I do wonder if Apple might do better in the long term if they dropped the price of the iPhone.
Obviously the profitability they have at the moment is frankly stunning - it's hard to believe that data is possible! WIth that said, as lower end of the market increasingly becomes smart phone based as well, is it possible that Apple might find themselves losing out in app development, due to their lower volumes?
What I'm getting at is, is there a tipping point where application developers, who don't make any money on hardware sales, will decide to focus all of their efforts on the high volume platform, as opposed to the platform that makes most money for the hardware manufacturer?
I don't think dropping the price would help much. Presumably the carriers are contractually obliged to sell the phones at set prices and the "high price" of the iPhone reflects how much of a premium Apple can charge carriers over what other manufacturers charge them. Dropping the price would only really help in territories where pay as you go is more common.
Incredible results, but it's not surprising, given the competition and their lackluster, uninspiring, copycat products.
Apple should never enter the low end market. The other manufacturers, like those who make phones for bums (Android), already have that market covered and there's not that much money to be made in that low end market, something which these charts prove. And who wants those kinds of customers anyway? Those people are cheapskates and they also aren't very tech savvy, as price is the main issue for them when getting a new device.
Out of all the figures that Fandroids like to regurgitate, the profitability figure is something that you won't see them mentioning at all, because Apple is just killing everybody else in that area. Apple is destroying the competition.
Apple's enormous success proves that people are willing to pay for excellent products. It's not all about the cheapest price, which is what many of the other companies use as their strategy.
As a matter of fact, I wouldn't mind if Apple would raise the price of the next iPad by $100 (especially if it's super hi-res), because the demand will be too great for it when it eventually comes out and Apple should weed out the cheapskates who go for low end tablets, and make sure that those kind of people stay in the low end of things. Those people aren't important to Apple's bottom line and Apple should never pursue that demographic. People who appreciate great tech don't have any second doubts about buying any Apple device.
Other vendors stuff the channel and hope to sell what they can. In other words, other vendors ship as many phones, but they sell a small percentage of phones to end customers.
It points to the majority of th market buying cheaper, low end, feature and smartphones.
There's a lot of Android out there but it isn't all on Galaxy II's, Evo's, Nexus and other high end models.
I do wonder if Apple might do better in the long term if they dropped the price of the iPhone.
Obviously the profitability they have at the moment is frankly stunning - it's hard to believe that data is possible! WIth that said, as lower end of the market increasingly becomes smart phone based as well, is it possible that Apple might find themselves losing out in app development, due to their lower volumes?
What I'm getting at is, is there a tipping point where application developers, who don't make any money on hardware sales, will decide to focus all of their efforts on the high volume platform, as opposed to the platform that makes most money for the hardware manufacturer?
Paul,you seem to be Rip Van Winkle.
Are you not aware that most App developers choose Apple first for the simple reason they make much more money with iOS than any other OS?
Android, the only real competitor for Apple, is a nightmare for developers, because it is so fragmented. Additionally, Android users are less affluent than iPhones', and spend far less than iOS users on Apps.
Developers follow the money, and iOS is where the money is for them.
So what you are saying is apple is ripping us off?
No, Apple is not ripping their customers off. Their customers are willing to pay an exorbitant amount of money for a product that has very little advantages compared to their competitors.
Incredible results, but it's not surprising, given the competition and their lackluster, uninspiring, copycat products.
Apple should never enter the low end market. The other manufacturers, like those who make phones for bums (Android), already have that market covered and there's not that much money to be made in that low end market, something which these charts prove. And who wants those kinds of customers anyway? Those people are cheapskates and they also aren't very tech savvy, as price is the main issue for them when getting a new device.
Out of all the figures that Fandroids like to regurgitate, the profitability figure is something that you won't see them mentioning at all, because Apple is just killing everybody else in that area. Apple is destroying the competition.
Apple's enormous success proves that people are willing to pay for excellent products. It's not all about the cheapest price, which is what many of the other companies use as their strategy.
