Ugly Data For Apple Shows How Desperately It Needs iPhone 6 To Be A Hit
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Gathomblipoob
macrumors 603
iolinux333
macrumors 68000
Until one day they don't. And jaws drop all around. "How did this happen!?" is screamed by the investors. "But you told us!" is shouted from the living rooms. And then there's a bloodbath and the little guy loses out as usual and the big guy is unscathed as usual. "But the signs were all there, why couldn't anyone see it was so obvious?" say the talking things on the boob tube.
This is an exact weird repeat of 1990s Apple. Let's see it was trading at $10/share then, with inflation and the invention of IP law since, and their patent portfolio I'd say $100/share is about right in the mid term, or whatever that translates into after their recent stock split.
WHY in the world is the Average Joe, who is now quite used to Android, going to spend three times as much to come back to Apple? Well there ain't no why no more. Joe has moved on.
"Oh how the mighty have fallen!"
ucfgrad93
macrumors Core
Agreed. That said, Apple shouldn't just sit on their laurels. They do need to stay competitive, especially with Samsung.
juanrp
macrumors 6502a
Um, I....wow this is dramatic.
I don't see the fall of Apple coming soon because they're products are always a hit.
iolinux333
macrumors 68000
Not just Samsung.
HTC and Motorola are making a comeback with incredible midrange devices (Moto G, E8) as is Sony with their Z series. At the bottom end the Chinese brand names are about to wash ashore and they're feature full though cheaply made with cheap components - which as Walmart has shown will ultimately satisfy most Americans.
If the iPhone 6 bombs then I'm sure we will all agree with you.
But right now there just isn't the data to support this.
juanrp
macrumors 6502a
Exactly. I don't understand why people insist on saying that a phone will bomb/or be a great success, because it hasn't come out yet.
It hasn't even been announced yet.
freediverdude
macrumors 6502a
Oh puh leeze. Give me a big fat hairy break.
Apples true expertise is marketing products with fat margins. After years of building a cult like following and Pro_Apple press like the Wall St Journal and New York Times, they're in a great position to sell anything with an Apple logo.
Recent proof of Apples resilience is their ability to cling to the tiny screen used on equally tiny iPhones. Operating without consequence, Apples free to do anything they like.
Recent proof of Apples resilience is their ability to cling to the tiny screen used on equally tiny iPhones. Operating without consequence, Apples free to do anything they like.
charlituna
macrumors G3
but how much profit does each of those 8 phones make and how many of the sales are end user v channel sales. Samsung, for example, is notorious for reporting channel sales as if they were end user.
and how many of those devices are actually being used. versus sold, returned which is never reported, and replaced with something else, including perhaps an iPhone
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good point. Developers looking to make money will tend to go where they think they can make money and thus far that is proving to be the iOS ecosystem
AaronEdwards
macrumors 6502a
Yes, 58.66% of Android phones sold were low-end phones, 21.52% were mid-range, and 19.82% were high-end. This compared to iOS phones sold where none where low-end, 15.4% mid-range and 84.6% high-end.
Problem is there were 255.3 million sold Android phones and only 35.2 million sold iOS phones, which means that there were 50.6 million sold high-end Android phones and only 29.8 million sold high-end iOS phones. (And 54.9 million sold mid-range Android phones compared to 5.4 million sold mid-range iOS phones.)
This obviously won't be a problem as long as Apple is making more from each sale of a high-end iOS phone than what is made from the sale of a high-end Android phone and enough low-end or mid-range Android users some day upgrade to a high-end iOS phone instead of a high-end Android phone.
Problem is Apple is slipping.
AaronEdwards
macrumors 6502a
1. Most developers aren't really making any money. A lot of these developers are making apps for a certain ecosystem because its the system they use, pure and simple.
2. If you're an iOS developer, who isn't making any money from your app, then you still have to pay Apple $99 each year to be able to publish it in the App Store and get access to developer forums etc. Which means that you'll start in the red.
3. The Android ecosystem has been increasing its share of total app profits. (And to a developer it doesn't matter that a smaller fraction of Android users are paying for apps, what matters is the number willing to pay.)
4. The percentage made from paid apps is shrinking, both for the App Store and Google Play.
Agent OrangeZ
macrumors 68040
OK. Let's say your numbers are correct. Once again... I must insist... Apple is still in the best position. Apple made a high margin on 29.8 million phones... BY THEMSELVES. 54.9 million "high end" Android phone sales... split among how many manufacturers? Let's say we split that among Samsung, HTC, LG and Sony. 14.8 Million for each manufacturer. That's if it was split evenly. Samsung would probably have a lion's share of it... but it still wouldn't come close to the 29.8 million that Apple made ON THEIR OWN!
Further more, Apple's low end phones aren't as cheap as the $200 low end phones like the Moto G and others we have seen. Apple's low end still generates a high margin for Apple.
