Apple Takes 48% of Mobile Market Profit

Discussion in 'iPhone' started by MacJones, Aug 18, 2010.

  1. MacJones macrumors 6502

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    #1
    Click the link for the rest of the story.
    http://appadvice.com/appnn/2010/08/apple-takes-48-mobile-phone-market-profit/
     
  2. andy9l macrumors 68000

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    #2
    Yet the true fanboys will claim that the iPhone is not overpriced. Beautiful isn't it.
    What can be said? Apple have their customers hooked on their products. We're willing to pay the price.
     
  3. MacJones thread starter macrumors 6502

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    #3
    Aren't most smartphones priced around $200?
     
  4. Goldinboy17 macrumors 65816

    Goldinboy17

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    #4
    The iPhone is $699/$799 though. AT&T is giving us an unsubsidized price, they pay the difference or most of it out of pocket in return for a two year contract.
     
  5. chembox macrumors 6502a

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    #5
    The 16GB iPhone 4 costs around $188 to produce, not including marketing and R&D. The unsubsidized prices are the only thing overpriced about the iPhone.

    Source: http://www.businessweek.com/technology/content/jun2010/tc20100627_763714.htm
     
  6. vincenz macrumors 601

    vincenz

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    #6
    Sounds like all of their products. Apple is usually very good at making tons of money even without selling that many.
     
  7. nooaah macrumors 68000

    nooaah

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    #7
    I don't think the "fanboys" or people like you know if the iPhone is actually overpriced.
     
  8. Rodimus Prime macrumors G4

    Rodimus Prime

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    #8
    yep. AT&T is giving a a HUGE different in that part. I want the other manufactures to say enough is enough and demand either Apple is given reduced subsidy or they are given the same deal.
     
  9. RMXO macrumors 6502a

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    #9
    it's actually $599 or $699.

    You're correct, iP4 & iPad haven't sold that many ever since they were release to the public to buy. :rolleyes:
     
  10. Goldinboy17 macrumors 65816

    Goldinboy17

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    #10
    Compared to Verizons buy one Droid get one free, it's no surprise so many people own them. Two good phones for roughly the price of one 16GB iPhone 4.
     
  11. Compile 'em all macrumors 601

    Compile 'em all

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    #11
    What the heck are you smoking?

    How much does an EVO or an Incredible cost? Nexus one?
     
  12. milerich macrumors regular

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    #12


    mmm, ok...

    An Experia X10 is 629.99 off contract.

    Apple doesn't get any more special of a deal than other phone makers. All high-end smartphones cost alot off contract.
     
  13. milerich macrumors regular

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    #13

    Carriers do that when they are either desperate, or the product isn't selling well at the offered price.

    Ah, I am wasting my time here as you have been a pest in almost every thread you post in.
     
  14. Rhonen macrumors member

    Rhonen

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    #14
    Unsubsidized iphones, as far as I can remember, aren't any more expensive at retail than other top end smart phones.

    The difference is volume. Apple produces, effectively, one phone. In the millions. Economy of scale. They purchase components in larger quantities than competitors and, as such, can negotiate cheaper unit prices. Assembly is cheaper since they have only one production model, so all assembly lines are identical.

    Other phones models, as I understand it, aren't produced in quantities anywhere near Apple's iphones. The unit production costs, as a result, will be more expensive for those other phones.

    I wonder if this study only looked at hardware sales, of if they factored in the App Store's sales as well. That is another huge source of income for Apple that competitors don't have.
     
  15. MacJones thread starter macrumors 6502

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    #15
  16. wreckshop macrumors 6502

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    #16
    But at some point Droid X will be heavily discounted. Or even free if you buy from a reseller. iphone 4 wont get discounted until after iphone 5 comes out.

    Smartphone retail prices in general are way inflated. I mentioned in another thread that an ipod touch is exactly the same as an iphone 3GS (but missing the phone parts) and its half the price. The missing phone parts dont cost $300.

    That's why iphones are overpriced... they should eventually be given away free or heavily discounted on contract like pretty much every phone out there, but they arent.
     
  17. Rajani Isa macrumors 65816

    Rajani Isa

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    #17
    yeah, the parts costs. You have to add in not just marketing and R&D (which who knows how much that cost) but licensing as well for patents they need but don't own.
     
  18. ToroidalZeus macrumors 68020

    ToroidalZeus

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    #18
    The actual price a phone is sold (unsubsidized) to the public isn't necessarily the same price carriers and other retailers pay of the device.
     
  19. Rodimus Prime macrumors G4

    Rodimus Prime

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    #19
    Sorry I was talking about AT&T only. I was not bring in Verizon.

    AT&T gives crap discounts on their phones compared to other carriers. It is yet another reason why I want the iPhone off of AT&T is so their other phones like Blackberry would get a better discount and be more in line with the others.
     
  20. andy9l macrumors 68000

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    #20
    No.

    $188 to make, $699 to sell.

    I don't smoke, neither should you.
    To answer your questions in order: ~$450, ~$530, ~$530. All less than the iPhone, with a considerably higher hardware specification, if we're honest with ourselves.
     
  21. MacJones thread starter macrumors 6502

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    #21
    Price with contract...

    Samsung Captivate: $199.99, AT&T
    Motorola Droid 2: $199.99, Verizon
    Motorola Droid X: $199.99, Verizon
    HTC Droid Incredible: $199.99, Verizon
    HTC Evo 4G: $199.99, Sprint
    BlackBerry Torch: $199.99, AT&T
    Apple iPhone 4: Starts at $199.99, AT&T

    One year old Motorola Droid: $149
    One year old iPhone 3GS: $99
     
  22. maflynn Moderator

    maflynn

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    #22
    I wonder how they can come to that conclusion when apple doesn't release cost specifics related to the iPhone, i.e., it costs x dollars to manufacture the iPhone.

    irregardless, apple is making a boat load of money on iPhone sales and the app market. The biggest loser has been nokia, though RIM, palm, and microsoft are also weathering the apple storm pretty badly.
     
  23. Carniphage macrumors 68000

    Carniphage

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    #23
    Apple used a special accounting process for the iPhone and the AppleTV. Given the AppleTV profits were microscopic. It was possible to look at the iPhone profits in isolation.

    It's not hard to divide profits by units - to find a per-phone profit figure.

    We also know what a phone sells for before subsidy.

    C.
     
  24. Carniphage macrumors 68000

    Carniphage

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    #24
    Why do you think the iPhone subsidy is any different from other handsets?

    C.
     
  25. wirelessmacuser macrumors 68000

    wirelessmacuser

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    #25
    Actually AT&T implements an excellent pricing practice. They just don't advertise it for obvious reasons. I've been with both AT&T and Verizon for years. I've bought five times more phones from AT&T due to better selection and pricing. All one must do is ask. AT&T takes your status as a customer into account and prices phones accordingly. Then with a bit of negotiation I always end up with a great price.

    Verizon on the other hand is greedy like Apple. It's the very reason that the two of them could not come to terms when Apple decided they would ask Verizon to carry the iPhone in the beginning before the deal with AT&T. The iPhone was new & unproven. Apple demanded a large sum of money to carry it, and Verizon told Apple to get lost.

    Next Apple goes to AT&T. They saw the opportunity and were willing to pay the price.
     

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