As a matter of fact, I wouldn't mind if Apple would raise the price of the next iPad by $100 (especially if it's super hi-res), because the demand will be too great for it when it eventually comes out and Apple should weed out the cheapskates who go for low end tablets, and make sure that those kind of people stay in the low end of things. Those people aren't important to Apple's bottom line and Apple should never pursue that demographic. People who appreciate great tech don't have any second doubts about buying any Apple device.
You're a bit dumb, aren't you? A 3GS for $49 is low end, they're already there.
No, Apple is not ripping their customers off. Their customers are willing to pay an exorbitant amount of money for a product that has very little advantages compared to their competitors.
Exorbitant amount of money for the iPhone?
Oh crap... I got sucked into Slapppy's troll trap!
You're a bit dumb, aren't you? A 3GS for $49 is low end, they're already there.
The 3GS isn't a low-end phone. It's an older phone that is still being sold for a low-price. A low-end phone is one that comes to market at a low-price.
No, Apple is not ripping their customers off. Their customers are willing to pay [snip] for a product that has [snip] advantages compared to their competitors.
Wow, even slapppy acknowledges iPhones have an advantage over the competition.
The 3GS isn't a low-end phone. It's an older phone that is still being sold for a low-price. A low-end phone is one that comes to market at a low-price.
Of course it is. It has a slow processor, can't run the newest OS, made of cheap plastic, and sells at a low price. That's low end.
So riddle me this Batman, why does Apple continue to manufacture and sell it?
Its a starter iPhone? Get more people into the ecosystem at a low price? That my friend is the low end market.
But it's low end now in 2012. You getting a bit of Apple ][itis as well?
Low-end because it's been on the market for 3 years, NOT because it was introduced to market as a low-end phone, hence your comment about it being slower and having a plastic casing (really?) are pointless.
You're a bit dumb, aren't you? A 3GS for $49 is low end, they're already there.
As Solipsism already pointed out to you, it appears that you are the dumb one. The 3GS is years old, it's not a new phone.
And the interesting thing is that even with that years old, low priced phone model, not many people are opting for that option anyway. Almost everybody is grabbing a new iPhone 4S when they go to make their purchase.
As Solipsism already pointed out to you, it appears that you are the dumb one. The 3GS is years old, it's not a new phone.
And the interesting thing is that even with that years old, low priced phone model, not many people are opting for that option anyway. Almost everybody is grabbing a new iPhone 4S when they go to make their purchase.
4% of how many millions? So when I walk into a Apple store am I buying a phone that's been sitting around since 2009? It outsells most if not all individual models of Android phones. So a great many people are choosing it. A "low end" Android sells at twice the price and has comparable specs. All that equates to low end. Neither you nor soli have given an explanation as to why Apple keeps selling it especially since its only 4% of iPhones sold. What market are they after? And what's the difference between that market and the so called "low end" market?
I'm not an Apple stockholder.. and this new still makes me happy.
Why? Because it tells me that other people see the value in Apple products just like I do. And as long as the company continues to profit well of their formula thats been so successful, they will continue to deliver excellent products instead getting into low price leader wars like pretty much every other consumer electronics company. If their product model wasnt working and sales were falling (i.e. Netbooks) then you'd see a company change their ways and try another strategy (i.e. notice how everybody is now producing Ultrabooks instead of Netbooks).
For the longest I was an Apple hater. I thought they were overpriced, lacked features and only Apple sheep got them. Then I got a Creative Labs mp3 player in 2004. And it sucked. (Remember that, its the most important part of the story). After watching many other people, including my best friend start to use an iPod at the gym. I decided as a christmas present to myself.. to buy a 1st gen iPod Nano 4GB. It was awesome! (also an important part). It was so much better than the CL mp3 player.. I couldnt believe it. A few years later I got tired of my Blackberries dying and the poor web browser/game selection on them. They sucked. (see the trend). So in June 2009 I bought an iPhone3GS.. and again it was awesome. I later bought an HP laptop that same year. IT SUCKED!!!!! (did I even need to say it). Sold the HP within 6 months and bought a Macbook Pro 13".. and yes it was awesome. Long story short.. I now have an Apple Macbook Air 13", iPad2, Apple Extreme router, Apple TV, iPhone4 and 4S (still need to sale my old 4).. and they all fukking rock!! As if the story couldnt get anymore awesome, Apple just replaced my 1st Gen Nano with a new (free) replacement 6G iPod Nano 8GB. And I have the watch band.
