or Connect
AppleInsider › Forums › Mobile › iPhone › Apple's 4% mobile market share rakes in over half the industry's profit
New Posts  All Forums:Forum Nav:

Apple's 4% mobile market share rakes in over half the industry's profit

post #1 of 108
Thread Starter 
With just 4.2 percent of the global mobile phone market, Apple's iPhone accounts for a massive 51 percent of the total profits, a new report claims.

Apple continues to dominate the market when profit is measured, according to a new report from Asymco's Horace Dediu. The iPhone maker managed to add one percent to last quarter's 50 percent share of profits from the top eight mobile phone vendors in the December quarter, the report noted.

After data for the fourth quarter of 2010 was released last week, Apple placed fifth overall among global cell phone makers with 4 percent market share. Meanwhile, research firm Canalys published a report Monday showing that Google overtook Nokia as the top smartphone platform maker in the fourth quarter.

Apple revealed earlier this month that it sold 16.24 million iPhones in its first quarter of fiscal 2011, resulting in $10.5 billion of revenue for the company. Additionally, the average selling price of the iPhone increased from approximately $610 in the previous quarter to $625.

The Cupertino, Calif., company hit a major milestone in the December quarter when it passed Nokia to become the world's largest mobile phone vendor in terms of revenue.



The iPhone's share of global handset profits has been steadily climbing. In August of 2009, Apple was reported as making 32 percent of the industry's profits.

iPhone profits could continue to soar as Apple adds the new CDMA iPhone 4 to its lineup. According to Apple's Chief Operating Officer Tim Cook, the launch of the iPhone 4 on the Verizon network will not adversely affect the iPhone's ASP and profit margins. After being speculated for years, the iPhone will come to the nation's largest carrier on Feb. 10.

Verizon is conservatively projecting sales of 11 million iPhones in 2011, but executives have said that the handset could help the company's growth "really explode over the next several years." According to a recent analyst survey, Verizon could see as many as 25 million new iPhone subscribers this year.
post #2 of 108
But everyone knows that the ONLY metric that counts is marketshare!!!! Profitability is a smokescreen for losers who can't pwn the market outright!!!


[terminate sarcasm autoresponse routine]
If you are going to insist on being an ass, at least demonstrate the intelligence to be a smart one
Reply
If you are going to insist on being an ass, at least demonstrate the intelligence to be a smart one
Reply
post #3 of 108
Quote:
Originally Posted by fecklesstechguy View Post

But everyone knows that the ONLY metric that counts is marketshare!!!! Profitability is a smokescreen for losers who can't pwn the market outright!!!


[terminate sarcasm autoresponse routine]

Yep we will be hearing from them soon. So, by the time we get to 9% market share Apple makes +100%
Use duckduckgo.com with Safari, not Google Search
Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
Reply
Use duckduckgo.com with Safari, not Google Search
Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
Reply
post #4 of 108
Android is a shot adrenaline for companies that were on their death bed. They get a short boost of energy but they are still in the same poorly managed, myopic position they were before. We'll see in a couple years how many of these companies will be financially successful using Android. Personally, I think WP7 has a better chance at helping these companies recover longterm than Android.
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
post #5 of 108
Now that Apple is officially loaded I am hoping that in the future the company will make a larger more public (because I don't know what they are doing as per now) effort to share its wealth. It is great that Apple is making dollars hand over fist but I'd rather see them make a little less and ensure their extended (third party) work force reap some of the benefits. Not just in terms of cash, but also in terms of working conditions etc. Apple seems to be in a position now to set an example and I for one would appreciate it if they would.

An interesting article from Cnet that touches on this:
http://news.cnet.com/8301-13579_3-20...ag=topStories3
post #6 of 108
Good thing for Apple too, as with no new Macs (at least those based upon Sandy Bridge) until May due to an Intel chipset recall for Sandy Bridge they'll have to keep their existing product lines going for longer - and as they had ramped down some of them for an update within the next two/three weeks already they need this income to come in from a different area ... http://techreport.com/discussions.x/20326
post #7 of 108
My grandfather always said, work smart not hard.
post #8 of 108
One thing to notice in that graph is that Apples growth has precisely mirrored Nokia's decline.

C.
post #9 of 108
Just shows how much apple rip you off
post #10 of 108
Quote:
Originally Posted by paxman View Post

[snip]I'd rather see them make a little less and ensure their extended (third party) work force reap some of the benefits.

