or Connect
AppleInsider › Forums › Mobile › iPhone › Apple now earning 73% of global mobile profits with just 8.8% unit share
New Posts  All Forums:Forum Nav:

Apple now earning 73% of global mobile profits with just 8.8% unit share

post #1 of 24
Thread Starter 
While the worldwide market for mobile phones is growing rapidly, Apple is earning the majority of all profits despite only selling a small minority of the world's mobile devices.

According to an analysis of top handset vendors' reported earnings by Horace Dediu of Asymco, the combined operating profits from all mobile phones remained relatively stagnant below $6 billion per quarter for years until the release of Apple's iPhone 4.

Over the last two years however, mobile profits have skyrocketed, jumping from $5.3 billion at the start of 2010 to $14.4 billion over the most recent quarter. The beneficiary of that explosion in mobile profits has almost exclusively been Apple.

Apart from Apple and its 73% share of mobile profits, Samsung has remained the only other major phone maker to continue capable of turning a profit in the industry since the release of the iconic iPhone, despite the voracious global demand for mobile phones, and in particular the highly profitable smartphone, which has seen its unit sales grow by 47%.



When Apple introduced the original iPhone in 2007, the market leader was overwhelmingly Nokia, but Samsung, Sony Ericsson, LG, RIM and HTC were all profitable. In the last quarter, Nokia reported its first major quarterly loss of $1.2 billion, while former industry darlings RIM and HTC also reported dismal performance. Sony Ericsson, Motorola and LG have all failed to earn significant profits in the mobile business since 2009 or earlier.

Dediu notes that Apple's recent surge in profits "were mostly carrier premiums for the iPhone 4S," and that mobile carriers "willingly hand over these premiums because the iPhone ensures a competitive advantage or preserves their customer base from churning. The calculations that go into a decision to range the iPhone are compelling enough that 250 operators made the decision (though, crucially, there are still 250 who have not)."

He further observed, "the industry is rewarding those who can supply computers-as-phones which preserve the cash flows of what is essentially a trillion dollar data services business. Vendors which cannot offer this solution saw their businesses implode. At least on the high end."

The site's review of mobile industry profits punches a hole in recent reports by a variety of market analysts that congratulated Samsung for shipping the most smartphone units, but also tears apart a theory by BITG Research analyst Walter Piecyk that suggested Apple was about to lose the carrier subsidies that have padded its bottom line over the past two years.

Following Piecyk's note to investors early last month, Apple's stock dropped nearly 12% before recovering after the company reported blockbuster quarterly earnings.

Apple shares currently remain at $581, significantly below the company's all time high of $644 reached in the days before Piecyk voiced his fears of an end to carrier's subsidy payments.
post #2 of 24

Apple Is Doomed.™ I want that on a t-shirt.

 

And I'm surprised that RIM just literally fell off last quarter.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #3 of 24
Quote:
Originally Posted by Tallest Skil View Post

Apple Is Doomed.™ I want that on a t-shirt.

 

And I'm surprised that RIM just literally fell off last quarter.

 

Let's fill in all of the responses for the Apple haters to save them time so they can try to come up with some more creative trolling:


1. That's the Apple tax at work

 

2. Who cares about profits unless you're a stockholder?

 

3. So what? We're getting 800,000 activations per second.

 

4. Apple users are sheep (particularly fun when they can combine it with #3 while keeping a straight face)

 

5. The numbers must be lies. Everyone I know uses Android phones.

 

6. Even if it were true, so what? People need to be able to do whatever they want with their phones without Apple restricting their right to install malware.

 

Did I miss any?

"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
post #4 of 24
Quote:
Originally Posted by jragosta View Post

 

Let's fill in all of the responses for the Apple haters to save them time so they can try to come up with some more creative trolling:


1. That's the Apple tax at work

 

2. Who cares about profits unless you're a stockholder?

 

3. So what? We're getting 800,000 activations per second.

 

4. Apple users are sheep (particularly fun when they can combine it with #3 while keeping a straight face)

 

5. The numbers must be lies. Everyone I know uses Android phones.

 

6. Even if it were true, so what? People need to be able to do whatever they want with their phones without Apple restricting their right to install malware.

 

Did I miss any?

Why are you so quick to try and justify one company profiting so much?

