iPhone X Responsible for 35% of Total Worldwide Phone Profits in Q4 2017

[Nuno Lopes]

So Apple cutting in half the parts ordered globally for its iPhone X in your mind equates to ‘selling like crazy’?
Ok, I don’t see any point continuing as your mind is made up, incorrectly, but made up...
I guess you know better then Steve Jobs, wow!

Also perhaps google and MS are not as greedy as Apple, and follow the words or wisdom like Steve Jobs spoke to ensure their survival.

Look. These numbers don’t lie. You can stick your head in the sand as much as you want.

Now, what you can argue is that you will still be paying for software and services from Google and MS anyway on top of your Apple products. So it does not matter, you might as well pay less for the devices.

But next time you buy a $300 PC or Phone remember to thank the builder for the effort, not MS or Google.

You see, the gross profit margin of Lenovo or Acer is around %6 to %15. Those are the ones selling the Gillets required for MS and Google sell the blades and achieve those margins. Still MS with the Surface line tried it is trying to have bothways.

 

[I7guy]

But Steve Jobs is dead...
But what did Steve Jobs ever know...

But this is Cooks Apple..
But I’m making massive profits on my AAPL shares....


Frigging stupid isn’t it, but those would be replies from Apple fans protecting Apple now against that interview.
Considering massive and small companies STILL use Steve Jobs interviews or speeches for inspiration, isn’t it daft Apple and it’s hardcore fans will not?

Remember Cook got to the stage, and announced to the world a 12,000 PLUS dollar watch which came in a plastic box, has a minute lump of gold in its case only, and had the workings mass produced by robots in a Chinese sweat shop factory.. all in the name of ‘fashion’.

They have now priced a mass produced phone at the highest cost in its market, loss sales but EXACTLY as Steve Jobs himself states here made massive profits..
And this year they will be even higher, if you don’t want to pay 1200 or more for the Plus X, tough, that’s what the new ‘cheaper’ X LCD model will be for...

But alas people will gleefully defend this with every last breath in their body despite the warnings from some people’s messiah.

Hope you don’t mind it I’ve pasted your video I’m my reply on page one, to back the claims up from someone who knows all about failed companies and how to resurrect them!

Couldn’t make it up...
[doublepost=1524054974][/doublepost]

It’s not selling well? Endless reports in here of parts supplies being cut in half is not the sign of ‘selling well’. Is the complete opposite. Apple is making massive profits from lower sales but massive massive mark ups, across the globe the X price is incredibly high, more so then the US and thus massive profits from lower sales.
And as per the video above, unless you proclaim Jobs is full of it, doesn’t know what he is doing or you yourself know better then him, he quite clearly stated how lower sales and massive profits leads to the death of a companies market share and that product line..

While “endless reports” of parts ordered being cut in half may indicate “not selling well”, it may also indicate nothing of the sort. You can infer and deduce what you want from those numbers.

 

[kermontg]

So funny, I remember all these articles stating the iPhone X is not a success with low sales. Looking at the numbers with the most sold smartphone, this trash all the naysayers.

 

[eltoslightfoot]

I'm not usually so anti-capitalist, but I agree with you. It is greedy. It is permissible, and they are free to do it, but it is greedy.

I'm more surprised so many people are willing shell out $1000-$1150 for an iPhone and $200 more for AppleCare+ for it. That's $1200-$1350 all-in. For a first-gen device that almost everyone knows will be replaced by an improved model pretty darn soon. I really thought having it be so much over one grand to go all-in would put a lot of people off. I guess I was wrong. Where is the line then? Is $1500 too much for an iPhone? $2000? $5000?

We study this in economics. Put simply, people operate at the margin. As the cost to buy goes up, then the available amount of people goes down. At $2000, very few people would buy the iPhone X when there are serviceable substitutes at a much lower price point (iPhone 8 and 8 Plus). $1500 price point would have more people in the available pool, but it is a curve, so it would not be a steady amount of increase. In short, companies as big as Apple figure out the equilibrium price that will maximize the available market for the most profit. In Apple's case, they will then lower the price point such as rolling the X into the next standard iPhone edition, or more likely just hacking off some of the purchase price. They will then have cream-skimmed a little, but then grew the size of the available market due to the lower price point. They did this with the Macbook Air back in the day.
[doublepost=1524057135][/doublepost]

Look at Apple's government regulated and compliance audited profit and loss statement. Their profit margin is around 35-38%. That does not seam like a ultra high, unfair profit margin to me. People fail to recognize that patents, software development and quality retail store experience... cost a lot. Cost of production is not a reflection of the cost of the product.

