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Apple's Share of Mobile Phone Industry Profits Reportedly Rises to 39%
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So wait, it's "meh" that Apple is now not showing growth anymore ? Without growth, how will they attain #1 ? By shrinking less than the other guy ? The point is, the market grew more than Apple did.
Btw, Jul 2010 includes the initial 3 million iPhone 4 launch that was in June.
Please look up the difference between gross margin and net income (profit), then consult Apple's 10-Q statements.
Net sales - cost of sales = gross margin
Subtract operating expenses (R&D, SG&A) and you reach operating income
From operating income, subtract miscellaneous income/expenses as well as income taxes and you reach net income.
Gross profit and gross margin are interchangeable terms. Same with net profit and net income.
This latter number is what you think of as "profit," but you really need to start with gross profit/gross margin because there are a lot of costs associated with manufacturing, developing, marketing, and selling products.
So wait, it's "meh" that Apple is now not showing growth anymore ? Without growth, how will they attain #1 ? By shrinking less than the other guy ? The point is, the market grew more than Apple did.
Btw, Jul 2010 includes the initial 3 million iPhone 4 launch that was in June.
Apple did show growth, but as you yourself said the market grew so fast that it outpaced Apple's growth in that quarter. Apple continues to show growth.
#1? Probably never. The cell market is so massive that Steve Jobs initially suggested a 1% worldwide share of the overall would be a nice goal. Looks as if he's now tripled that and is still growing.
Steve's figure was 2% btw, and it looks like they are sitting about there worldwide now and stagnating.
And they didn't show growth. They showed unit growth, but that doesn't matter when talking about share. More units means nothing if everyone else is also selling more units, unless you're a shareholder and looking purely at profit figures.
I don't think anyone claimed that Apple invented Facetime or front-facing cameras.
Apple understands two things exceptionally well:
1) Timing
2) Advertising
After that, the engineering is merely a matter of leveraging of the right technology. They didn't invent the Retina display; someone else packed that many pixels onto a screen. But Apple released it with their phone at the right time, and they managed to give it a name ('Retina Display') that is highly marketable and memorable.
So it went with the iPod, and with their desktop computers, and with the iPhone and the iPad. So it will go until Steve Jobs leaves or dies.
Apple supplies the best products for the market at the time. Anyone else could have released excellent touch-screen smartphones a few years back, or tablets or what have you, but Apple figured out WHEN it would be best to do it, put together sufficient hardware to realize the vision, and then marketed it wisely.
That doesn't make their products bad; I really do think that their stuff is about 10% better than everyone else's. But by being smart about everything else, they can make a lot more money on that 10% than you'd expect.
That is true, i dont doubt other companies dont wish they had what apple had. however, doesnt mean hardly anything to me as a customer.
Hate feeding the troll (and it aint me here, bud), but here goes:
Bought my first share of AAPL in 2003 at around 11 bucks (after splits considered).
I'm nearly 30 and a physician. But I am in pediatrics, so I guess technically I am a big baby.
No small part of the problem is they can't supply the products fast enough. There's a 3-month waiting list on iPhone 4s in my city, currently. They make over 100,000 units a day, and they're still undersupplying massive demand. If they can overcome their issues, we might see some proper growth again.
You wouldn't. And this whole topic isn't really appropriate for Mac Rumors.
But for shareholders, this is hot news.
I pick on apple because they cant match lets say and HTC EVO spec for spec.. yet they make the most profit??(I am not arguing whether specs matter) So to ME its obvious that apple is selling people overpriced(retail) products.
Thats why I am picking on apple. About the only thing apple sells that i feel ISNT over priced... its the 17in macbook pro, the ipad(since no other players in the market) and the Ipod touch(current gen.)
Of course the iphones dont seem overpriced because they are subsidized, but we customers then get gouged by att.
Why must you contradict everything I say?
Steve's figure was 1%. (just do a search for "1%" and you can see the very slide he used)
The chart on page 1 shows a 2.8% worldwide share, which is a 40% growth over 2%.
Can't you leave facts alone without making your anti-Apple spin?
All customers of all cell service providers get gouged.
So you only pick on Apple because they don't match the EVO spec for spec? Do you pick on HTC for the specs they don't match the iPhone on? All products are at least slightly different, but they are roughly in the same class for the same money.
Well can you name one spec feature apple has the best the EVo?
I am just being devilish on this whole thing, but the point is apple is getting more money for less product, at its root. I am not talking about percieved worth... just raw money value.
