This is the world we live in, where companies shouldn't be out to make money. I wonder if any of the hypocrites would be happy with a reduce in pay.
Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Apple's Share of Cellphone Industry Profit Estimated at 32% for First Half of 2009
- Thread starter MacRumors
- Start date
- Sort by reaction score
This is the world we live in, where companies shouldn't be out to make money. I wonder if any of the hypocrites would be happy with a reduce in pay.
This is just a bunch of bull, go and tell the other companies to compete. Why should a company be content with making less money, companies are out there to make the most money they can make. The iphone is not any more expensive than other phones out there. Apple is offering a product which consumers are willing to pay for, which is what companies are there for.
Why? This isn't the Soviet Union. When Apple opens the iPhone to other carriers, I assume the discussion will go something like this:
Apple: "We'd like to offer the iPhone on your carrier network."
Carrier: "AWESOME!"
Apple: "This is the subsidy we require."
Carrier: "YES, OF COURSE!"
Why do you think that Apple will have to accept the same subsidy as everyone else if they have the best/hottest device to offer?
I think people in this discussion thread have a serious lack of understanding of the concept of supply and demand and how it affects price and profit.
Right like marketshare is the end of the world. Sony Erricson and Motorola have a higher marketshare than Apple but are losing money. I guess that is the ideal business model. Companies are out there to make money.
LOL. I'm sure these are the same people that gripe when their jobs are outsourced to offshore companies. I mean hey, paying you $80k a year to do your job when I can pay someone in India $30k? I'M OBVIOUSLY GETTING RIPPED OFF!!!
Supply and demand, people. Free market economics. Good business practices. Look into it.
Don't hate Apple just because they refuse to be Motorola.
I can't believe people like you seem to be against capitalism. Let me guess, you either work in academia or the public sector. Am I right? People in the real world with real jobs actually like to see their employers doing well especially if those companies offer bonuses for a good quarter.
My employer pays virtually everyone in the company a quarterly bonus and the amount of the bonus is based on a formula of a percentage of your salary if targets are met and it can increase beyond that percentage if targets are exceeded or less than that percentage if the company falls short. There is a threshold where no bonus is paid out but that has yet to happen as the company has been on a growth curve most of the time.
As for market share, I would have though that you would have got the memo that chasing after market share with lower margins and multiple product SKUs can lead to a loss rather that a profit. Just look at Sony Erricson and Motorola. Not only have they lost money but their market share has shrunk. Gateway is another example of what happens when you join the race to the bottom.
I hope you never run a company that I hold stock in because you seem to lack business acumen.
Apple does get a few to many pats on the back for their profits. It makes me wonder if everyone else is a shareholder. It's not the success, it's just that a few too many people think it's good for them too.
We know it's all about the profits over marketshare. I wonder just how much expansion there is with first time users. (Not the iPhone of course) You can only flog the present user base so much.
Thing is, it's only a double-edged sword if you don't follow the thought process all the way through.
It's very likely that most of the top-end phones (Pre, Hero etc) have good profit margins on them. However the iPhone is outselling them all by a MASSIVE margain. They sold, what was it, 5 and a bit million iPhones in the last quarter? Has the Pre, for example, even sold its first million yet? Basically, their overall market share for the entire mobile industry may be low but when it comes to the space the iPhone plays in there aren't many devices that can even come close to it.
Also, that headline figure of 40% is only because Sony and Motorola made operating losses. Take that out and it's 25%, not 40%. RIM isn't that far behind them and they're being dragged down because a lot of their sales will be coming from the slightly lower end phones they make. Apple and Palm are unique in that they ONLY make high end phones (ignoring the Treo if that's still made) which means they don't have the drag on profits that the pile high, sell cheap models inflict on other companies.
This is AWESOME news! But I think we can drive that number up a bit. Everyone e-mail Apple and tell them to push prices back up by $100, or maybe just find out if there's an address that we can mail money to Apple directly.
Why? This isn't the Soviet Union. When Apple opens the iPhone to other carriers, I assume the discussion will go something like this:
Apple: "We'd like to offer the iPhone on your carrier network."
Carrier: "AWESOME!"
Apple: "This is the subsidy we require."
Carrier: "YES, OF COURSE!"
Why do you think that Apple will have to accept the same subsidy as everyone else if they have the best/hottest device to offer?
I think people in this discussion thread have a serious lack of understanding of the concept of supply and demand and how it affects price and profit.
