Samsung's Share of Smartphone Market Drops to Lowest Level in Nearly Two Years

[kdarling]

To me, it's a virtuous cycle. As Apple continues to be profitable, it has more resources with which to funnel into continued R&D of more features for the iPhone. Features that will improve the user experience.

Yes, that's a common fan excuse for Apple's high profits... the claim that they need all that extra money for R&D. Poor, poor Apple

However, apparently Apple doesn't think so. Between 2007 and 2015, Apple spent about $29 billion on R&D. Yet even after paying for that R&D, they were still left with $230 billion in net profit.

Moreover, Samsung spends twice as much on R&D, with far less profit.

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So no, clearly Apple does not need such extreme profits for R&D. It's actually kind of insulting that anyone would think so:

For years under Jobs they spent very little compared to other companies. This is greatly because Jobs stayed focused on a few markets, and didn't allow development on products that wouldn't be sold or wouldn't be hugely profitable.

In fact, until his death, Apple spent less than $2 billion a year on it. Heck, Apple only spent about $150 million developing the iPhone, and $100 million of that was buying test equipment.

Since then, Cook has ramped up the budget to be about four or five times as much. Probably in hopes of actually getting something for his "pipeline of amazing things".

I don't see anything wrong with Apple's immense profits.

Sure, as long as they can get it, more power to them.

At the same time, it seems as strange to brag about Apple profits, as it would be to brag that your favorite gas company is the richest in the world. Maybe a millennial generation thing?

As a child of the hippy era, I would praise other companies who are also willing to sell less profitable devices, so that as many people in the world can have access to them.

 

[Abazigal]

At the same time, it seems as strange to brag about Apple profits, as it would be to brag that your favorite gas company is the richest in the world. Maybe a millennial generation thing?

As a child of the hippy era, I would praise other companies who are also willing to sell less profitable devices, so that as many people in the world can have access to them.

The issue isn't that other companies are willing to sell less profitable devices out of the kindness of their hearts, but that it's the only price they can logically charge if they want people to buy them.

Apple's profits are the result of them making the best devices and then getting them into the hands of as many people as possible. That's why many people are willing to buy them despite the high prices they command.

Contrast this with Android / Google, who simply focuses on getting their products into the hands of as many people as possible. Whatever the quality.

It's not so much something big to brag about as it is evidence that Apple is doing something very right. Many people like to point to Android's overwhelming market share as proof that it is somehow winning the smartphone wars, but in reality, market share is the only metric they can use to make Apple seem like they are anything but winning.

 

[I7guy]

Yes, that's a common fan excuse for Apple's high profits... the claim that they need all that extra money for R&D. Poor, poor Apple

However, apparently Apple doesn't think so. Between 2007 and 2015, Apple spent about $29 billion on R&D. Yet even after paying for that R&D, they were still left with $230 billion in net profit.

Moreover, Samsung spends twice as much on R&D, with far less profit.

--

What claim is being referred to and what is a common fan excuse? Seems like a bit of hyperbole to me.

Samsung does not have the same corporate mission, business and ethos as apple. Their businesses intersect in the retail sales of mobile phones and computers/tablets. So it's logical Samsung will have a different R&D budget based on their product lines and businesses.

So no, clearly Apple does not need such extreme profits for R&D. It's actually kind of insulting that anyone would think so:

For years under Jobs they spent very little compared to other companies. This is greatly because Jobs stayed focused on a few markets, and didn't allow development on products that wouldn't be sold or wouldn't be hugely profitable.

In fact, until his death, Apple spent less than $2 billion a year on it. Heck, Apple only spent about $150 million developing the iPhone, and $100 million of that was buying test equipment.

Since then, Cook has ramped up the budget to be about four or five times as much. Probably in hopes of actually getting something for his "pipeline of amazing things".



Sure, as long as they can get it, more power to them.

At the same time, it seems as strange to brag about Apple profits, as it would be to brag that your favorite gas company is the richest in the world. Maybe a millennial generation thing?

As a child of the hippy era, I would praise other companies who are also willing to sell less profitable devices, so that as many people in the world can have access to them.

I don't think it's strange to "brag" about apples profits. There is a lot of "brag" around the price of Berkshire Hathaway stock. That these American companies and others reached such lofty places is definitely worth bragging about. I'm not a millennial.

As far as the hippy era, that ship has sailed. I don't see Ferrari, (Gucci, Chanel) lowering the prices of their autos(consumer products) so that as many people in the world can have access to them. I don't see Samsung lowering the price of their flagships either. It's all well and good that there is a market for cell phones for all economic strata but every manufacturer is not obligated, not should be derided for not manufacturing in that space.

 

[kdarling]

The issue isn't that other companies are willing to sell less profitable devices out of the kindness of their hearts, but that it's the only price they can logically charge if they want people to buy them.

I didn't say kindness of their hearts. I said willing to sell products that make less profit.

Apple could easily sell a much less expensive version (in fact, many thought that the 5C would be it), but Cook has painted himself into a profit margin corner.

