Apple's iPhone takes 75% mobile phone profits with just 9% of units sold

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  • Reply 61 of 77
    apple ][apple ][ Posts: 9,233member
    Quote:
    Originally Posted by hank_e View Post


    Hope your weekend is splendid and that you get time to contemplate the worth of poor working people, who love great design and superior products.



    And a nice weekend to you too!



    Maybe people read too much into what I write sometimes. I wouldn't classify myself as rich (I'm working on it) and there are times when I haven't had too much money, but even then I would still only choose to buy Apple's computers because it was worth it to me. So I guess we're similar in that regard.
  • Reply 62 of 77
    asciiascii Posts: 5,936member
    It's impressive but they're not "taking" 75% of profits from others, because they are increasing the size of the market massively. I would say they are earning 75% of the profits.
  • Reply 63 of 77
    iqatedoiqatedo Posts: 1,837member
    Quote:
    Originally Posted by S8ER01Z View Post


    So what you are saying is apple is ripping us off?



    Quote:
    Originally Posted by tooltalk View Post


    ahem, seems to demonstrate how gullible average Apple buyers are (duck)



    Quote:
    Originally Posted by slapppy View Post


    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.



    The trolls just cannot resist. Perhaps the other manufacturers should simply charge more and make larger profits. That would change the picture. \



    Quote:
    Originally Posted by Michael Scrip View Post


    Exorbitant amount of money for the iPhone?



    Oh crap... I got sucked into Slapppy's troll trap!



    S...y seems to think that those who buy Apple products have no choice, that they are destined to buy whatever Apple offers. This is the only way that Apple could sell such expensive products and across all products be the most profitable. Perhaps if the other manufacturers charged a whole lot more, we Apple lemmings would jump ship, drawn irresistibly to the higher prices. The effect would be compounding, more phones sold at higher prices (and presumably a greater profit margin) would really stick it to Apple.
  • Reply 64 of 77
    mikeb85mikeb85 Posts: 506member
    Apple makes the most profits because they have the lowest costs, and charge the distributors more than other OEMs do. For instance, let's say an average iphone 4S costs 350 dollars to make, they sell it to the distributor for 600, then it gets sold to the consumer for 700. An average HTC phone would cost 450 dollars, gets sold to the distributor for 500, then it gets sold to the consumer for the same 700. (numbers aren't exact, although they do reflect relative numbers - I do remember in a recent Apple earnings report that their average iPhone selling price is over 600)



    It's a combination of the fact that higher end Android phones generally have more expensive components (larger screens, faster processors, faster antennas, etc...), and the OEM sells them for less to get in good with the distributors (ie. the telecoms).



    I personally wouldn't be cheering this level of profitability unless I had money in Apple stock currently (which I don't - I've been investing in smaller, less mature companies lately).
  • Reply 65 of 77
    Quote:
    Originally Posted by Mikeb85 View Post




    I personally wouldn't be cheering this level of profitability unless I had money in Apple stock currently (which I don't - I've been investing in smaller, less mature companies lately).



    Apple's profitability means they will be around another day to make great products for us.



    Other companies in the industry made no profit AT ALL this past quarter.... (Motorola, Sony, etc...)



    If we shouldn't be cheering for Apple... should we be weeping for those other companies?
  • Reply 66 of 77
    Quote:
    Originally Posted by IQatEdo View Post


    Perhaps if the other manufacturers charged a whole lot more, we Apple lemmings would jump ship, drawn irresistibly to the higher prices. The effect would be compounding, more phones sold at higher prices (and presumably a greater profit margin) would really stick it to Apple.



    It was not that long ago that phones were sold purely as a way to make the mobile phone networks chargeable, and being reamed $5-600 a month was a regular occurance.



    The balance has shifted, the people making the money before was the telcos, now the smartphone and apple's brilliant products are removing the stranglehold the networks have.



    imessage avoiding sms fees (insert android equivalent here) voip phones allowing the same hardware to perform the same function but totally bypassing the telco networks, there's no wonder there is profit in this game, its the bit that takes the phone away from being a phone, and makes it into everything else as well.



    prior to iphone using shit like windows mobile tried to do everything else, but broke the primary function (using it as a phone) by unregulated usage of resources (how many times did my winmo crash while using copilot, just because a call came through and the CPU couldnt cope with the multitasking demands)



    so now the smart phone is maturing, apple just did it better, earlier, and is thus shifting the profit away from the telcos and into R&D for the next big thing
  • Reply 67 of 77
    Strangulation party .. fascinating ...
  • Reply 68 of 77
    dasanman69dasanman69 Posts: 13,002member
    Quote:
    Originally Posted by Michael Scrip View Post


    Apple's profitability means they will be around another day to make great products for us.



