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Apple to eat up increasing share of mobile revenues and profits next year

post #1 of 21
Thread Starter 
While Apple doesn't sell more smartphones than all other device makers put together, it does earn more profits that the rest of the industry combined, and its profit share is expected to continue to grow in 2012.

According to an investor report by Oppenheimer published in part by Fortune, Apple's share of smartphone shipments have put it in second place behind Samsung but above long time leader Nokia.

However, Apple's share of the smartphone market's revenues has increased at a much faster pace, with the company taking in nearly 40 percent of all mobile dollars.

In terms of profits, however, Apple is inhaling closer to 65 percent of the industry, and the company is expected to retain and even grow its outstanding revenue percentage next year.



Nokia's shipments have conversely collapsed over the same seven year period, falling from nearly half of all smartphones sold in 2006 before the iPhone appeared to just over an estimated 10 percent next year.

Samsung and HTC are the only other companies to significantly and consistently experience growth in shipments since the iPhone appeared, but neither has been able to replicate Apple's performance in generating steady increases in both revenue share and operating profits.
post #2 of 21
Android is winning¡
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?"
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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?"
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post #3 of 21
Quote:
Originally Posted by solipsism View Post

Android is winning¡

Obligatory "500,000 activations a day" line.

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Originally Posted by asdasd

This is Appleinsider. It's all there for you but we can't do it for you.
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post #4 of 21
Quote:
Originally Posted by solipsism View Post

Android is winning¡

The value of something you give away for free is "0".
post #5 of 21
MeThinks Oppenheimer is stealing the research of Horace Deidu of Asymco.com.
post #6 of 21
Quote:
Originally Posted by FreeRange View Post

The value of something you give away for free is "0".

So the iPhone 3GS is worth "0"?

All the BOGO and "give them away free" comments have to be let go of now that the 3GS is free (yes, with a contract, but that's true of all the other phones, too).
post #7 of 21
Quote:
Originally Posted by rhyde View Post

So the iPhone 3GS is worth "0"?

All the BOGO and "give them away free" comments have to be let go of now that the 3GS is free (yes, with a contract, but that's true of all the other phones, too).

I think he was referring to the Android OS.

But, that argument also doesn't hold up that well either. The business model to give away your OS and make money through advertising is innovative. It seems to be helping Android gain a nice chunk of the market. It remains to be seen if the model will work long term, and how much Android's IP theft will cost the company.
post #8 of 21
Quote:
Originally Posted by rhyde View Post

So the iPhone 3GS is worth "0"?

All the BOGO and "give them away free" comments have to be let go of now that the 3GS is free (yes, with a contract, but that's true of all the other phones, too).

I think it is obvious the one who is giving Android for free is Google, not the handset makers. The 3GS is now a 2 year-old phone and I bet Apple makes on more profit out of it than the majority of Android handsets. I wonder if it will be updated to iOS6, it should if it will still be on sale by the release of iOS6.

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iPod nano 5th Gen 8GB Orange, iPad 3rd Gen WiFi 32GB White
MacBook Pro 15" Core i7 2.66GHz 8GB RAM 120GB Intel 320M
Mac mini Core 2 Duo 2.4GHz 8GB RAM, iPhone 5 32GB Black

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post #9 of 21
Just think of all those people who would then upgrade to a $99 or a $49 dollar iPhone 4 that will run iOS 6, when iPhone 5 comes out.

Apple is actively cornering the low end quite handily I say.
post #10 of 21
Quote:
Originally Posted by solipsism View Post

Android is winning¡



But when will the stock market get it?
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Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
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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 #11 of 21
Quote:
Originally Posted by solipsism View Post

Android is winning¡

Methinks you should stay off the meds Solips..
post #12 of 21
Quote:
Originally Posted by Vatdoro View Post

I think he was referring to the Android OS.

But, that argument also doesn't hold up that well either. The business model to give away your OS and make money through advertising is innovative. It seems to be helping Android gain a nice chunk of the market. It remains to be seen if the model will work long term, and how much Android's IP theft will cost the company.