It's not so much something big to brag about as it is evidence that Apple is doing something very right. Many people like to point to Android's overwhelming market share as proof that it is somehow winning the smartphone wars, but in reality, market share is the only metric they can use to make Apple seem like they are anything but winning.

There can be more than one type of "winner".

The older you get, the less you think that making the most money is what makes a winner, anyway. Making money is great, but doing good, being fair, and not charging the most you can get away with, can also be good corporate traits.

Apple has a couple hundred BILLION dollars stashed away doing nothing. In your mind, that makes them a winner. In my mind, it makes me wonder what good they could be doing with it.

I don't see Ferrari, (Gucci, Chanel) lowering the prices of their autos(consumer products) so that as many people in the world can have access to them. I don't see Samsung lowering the price of their flagships either. It's all well and good that there is a market for cell phones for all economic strata but every manufacturer is not obligated, not should be derided for not manufacturing in that space.

Sure, but Ferrari (and Apple) could not sell their high margin products if there were no infrastructure such as roads, gas stations, cellular network.

Fortunately, others literally paved the way by selling mass consumer items that everyone could afford.

 

[0388631]

Not surprising. They really screwed the pooch with their epic fumble. I'll be sticking to my S7 for an extra year and pass on the S8 if it comes to be. I don't fancy being burnt or killed.

 

[I7guy]

I didn't say kindness of their hearts. I said willing to sell products that make less profit.

Apple could easily sell a much less expensive version (in fact, many thought that the 5C would be it), but Cook has painted himself into a profit margin corner.



There can be more than one type of "winner".

The older you get, the less you think that making the most money is what makes a winner, anyway. Making money is great, but doing good, being fair, and not charging the most you can get away with, can also be good corporate traits.

Apple has a couple hundred BILLION dollars stashed away doing nothing. In your mind, that makes them a winner. In my mind, it makes me wonder what good they could be doing with it.



Sure, but Ferrari (and Apple) could not sell their high margin products if there were no infrastructure such as roads, gas stations, cellular network.

Fortunately, others literally paved the way by selling mass consumer items that everyone could afford.

The same applies to every category of consumer items. Ford couldn't sell one Pinto(not that they sold many anyway) if there were no roads or gas stations. Cell phones wouldn't even be practical without cellular networks and let's not forget the first cellular phones in the 1980's were not even affordable by the average consumer. It's mass production of these items on all price levels that has them being affordable by consumers.

And whether you believe or not for profit corporations are "doing good, being fair and not charging the most you can get away with" is a personal viewpoint and I don't judge anybody who has a "large" bank account what I think they should be doing with their money is right, good or just.

I certainly can buy from companies whose ethos I more closely identify with.

 

[torana355]

As others have said, with the way Apple operates, strong competition is a must. Apple is happy to sell the same outdated crap year after year if they can get away with it to make more profit.

 

[Abazigal]

As others have said, with the way Apple operates, strong competition is a must. Apple is happy to sell the same outdated crap year after year if they can get away with it to make more profit.

I don't think Apple is content to just sell the same design year after year. They just don't have a practice of updating their products for the sake of updating.

It's easy to come up with a different form factor for any product. It's way harder to come up with a new design that's both different and better. That's why the iPhone SE recycles the iPhone 5 design. Not because Apple is lazy, but because that is the best possible design for a 4" display in their eyes. That's why the iPhone 7 is using the same form factor for the third year running. Apple is extremely proud of their iPhone 6 design (that's why they signed off on it in the first place) and don't think there is anything wrong with the design which necessitates changing.

The next iPhone redesign will come when Apple is ready with it. Not because Apple is lazy, but because good design takes time and care.

 

[jamesrick80]

Thanks Samsung for the note 7 fiasco...the LG V20 is super amazing and it's not slow like the note 7....what a godsend

 

[jamesrick80]

Thanks Samsung for the note 7 fiasco...the LG V20 is super amazing and it's not slow and doesn't lag like the note 7....what a godsend

 

[dawesi]

Amazing? Not really. Better than they were doing before? Probably. But then again, that's ALL they can do. They don't have the ability to custom design CPU/GPU chipsets or create their own OS. They're hopelessly behind in those things, so tweaking the screens for their flagship phones that don't have to be manufactured in mass quantity is pretty much it for them in terms of "innovation".

Er... my note 4 (6 years old is still better than the iPhone 5)... and that's two models old... the note 5 has the iphone 6 specs... so the 8 coming next year will have iphone 2018's specs... hopelessly behind.. .yup apple certainly is...

maybe that's why they are #2 in mobile, tablet and desktop sales... #ouch

Samsung recalled it's phone with batteries catching fire (iphone 6 and 7 have also had over 50 instances reported in the media... no recall)... and it's still outselling apple in phones... even with a MAJOR disaster people are still flocking to get Samsung phones... apple must be crying blood over that... even with major recall Samsung sold more phones. #applesucksatmarketingnow