Whoooo cares? Market share means NOTHING, profit means EVERYTHING. I don't care if they make one phone a year and sell it for $4 billion. As long as the quarterly earnings continue to be stellar, I really don't care at all what Apple's market share is.
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 Mobile Phone Industry Profits Reportedly Rises to 39%
- Thread starter MacRumors
- Start date
- Sort by reaction score
Whoooo cares? Market share means NOTHING, profit means EVERYTHING. I don't care if they make one phone a year and sell it for $4 billion. As long as the quarterly earnings continue to be stellar, I really don't care at all what Apple's market share is.
Lots of people on this website are investors in AAPL. They care about things like profit. Lots of people on this website are "consumers". They care about things like FaceTime on the iPod touch. So this item is for the investors.
(I'm personally both, so I like all news 😀 )
dgree03
macrumors 65816
My thoughts exactly, people on this board always try to justify some of apples overpriced stuff and they act like they care about apples profitablity. What i care and see the most is apple sells costumers low end product parts for high end prices. They have a good marketing stragedy so they get away with it, but doesnt mean it should make us "feel" good(Unless your a large shareholder).
And to whoever said have more money for R&D, isnt apple historically on the low end of investing R&D??
BaldiMac
macrumors G3
Except nobody claimed that profit is a basis for purchasing an iPhone.
Because profitability speaks to the financial health of the product. As a consumer investing (through app purchases and usage) in the iOS platform, the fact that Apple is making significant profits implies that they will continue to invest in and expand it.
Not sure who you're comparing them to, or where you got that, but a recent SWOT analysis says (not sure where they got these numbers):
SWOT said:
I think they're spending plenty on R&D and should continue to do so as it's obviously paying off.
KnightWRX
macrumors Pentium
So you're a shareholder ? Because as a consumer, profit share is massively unimportant. It just shows how much of a price gouge Apple is doing. Also, profit is not R&D investment. Profit is money in their pockets.
Heck, even as a shareholder you should start being pissed at this news. With such massive profits, you'd think shareholders would get some dividends...
Because larger gross margins can be reinvested in R&D, bringing innovative new products to consumers in the future. Increased profitability can also be used to increase operational resources, such as cost centers like staffing a telephone support center or staffing a retail store with technical experts. It also provides cash to enable strategic acquisitions of key technology.
When you start with a larger gross margin, you have more flexibility to spend on SG&A and other expenses (R&D, M&A) before you reach net profit.
It is interesting to note that Apple leads the consumer electronics industry in customer satisfaction: computers, MP3 players, smartphones, tablets, whatever.
Can money buy happiness? Perhaps it can.
Oh yes, Facetime. Apple "invented" front facing cameras. It's "revolutionary"!!! It's "magical"!! It's sooooooo "elegant", and how about how thin it is!!! (every other product is "clunky", and "crappy")
Thank God Apple continues to put things like "Facetime" on phones and the iPod touch. Gee, no one else ever thought of that!
No, you're not brainwashed - not much.
NebulaClash
macrumors 68000
What price gouging? You get an iPhone for $199 (or even $99 for the 3GS) with contract, same as those other guys with their smart phones. Except for when they give them away in a 2-for-1 deal that boosts their market share while cutting their profits.
Do us all a favor and get lost if you hate Apple so much. This website has nothing for you.
EDIT: As far as my being brainwashed, yeah, the 500% increase in my net worth thanks to AAPL alone has made me a believer. They know what they're doing. You, do not.
KnightWRX
macrumors Pentium
Not if they are classified as profits. R&D is costs, costs come out of profits. Profits are money in the bank (something which Apple has a ton of).
Except for when they give iPhone away in a "Free on a contract" deal that boosts their market share while cutting their profits...
🙄
2 for 1 deals assume that you have 2 people willing to get a phone. It's also just a form of subsidy. Apple gets money from AT&T, no matter what AT&T ends up selling the phone for. Subsidies based on contracts have nothing to do with actual unit price.
dgree03
macrumors 65816
So these less profitable companies like Dell, Nokia, HTC etc. are not investing as much in R&D as apple? More profits =/ More R&D..
As a costumer of apples i find i appalling that they have such a large margin... means I am get less product for More money than competitors.
NebulaClash
macrumors 68000
Apple seems to be the R&D lab for the phone, computer and music player industry...
Amazing hate for Apple:
If they win the profit pie, haters say: so what, it's market share that counts.
If they win the market share pie, haters say: so what, it's features that count.
If they win the features matrix, haters say: so what, someone else did it first.
The facts change, but the hate remains the same.
Amazing hate for Apple:
If they win the profit pie, haters say: so what, it's market share that counts.
If they win the market share pie, haters say: so what, it's features that count.
If they win the features matrix, haters say: so what, someone else did it first.
The facts change, but the hate remains the same.
dgree03
macrumors 65816
Yea but we also know that RETAIL value for the the ip4 is 699 and 599... Apple is getting full retail for the phones ATT sells.. period! Att makes up the difference with overprice text and data plans for 2 years...
NebulaClash
macrumors 68000
NebulaClash
macrumors 68000
As with every other smart phone, yes. It's a weird industry where the cell service providers have too much control. I hate it, but to pick on Apple for it when every other manufacturer does the same thing is too much.
dgree03
macrumors 65816
KnightWRX
macrumors Pentium
O2 in the UK.
Hum... call me when they actually win any of these 2 ok, then we'll see how much "hate" I have. If I say Apple should lift their ban on programming language and they do, I applaud the move. If I say Apple should be less restrictive and approve Google Voice apps and they do, I applaud them.
🙄
Same could be said of the other camp :
If they lose the feature matrix, fanboys say : So what, market share is important.
If they lose market share, fanboys say : So what, profit is all that matters.
etc..
etc..
So you're a shareholder, hence why this news is important to you. Otherwise, it means nothing to us consumers.
And shouldn't you start asking for dividends ? 😀
dgree03
macrumors 65816
Yes but we also know that iphone 4 has 180 something dollars in parts... so they are making their BIGGEST gross profit on 32gb ip4.. some 500 dollars...
Other companies do the same, of course. But it matters how much money it cost per phone to manufacter.
You are aware,aren't you, that all innovation is incremental and based on previous invention... Right?
Get off your high horse.
NebulaClash
macrumors 68000
Stock market loves them, yes.
But it says a lot about how Apple is revolutionizing business. The computer manufacturers thought feature lists were the way to win the music player market. It wasn't. Phone manufacturers think cheap handsets that blanket the market is the way to win. It isn't.
Apple is monetizing every step of the way, but in ways that are right in line (or cheaper as in the cut they take in iTunes compared to what historically creative types paid to get their product to the masses) with industry norms. But because Apple controls the entire chain, they get to keep the money every step of the way.
Bet those other phone manufacturers wished they had Apple's profits...
Good thing Apple's making so much money off their customers, since their market share continues to decline in relation to Android.
I don't know what you're looking at but to me it seems that Microsoft and RIM are hemorraging the more than Apple there, particularly given they play the same multi platform and multi carrier game as Google is. The lost Apple Share is meh.
That July number also likely doesn't take into account the balloon number that is iPhone 4.
NebulaClash
macrumors 68000
Yes, as you say other companies are doing the same thing. So why pick on Apple? You want an iPhone? $99 will get you one. Hardly outrageous.
NebulaClash
macrumors 68000
Correct, which is why that study keeps getting trotted out. It's the quarter that included the leak about the iPhone 4 as well as the normal spring slowdown as people waited for the new version. It's the perfect quarter to make Apple look bad artificially, and that's why people love it.
They won't be pushing the next study...