Originally Posted by Apple v. Samsung
Yes samsung is paying to make millions of Galaxy S phones just to say they sold them. What are you thinking!!! No company does anything like that. Samsung makes phones and sells most of them. If they said 40 million shipped you do know that at least 90% of them are sold. Why else would they bother to spend the money to make 40 million phones. Bragging about sells is not worth that much as you can see no company that is struggling is bragging about sells. You don't see Blackberry touting they shipped 30 million z10s just to say it.
Have you ever noticed how when you walk into a bookstore -- OK, that might be a bit retro for our younger viewers, but hang with me -- and you see an entire floor-to-cieling display of some new book? There's also a table near the cash-out with tons of this same book. But no matter how many times you go in there to get a latte and read for free, the number of books never seems to change? You ask the nice lady at cash-out if it's selling, and she says, "Not really. A few here, a few there."
One day you open the NYT and see it's the #1 "Best Seller." It's sort of like that.
Look at Amazon and the Kindle Fire. They sell it at a loss, hoping for backdoor profits through their ecosystem.
Now, I don't know what Samsung does or doesn't do with their numbers. But they certainly aren't making anywhere near the amount of profits that Apple makes from the iPhone. So, if they are "selling" more than Apple worldwide then there are two possibilities:
1) They really are selling these units to consumers, but they have a very small (almost non-existent) margin.
2) They aren't really selling them at all, but their shipment numbers are very high compared to their sales numbers.
If I'm wrong, and you can think of a third way to explain this situation, I'd be more than happy to hear it. Thanks.