Apple now taking 2/3 share of mobile phone industry profits

2

Comments

  • tulkastulkas Posts: 3,691member
    Quote:
    Originally Posted by Dymone View Post


    Read that headline one more time.



    "Apple now taking 2/3 share of mobile phone industry profits"



    The key word in that headline is profits. Now consider the fact that there are a multitude of Android based phones on the market, which now sells more world wide than Apple. Consider there are even more old flip and candy bar style phones which also (albeit non smartphones) outsell Apple. Apple has 1 phone, 1 iStore, 2 Carriers (Verizon and At&T) There are more cell phone providers than you can shake a stick at, nevermind the "pay as you go" style companies out there. So 1 iPhone, 1 iStore and 2 Carriers vs The rest of the mobile phone World! Apple is a small market share in comparison to the rest, however, and yes reference the headline, 2/3 of the profits are in apples pockets.



    What does this mean? Profits? It means Apple Overprices their phones and services over and above the rest. And you all pay for it and say Yay!



    I would not be proud to admit I was not smart enough to shop around.



    Congrats on your phones!



    I stopped reading when you mentioned Apple is only on 2 carriers (and you mean worldwide).



    Ignorance is bliss. Do trolls even know how to read? It isn't like google is that hard to use.
  • ochymingochyming Posts: 474member
    Quote:
    Originally Posted by Dymone View Post


    Read that headline one more time.



    "Apple now taking 2/3 share of mobile phone industry profits"



    The key word in that headline is profits. Now consider the fact that there are a multitude of Android based phones on the market, which now sells more world wide than Apple. Consider there are even more old flip and candy bar style phones which also (albeit non smartphones) outsell Apple. Apple has 1 phone, 1 iStore, 2 Carriers (Verizon and At&T) There are more cell phone providers than you can shake a stick at, nevermind the "pay as you go" style companies out there. So 1 iPhone, 1 iStore and 2 Carriers vs The rest of the mobile phone World! Apple is a small market share in comparison to the rest, however, and yes reference the headline, 2/3 of the profits are in apples pockets.



    What does this mean? Profits? It means Apple Overprices their phones and services over and above the rest. And you all pay for it and say Yay!



    I would not be proud to admit I was not smart enough to shop around.



    Congrats on your phones!







    : Yay!, Isn't that mentality that makes China a economic superPower at USA expense? Did Dymone signed only for that …

    : You mean nonsense?

    \: Sounds like one BBC journalist, forgot the name.
  • dymonedymone Posts: 3member
    Quote:
    Originally Posted by Tulkas View Post


    I stopped reading when you mentioned Apple is only on 2 carriers (and you mean worldwide).



    Ignorance is bliss. Do trolls even know how to read? It isn't like google is that hard to use.



    Really? That's the best you can come up with? No explanation for how companies which sell their phones for the same and less than the iPhone manage to sell more of them and make less profit? Nothing to argue their markup is as high or higher than Apples?



    Or no argument because you are too busy trying to not feel ripped off. Not my fault son. Not my fault.....
  • galbigalbi Posts: 968member
    The data chart is misleading.



    This isnt profits from the hardware sales alone.



    It's hardware + software (as in Apps sales).



    Notice the drastic change in the profit margins from Q2 2008 to Q3 2008.
  • lkrupplkrupp Posts: 4,212member
    Quote:
    Originally Posted by Dymone View Post


    Really? That's the best you can come up with? No explanation for how companies which sell their phones for the same and less than the iPhone manage to sell more of them and make less profit? Nothing to argue their markup is as high or higher than Apples?



    Or no argument because you are too busy trying to not feel ripped off. Not my fault son. Not my fault.....



    Another day, another troll joins AI and starts posting. You've got all the talking points down pat. 1. Only clueless "sheeple" buy Apple products. 2. Apple hardware is overpriced in spite of the fact that 20 million "sheeple" bought iPhones last quarter. 3. Any day now Android tablets will start taking over. 4. Apple is doomed.



    Do you guys go to some web site every day to get your talking points coordinated? It's getting really boring you know. You need to get more creative.
  • pg4gpg4g Posts: 383member
    Quote:
    Originally Posted by Dymone View Post


    Read that headline one more time.



    "Apple now taking 2/3 share of mobile phone industry profits"



    The key word in that headline is profits. Now consider the fact that there are a multitude of Android based phones on the market, which now sells more world wide than Apple. Consider there are even more old flip and candy bar style phones which also (albeit non smartphones) outsell Apple. Apple has 1 phone, 1 iStore, 2 Carriers (Verizon and At&T) There are more cell phone providers than you can shake a stick at, nevermind the "pay as you go" style companies out there. So 1 iPhone, 1 iStore and 2 Carriers vs The rest of the mobile phone World! Apple is a small market share in comparison to the rest, however, and yes reference the headline, 2/3 of the profits are in apples pockets.



    What does this mean? Profits? It means Apple Overprices their phones and services over and above the rest. And you all pay for it and say Yay!