Indeed. With great wealth comes great responsibility. I'm a rabid fan of Apple products and am a shareholder. I DO want to see a company that values the people who make their products. Apple can be a valued mover in the world beyond providing really, really fantastic mobile and computing devices and software.
post #11 of 108
Quote:
Originally Posted by tjw View Post

Just shows how much apple rip you off

Perhaps Nokia should try to rip people off too before it starts making a loss?
I wonder why it doesn't?

C.
post #12 of 108
Quote:
Originally Posted by solipsism View Post

Android is a shot adrenaline for companies that were on their death bed. They get a short boost of energy but they are still in the same poorly managed, myopic position they were before.

The best description of Motorola (or now, Motorola Mobility) I have seen to date.
post #13 of 108
It's all about making money. If Apple truly cared about marketshare they would've licensed iOS and OSX a long time ago. Milking as much as they can out of it. If, that's if, profits starts taking a considerable tumble then who knows, maybe they'll reconsider.
post #14 of 108
So, sounds like Apple is overcharging, just a bit, doesn't it?
post #15 of 108
Quote:
Originally Posted by tjw View Post

Just shows how much apple rip you off

still, i buy from Apple insead of Nokia, Just like i buy from Lacoste instead of whatever brand WalMart sells, and from Audi instead of Kia. My point is the increase is cost is exponentially higher than the increase in quality in ANY market. Apple has the caché and the quality to justify their prices.
post #16 of 108
Quote:
Originally Posted by tjw View Post

Just shows how much apple rip you off

While it's truly wonderful these other companies are so altruistic with no interest in turning a profit and often losing money with their selfless choices, I have to wonder why their shareholders haven't complained that these for-profit companies are being so charitable with their investments. \
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
post #17 of 108
Quote:
Originally Posted by paxman View Post

Now that Apple is officially loaded I am hoping that in the future the company will make a larger more public (because I don't know what they are doing as per now) effort to share its wealth. It is great that Apple is making dollars hand over fist but I'd rather see them make a little less and ensure their extended (third party) work force reap some of the benefits. Not just in terms of cash, but also in terms of working conditions etc. Apple seems to be in a position now to set an example and I for one would appreciate it if they would.

An interesting article from Cnet that touches on this:
http://news.cnet.com/8301-13579_3-20...ag=topStories3

"needs to be dispersed"


WARNING! Potentially caustic sarcasm! Wear your big-boy undies!!!
Yep cuz Apple doesn't do anything that helps their third party assemblers' workers, nor any other social agenda item. There is NO evidence whatsoever that Apple is doing anything other than standing by blithely raking in the profits while poor workers are routinely exploited.

Back on topic, the profits are what allow Apple to forward speculate for future devices and to leverage technologies which are now bleeding edge but could become mainstream. You do not drive as much innovation as Apple does by immediately turning around and pouring all the profits back out the door in philanthropic ardor! Do you know what aid Apple is providing to non-profit orgs, what money gets matched to employee contributions and what key needs orgs are actively supported? Does Apple NEED to tell you this because there is so much negative publicity to counter (which is usually when a corporate office releases those news items)? How about a break-down of the philanthropies supported by the BOD or the executive officers? Would that help? And did you miss all the articles in which the specifics about Apple's requirements for their suppliers were on record in support of their workers?
post #18 of 108
Quote:
Originally Posted by justbobf View Post

So, sounds like Apple is overcharging, just a bit, doesn't it?

Or perhaps you, and others, are having a hard time distinguishing value ... from cost. .....
Apple is not Appl ...... Please learn the difference!    
Reply
Apple is not Appl ...... Please learn the difference!    
Reply
post #19 of 108
These are very powerful stats and position Apple's competitors for continued declines. These stats matter more than marketshare (which still matters, but is just one piece of the puzzle).

As Apple steals profits away from other manufacturers the money available for those manufacturers to invest in R&D becomes constrained. Without R&D they can't create new handsets to compete with Apple. Without new handsets profits will decline. Which means less money for R&D. Etc etc. Its a death spiral for all companies that aren't large and healthy enough to weather the significant investments needed to compete with Apple.
post #20 of 108
Quote:
Originally Posted by fecklesstechguy View Post

But everyone knows that the ONLY metric that counts is marketshare!!!! Profitability is a smokescreen for losers who can't pwn the market outright!!!


[terminate sarcasm autoresponse routine]

You beat me to it...

What is totally pathetic is the fact the people who continue to hammer Apple because they are not #1 in Volume Share (Forget market share since you could argue market share is the % of total revenue as well) is the fact that these people are a product of our fine Business School in the country. They think that the only way to be #1 and profitable is to ship more product than the other guy. Well that is true if you are in the race to the bottom.
post #21 of 108
Quote:
Originally Posted by tjw View Post

Just shows how much apple rip you off

Okay I'll take the bait...