Here's why. Having exclusive access to the iPhone is worth more to a Wireless Carrier since this brings in new customers (from other carriers) and growth. Having a level playing field where all Wireless Carriers offer the iPhone does not create as many new customers...although it does create higher paying customers.
Well I for one am sick of all the iPhone hype and rumors here, BUT I can not help but be amazed and astounded at all the revenue the iPhone has captured!
It truly is flipping amazing and no matter how one cuts it, it's great for Apple and their consumers. As this will bring us better products both from with in Apple and outside of Apple!
WTG Apple! And this is not from an iPhone fan per say!
LOL. I'm sure these are the same people that gripe when their jobs are outsourced to offshore companies. I mean hey, paying you $80k a year to do your job when I can pay someone in India $30k? I'M OBVIOUSLY GETTING RIPPED OFF!!!
Supply and demand, people. Free market economics. Good business practices. Look into it.
Don't hate Apple just because they refuse to be Motorola.
Seriously, when did the world start having this frame of mind. It seems lately people are thinking like this. If companies don't make money, how do they expand, how does Apple open more stores which leads to more people getting hired. People are getting laid off, I guess we need more Motorollas who continue to shed jobs because of not making any money.
Yet Apple won't be forced to offer the iPhone to all carriers unconditionally. Again, this is a free market society. Apple can offer the iPhone through whoever it wants to.
And even if you can't get exclusivity, won't you be willing to pay the same subsidy as Competitor A just to keep your customers from defecting to Competitor A, who sells the insanely popular iPhone while you do not?
The smart man says yes.
Because some of us have an inkling about business? As in, what margins are in other forms of business? As in, other businesses have as large as margins as Apple?
I don't know if you are being sarcastic. But alot of people forget basic economics. It seems that some people don't understand anything about the market. Should Apple only ask the price it costed them to develope and manufacture the phone or what it is worth? Appearantly the general consumer finds it a good deal to shell out the money have in return for this phone. Nobody is over paying unless you regret buying the iPhone. But people knew how much it was going to cost them and what they would get in return. For a painting the painter isn't going to seat as price the amount he used to paint the painting. Rather he looks whether he can sell it for a certain price. If he can't sell it for the set price then he must conclude that the painting is not worth the set price and appearantly the offer is greater than the need. Thus the prices will go down. Product prices are always in balans within their market or it will flop. I'm not angenious in economics but even I can grasp this little bit of truth.
I hope the cell phone industry (both hardware manufacturers and service providers) are hearing this message loud and clear -
IF YOU MAKE A CELL PHONE THAT IS EASY, VERY FUNCTIONAL, AND PLEASANT TO USE, CONSUMERS WILL PAY A LOT OF MONEY FOR IT!!!
I've been using a handed-down Palm Treo 755p with the Palm OS, and I hate that fricken thing. If I didn't dislike att so much then I very likely would've gotten an iphone by now.
IF YOU MAKE A CELL PHONE THAT IS EASY, VERY FUNCTIONAL, AND PLEASANT TO USE, CONSUMERS WILL PAY A LOT OF MONEY FOR IT!!!
I've been using a handed-down Palm Treo 755p with the Palm OS, and I hate that fricken thing. If I didn't dislike att so much then I very likely would've gotten an iphone by now.
Interesting questions from
Law PDF/Tests for a Monopoly
Three strikes, Apple !
Law PDF/Tests for a Monopoly
Performance
_______________________
• How does the firm's actual performance
deviate from the competitive norm?
– How much does price depart from marginal
cost?
– How much does its profit margin exceed that of
a comparable competitive industry?
_______________________
• How does the firm's actual performance
deviate from the competitive norm?
– How much does price depart from marginal
cost?
– How much does its profit margin exceed that of
a comparable competitive industry?
Three strikes, Apple !
Ah, and here's AidenShaw with his typical anti-Apple paranoia.
Aiden,
Does selling only one product ($$$) at a high profit margin rather than spraying the market with products from low to high end ($, $$, $$$) make one a monopoly?
No.
Is the Apple Store a retail monopoly because, say, they have a higher margin and higher product prices than Walmart? Because by your definition, the Apple Store is a monopoly while Walmart is not???
Good grief. Seriously, who pays you by the post? MS? Dell? Inquiring minds want to know.
You get three strikes for a complete lack of rational thinking (whenever Apple enters the equation anyway).
Odd, I paid $299 for my 32 gig iPhone 3GS recently.