 

The one answer is, just like all corporations, Apple is a faceless corporation, they only care about profit, and for the vast majority of people on this earth, they do not care how much money Apple is making, and in fact to a lot of people they will find it disgusting how much money Apple, and other corporations make on their products.

 

If you are an investor in Apple that's fine, maybe you enjoy this time of thing.  If you are not an investor in Apple, and are still getting excited by this articule then maybe you should get out more.

post #5 of 24
Quote:
Originally Posted by jfanning View Post

Quote:
Originally Posted by jragosta View Post

 

Let's fill in all of the responses for the Apple haters to save them time so they can try to come up with some more creative trolling:


1. That's the Apple tax at work

 

2. Who cares about profits unless you're a stockholder?

 

3. So what? We're getting 800,000 activations per second.

 

4. Apple users are sheep (particularly fun when they can combine it with #3 while keeping a straight face)

 

5. The numbers must be lies. Everyone I know uses Android phones.

 

6. Even if it were true, so what? People need to be able to do whatever they want with their phones without Apple restricting their right to install malware.

 

Did I miss any?

Why are you so quick to try and justify one company profiting so much?

 

The one answer is, just like all corporations, Apple is a faceless corporation, they only care about profit, and for the vast majority of people on this earth, they do not care how much money Apple is making, and in fact to a lot of people they will find it disgusting how much money Apple, and other corporations make on their products.

 

If you are an investor in Apple that's fine, maybe you enjoy this time of thing.  If you are not an investor in Apple, and are still getting excited by this articule then maybe you should get out more.

 

Similarly, if you have an emotional attachment to the fortunes of Nokia, this report must be quite painful to read.

post #6 of 24
Quote:
Originally Posted by jfanning View Post

Why are you so quick to try and justify one company profiting so much?

 

The one answer is, just like all corporations, Apple is a faceless corporation, they only care about profit, and for the vast majority of people on this earth, they do not care how much money Apple is making, and in fact to a lot of people they will find it disgusting how much money Apple, and other corporations make on their products.

 

If you are an investor in Apple that's fine, maybe you enjoy this time of thing.  If you are not an investor in Apple, and are still getting excited by this articule then maybe you should get out more.

 

That's answer #2.

 

In the end, there's nothing to justify. This is the result of a variety of factors. What it means is that:

1. Apple has produced a device that's in very high demand and sells lots of units because of it's features and designs.

2. Apple has managed to introduce this industry - leading product at a competitive price.

3. Apple managed to reduce manufacturing costs enough to be profitable even when selling the product at a competitive price.

4. Because of that, Apple will be able to continue to innovate and bring out future, competitive products with features that are valued by the market.

Everyone benefits - except Apple's competitors/copyists.

"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
post #7 of 24
73% of global mobile profits with just 8.8% unit share (Click to show)

 

 

Everything is in the title. No need to add anything.

 

 

lol.giflol.giflol.gif
 

post #8 of 24
Android makers are canabilizing them selves with this nonsense of releasing so many phones so fast. They never get the cuts on production that apple gets because they never make enough of 1 model for that to happend. And since they release a new model every 3 months...

Samsung is the biggest seller of phones and still apple earns 73% of the profits. If that does not tells you your model is not working I don't know what will. Nokia really has a chance here, with the poor earning on android makers and rim going down with the new blackberry 10, as long as Nokia matches somewhat apple earning for unit IMHO they can over take android makers in a few years...
post #9 of 24

So either the iphone is so insanely great and far and above anything else on the market that its 8% market share warrants a 70% profit share, or apple is ripping us off.  Apple ripping us off? Nah...

post #10 of 24
Quote:
Originally Posted by myapplelove View Post
So either the iphone is so insanely great and far and above anything else on the market that its 8% market share warrants a 70% profit share, or apple is ripping us off.  Apple ripping us off? Nah...

 

That's an octuple-edged sword you're holding there.

 

On the one hand, we're getting "ripped off". On the other hand, Apple could easily drop the price, take 100% marketshare, and still have 100% of the profits.

 

Android loses both ways.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #11 of 24
Quote:
Originally Posted by jragosta View Post

 

Let's fill in all of the responses for the Apple haters to save them time so they can try to come up with some more creative trolling:


1. That's the Apple tax at work

 

2. Who cares about profits unless you're a stockholder?

 

3. So what? We're getting 800,000 activations per second.

 

4. Apple users are sheep (particularly fun when they can combine it with #3 while keeping a straight face)

 

5. The numbers must be lies. Everyone I know uses Android phones.

 

6. Even if it were true, so what? People need to be able to do whatever they want with their phones without Apple restricting their right to install malware.