    Other companies in the industry made no profit AT ALL this past quarter.... (Motorola, Sony, etc...)



    If we shouldn't be cheering for Apple... should we be weeping for those other companies?



    Yes we should weep. As much as I live Apple product I do not want to live in a Apple only world.
  • Reply 69 of 77
    Quote:
    Originally Posted by dasanman69 View Post


    Yes we should weep. As much as I live Apple product I do not want to live in a Apple only world.



    An Apple only world has never existed, ever, so why are you weeping?
  • Reply 70 of 77
    Quote:
    Originally Posted by Suddenly Newton View Post


    An Apple only world has never existed, ever, so why are you weeping?



    .. and we have been very close to experience a Microsoft world ... which was not seen as a threat of any kind ...
  • Reply 71 of 77
    iq78iq78 Posts: 256member
    So here's my breakdown of the situation:



    Steve Jobs = Insanely great products and consumer demand



    Tim Cook = Insanely efficient production, supply chain and profits





    -IQ78
  • Reply 72 of 77
    dasanman69dasanman69 Posts: 13,002member
    Quote:
    Originally Posted by Suddenly Newton View Post


    An Apple only world has never existed, ever, so why are you weeping?



    Because if things continue on its course it will be, Apple is becoming big brother. This looks more and more like an Apple presentation, just insert SJs face on the screen.



    http://www.youtube.com/watch?v=HhsWz...e_gdata_player
  • Reply 73 of 77
    Quote:
    Originally Posted by dasanman69 View Post




    Yes we should weep. As much as I live Apple product I do not want to live in a Apple only world.



    Tell those other companies to make products that people actually want. Don't blame Apple...



    Geez... Motorola spent more money than they made last quarter... whose fault is that?



    Motorola's been in the cell phone game for 20 years... Apple for only 5 years.
  • Reply 74 of 77
    dasanman69dasanman69 Posts: 13,002member
    Quote:
    Originally Posted by Michael Scrip View Post


    Tell those other companies to make products that people actually want. Don't blame Apple...



    Geez... Motorola spent more money than they made last quarter... whose fault is that?



    Motorola's been in the cell phone game for 20 years... Apple for only 5 years.



    That's a tough task. Apple has raised the bar so high that not many if any can reach that high. Moto makes nice devices, way better built than those cheap plasticy Samsung. They did well with the first Droid but since then have fumbled the ball.
  • Reply 75 of 77
    Quote:
    Originally Posted by dasanman69 View Post


    That's a tough task. Apple has raised the bar so high that not many if any can reach that high. Moto makes nice devices, way better built than those cheap plasticy Samsung. They did well with the first Droid but since then have fumbled the ball.



    Everyone says they want competition... this is it.



    Not only is Motorola competing with Apple... they are also competing with every other Android manufacturer.



    War is hell...
  • Reply 76 of 77
    piotpiot Posts: 1,346member
    Quote:
    Originally Posted by dasanman69 View Post


    Because if things continue on its course it will be, Apple is becoming big brother. This looks more and more like an Apple presentation, just insert SJs face on the screen.



    http://www.youtube.com/watch?v=HhsWz...e_gdata_player



    Oh change the fuckin' record!



    1.5 BILLION NON iPhones sold in 2011
  • Reply 77 of 77
    hill60hill60 Posts: 6,992member
    Quote:
    Originally Posted by dasanman69 View Post


    Because if things continue on its course it will be, Apple is becoming big brother. This looks more and more like an Apple presentation, just insert SJs face on the screen.



    http://www.youtube.com/watch?v=HhsWz...e_gdata_player



    Google is the real "big brother", poking their nose into every corner of the Internet, sniffing out user data, selling it to the highest bidder and very effectively hiding behind a wall of doublespeak which the masses keep lapping up.



    So when Google holds all the keys to the (Internet) kingdom, who will save us then?
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