apple has 100% of the profit

im still confused

In your example, you wrote that Samsung loses money. You have to put a number on that. If they break even, their profit is zero. If they lose money, then you have to say how much, because their profit will not be zero, it will be a negative number. That negative number then has to be factored into your total profit figure.

So to modify your example:

Apple profit is 10 dollars

Samsung doesnt make a profit (loses money) How much? Let's say $2. That means their profit is -$2.

Total profit it 8 dollars, (Apple's $10, minus Samsung's loss of $2 is a total profit of $8) apple has 125% of the profit (10 divided by 8 is 1.25, or 125%)

 

[vegetassj4]

Hmmmm.....so if apple had a profit of 100M and the rest of the industry had a loss of 100M, apple would have an infinite percent of industry profit.

Infinite profit

Cha ching......ducking....

 

[ladycsr]

I almost switched to the Note 7 from IP6. That would have been explosive!

 

[Nunyabinez]

I am not, but I can understand words.

Unfortunately, this involved numbers. Sorry.

 

[applezulu]

Hmmmm.....so if apple had a profit of 100M and the rest of the industry had a loss of 100M, apple would have an infinite percent of industry profit.

Infinite profit

Cha ching......ducking....

Well, that's where the magic happens.

 

[2IS]

and this is why the MBPr is lackluster

I think at this point it's safe to drop the "r" when referring to the MBP. It's been a while since there was a non-retina MacBook Pro