It is only a rip off if you do not see the value and never wanted to pay that much. Remember you have choice, buy cheep and keep buying cheap or you buy something with value and having it for a long time...


I put it another way, Apple product cost me far less than the alternatives and add in the my stock value I way ahead of the game.
post #22 of 108
Quote:
Originally Posted by justbobf View Post

So, sounds like Apple is overcharging, just a bit, doesn't it?

Hardly overcharging. Its called 'economies of scale'. The other 49% of profit is across hundreds of different models of phones from multiple companies, who had to develop, market and service all those different handsets. How many models does Apple sell? Can anyone keep track of how many Android phones were just announces last week? Thats why no Android can come close to build quality of iPhones....

51% of profit comes from 1 model (now with a second variant).
post #23 of 108
Quote:
Originally Posted by tjw View Post

Just shows how much apple rip you off

Well, Microsoft just made LESS revenue and MORE profit than Apple. For a company whose main cash-cow products are essentially "duplicate at zero cost" bits...

... So enjoy your copy of Office.
I've accomplished my childhood's dream: My job consists mainly of playing with toys all day long.
Reply
I've accomplished my childhood's dream: My job consists mainly of playing with toys all day long.
Reply
post #24 of 108
Quote:
Originally Posted by Maestro64 View Post

Okay I'll take the bait...

It is only a rip off if you do not see the value and never wanted to pay that much.


To add to what you said, Value is a function of Cost/Price and Benefit. If Value is too low then the balance of Cost/Price and Benefit is wrong. Cost/Price is only too high if Benefit is too low, which would be reflected in low Value.

If Cost/Price is high, but benefit is also high then Value will be high and everything is okay.
post #25 of 108
Quote:
Originally Posted by LewysBlackmore View Post

WARNING! Potentially cautstic sarcasm! Wear your big-boy undies!!!

While you roll your eyes I am putting on my big boy undies so I can stand next to you. There! Now I am just like you.
Quote:
Back on topic, the profits are what allow Apple to forward speculate for future devices and to leverage technologies which are now bleeding edge but could become mainstream. You do not drive as much innovation as Apple does by immediately turning around and pouring all the profits back out the door in philanthropic ardor!

Who's arguing? But with 50 billion in the bank and recognized as one of the most profitable HW companies they would hardly be 'immediately turning around and pouring all the profits back out the door in philanthropic ardor'
Quote:
Do you know what aid Apple is providing to non-profit orgs, what money gets matched to employee contributions and what key needs orgs are actively supported? Does Apple NEED to tell you this because there is so much negative publicity to counter (which is usually when a corporate office releases those news items)? How about a break-down of the philanthropies supported by the BOD or the executive officers? Would that help? And did you miss all the articles in which the specifics about Apple's requirements for their suppliers were on record in support of their workers?

You clearly didn't read my post, but no, Apple doesn't NEED to do anything they don't want to do. I'd LIKE them to do something more public about these things, is what I am saying. When you are as big, as successful and as profitable as Apple it would be great to see them lead the way and be 'different' in this regard. I look for the cheapest deal like the next guy but it bothers me knowing that the only way I can get my cheap luxury goods some other guy can't adequately fend for his family. I have nothing against successful companies or people but I'd like to think the more successful you are the more ethical you feel you can be.
post #26 of 108
Quote:
Originally Posted by tjw View Post

Just shows how much apple rip you off



Are the trolls even trying anymore?

Originally Posted by asdasd

This is Appleinsider. It's all there for you but we can't do it for you.
Reply

Originally Posted by asdasd

This is Appleinsider. It's all there for you but we can't do it for you.
Reply
post #27 of 108
I continue to hear that Android is "winning". But exactly what is it "winning"?
post #28 of 108
Quote:
Originally Posted by justbobf View Post

So, sounds like Apple is overcharging, just a bit, doesn't it?

Who is the arbiter of what a fair price or fair profit margin is? You?
post #29 of 108
Quote:
Originally Posted by justbobf View Post

So, sounds like Apple is overcharging, just a bit, doesn't it?

Markets set prices, not companies.