This is the other thing that people don't understand. Often one product (high profit) will offset a lower performing product. This allows the company to continue to sell the lower performing profit (like the Mac Pro line)...

 

[iHack13]

This is so funny. Looking at the top comments and everybody is like omg omg see the iPhone X is the bestest everrr.

How about we do a little bit of thinking and looking at the subject objectively.

What do the figures say? It shows high selling numbers in a limited time period (end of 2017). Who is gonna perform best there? Obviously a new released phone.

So if you rely on that, then the only other phone that got released then was the Note 8.
This is also why the Galaxy Note 8 shows higher selling numbers than the Galaxy S8 Plus. So did the Note 8 outsell the Galaxy Series? No.
Its obvious that in general the mainstream S line sells more than the rather niche high end Note Series.
And so we know that especially the iPhone X had a big hype for early adopters at release.
I am not counting in the factor that I know a lot of Galaxy customers who dont buy the overpriced release price, but wait a little longer.

So is the X a product that conquered the market? (like the article suggests).
I dont think so. Since Apple slowed down the production.

However you can argue all you want, but there is one thing that you cannot deny. You can sell any low numbers and any story as a success, if your marketing team is strong.
This is what this comment section proves.

 

[eltoslightfoot]

This is so funny. Looking at the top comments and everybody is like omg omg see the iPhone X is the bestest everrr.

How about we do a little bit of thinking and looking at the subject objectively.

What do the figures say? It shows high selling numbers in a limited time period (end of 2017). Who is gonna perform best there? Obviously a new released phone.

So if you rely on that, then the only other phone that got released then was the Note 8.
This is also why the Galaxy Note 8 shows higher selling numbers than the Galaxy S8 Plus. So did the Note 8 outsell the Galaxy Series? No.
Its obvious that in general the mainstream S line sells more than the rather niche high end Note Series.
And so we know that especially the iPhone X had a big hype for early adopters at release.
I am not counting in the factor that I know a lot of Galaxy customers who dont buy the overpriced release price, but wait a little longer.

So is the X a product that conquered the market? (like the article suggests).
I dont think so. Since Apple slowed down the production.

However you can argue all you want, but there is one thing that you cannot deny. You can sell any low numbers and any story as a success, if your marketing team is strong.
This is what this comment section proves.

Right, because real money wasn't involved. Got it. Marketing has to have something to work with. They can polish something nice and make it gleam. Polish a turd and it's still a turd. (And given these results--probably Samsung.)

Moreover, even if the numbers sold were somehow that low, then the corresponding revenue and profit would have been low for the company, and they weren't. So even if they were less than it years past, then Samsung has dropped precipitously for the same metric.

 

[convergent]

Look. These numbers don’t lie. You can stick your head in the sand as much as you want.

Now, what you can argue is that you will still be paying for software and services from Google and MS anyway on top of your Apple products. So it does not matter, you might as well pay less for the devices.

But next time you buy a $300 PC or Phone remember to thank the builder for the effort, not MS or Google.

You see, the gross profit margin of Lenovo or Acer is around %6 to %15. Those are the ones selling the Gillets required for MS and Google sell the blades and achieve those margins.

The "numbers" are speculation. These analysts are guessing a lot to come out with something that looks scientific. I don't doubt that Apple is more profitable, but these other companies would not stay in the business if they were losing money at the rate these "studies" suggest year after year. There are many ways that companies determine profits. Since Samsung makes a lot of their own components, I am going to speculate that they are possibly showing higher costs for components at the handset level, but taking the profit on the components. Automakers do this by inflating the costs of components so the assembly factories in other countries show less profit, which gives them tax advantages.

So you can believe what you want, but saying "the numbers don't lie" is not accurate when the numbers are made up.

 

[eltoslightfoot]

The "numbers" are speculation. These analysts are guessing a lot to come out with something that looks scientific. I don't doubt that Apple is more profitable, but these other companies would not stay in the business if they were losing money at the rate these "studies" suggest year after year. There are many ways that companies determine profits. Since Samsung makes a lot of their own components, I am going to speculate that they are possibly showing higher costs for components at the handset level, but taking the profit on the components. Automakers do this by inflating the costs of components so the assembly factories in other countries show less profit, which gives them tax advantages.