You have no idea what kinds of margins are on furniture and fashion clothing compared to Apple's margins. If Apple can be more efficient about their costs to produce a high-end phone and sell that phone for a similar prices as their competitors what's that to you?
The price you pay for ANY product is based on what the market will bear, and not in a set margin. The selling price of a gallon of milk at a convenience store is WAY more then at a grocery story, yet may cost the same.
Additionally, Apple does not compete in the bottom-feeder part of the phone market where low selling price is king and the phones are mere commodies. So, naturally their profits will not have that low margin segment stirred into the equation.
Retina Display. To me that's the big new feature of the iPhone 4, the one that matters the most to me, and the one that impressed me the most in person.
R&D spending as a rough percentage of total revenue:
Dell (1%), Apple (3%), IBM (6%), Google (12%), Oracle (12%), Microsoft (14%).
Links:
http://finance.yahoo.com/q/is?s=DELL+Income+Statement&annual
http://finance.yahoo.com/q/is?s=AAPL+Income+Statement&annual
http://finance.yahoo.com/q/is?s=MSFT+Income+Statement&annual
http://finance.yahoo.com/q/is?s=IBM+Income+Statement&annual
http://finance.yahoo.com/q/is?s=GOOG+Income+Statement&annual
http://finance.yahoo.com/q/is?s=ORCL+Income+Statement&annual
I'm not sure if there are any worthwhile conclusions to be drawn from that!
Heh, that is interesting. We've always known that Microsoft has world-class research facilities that come up with great ideas. And we've also heard of ideas pitched inside the company that don't go anywhere if they don't push whatever the company wants pushed. Guess it's not just a matter of spending the money on the research, ya gotta put it on the shelves so people can buy it.
Why is marketshare significant? What does the Android user get over the iPhone user if Androids market share goes up by a percent? Market share is only important in markets of a fixed size (where the only way to grow is to gain market share) or in cases of extreme disparity (when one platform loses developer support). I guess it's important if you consider ePeen stroking to be important, since it gives you flashy numbers to show everyone.
Even looking at marketshare, one must wonder why Android is being compared to the iPhone in the first place. A better metric would be the relative sales between Apple, RIM, HTC, Motorola, etc.
Personally I've indicated in the past that Android would eventually pass the iPhone in market share because it's a free OS that any phone manufacturer can use (although I don't expect a 95/5 split like in desktop operating systems). That doesn't make it a better OS, it's just available to more manufacturers, and more manufacturers can naturally produce more phones.
The iPhone is still sold out in a lot places and people are still lining up for hours at the Apple Store to get their paws on one. Apple can't make enough phones, which is incredible.
Good thing Apple's making so much money off their customers, since their market share continues to decline in relation to Android.
I'm not sure exactly how they're calculating the months with that one, but (in addition to the fact that it's only USA, one of few countries with exclusive carrier) you should remember that most of that period is just before a refresh for the iPhone which obviously will mean fewer sales..
It's never been about specs with the iPhone. It's about the user experience. If the iPhone gives you a superior experience, you will buy it and keep buying it.
Why do you think Apple is giving you less product? Just because Apple pays less than other manufacturers for the components, has no effect on the end functionality.
The same iron that can make a single $10 horse shoe, can make $10,000 worth of needles. It's idiocy to assume the needle manufacturer is gouging you.
The devil is in the details. For instance, Apple made Foxconn buy 1000 milling machines at $20K a pop to make the steel band for the iPhone. Apple spends money on details that you would never consider on a spec sheet in order to make a better product (take as many jabs at the antenna as you want). While those things don't show up on a spec sheet, they are certainly worth something in raw money, which is what you are talking about. Not many companies buy a chip companany so that they can squeeze out a little more battery life from an existing chip design either.
So ... Apple doesn't make the best-selling cellphone. May not even be #2 or #3! How AWFUL for them. Close the doors and give the money, all that glorious green money, back to the ... wait a minute! That's a whole lot of profit settling in one basket. Let's let a bit more settle before we close the doors, yeah?
Ya don't have to be the best seller in order to make the most money. Make it up in volume, indeed!
Ya don't have to be the best seller in order to make the most money. Make it up in volume, indeed!
...and when you put it on the shelves it better not be a brown Zune or a pink Kin phone. I swear, sometimes it seems Microsoft works in a vacuum where the motto is, "We can do that too, but we can do it worser."