So you're going to believe the words of a salesman/spokesman over evidence from every company ever...? Ok...
iPhone Generated Record-Breaking Share of Profits Last Quarter Despite Continued Sales Decline
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FactVsOpinion
macrumors 6502
headline type a: apple making low/less profit --> macrumors forum response: apple has lost its way & sucks
headline type b: apple making huge/more profit --> macrumors forum response: apple has lost its way & sucks
headline type b: apple making huge/more profit --> macrumors forum response: apple has lost its way & sucks
... or higher prices due to both inflation and the market price increasing.
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Lol. No answer to a legitimate comeback that disproves your entire post, I see.
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So you believe the words of a company spokesperson and a dramatic salesman over every company that has ever existed (basically)...? If you think that, surprised you don't think you're the unicorn.
Who says a singular data point will follow an assumed linear trail... forever? This is why anybody making predictions is full of nothing but stupidity. TOP scientists said, in the 70's, we'd run out of oil by the 90's... yet now we have more oil than ever before at our disposal. Predictions are bologna, especially those based on nothing yet assumed any sort of trend going forward.
Xaaris
macrumors newbie
That's why they sold so many..
daijholt
macrumors 65816
Not this side of the decade. The pixel is barely shifting. It's a brilliant device, but the only people interested in it are the android hardcore, and that group is still relatively small. One day the pixel will be big deal, but it has years to go, much like iPhone did when it started.
Cole Slaw
macrumors 65816
That's great news!
Hopefully next year's iPhone starts at $2000 or so.
Apple having the largest possible profit margin is the number one factor for me when considering a purchase.
If it makes Tim happy that's the main thing to me (as it should be to everyone else as well).
Hopefully next year's iPhone starts at $2000 or so.
Apple having the largest possible profit margin is the number one factor for me when considering a purchase.
If it makes Tim happy that's the main thing to me (as it should be to everyone else as well).
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I think it is crazy that a phone can cost more than a laptop.
I also think that as the competition gets better Apple will face a tougher time.
Apple is such a polarizing company. I used to love them and have a ton of Apple products but already switched my laptop and thinking about doing the same with my phone.
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Wouldn't Apples sales decline suggest there is an issue?
nofear1az
macrumors 6502
More profits with less sales. That's what every business wants.
This man must be really happy now.
Why's that? he sold all his investments in Apple.
The pixel is not shifting because it is iPhone priced but lacks in some areas. I think it has to cost much less than the iPhone.
Sales declines can be a number of things, like the market is saturating. The competition will dictate the innovation from Apple, I think.
gnasher729
Suspended
That whole number is irrelevant to Apple - what counts for Apple is profit, not share of total profit. If the other companies stop making profit, then Apple's share would increase to 100% - even if Apple's profits are halved or doubled.
It _does_ make sense not to have profits as the primary goal, but for example customer satisfaction, if you then can turn the customer satisfaction into more sales, the ability to charge more, and indirectly increasing profits.
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It _does_ make sense not to have profits as the primary goal, but for example customer satisfaction, if you then can turn the customer satisfaction into more sales, the ability to charge more, and indirectly increasing profits.
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On the other hand, the trouble is now in Malaysia, were Samsung workers are being ripped off. Having to pay money to recruiters (Apple forced companies to pay back that money), passports being confiscated so they can't leave, paying less than their contracts state, and forced overtime.
djcerla
macrumors 68020
Another topic, another sad showing from MR commenters.
Apple OWNS the smartphone market. This is domination.
They manage to keep margins high thru innovation, mighty service quality, savvy marketing and by refusing to discount devices. This turns out to favor the customer, too, dramatically increasing the residual value of used devices, thus lowering the TCO, something everybody knows, but MR commenters.
Owning an iPhone is less expensive, much more secure, and does not sell your soul and first born to Google's advertisers.
Apple OWNS the smartphone market. This is domination.
They manage to keep margins high thru innovation, mighty service quality, savvy marketing and by refusing to discount devices. This turns out to favor the customer, too, dramatically increasing the residual value of used devices, thus lowering the TCO, something everybody knows, but MR commenters.
Owning an iPhone is less expensive, much more secure, and does not sell your soul and first born to Google's advertisers.
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gnasher729
Suspended
That would all be very well if we had a table comparing RAM manufacturers, screen manufacturers, CPU manufacturers, camera manufacturers. But that's not what we are comparing here.
M2M
macrumors 6502
It's because of Samsungs disaster. Even so Apple still would covered a big part of the pie. Still betting only on one device (service / product) is a risky bet.But I thought Tim Cook was doomed as Apple CEO? Seems like he might be doing an ok job after all.
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Maybe it's because Apple has lost its way and sucks ?
