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nagromme said:
Apple sells their smartphones for similar prices to everyone else (they even have cheapie models); they spend more on advertising than other handset makers (judging by the number of ads I see); and they don’t get their OS for free! So making that much profit is a real achievement in efficiency and deal-making.

Don't forget they offer superior support and service as well.
 
Terrible OS? LMAO you just lost all credibility, which if you make statements like this frequently, your credibility wasn't that high anyway

Anyway, Amazing that apple takes that much of the profit in this space. Selling similar or often inferior parts for a premium price works well. I hope others don't follow, it will slow down innovation.

What equivalent models from other vendors cost less?

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They also ignore overall market growth. They play to the silly notion for someone to win others must lose.

In a share chart, someone is losing share. Apple share of the profits went up as the market grew. Explain for us what is misleading notion.
 
Maybe you missed this part of the story:



You can probably get ANY machine to malfunction if you try hard enough, even an iPhone. And the several hundred thousand people who buy iPhones every day don't seem to be concerned (with good reason) about accidentally putting someone else's SIM card in their phones.

On the other hand, I see its taken Google almost three years to finally do something to help rid its Marketplace of malware.

So: One iPhone user gets some weird messages after a store employee disregarded procedure, while five million Android users get infected with Counterclank.

Same thing, right?

Of course anything even remotely negative to Apple is overlooked and disregarded. Then it's "Look what everyone else is doing", so that makes it ok.
 
What companies are red and purple in the graph?

Also, what company is the little green that pops up above Nokia in Q2/2010?



EDIT: After reading the article again, they are: LG, Motorola, and Sony Ericsson. However, it doesn't specify which color is which company.
 
What equivalent models from other vendors cost less?

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In a share chart, someone is losing share. Apple share of the profits went up as the market grew. Explain for us what is misleading notion.

Is share really a relevant thing to even graph in the first place?
Certainly in saturated markets but we aren't talking about that situation by any measure.

So it's the wrong graph it's conclusions are meaningless.
 
And all Apple set out for was 1% of the phone market !

Now it looks like RIM is going to tank, Nokia will get bought out by Microsoft and Sony Ericsson will get diluted into the PlayStation/PSP brand...
 
Which makes one wonder why didn't Nokia go after Palm's WebOS? That one had some real potential.

More to the point, Nokia had a killer OS (MeeGo) waiting in the wings but were far to cautious in getting it out there. If they'd thrown it out there sooner, got a bit of an ecosystem around it, even if it was rough and ready for a year or more and hurt sales in the short term it wouldn't have been the disaster of jumping into bed with MS's failing mobile OS.

Nokia fans were loyal as heck and convinced Nokia was the 'Rolls Royce' option. Amazing how they threw this away.

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I do also think that while all electronics firms exploit cheap labour to churn out their landfill in waiting, Apple's HUGE profit margins could be used to shift production back to the west. It would make a huge statement.

I remember back in the dot com boom I had some shares in ARM. At the time it was being lauded as the kind of new high-tech information company that would drive the UK economy. At that time the company employed around 50 people! 50 people. All the 1000s of manufacturing jobs were at third party partners in the far east not in the UK. The idea you can build a whole nation's economy on 'information' or 'innovation' is ridiculous if the meat-and-potatoes work happens overseas.
 
overpriced?

So, does this just prove that Apple overcharges for its wares, or that they are such an efficient manufacturer that they maximize profits by forcing production costs down better than everyone else?
 
So, does this just prove that Apple overcharges for its wares, or that they are such an efficient manufacturer that they maximize profits by forcing production costs down better than everyone else?

No, it proves that they decided to charge what the market will bear, and it's working.

Any and all Apple gear I've purchased since 2006 has been worth every cent, and then some.

When consumers see a good value proposition, they'll pay more, which is why Apple is able to shrug off a recession like it never happened.

And yes, Apple is extremely efficient. They are a case study in how business should be run. Look up the details. And Apple's also had Tim Cook for years. That alone is a major factor.
 