C.
post #30 of 108
Quote:
Originally Posted by tjw View Post

Just shows how much apple rip you off

Is it a rip-off if you buy something and are happy with it? I think not!
post #31 of 108
Quote:
Originally Posted by tjw View Post

Just shows how much apple rip you off

Just shows how discriminating people will pay a fair price for quality.
"...The calm is on the water and part of us would linger by the shore, For ships are safe in harbor, but that's not what ships are for."
- Michael Lille -
Reply
"...The calm is on the water and part of us would linger by the shore, For ships are safe in harbor, but that's not what ships are for."
- Michael Lille -
Reply
post #32 of 108
Quote:
Originally Posted by solipsism View Post

Android is a shot adrenaline for companies that were on their death bed. They get a short boost of energy but they are still in the same poorly managed, myopic position they were before. We'll see in a couple years how many of these companies will be financially successful using Android. Personally, I think WP7 has a better chance at helping these companies recover longterm than Android.

Your sig???



"...The calm is on the water and part of us would linger by the shore, For ships are safe in harbor, but that's not what ships are for."
- Michael Lille -
Reply
"...The calm is on the water and part of us would linger by the shore, For ships are safe in harbor, but that's not what ships are for."
- Michael Lille -
Reply
post #33 of 108
Quote:
Originally Posted by justbobf View Post

So, sounds like Apple is overcharging, just a bit, doesn't it?

Such strange logic. According to you a company that is successful in a free market is overcharging. Your notion dictated that everyone else is undercharging so why aren't they charging more sice that is clearly how you think success with a product is had, not with consumer interest? If only they were smart enough to charge $1,000,000 per Android-based handset they would be killing Apple's bottom line¡ \

There is something called supply and demand. Apple's demand is huge, which is why they Lea in profit in the world's PMP, 'PC' and handset markets. It has nothing to fo with "overcharging".

Carniphage comment needs to be reitterated, "Markets set prices, not companies."
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
post #34 of 108
Apple right now is in the perfect place. The Driver's Seat in the Caravan of mobile phones.

Android seems to be getting all the attention, but of course they are racing of road. The manufacturers (Samsung, Motorola, etc.). Are getting some money.
Uncle Buck might be sticking a sticker on the hood of those cars (giving Google) a little bit of advertsing money. They are happy. Out in the woods they are more famous than Apple.

Nokia meanwhile is racing in the European circuit. They used to pay a lot of money to race there. They haven't noticed that the sponsors have bolted to greener pastures.

Palm, HP, Dell and the rest of the old folks are living in their past glory. They are convinced that things are gonna turn their way pretty soon. Its been a few years now. No one else is paying them any mind.

Rimm, was the old champion. But it is getting real hard for them to realize that the Car of Tommorrow started racing a few years back. Of course since they are not on the same classification as Apple, it is easy for them to say they are still on top.

Microsoft, meanwhile keeps waiting for the 'old' good old boys make their phones more aerodynamic. According to them, they have the engine ready to put in that car that will surely beat anything. Of course if it doesn't, it will be the fault of everyone else. (It really never is their fault.

Meanwhile, Apple has found the sweet spot. All the smart car people realize that they have done something a little unique here. Since they have the greatest driver, (Tom Cruise when he started driving). But he quickly learned to listen to the head Mechanic. They have made possible that the Car (I mean Phone) just keeps getting better and better.

Now, they have made it possible for more drivers to get behind the drivers seat. And what do you know. Its actually the car that is different. It is a better vehicle than all the rest. And it keeps getting better with alll the feedback that all the new drivers are giving. Sure Android gives others the same 'type' of ride. But it is just a little bit different, better.

As time goes on, more and more people will get their head out of the ground and try out this thing. It really only cost a little bit more to own and drive than those other things.
post #35 of 108
Quote:
Originally Posted by justbobf View Post

So, sounds like Apple is overcharging, just a bit, doesn't it?

$200 is more than reasonable for the iPhone, and is reasonable considering the prices being charged for comparable Android-based phones. It's the carriers that are getting ripped off.

iPad2 16 GB
iPhone 5 32 GB

Reply

iPad2 16 GB
iPhone 5 32 GB

Reply
post #36 of 108
Quote:
Originally Posted by freddych View Post

$200 is more than reasonable for the iPhone, and is reasonable considering the prices being charged for comparable Android-based phones. It's the carriers that are getting ripped off.

Actually it's the carriers that rip you off, for two whole years (against one payment up front for the device, subsidized or not).
"Daring Glueball" said it very well: It doesn't matter that much if android phones are cheaper or BOGO as long as the carriers stay the same.
I've accomplished my childhood's dream: My job consists mainly of playing with toys all day long.
Reply
I've accomplished my childhood's dream: My job consists mainly of playing with toys all day long.
Reply
post #37 of 108
Quote:
Originally Posted by paxman View Post

While you roll your eyes I am putting on my big boy undies so I can stand next to you. There! Now I am just like you.