While the Apple haters will call me a fanboy. The other millions of people who also enjoy Apple products.. and are the reason why they are making 75% of the profit, with just 9% of the market understand what I do. And thats that.. ultimately its worth the Apple "tax" for a product that looks great, works great and delivers a much better user experience. Its something you really cant explain in words, but when you use an Apple product you understand that difference. It doesnt feel cheap, it isnt laggy or bogged down, its so simple to use you dont need to read the manual, it looks and feels like its made out of 1st class materials.. and most importantly.. IT JUST WORKS. All of that leads to an awesome experience.. where price is really your last concern. You get so spoiled by the user experience.. that paying more becomes less of a concern. And its no secret millions of other people have found out exactly what I have.
4% of how many millions? It outsells most if not all individual models of Android phones. So a great many people are choosing it. A "low end" Android sells at twice the price and has comparable specs. All that equates to low end.
Is this 1988 Rolls Royce Phantom at $27k a low-end car? No! It's a low cost for a Rolls Royce because it's used and a quarter century old. When we're talking about low-end without qualifiers we are specifically talking about products that were designed and marketed for the low-end of the market upon arrival, not because they were made cheaper because newer products naturally came to market. Saying that the iPhone 3GS from 2009 is the low-end of the iPhone family is not same as calling the iPhone 3GS a low-end phone.
Comments
I do wonder if Apple might do better in the long term if they dropped the price of the iPhone.
Obviously the profitability they have at the moment is frankly stunning - it's hard to believe that data is possible! WIth that said, as lower end of the market increasingly becomes smart phone based as well, is it possible that Apple might find themselves losing out in app development, due to their lower volumes?
What I'm getting at is, is there a tipping point where application developers, who don't make any money on hardware sales, will decide to focus all of their efforts on the high volume platform, as opposed to the platform that makes most money for the hardware manufacturer?
I don't think dropping the price would help much. Presumably the carriers are contractually obliged to sell the phones at set prices and the "high price" of the iPhone reflects how much of a premium Apple can charge carriers over what other manufacturers charge them. Dropping the price would only really help in territories where pay as you go is more common.
Apple should never enter the low end market. The other manufacturers, like those who make phones for bums (Android), already have that market covered and there's not that much money to be made in that low end market, something which these charts prove. And who wants those kinds of customers anyway? Those people are cheapskates and they also aren't very tech savvy, as price is the main issue for them when getting a new device.
Out of all the figures that Fandroids like to regurgitate, the profitability figure is something that you won't see them mentioning at all, because Apple is just killing everybody else in that area. Apple is destroying the competition.
Apple's enormous success proves that people are willing to pay for excellent products. It's not all about the cheapest price, which is what many of the other companies use as their strategy.
As a matter of fact, I wouldn't mind if Apple would raise the price of the next iPad by $100 (especially if it's super hi-res), because the demand will be too great for it when it eventually comes out and Apple should weed out the cheapskates who go for low end tablets, and make sure that those kind of people stay in the low end of things. Those people aren't important to Apple's bottom line and Apple should never pursue that demographic. People who appreciate great tech don't have any second doubts about buying any Apple device.
Can this not point to channel stuffing?
Apple sells all of the phones that they make.
Other vendors stuff the channel and hope to sell what they can. In other words, other vendors ship as many phones, but they sell a small percentage of phones to end customers.
It points to the majority of th market buying cheaper, low end, feature and smartphones.
There's a lot of Android out there but it isn't all on Galaxy II's, Evo's, Nexus and other high end models.
2) On one side we have:
- Apple products are more desireable and therefore are paid a premium by carriers to secure more customers.
- Apple is more efficient in creating their product.
- Apple has the money and the expertise to source components at lower prices.