 

Did I miss any?

 

Looks like my strategy worked. Well over 5 hours and only a handful of responses. I guess I got all the Android responses for them.

"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
post #12 of 24
Quote:
Originally Posted by Tallest Skil View Post

That's an octuple-edged sword you're holding there.

 

On the one hand, we're getting "ripped off". On the other hand, Apple could easily drop the price, take 100% marketshare, and still have 100% of the profits.

 

Android loses both ways.

 

And like my pappy always said, "An octopus with a sword is a bad thing.".

 

True story.

 

Quote:
Originally Posted by jragosta View Post

 

Looks like my strategy worked. Well over 5 hours and only a handful of responses. I guess I got all the Android responses for them.

 

I think the expression that you were looking for was 'owned'.

 

You owned them good and proper.

post #13 of 24
Quote:
Originally Posted by jfanning View Post

Why are you so quick to try and justify one company profiting so much?

 

The one answer is, just like all corporations, Apple is a faceless corporation, they only care about profit, and for the vast majority of people on this earth, they do not care how much money Apple is making, and in fact to a lot of people they will find it disgusting how much money Apple, and other corporations make on their products.

 

If you are an investor in Apple that's fine, maybe you enjoy this time of thing.  If you are not an investor in Apple, and are still getting excited by this articule then maybe you should get out more.

 

This is a common misconception.

 

Many 'Apple evangelists' love the fact that Apple is a company that is so successful because they are exactly the opposite of your description. Apple is an example of how all business's should operate these days.

 

Profit has never been what drives them, but it has been the result of what really drives them.

 

And why is making money so 'disgusting'?

 

That's a strange comment.

post #14 of 24
Quote:
Originally Posted by jragosta View Post

 

That's answer #2.

 

In the end, there's nothing to justify. This is the result of a variety of factors. What it means is that:

1. Apple has produced a device that's in very high demand and sells lots of units because of it's features and designs.

2. Apple has managed to introduce this industry - leading product at a competitive price.

3. Apple managed to reduce manufacturing costs enough to be profitable even when selling the product at a competitive price.

4. Because of that, Apple will be able to continue to innovate and bring out future, competitive products with features that are valued by the market.

Everyone benefits - except Apple's competitors/copyists.

 

Straight back to number 3, the vast majority of people either don't care, or will be highly offended by how much money Apple is making off the device.  And, even though you ignored this part of my post, they are equally offended at other companies in same situation.  The only person who is directing this argument to Apple is you, you starting a pointless argument that wouldn't have been followed up on had you not made it.

 

Not everyone benefits, stop claiming they are.

post #15 of 24
Quote:
Originally Posted by GTR View Post

 

This is a common misconception.

 

Many 'Apple evangelists' love the fact that Apple is a company that is so successful because they are exactly the opposite of your description. Apple is an example of how all business's should operate these days.

 

Profit has never been what drives them, but it has been the result of what really drives them.

 

And why is making money so 'disgusting'?

 

That's a strange comment.

 

If that's what excited you then you must have a pretty boring life.  Apple, like Samsung, Dell, Microsoft, etc etc are faceless corporations that are only there to make money for their shareholders.

 

And I didn't say making money is disgusting, and I don't think it is, don't make things up to try and get something across.

post #16 of 24
Actually, it looks to me like Android is doomed.

Sure they raced and sold a lot of phones in places where Apple has taken longer to reach, but it seems more and more clear that the iPhone is smoking Android in the US. Simply everyone I see has them. They out sell all smartphone at the three major US carriers.

With Google still trying to answer Siri, and everyday giving Apple time to work on the next great thing, as well as the trouble Google has trying to push anything new and cool out to its users, I just don't see how they can win on phones, not even mentioning tablets. Then there is MS stuff which will fragment the "anything but Apple" crowd even more.

The whole reason developers got into Android was that it seemed to be the future, with the iPhone seemingly going the way of the Mac. As it becomes clear that isn't happening in the US, english speaking developers might not be as eager to continue the Android mess.