Who's arguing? But with 50 billion in the bank and recognized as one of the most profitable HW companies they would hardly be 'immediately turning around and pouring all the profits back out the door in philanthropic ardor'

You clearly didn't read my post, but no, Apple doesn't NEED to do anything they don't want to do. I'd LIKE them to do something more public about these things, is what I am saying. When you are as big, as successful and as profitable as Apple it would be great to see them lead the way and be 'different' in this regard. I look for the cheapest deal like the next guy but it bothers me knowing that the only way I can get my cheap luxury goods some other guy can't adequately fend for his family. I have nothing against successful companies or people but I'd like to think the more successful you are the more ethical you feel you can be.

Well, yes, yes I did read your post. What I didn't read apparently was what you meant or intended to say, versus what you actually wrote! *grin*

The key issue for me is that you asked for more public disclosure of what they are doing philanthropically. Unlike you, and hence I suppose my sarcasm, I don't need to have Apple telling me all the nifty little things they are doing with their profits to help others. Most often in my experience among Fortune 500 companies, when they start talking about all the cool stuff they donate to or support, I start looking around for the news items that relate negatively to what they are doing. Because most often when a corporation starts talking about how diverse they are, or how much they support this or that non-profit it is a red herring to draw my attention away from some issue they want to go away.

Unfortunately, the companies that are building Apple (and everyone else's) devices are in fact creating a bit of a dichotomy for their countries - they are employing people in unprecedented numbers and raising the standard of living for tens of thousands. The backside to this is that while at first these newly employed workers have more money then they have ever had previously, the access to more money also raises the cost of living as they seek to obtain all the necessities and some of the luxuries they could not previously afford, creating higher demand and thus higher prices.

As far as any coverage about the working conditions are concerned in China and elsewhere - Apple is the only company using these manufactories that have actual standards for workers they require them to meet. This has been covered here in AI articles previously. No other company has been requiring these standards from their suppliers - and Apple has done this not just with the assembly lines but with the parts suppliers too. How much more proactive does Apple need to be to satisfy it's critics? Would the US allow such intrusion into manufacturing from companies outside the US?
post #38 of 108
Quote:
Originally Posted by tjw View Post

Just shows how much apple rip you off

Precisely.
post #39 of 108
I understand that there are AAPl investors on here ( as I am in a limited capacity), but it is also a site for fans. In that capacity the statement.

Apple is overcharging.

makes sense.

Although the Mac also makes money, and much of it over the $1000 mark, the fact remains that plenty of software is not available for it at 5% of the market place. In fact we are beholden to Apple and MS for a lot of stuff.

If these kind of figures continue - these relative market share declines or stagnations - then Apple will decline and the iOS platform will not be the app platform of first choice, or any choice, for developers.

Any students of Apple will know this. They really lost in the early 90's not the 80's. They survived the 80's because the race to the bottom took out the home computers, but in the early 90s they had a chance to become a large player - getting to 12% of the market in 1992 ( in effect taking over the vacuum left by the collapse by all other non-MS players).

Apple's reaction to this was to wallow in money. At 12% they may well have been the largest single computer manufacturer by unit ( or in the top 3) and certainly very high in revenue and profit. And then they lost to clones. Soon they were in the red. Soon they were < 3%.

Sure they start from a better place this time, but <10% is on the cards.

Apple can afford to sacrifice margin for volume - thats the story of growing to be one of the biggest electronic companies ever - and they have to. And they have to now. This year.
I wanted dsadsa bit it was taken.
Reply
I wanted dsadsa bit it was taken.
Reply
post #40 of 108
Quote:
Originally Posted by asdasd View Post

Apple is overcharging.

Nope. Control+Command+D tells me that "overcharging" means to charge someone "too much" for a product or service.

"Too much" would mean that no one can buy them. Seems that Apple sells more every quarter than the last. Guess that people don't think they're overcharging.

Quote:
...And they have to now. This year.

Not going to happen. Doesn't need to happen.

Originally Posted by asdasd

This is Appleinsider. It's all there for you but we can't do it for you.
Reply

Originally Posted by asdasd

This is Appleinsider. It's all there for you but we can't do it for you.
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: iPhone
AppleInsider › Forums › Mobile › iPhone › Apple's 4% mobile market share rakes in over half the industry's profit