    I would not be proud to admit I was not smart enough to shop around.



    Congrats on your phones!



    Rather, it suggests Apple make phones that people think are worthy of such a mark-up in price, because of quality.



    Android phones, however, aren't considered to have such quality, and so people won't pay as much for them. They will barely pay cost price. Considering the market share for Android, it's pathetic that they can't even hold Apple at 50%.



    This isn't about overcharging, it's about quality of product and the value of an iPhone to each person.
  • cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by Galbi View Post


    The data chart is misleading.



    This isnt profits from the hardware sales alone.



    It's hardware + software (as in Apps sales).



    Notice the drastic change in the profit margins from Q2 2008 to Q3 2008.



    Apple released the iPhone 3G in calendar Q3 2008. They had reduced supply of the iPhone original beforehand so naturally Q2 2008 profits were considerably lower. This has nothing to do with the tiny App profits, and everything to do with product cycle.



    Once again you post obviously rubbish. No doubt you'll not appear on this thread again as you'll be busy posting the same rubbish on every other site it's your job to cover.
  • bigdaddyguidobigdaddyguido Posts: 93member
    Are these profits just counting hardware sales or profits from the app store as well?
  • cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by bigdaddyguido View Post


    Are these profits just counting hardware sales or profits from the app store as well?



    I'm sure Horace Dediu did his best to subtract out any App profits, but we know them to be minimal anyway - The total up till June 2011 could not have been more than a billion, even if Apple had absolutely no costs associated with the App store. More likely they were a few hundred million.



    Oh and Samsung don't split out Tablet profits, nor have they reported Tablet sales, so their numbers will include their tablet profits, not that they are enough to matter of course.
  • bigdaddyguidobigdaddyguido Posts: 93member
    Quote:
    Originally Posted by cloudgazer View Post


    I'm sure Horace Dediu did his best to subtract out any App profits, but we know them to be minimal anyway - The total up till June 2011 could not have been more than a billion, even if Apple had absolutely no costs associated with the App store. More likely they were a few hundred million.



    Oh and Samsung don't split out Tablet profits, nor have they reported Tablet sales, so their numbers will include their tablet profits, not that they are enough to matter of course.



    Thank you. I was wondering more in response to people who claim it's all because apple overcharges for hardware. The more I think about it, the more it makes sense that very little profit would come off a 30% charge for app sales, a good portion of that would have to go to other costs, like server costs and credit card charges. The beat argument against the "apple charges too much" would be the extreme lack of buyers remorse. I've never had even the slightest remorse over any apple product (from iPhone, to iPod, to tablet, to MacBook pro to mini) and I think almost every other product I've bought over $200 I've at least felt some part of me felt it was unnecessary expense (cars, pcs, game consoles, appliances, etc.)



    I'm generally pleased with how I spend my money, but I never feel more worth for my dollar than apple products.
  • addaboxaddabox Posts: 12,667member
    Quote:
    Originally Posted by Dymone View Post


    Really? That's the best you can come up with? No explanation for how companies which sell their phones for the same and less than the iPhone manage to sell more of them and make less profit? Nothing to argue their markup is as high or higher than Apples?



    Or no argument because you are too busy trying to not feel ripped off. Not my fault son. Not my fault.....



    I always enjoy the collision of Standard Apple Bashing 101 (Apple charges extra for nothing) with the new reality of iOS (Apple's economics of scale and manufacturing efficiencies allow them to charge the same or less than the competition while still delivering best of class quality).



    So we're left to contemplate how the Apple tax works, exactly, when no one seems to be able to deliver a tablet that undercuts Apple's pricing while delivering anything like Apple's quality or UX. I guess the idea must be that Apple should be selling iPads for a few hundred dollars, even thought they can sell all they can make at the current pricing, just to prove they're not greedy. Or something. I don't guess "making sense" was at the top of the poster's to do list.



    Also, pay no attention to the $49 iPhone at AT&T or the myriad of $200 Android phones.
  • vvswarupvvswarup Posts: 314member
    Quote:
    Originally Posted by Dymone View Post


    Read that headline one more time.



    "Apple now taking 2/3 share of mobile phone industry profits"



    The key word in that headline is profits. Now consider the fact that there are a multitude of Android based phones on the market, which now sells more world wide than Apple. Consider there are even more old flip and candy bar style phones which also (albeit non smartphones) outsell Apple. Apple has 1 phone, 1 iStore, 2 Carriers (Verizon and At&T) There are more cell phone providers than you can shake a stick at, nevermind the "pay as you go" style companies out there. So 1 iPhone, 1 iStore and 2 Carriers vs The rest of the mobile phone World! Apple is a small market share in comparison to the rest, however, and yes reference the headline, 2/3 of the profits are in apples pockets.



    What does this mean? Profits? It means Apple Overprices their phones and services over and above the rest. And you all pay for it and say Yay!