I think Google has hit a wall and are fresh out of ideas and they know it.
post #17 of 24

Hmmm.....I wonder why there are almost no Androiders in this thread....

post #18 of 24
Quote:
Originally Posted by Icelus View Post
I think Google has hit a wall and are fresh out of ideas and they know it.

 

But all Apple does is steal features from Android. When Android runs out of features, so will Apple.

 

There. That'll get 'em riled up. lol.gif

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #19 of 24
Quote:
Originally Posted by jfanning View Post

 

If that's what excited you then you must have a pretty boring life.  Apple, like Samsung, Dell, Microsoft, etc etc are faceless corporations that are only there to make money for their shareholders.

 

And I didn't say making money is disgusting, and I don't think it is, don't make things up to try and get something across.

 

Recognition of excellence is nothing to be ashamed of, my friend, and I still have enough of a life to ensure that my post count here isn't too high. (>_<)

 

I disagree with your perception that all of those corporations are faceless.

 

For the average person, Apple is still Jobs/Cook, Microsoft is still Gates/Ballmer.

 

However, Samsung, there's the personification of facelessness. ;-)

 

I'm sorry. When I read your statement:

 

The one answer is, just like all corporations, Apple is a faceless corporation, they only care about profit, and for the vast majority of people on this earth, they do not care how much money Apple is making, and in fact to a lot of people they will find it disgusting how much money Apple, and other corporations make on their products.

 

...without any hard evidence to back it up I mistook it for your opinion, which actually is you saying that.

 

 

Quote:
Originally Posted by Tallest Skil View Post

 

But all Apple does is steal features from Android. When Android runs out of features, so will Apple.

 

There. That'll get 'em riled up. lol.gif

 

Yep.

 

Notifications and beam.

 

Apple really went to town and did a proper job on Android.

post #20 of 24

Apple, like Samsung, Dell, Microsoft, etc etc are faceless corporations that are only there to make money for their shareholders.

 

You're right. Apple WAS a faceless company--from 1985 to 1997. But Apple DOES have a face...and a spirit to go with it.

 

 

Steve.png

"You can't fall off the floor"   From 128k Mac to 8GB MBP

Reply

"You can't fall off the floor"   From 128k Mac to 8GB MBP

Reply
post #21 of 24

One aspect of "the truth" is that Android users are generally geeks who love all the techy stuff that goes with Android - agonising over which product to buy and fantasising about the latest octo-core processor or 800 megapixel camera. These guys (and gals) will upgrade their handsets much more regularly in order to get their techno-fix. Furthermore in order to get the latest and greatest version of Andoid in general you HAVE to upgrade.

 

This all explains why:

 

1. The stats show that iPhones generate three times as much data traffic as Android phones for the number sold - basically many Android phones get shoved on the shelf when the next one comes along.

2. The carriers love the iPhone because there is much less churn.

 

Android might be selling more phones, but that does not equate to more phones actually in use. This will benefit Apple in the long run as developers continue to find much more revenue from the iPhone user base than they get from Android. This will only accelerate as the iPad continues to dominate the market and other iOS devices cement the ecosystem's appeal.

 

Interestingly whilst at first the iPhone opened doors for the iPad, my corporate pals tell me that now it is the iPad, in the absence of any credible competition, that is closing down on Android use in corporates. And companies are quickly moving from a model of employees having laptops to employees using desktops in conjunction with iPads. Not across the board (some employees are too mobile to use a desktop) but in many cases a desktop is much more productive than a laptop and the iPad is a great adjunct that works well in meetings and is hyper-portable for travel.

 

Finally, I agree that it is ridiculous that Apple is making such vast profits. They are clearly doing this because they can, and the reason they can is the absence of realistic competition. I am sure that they are managing the yield curve very professionally and are very happy with their market share of shipped units. However if they chose to reduce their margins they could obviously clear up in the marketplace, but that would not be good for anyone. Better to continue to operate as they do while they can, and when the market picks up and there is decent competition out there they will then be forced to reduce their margins.

 

That's the way the market operates but there are BIG lessons for other companies to learn from how professionally Apple is operating right now. You might not like it but the reasons that Apple can make such vast profits are not that they are simply ripping people off (the market should stop that) but that no-one else is effectively competing with them at present. And that's not Apple's fault...