Yes. Google had a good relationship with Apple until Jobs discovered Schmidt was passing on iPhone secrets to Google. Making enemies of Apple by stealing Apple's IP is going to be a huge mistake.

According to Google's evidence to Congress two-thirds of mobile search queries comes from iOS devices.

With Siri Apple can now start diverting those Google search queries! OUCH!

Also Amazon will be able to do the same with their tablets! OUCH!
post #13 of 21
Quote:
Originally Posted by sflocal View Post

Methinks you should stay off the meds Solips..

Don't miss out on my irony mark (¡).
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?"
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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?"
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post #14 of 21
Let them bleed till one standing......
iMac i7
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iMac i7
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post #15 of 21
I do wonder how long Apple can keep demanding the higher subsidies it receives from carriers. When the iPhone was originally released it was an AT&T exclusive it was easy to justify the extra cost because attracted new customers. You had to switch to AT&T. But these days the iPhone is on most major networks. It no longer gives carriers the advantage of exclusivity.
post #16 of 21
Quote:
Originally Posted by Orlando View Post

I do wonder how long Apple can keep demanding the higher subsidies it receives from carriers. When the iPhone was originally released it was an AT&T exclusive it was easy to justify the extra cost because attracted new customers. You had to switch to AT&T. But these days the iPhone is on most major networks. It no longer gives carriers the advantage of exclusivity.

But losing it would certainly be a problem, right? Thus, Apple can still charge the high subsidies because they can just say OK carrier, you won't pay $700 per phone, you get no phone. The harm to the carrier is far greater than it is to Apple.
post #17 of 21
Quote:
Originally Posted by digitalclips View Post



But when will the stock market get it?

The stock market won't get it. If they haven't gotten it by now, I'm certain they never will. Wall Street is betting against Apple's long-term success at this very moment. I think Apple's dropping share price in a rising stock market shows that much. When Wall Street bets on the Kindle Fire as being able to unseat the iPad then you know that the sensibilities of Wall Street have pretty much been tossed away.
post #18 of 21
Quote:
Originally Posted by digitalclips View Post



But when will the stock market get it?

I hope the stock market takes a while to get its act together so I can hoard some shares of Apple. I still have a good laugh when I see that the stock market is ready to pay over 100x earnings for Amazon and people still call Apple overvalued.
post #19 of 21
Quote:
Originally Posted by Vatdoro View Post

I think he was referring to the Android OS.

But, that argument also doesn't hold up that well either. The business model to give away your OS and make money through advertising is innovative. It seems to be helping Android gain a nice chunk of the market. It remains to be seen if the model will work long term, and how much Android's IP theft will cost the company.

I think the Android model is flawed. In the most recent earnings report, there was hardly any mention of Android. And we still don't know how much Google actually makes off of Android. Rumor has it that Google is either losing money on Android or just barely breaking even.
post #20 of 21
Quote:
Originally Posted by Constable Odo View Post

The stock market won't get it. If they haven't gotten it by now, I'm certain they never will. Wall Street is betting against Apple's long-term success at this very moment. I think Apple's dropping share price in a rising stock market shows that much. When Wall Street bets on the Kindle Fire as being able to unseat the iPad then you know that the sensibilities of Wall Street have pretty much been tossed away.

No one has accused Wall Street of being right all the time. In its infinite wisdom, Wall Street has decided that Amazon is worth 100x earnings, Google is worth 20x earnings, while Apple is worth only 15x earnings despite everything they've done so far.
post #21 of 21
Quote:
Originally Posted by vvswarup View Post

No one has accused Wall Street of being right all the time. In its infinite wisdom, Wall Street has decided that Amazon is worth 100x earnings, Google is worth 20x earnings, while Apple is worth only 15x earnings despite everything they've done so far.

Amazon's PE is actual up to 116 now. Apple is at 13.7

Amazon could lose $200 million this quarter. Apple could earn $10 billion

Amazon's profit margin is 0 to 3%. Apple's is 25%

At some point, it all catches up to you. And the fall will be swift and severe. I just wish I had some balls to short this POS

Windows survivor - after a long, epic and painful struggle. Very long AAPL

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Windows survivor - after a long, epic and painful struggle. Very long AAPL

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