- Apple has economics of scale that far exceeds their competitors who push a new high-end phone every 2 months.
And on the other we have:- Apple is ripping us off.
It's not to see which would sounds more thought out and rational.I do wonder if Apple might do better in the long term if they dropped the price of the iPhone.
Obviously the profitability they have at the moment is frankly stunning - it's hard to believe that data is possible! WIth that said, as lower end of the market increasingly becomes smart phone based as well, is it possible that Apple might find themselves losing out in app development, due to their lower volumes?
What I'm getting at is, is there a tipping point where application developers, who don't make any money on hardware sales, will decide to focus all of their efforts on the high volume platform, as opposed to the platform that makes most money for the hardware manufacturer?
Paul,you seem to be Rip Van Winkle.
Are you not aware that most App developers choose Apple first for the simple reason they make much more money with iOS than any other OS?
Android, the only real competitor for Apple, is a nightmare for developers, because it is so fragmented. Additionally, Android users are less affluent than iPhones', and spend far less than iOS users on Apps.
Developers follow the money, and iOS is where the money is for them.
2. Tim Cook is the supply chain genius behind these incredible profit margins.
So what you are saying is apple is ripping us off?
No, Apple is not ripping their customers off. Their customers are willing to pay an exorbitant amount of money for a product that has very little advantages compared to their competitors.
Incredible results, but it's not surprising, given the competition and their lackluster, uninspiring, copycat products.
Apple should never enter the low end market. The other manufacturers, like those who make phones for bums (Android), already have that market covered and there's not that much money to be made in that low end market, something which these charts prove. And who wants those kinds of customers anyway? Those people are cheapskates and they also aren't very tech savvy, as price is the main issue for them when getting a new device.
Out of all the figures that Fandroids like to regurgitate, the profitability figure is something that you won't see them mentioning at all, because Apple is just killing everybody else in that area. Apple is destroying the competition.
Apple's enormous success proves that people are willing to pay for excellent products. It's not all about the cheapest price, which is what many of the other companies use as their strategy.
As a matter of fact, I wouldn't mind if Apple would raise the price of the next iPad by $100 (especially if it's super hi-res), because the demand will be too great for it when it eventually comes out and Apple should weed out the cheapskates who go for low end tablets, and make sure that those kind of people stay in the low end of things. Those people aren't important to Apple's bottom line and Apple should never pursue that demographic. People who appreciate great tech don't have any second doubts about buying any Apple device.
You're a bit dumb, aren't you? A 3GS for $49 is low end, they're already there.
No, Apple is not ripping their customers off. Their customers are willing to pay an exorbitant amount of money for a product that has very little advantages compared to their competitors.
Exorbitant amount of money for the iPhone?
Oh crap... I got sucked into Slapppy's troll trap!
You're a bit dumb, aren't you? A 3GS for $49 is low end, they're already there.
The 3GS isn't a low-end phone. It's an older phone that is still being sold for a low-price. A low-end phone is one that comes to market at a low-price.
No, Apple is not ripping their customers off. Their customers are willing to pay [snip] for a product that has [snip] advantages compared to their competitors.
Wow, even slapppy acknowledges iPhones have an advantage over the competition.
Thank you slapppy!
The 3GS isn't a low-end phone. It's an older phone that is still being sold for a low-price. A low-end phone is one that comes to market at a low-price.
Of course it is. It has a slow processor, can't run the newest OS, made of cheap plastic, and sells at a low price. That's low end.
So riddle me this Batman, why does Apple continue to manufacture and sell it?
Its a starter iPhone? Get more people into the ecosystem at a low price? That my friend is the low end market.
Of course it is. It has a slow processor, can't run the newest OS, made of cheap plastic, and sells at a low price. That's low end.
The iPhone 3GS being a low-end phone when it debuted in 2009 will be your little secret.
The iPhone 3GS being a low-end phone when it debuted in 2009 will be your little secret.
But it's low end now in 2012. You getting a bit of Apple ][itis as well?
But it's low end now in 2012. You getting a bit of Apple ][itis as well?