The truth is behind you
Reply
The truth is behind you
Reply
post #22 of 24
Quote:
Originally Posted by jfanning View Post

Why are you so quick to try and justify one company profiting so much?

 

The one answer is, just like all corporations, Apple is a faceless corporation, they only care about profit, and for the vast majority of people on this earth, they do not care how much money Apple is making, and in fact to a lot of people they will find it disgusting how much money Apple, and other corporations make on their products.

 

If you are an investor in Apple that's fine, maybe you enjoy this time of thing.  If you are not an investor in Apple, and are still getting excited by this articule then maybe you should get out more.

I'm so tired of this inept logic.  Corporations exist for 1 purpose, to make money.  Corporations in fact hire people so when a corporation makes more profit it grows, when it grows it creates jobs, when it creates jobs more of the population makes money.  Profit doesn't have anything to do with a company being good or bad, you are mixing individual income with corporate income & they aren't at all the same.  

 

All that being said Apple is hardly doing anything wrong, they make a product that people want and they are profiting off it.  Despite what you insinuate Apple does in fact give to charity, they gave over 50million in the product red campaign (remember that one?) and they've given a lot of money to Stanford University Hospital.  Could they give more?  Probably.  Could they lower profit margin?  Definitely.  None of that makes them evil or faceless, it's their right to decide what they do with the money they take in.

 

I personally would love to see Apple products get more affordable, but it would be a fallacy for me to call them evil just because they don't.  It's just sickening the way some people twist prosperity into being a bad thing.

post #23 of 24
Quote:
Originally Posted by hezetation View Post

I'm so tired of this inept logic.  Corporations exist for 1 purpose, to make money.  Corporations in fact hire people so when a corporation makes more profit it grows, when it grows it creates jobs, when it creates jobs more of the population makes money.  Profit doesn't have anything to do with a company being good or bad, you are mixing individual income with corporate income & they aren't at all the same.  

 

All that being said Apple is hardly doing anything wrong, they make a product that people want and they are profiting off it.  Despite what you insinuate Apple does in fact give to charity, they gave over 50million in the product red campaign (remember that one?) and they've given a lot of money to Stanford University Hospital.  Could they give more?  Probably.  Could they lower profit margin?  Definitely.  None of that makes them evil or faceless, it's their right to decide what they do with the money they take in.

 

I personally would love to see Apple products get more affordable, but it would be a fallacy for me to call them evil just because they don't.  It's just sickening the way some people twist prosperity into being a bad thing.

 

What inept logic?  Or are you discussing your logic?  I have never said profit was bad,  if you thin I have please post a quote stating so.  I have some people find how much they make to be disgusting. There is a massive difference between profit and excessive profit.

 

And what are you going on about with their donations for?  I am not an american, I don't care how much they give to Stanford hospital, why would I?  I would far rather than give me a discount and I would donate that to a charity I care about.  Remember that donation is money their shareholders no longer have, how does that donation benefit their shareholders?

post #24 of 24
Quote:
Originally Posted by GTR View Post

 

Recognition of excellence is nothing to be ashamed of, my friend, and I still have enough of a life to ensure that my post count here isn't too high. (>_<)

 

I disagree with your perception that all of those corporations are faceless.

 

For the average person, Apple is still Jobs/Cook, Microsoft is still Gates/Ballmer.

 

However, Samsung, there's the personification of facelessness. ;-)

 

I'm sorry. When I read your statement:

 

The one answer is, just like all corporations, Apple is a faceless corporation, they only care about profit, and for the vast majority of people on this earth, they do not care how much money Apple is making, and in fact to a lot of people they will find it disgusting how much money Apple, and other corporations make on their products.

 

...without any hard evidence to back it up I mistook it for your opinion, which actually is you saying that.

 

 

 

I'm not sure what you point is about post count, I have been a member here for a long time, my post count is very low.

 

I didn't say I said it, I said people fine it.  I think you will find most people will be disgusted when they find out how much money some corporations are making on their items.  This isn't restricted to Apple.

 

Personally I think that people that place a companies like Apple down to one person is an insult to the people that actually do the work.

New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: iPhone
  • Apple now earning 73% of global mobile profits with just 8.8% unit share
AppleInsider › Forums › Mobile › iPhone › Apple now earning 73% of global mobile profits with just 8.8% unit share