So you can believe what you want, but saying "the numbers don't lie" is not accurate when the numbers are made up.

The profit breakdown is speculation, but the profits by company are not. They are reported because they are all publicly traded. So it's not ALL speculation. It isn't like someone is just making something up unsubstantiated. And product mix calculations aren't all that difficult for these people. The numbers may be off, but they are not wildly off.

 

[citysnaps]

Funny then how it’s ONLY Apple announcing record multi billion dollar profits far outweighing those other companies you mentioned.
And Google and Microsoft are not ‘only’ software companies, they have made and do make several well known hardware items, like the Xbox???? ......

Seriously?

It's because Apple develops, manufactures, and supports premium products that millions of people feel offer outstanding features and value. Those same people are willing to pay a premium price and willingly open their wallets. Year after year after year. Simple.

Can't afford an iPhone? No worries, there are plenty of other phones out there.

 

[eltoslightfoot]

Seriously?

It's because Apple develops, manufactures, and supports premium products that millions of people feel offer outstanding features and value. Those same people are willing to pay a premium price and willingly open their wallets. Year after year after year. Simple.

Can't afford an iPhone? No worries, there are plenty of other phones out there.

I would personally just buy an older iPhone.

 

[A MacBook lover]

I think it’s interesting that the link you posted corroborates exactly what I suggested.

“There has been a lot of chatter that the iPhone X has disappointed on a global level which is partly true not only for Q4 2017 but also moving into 2018 as a result of the higher price which ensured the demand remained softer than expected. But this has not been the case in the US market and outlook looks positive for Apple in its home market for 2018. US consumers on an average are probably on their third or fourth iPhone and are willing to pay for the Apple ecosystem which is much stronger and sticky in USA than for example in China.”

Regarding what Tim Cook said on an earnings call, the X could have sold one more unit than the 8 and he’d still be telling the truth. It’s a purely qualitative statement.

And regarding the 2:1 figure, that’s not surprising because it says as of the iPhone X’s launch on November 3rd. The rush of people buying 8’s and 8+’s would’ve been long over by then considering how much earlier they launched. Thus, the figure doesn’t make the point you want it too.

At least here in the US. I’ve seen much more Iphone X’s in person than Iphone 8’s or 7’s

 

[sumsingwong]

So much for exclusivity.

 

[A MacBook lover]

But Steve Jobs is dead...
But what did Steve Jobs ever know...

But this is Cooks Apple..
But I’m making massive profits on my AAPL shares....


Frigging stupid isn’t it, but those would be replies from Apple fans protecting Apple now against that interview.
Considering massive and small companies STILL use Steve Jobs interviews or speeches for inspiration, isn’t it daft Apple and it’s hardcore fans will not?

Remember Cook got to the stage, and announced to the world a 12,000 PLUS dollar watch which came in a plastic box, has a minute lump of gold in its case only, and had the workings mass produced by robots in a Chinese sweat shop factory.. all in the name of ‘fashion’.

They have now priced a mass produced phone at the highest cost in its market, loss sales but EXACTLY as Steve Jobs himself states here made massive profits..
And this year they will be even higher, if you don’t want to pay 1200 or more for the Plus X, tough, that’s what the new ‘cheaper’ X LCD model will be for...

But alas people will gleefully defend this with every last breath in their body despite the warnings from some people’s messiah.

Hope you don’t mind it I’ve pasted your video I’m my reply on page one, to back the claims up from someone who knows all about failed companies and how to resurrect them!

Couldn’t make it up...
[doublepost=1524054974][/doublepost]

It’s not selling well? Endless reports in here of parts supplies being cut in half is not the sign of ‘selling well’. Is the complete opposite. Apple is making massive profits from lower sales but massive massive mark ups, across the globe the X price is incredibly high, more so then the US and thus massive profits from lower sales.
And as per the video above, unless you proclaim Jobs is full of it, doesn’t know what he is doing or you yourself know better then him, he quite clearly stated how lower sales and massive profits leads to the death of a companies market share and that product line..

Are you underage? Or maybe intoxicated? Serious question, because your arguments are incoherent.

Other people in this thread who have some opposing points at least have stimulating arguments, not mindless rants.