Someirishguy
macrumors 6502
Surely they could invest some of that profit into improving their iPhone cable wearability. I just bough a cable that is almost a third the cost of Apples 2m cable and the build quality, so far, appears to be far superior. Or else sell theirs for less.
doelcm82
macrumors 68040
Back when I drank Kool-Aid, I liked black cherry the best. But around 1978 there was a horrific event where a cult leader convinced/coerced his followers to drink poison-laced grape-flavored soft drink. That soft drink was NOT Kool-Aid.
Sometime after that, it became popular for people to mindlessly reference "drinking the Kool-Aid" when ever they wanted to mindlessly imply that someone else was acting mindlessly. Ironically, they tend to mindlessly use the most popular brand of powdered soft drink, rather than the actual brand of powdered soft drink that was employed in that Guyana tragedy.
No it doesn't. It has about 15% and the share is going down.
Owning an iPhone is extremely expensive. Usually people don't see this because of carrier subsidies or deferred payment schedules.
Here where I live carriers don't usually subsidise your phone. I always pay for mine upfront anyway. So to get an iPhone that can do (almost) what my current Android phone can do, I'd have to spend CHF1019 (7 Plus, 128Gb). I spent CHF464 on my Android phone which I absolutely love (it's a P9).
This means that if I upgrade on my normal schedule, i.e. every two years, my Android phone will have cost me 232/year. If I were to keep the iPhone for 4 years, which means having an obsolete phone for at least half that time, it would still cost me more.
And I'd get a lot less. A byzantine work flow, no access to the file system, no customization, no Google Now, poor app-to-app sharing options, no headphone jack, everything proprietary. Plus the wasted time: pretty much everything done on an iPhone requires more taps, swipes and clicks compared to Android.
The iPhone is not more secure, and having Android has nothing to do with selling your soul.
An iPhone is a very expensive fashion tech item useful to socially signal that you're hip, trendy, cool, have a lot of money to waste. I don't need to signal this.
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Michael Scrip
macrumors G3
Android handsets sell in the neighborhood of around 300 million units a quarter...
Do we think the Pixel series will ever become a volume player in the Android handset market?
Let's not forget that the average price of an Android handset is around $200. That fact alone suggests the Pixel will NOT become a volume seller.
Not unless Google starts selling ultra-cheap models like every other Android handset maker.
But then I wouldn't see the point of it being a Pixel.
Like where Siri is heading?
A.Goldberg
macrumors 68030
This isn't surprising to me in the slightest. Sales have declined BUT proportionally they're still a top seller. They can also afford to get top dollar for their products as people will pay for it.
That said, Apple has been so slow on the innovation front- almost always lagging behind the competition spec wise except for maybe some inconsequential feature. How we doing with OLED screens..?
Anyways, in that Apple has barely made much progressing moving their phones along, I imagine their production cost has become increasingly smaller, thus also boosting their profits.
Look at the last gen MacBook Pro- the same design was essentially there for almost a decade. They could be like Dell and come out with a new crappy look every year. But instead they kept the same design and eventually that production cost goes down leaving them with more money.
As a customer 91% of market profits is a bit repulsive in such a competitive market. As an investor, it makes me pretty happy to some extent.
That said, Apple has been so slow on the innovation front- almost always lagging behind the competition spec wise except for maybe some inconsequential feature. How we doing with OLED screens..?
Anyways, in that Apple has barely made much progressing moving their phones along, I imagine their production cost has become increasingly smaller, thus also boosting their profits.
Look at the last gen MacBook Pro- the same design was essentially there for almost a decade. They could be like Dell and come out with a new crappy look every year. But instead they kept the same design and eventually that production cost goes down leaving them with more money.
As a customer 91% of market profits is a bit repulsive in such a competitive market. As an investor, it makes me pretty happy to some extent.
Wouldn't the sales numbers plateau if the market saturates rather than decline?
So if they sold 100 phones in 2013+2014 but only 50 phones in 2015+2016 then they lost 50 customers? (Using 2 years with a an assumption that most upgrade on a two year cycle to make it easier on my thought process)
I could easily be missing something...
So you are saying Apple is doing everything they can to innovate? Let's take their flagship product iPhone. All the improvements to the iPhone including the faster performance are just something that they have to do to make sure they stay relevant. What else did they do with respect to innovation? So if they didn't innovate why do the prices not drop? The article we are commenting on is about profits inspite of lower sales which only means that they are using older components and not passing the benefits to the consumer. If they added another camera to the plus they raised the price by 20 bucks.
The comment that I made was about Apple losing focus in areas where there are lower profit margins or not a consumer product that sells like the iPhone e.g. Airport products, Mac Pro, iMac. In fact the MacBook Pro also has disappointed many people because of the focus on vanity over functionality. The ecosystem that Apple relies on seems to be "thinning".
Actually the Pixel has been selling well above expectations. It's been highly successful both on Verizon and online. I think they're expecting 4mil units sold by the end of 2016, which for a new brand, and at this price, and pretty much only in the US, it ain't bad at all.
It's a lovely phone too, we're waiting for them to be sold here in Switzerland so I can get one for my wife.