So, does this just prove that Apple overcharges for its wares...

How is it possible for Apple to overcharge? Given that every customer is free to not buy, or to just buy some other product, if they feel Apple's prices are 1 penny too high for them?

Why would you pay 1 penny more that you think any product is worth to you? Just keep the money in your pocket and walk away!

Or buy it if it's more valuable to you than what Apple charges (in which case they can't be overcharging you, since you've already decided it's worth more to you than the same cash in your pocket). Same with every Apple customer.
 
Nice

Apple posts record profits while overworked Foxconn employees kill themselves & protest from rooftops.

http://www.pcmag.com/article2/0,2817,2398713,00.asp

Mass suicides might be a small sign that "You're Doing IT Wrong!"
(Be it the Xbox suicides or iPhone suicides.)

Exploding iPad factories - also a sign of trouble:
http://www.pcmag.com/article2/0,2817,2385804,00.asp

Foxconn - things need fixing there - Apple and Microsoft have to take responsibility for how their products are made - and insist on better working conditions for Foxconn employees - Gasp! even if it means raising the price per unit by $5 each - workers need time off, basic health and dental care, and reasonable breaks for having a good lunch and using the restroom!
 
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Correct me if i am wrong, but the phone didn't sell well at all at the price level Ballmer mocked.

You're correct. It only took two months before sales slacked off and Apple dropped the price by 1/3 from $600 to $400, prompting a most memorable outcry from early buyers:

Apple, based in Cupertino, Calif., has made few missteps over the last decade, but it angered many of its most loyal customers by dropping the price of its iPhone to $400 from $600 only two months after it first went on sale. They let the company know on blogs, through e-mail messages and with phone calls.

On Thursday, in a remarkable concession, Steven P. Jobs acknowledged that the company had abused its core customers’ trust and extended a $100 store credit to the early iPhone buyers.

- NY Times, Sep 2007

I still remember Apple's moderators busily deleting literally thousands of angry posts on their official support forums, until later that day when they finally caved in to the enormous public pressure and let them stay.

Btw, to those here who talk about new Android phones coming out all the time, Steve Jobs had something to say about that when confronted with the reaction to his price drop:

Mr. Jobs defended the price cut as the right thing to do and, referring to his 30-year history in the high-tech business, lectured his readers about the risks and rewards of buying into a fast-changing and volatile market for consumer technology products.

This is life in the technology lane,” Jobs wrote.

How soon people forget.

Apparently though, Jobs took it to heart, and drastically slowed the arrival of new iPhone models after that episode. (Until then, ATT had been talking up how many new iPhone models would "soon" be appearing.)
 
Ballmer also talked about "no keys", "music player", etc

Correct me if i am wrong, but the phone didn't sell well at all at the price level Ballmer mocked.

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Figures are relative, hence that conclusion cannot be made. From what i can remember, Samsung reported record figures last quarter.
 
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asymco's Horace Dediu has released his latest calculations of revenue and profits in the global mobile phone industry, finding that Apple has increased its share of the top vendors' profits to 75%. Samsung followed in second place with 16% of industry profits while no other vendor accounted for more than 4% of profits.Dediu's analysis covers eight top mobile phone vendors: Apple, Samsung, Nokia, Research in Motion, HTC, LG, Motorola, and Sony Ericsson. While the numbers do not include a few major players such as China's ZTE for which public numbers are not available, his analysis does provide a relatively solid picture of the industry.

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According to Dediu's numbers, Apple has held the top spot in profits for 13 quarters in row since overtaking Nokia, and now dominates the industry with its 75% share of profits. Apple succeeds by generating high profitability on high-end devices, enabling it to take the majority of profits while still controlling less than 10% of unit sales.

Article Link: Apple's Share of Profits Among Top Mobile Phone Vendors Hits 75%

It's share of profit is backed up by its reputation.
 
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