 

[vipergts2207]

At least here in the US. I’ve seen much more Iphone X’s in person than Iphone 8’s or 7’s

I've literally only seen one X in the wild. However, I don't intentionally go looking at everyone's phone either and both of our experiences are anecdotal anyway.

 

[A MacBook lover]

I've literally only seen one X in the wild. However, I don't intentionally go looking at everyone's phone either and both of our experiences are anecdotal anyway.

I probably see one every day, then again I live in the city

 

[dalestrauss]

In a couple of words, very impressive!

One word - greedy.

 

[Act3]

At least here in the US. I’ve seen much more Iphone X’s in person than Iphone 8’s or 7’s

Can't say the same, I guess it all depends on what part of country you live in. However, with the number of 7,and 8's out there ( and 6/6s for that matter), kind of hard to believe one would see more iPhone X out in the wild, when the 4 previous models all look the same.

 

[citysnaps]

One word - greedy.

Greedy? How is that? Please explain.

 

[YaBe]

Corporation =/= nonprofit. There's no such thing as "too much profit." They (rightfully) charge exactly what the customer base would tolerate.

Considering lower sales (yes yes higher margin and more money but still), it seems there are less people tollerating the ammount they charge...

 

[oneMadRssn]

Yes, but I put in the qualifier of "all other things being equal." There are many pitfalls to a different employer, but if the work environment was the same, and you didn't have to move or anything. My point is that it's easier to call such behavior other than our own as greedy, but it's a pretty rare site to see someone take a pay cut or more work for no more money. There's lots of ways to look at it. My point is most of us want to maximize the reward for our efforts.

Yea, it can be both greedy and permissible, right? Just because it's greedy doesn't mean it shouldn't be allowed. Corporations and people are allowed to be greedy. But the word greedy must mean something. If this isn't "greedy," then what does that word even mean?

 

[Gasu E.]

One word - greedy.

I don't know if you have a job. But if you do, please ask your employer to lower your salary. The savings will help your employer hire more people and reduce unemployment. Don't you want to reduce unemployment? Don't be greedy!

 

[neuropsychguy]

2017:

Apple gross profit margin is 38%
Microsoft gross profit margin is 61%
Google 55%
Samsung 45%

Gross profit margin is a value that indicates the profit margin of the business after all costs accounted.

Pure software companies have much more margin and no one says they are greedy or that are taking their customers for a ride.

Gross profit margin is before "all costs [are] accounted" for. What you're looking for is net margin. Apple was 21.3% on average over the last 5 years (https://ycharts.com/companies/AAPL/profit_margin). The other companies you referenced had lower net margins (Google was pretty close - about 19%). Microsoft used to have higher net margins but recently has been a little lower. Samsung is lower but not too much (about 17-18%).

All these companies are similarly (proportionately) profitable (after taxes and expenses) over the past 5-10 years. This means if someone argues about Apple charging too much, they have to say the same thing about Google, Microsoft, and Samsung. Of course, companies can reduce net profit margins by having more expenses (which could include paying workers/executives more, paying more taxes, spending more on R&D, burning stacks of money in bonfires, building new offices, buying MacRumors readers new houses, etc.) but generally they avoid spending more money than they have to.

 

[alphaod]

Just more proof how overpriced the iPhone X is. Massively so looking at this report. One hell of a markup.

EDIT:

Video of Steve Jobs himself advising of the dangerous path Apple is following:

Video originally posted in this thread in the following post:

From all my years watching these videos of Jobs, he changes his tone faster than anybody else.

If anything he introduced the iPhone at a price at the time that everyone thought was outrageous (since most people were buying cheap or free phones at the time). It was only when Apple realized that people weren't going to buy them in boatloads that they dropped the price. We are past the point where the price is really going to stop people from buying the iPhone in the United States. People will literally give up an arm and a leg for these things.

 

[vipergts2207]

I probably see one every day, then again I live in the city

As do I; metro area population of over 2 million people.

 

[vkd]

Summing all the values in the bar chart the total is 90.4%.

Hardly anyone in South America has an Apple phone, most are various Samsung lower value models and LG etc. I fail to see how all those phones in Brazil, etc., only come to 9.6% of world total.

Therefore my conclusion is that this data is inconclusive, limited and perhaps biased. Therefore it should be disregarded, discarded, considered fictional, etc.

This is my personal conclusion judged from the above facts. You are free to disagree if you want to, for everyone has free will. LOL