Low-end because it's been on the market for 3 years, NOT because it was introduced to market as a low-end phone, hence your comment about it being slower and having a plastic casing (really?) are pointless.
You're a bit dumb, aren't you? A 3GS for $49 is low end, they're already there.
As Solipsism already pointed out to you, it appears that you are the dumb one. The 3GS is years old, it's not a new phone.
And the interesting thing is that even with that years old, low priced phone model, not many people are opting for that option anyway. Almost everybody is grabbing a new iPhone 4S when they go to make their purchase.
As Solipsism already pointed out to you, it appears that you are the dumb one. The 3GS is years old, it's not a new phone.
And the interesting thing is that even with that years old, low priced phone model, not many people are opting for that option anyway. Almost everybody is grabbing a new iPhone 4S when they go to make their purchase.
4% of how many millions? So when I walk into a Apple store am I buying a phone that's been sitting around since 2009? It outsells most if not all individual models of Android phones. So a great many people are choosing it. A "low end" Android sells at twice the price and has comparable specs. All that equates to low end. Neither you nor soli have given an explanation as to why Apple keeps selling it especially since its only 4% of iPhones sold. What market are they after? And what's the difference between that market and the so called "low end" market?
Why? Because it tells me that other people see the value in Apple products just like I do. And as long as the company continues to profit well of their formula thats been so successful, they will continue to deliver excellent products instead getting into low price leader wars like pretty much every other consumer electronics company. If their product model wasnt working and sales were falling (i.e. Netbooks) then you'd see a company change their ways and try another strategy (i.e. notice how everybody is now producing Ultrabooks instead of Netbooks).
For the longest I was an Apple hater. I thought they were overpriced, lacked features and only Apple sheep got them. Then I got a Creative Labs mp3 player in 2004. And it sucked. (Remember that, its the most important part of the story). After watching many other people, including my best friend start to use an iPod at the gym. I decided as a christmas present to myself.. to buy a 1st gen iPod Nano 4GB. It was awesome! (also an important part). It was so much better than the CL mp3 player.. I couldnt believe it. A few years later I got tired of my Blackberries dying and the poor web browser/game selection on them. They sucked. (see the trend). So in June 2009 I bought an iPhone3GS.. and again it was awesome. I later bought an HP laptop that same year. IT SUCKED!!!!! (did I even need to say it). Sold the HP within 6 months and bought a Macbook Pro 13".. and yes it was awesome. Long story short.. I now have an Apple Macbook Air 13", iPad2, Apple Extreme router, Apple TV, iPhone4 and 4S (still need to sale my old 4).. and they all fukking rock!! As if the story couldnt get anymore awesome, Apple just replaced my 1st Gen Nano with a new (free) replacement 6G iPod Nano 8GB. And I have the watch band.
While the Apple haters will call me a fanboy. The other millions of people who also enjoy Apple products.. and are the reason why they are making 75% of the profit, with just 9% of the market understand what I do. And thats that.. ultimately its worth the Apple "tax" for a product that looks great, works great and delivers a much better user experience. Its something you really cant explain in words, but when you use an Apple product you understand that difference. It doesnt feel cheap, it isnt laggy or bogged down, its so simple to use you dont need to read the manual, it looks and feels like its made out of 1st class materials.. and most importantly.. IT JUST WORKS. All of that leads to an awesome experience.. where price is really your last concern. You get so spoiled by the user experience.. that paying more becomes less of a concern. And its no secret millions of other people have found out exactly what I have.
4% of how many millions? It outsells most if not all individual models of Android phones. So a great many people are choosing it. A "low end" Android sells at twice the price and has comparable specs. All that equates to low end.
Is this 1988 Rolls Royce Phantom at $27k a low-end car? No! It's a low cost for a Rolls Royce because it's used and a quarter century old. When we're talking about low-end without qualifiers we are specifically talking about products that were designed and marketed for the low-end of the market upon arrival, not because they were made cheaper because newer products naturally came to market. Saying that the iPhone 3GS from 2009 is the low-end of the iPhone family is not same as calling the iPhone 3GS a low-end phone.