    I would not be proud to admit I was not smart enough to shop around.



    Congrats on your phones!



    Your argument is that as a consumer, the fact that Apple makes the most profit is of no benefit to the consumer. On the contrary, consumers should be ticked off that Apple makes so much money off of their phones. On the same token, why should it matter where Apple's products are manufactured? How does the fact that the products are made in the USA of any benefit to the consumer?



    Also, have you heard of any company say, "Oh, we're making too much money so we're gonna cut our prices."
  • steven n.steven n. Posts: 826member
    Quote:

    :Quote:

    Originally Posted by Dymone

    Read that headline one more time.



    "Apple now taking 2/3 share of mobile phone industry profits"



    The key word in that headline is profits. Now consider the fact that there are a multitude of Android based phones on the market, which now sells more world wide than Apple. Consider there are even more old flip and candy bar style phones which also (albeit non smartphones) outsell Apple. Apple has 1 phone, 1 iStore, 2 Carriers (Verizon and At&T) There are more cell phone providers than you can shake a stick at, nevermind the "pay as you go" style companies out there. So 1 iPhone, 1 iStore and 2 Carriers vs The rest of the mobile phone World! Apple is a small market share in comparison to the rest, however, and yes reference the headline, 2/3 of the profits are in apples pockets.



    The iPhone is available something like 250 carriers. Likewise, the name of the game is to make a product people are actually willing to pay for.
  • SpamSandwichSpamSandwich Posts: 24,943member
    Quote:
    Originally Posted by cloudgazer View Post


    The filling was Nokia before, which I guess means it was canned fish.



    Lutefisk.
  • cy_starkmancy_starkman Posts: 488member
    The benefit of margin isn't profit, the real benefit is the ability to reinvest.



    The alleged surplus is in the bank being used wisely.



    To drive innovation you need a lot of cash. In terms of investment in new technology and refinements they are clearly way ahead.



    It isn't as if someone has pocketed all that money..
  • cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by cy_starkman View Post


    The benefit of margin isn't profit, the real benefit is the ability to reinvest.



    The alleged surplus is in the bank being used wisely.



    To drive innovation you need a lot of cash. In terms of investment in new technology and refinements they are clearly way ahead.



    It isn't as if someone has pocketed all that money..



    The real scandal is how many handset makers are making no profit at all.



    S-E, Moto, LG & now Nokia, probably some others scattered around like Sharp.
  • piotpiot Posts: 1,344member
    Quote:
    Originally Posted by Galbi View Post


    The data chart is misleading.

    This isnt profits from the hardware sales alone.

    It's hardware + software (as in Apps sales).



    Notice the drastic change in the profit margins from Q2 2008 to Q3 2008.



    Do you realise that those two quarters you have selected cover a period where iPhone sales grew by 626% ?



    That's the single largest YoY increase in iPhone's history.



    Try harder!
  • cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by piot View Post


    Do you realise that those two quarters you have selected cover a period where iPhone sales grew by 626% ?



    That's the single largest YoY increase in iPhone's history.



    Try harder!



    He has long since gone off to spread his misinformation on other sites. Galbi does this with pretty much every story, he posts once with something that is either outright false or just extremely misleading, then he leaves. I generally don't like it when people get accused of being 'shills', but increasingly it seems like he is a (very bad) PR guy for samsung. He's not a troll, because trolls stick around to argue, whereas his style is strictly ring and run.
  • solipsismsolipsism Posts: 25,726member
    What's hysterically sad about Galbi's attempt to paint Apple as some loser is that if the profits did include the ecosystem it would make Apple even more dominate in the market.
  • dymonedymone Posts: 3member
    Quote:
    Originally Posted by PG4G View Post


    Rather, it suggests Apple make phones that people think are worthy of such a mark-up in price, because of quality.



    Android phones, however, aren't considered to have such quality, and so people won't pay as much for them. They will barely pay cost price. Considering the market share for Android, it's pathetic that they can't even hold Apple at 50%.



    This isn't about overcharging, it's about quality of product and the value of an iPhone to each person.



    Sorry that you are mislead. I'm quite sure there are as many people that buy apple products because of name branding as much as an issue of quality. Android phones actually are considered by those that have owned them both, to have the same quality and better in some area's, less in others. That argument is subject to your personal opinion as it is others.



    As for the lack of buyers remorse, I will only say this. I have spent 2 years working for a company that refurbished and resold cell phones to their respective carriers. Where this and other business make their best money is in "Cherry" or "A1" quality phones. Those are buyers remorse phones that spent less than a week in the owners hands before being returned for whatever reason. Since Verizon picked up the iPhone, the number 1 "Cherry" return was the iPhone. You can argue the 5 - 20 people you know have never been unhappy with their product, I can argue the 1000's of Apple phones i've scanned and shipped back to Verizon is a more telling tale.



    You can justify spending however much you think your phone is worth to yourself and others. It's your money after all.



    Want some Oklahoma ocean front property?
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