Once again. Apple is in the best position and really shouldn't be as worried as the OP suggests.
Truefan31
macrumors 68040
Lol another apple is doomed thread huh. I guess always having the number 1 smartphone that outsells itself every year and 150 billion in cash is a horrible position.
Can we compare the profit margin and sales between the iPhone and specific android "high end" phones like the s5? Last I read android is a os on multitudes of phones, a free one at that.
Can we compare the profit margin and sales between the iPhone and specific android "high end" phones like the s5? Last I read android is a os on multitudes of phones, a free one at that.
AaronEdwards
macrumors 6502a
1. The numbers are from the same report.
2. Apple doesn't sell low-end phones, I think you meant mid-range. A range in which Android phones are outselling iOS phones 10 to 1. And based on those numbers and the high-end numbers (1.7 to 1), I'd guess that Android is selling quite a number of high priced mid-range phones.
3. On its own. That was a mistake years ago with the Macintosh, and it's still a mistake. The difference now is that Apple has a lot more money, so the company is going to go belly up anytime soon despite what some seem to believe. But Android is gaining, has surpassed iOS in a number of metrics and continues to surpass iOS in other.
Edit:
4. There has been earlier reports that one third of the Samsung phones sold are high-end. With 74.3 million phones sold, that would mean that Samsung sold 24.5 million high-end phones. Samsung has been losing market share, and the question is if it's in the low-end range, mid-range, high-range, or evenly. (if it's in the low-end and mid-range, then that would mean that its share of high-end phones have gone up) But lets assume that one third is still correct, then the 24.5 million is about 5 million less than Apple sold. And Samsung did that ON THEIR OWN...
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The-Real-Deal82
macrumors P6
I think when I start seeing more Android devices used daily in my environment than iPhones, I will start to worry. With the iPhone selling better currently than its nearest rivals model, the S5, I don't think they need to worry just yet. The iPhone 6 will be good for business too.
appleii.c
macrumors 6502a
You know, I've never understood the logic of people from either camp. The one that equates "Android" beating "Apple" to "Apple is doomed". Aside from the fact that there are many different metrics one can use to solidify their argument to one "winning", or more accurately "outperforming", whichever is in second place is not destined for failure. Being #2 doesn't mean they are "Doomed". Whats the "Second place" car manufacturer in the world? Or electronics company in the world? Or Software, or vacuum cleaner or whatever industry you choose? Are they "Doomed"?
It has more to do with how a company is run, than who is in first, or who is "winning". I think Apple is and will be fine for many years to come, regardless of whether they beat Android or not.
It has more to do with how a company is run, than who is in first, or who is "winning". I think Apple is and will be fine for many years to come, regardless of whether they beat Android or not.
dumastudetto
macrumors 603
Games maybe. But in terms of general applications, Windows is stale and dying in comparison to the thriving Mac ecosystem. Seriously apps on Windows look tired, old, abandoned, boring much like Linux apps did 5-7 years ago when people were banging that drum. Nothing exciting is happening over there anymore. No doubt Windows still has the vast quantity. But try using Windows for a week and finding equivalent apps for all the stuff you love about software on a Mac.
I7guy
macrumors Westmere
Games maybe. But in terms of general applications, Windows is stale and dying in comparison to the thriving Mac ecosystem. Seriously apps on Windows look tired, old, abandoned, boring much like Linux apps did 5-7 years ago when people were banging that drum. Nothing exciting is happening over there anymore. No doubt Windows still has the vast quantity. But try using Windows for a week and finding equivalent apps for all the stuff you love about software on a Mac.
While this is your opinion, I could disagree more. Been using windows and it's predecessors since IBM dos. Windows doesn't have to be exciting, it has to work.
Yup, Apple is clearly slipping: https://www.macrumors.com/2014/08/19/apple-shares-100/
But try using Windows for a week and finding equivalent apps for all the stuff you love about software on a Mac.
That would be Chrome and Office. Both are better on Windows.
Oh, I just realized whose post I was replying to... Nevermind.
My question is after the launch of the iPhone 6 are retailers still going to divert customers attention away from the iPhone and back to android. Every time I go to a cell store the employees are pushing android devices. Its almost like iPhone's are behind a curtain. Of course we all know why and that's because retailers make more profit from android than apple. So how is apple going to fix that? I go to a cellphone store want to buy a iPhone how do you keep the droidhead from leading customers to android and away from apple because that's whats happening. You have some geek saying "oh no you want this android". The T-Mobile store I go to has one, he hates apple you can just tell. He is 100% biased against apple and for android. He wont even look at me.
AaronEdwards
macrumors 6502a
It's simple. Apple will fix that when it's willing to pay the store as much as the companies making Android phones are for each phone sold. It has nothing to with stores being biased against Apple, the stores are interested in making money for themselves, not for Apple.
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