iPhone 5s launch expected to boost Apple's gross margins to nearly 40%

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Comments

  • Reply 21 of 81
    512ke512ke Posts: 782member
    Analysts are ridiculous. They say silly things like, Apple is dead among teens.

    Pfft. Teens love Apple! And Android's biggest user group in the US at least is older people. Androids are elderphones.

    Analysts say, smart phones have reached their saturation point in the market.

    Pfffft. Apple has plenty of marketshare to take from Android. And apple is taking big bites right now.

    Analysts say, Apple can't innovate any more!

    Pfffft. Apple has innovative new products and a new iOS and a new OSX.

    Analysts say... Well... Who cares what they say?

    Why do people still listen to Analysts??!!
  • Reply 22 of 81

    Consider the following statements:

     

    Wow, I'm really thrilled that my toilet paper manufacturer has a 40% gross profit margin.

    It really shows that the high-end toilet paper market is flourishing!

     

    These statements are absurd, right?

    Why would I want my toilet paper maker to make absurd profits?

    It would mean that I was being over-charged, right?

     

    Why are you rooting for you cell phone maker to over-charge you?

  • Reply 23 of 81
    Quote:

    Originally Posted by brians View Post

     

    Consider the following statements:

     

    Wow, I'm really thrilled that my toilet paper manufacturer has a 40% gross profit margin.

    It really shows that the high-end toilet paper market is flourishing!

     

    These statements are absurd, right?

    Why would I want my toilet paper maker to make absurd profits?

    It would mean that I was being over-charged, right?

     

    Why are you rooting for you cell phone maker to over-charge you?


     

    Since they are the only ones innovating and competitors price inferior products at the same price, how are they overpricing, no matter how much net profit they have?

  • Reply 24 of 81
    Quote:
    Originally Posted by sog35 View Post

     

     

    Dude those are ANALyst estimations based on unit sales.  Samsung DID NOT report mobile operating profits.


     

    I showed you something that says Samsung's mobile division is not struggling... so I guess you will have to show me something that says Samsung's mobile division is struggling.

     

    I mean... c'mon, back up your statements at the very least.

  • Reply 25 of 81
    Quote:

    Originally Posted by sog35 View Post

     

     

    for some reason Islandhermit has made it his personal goal in life to contradict every thing i say here.  i have no idea why.  I think its because i called  him out for bashing Apple for not bring out a $250 phone.


     

    Uh... maybe it's because you are wrong. I know you believe yourself to be 100% right about everything... but, you're not.

     

    ie. I never ever said anything about a $250 phone. 

  • Reply 26 of 81
    Quote:

    Originally Posted by jragosta View Post





    Yeah, it's a gimmick. A gimmick that allows Apple's A7 to outperform competitior's products with twice as many cores and 70% higher clock speeds.



    Don't count on Kit Kat being 64 bit. If it were going to be, we'd have heard about it already. Even if it were, the fragmented Android infrastructure and lack of quality development tools would ensure that it would be years before most apps get converted, anyway.

     

    Woah, slow down.  The A7 is one fantastic bit of engineering, and if anything, I'd say SOC design is one of Apple's key strengths.  The move to a new ISA as part of ARMV8, plus hardware cryptography account for most of the performance gains.  The real benefits of 64 bit won't be seen until RAM exceeds 4GB.  The tight integration of hardware vs. software also helps Apple versus Android running on ARM or Intel BT.

  • Reply 27 of 81
    Quote:

    Originally Posted by sog35 View Post

     

     

    toilet paper is a commodity.  They are basically the same thing, we buy what's cheapest.

     

    Computing devices are not commodities.  So you want Apple to sell cheap crap?  You want Apple to have low margins so they no longer can provide excellent customer service and spend money on R&D?  You either get Apple or you don't.  You can't expect to get a premium product at a non-premium price.  Hundreds of millions of people are willing to pay a little extra to get the best.  High margins insure that Apple sells the best year after year.


     

    1) Computing devices are commodities, have been for a couple of years now.

     

    2) Apple does sell "cheap crap", they just charge alot for it. 

     

    3) Apple does not "provide excellent customer service". Service is really only through Apple Stores, which are only in larger cities. Apple Stores are terribly inefficient. I far preferred it when I got my Apple products at CompUSA.

     

    4) Apple isn't delivering premium products. They deliver a tiny phone, poor software and enough "shiny" to keep the fan base happy. They only charge premium prices.

  • Reply 28 of 81
    Quote:

    Originally Posted by sog35 View Post

     

     

    toilet paper is a commodity.  They are basically the same thing, we buy what's cheapest.

     

    Computing devices are not commodities.  So you want Apple to sell cheap crap?  You want Apple to have low margins so they no longer can provide excellent customer service and spend money on R&D?  You either get Apple or you don't.  You can't expect to get a premium product at a non-premium price.  Hundreds of millions of people are willing to pay a little extra to get the best.  High margins insure that Apple sells the best year after year.

     

    Its takes TONS OF MONEY to develop game changing products.  That's what Apple does.  Other companies like SAMDUNG simply copy


     

    Hey, if you've ever used the really thin toilet paper, you'll know there are some benefits to buying the premium stuff.  If I use a cheap phone or cheap toilet paper, I end up with a handful of sh*t!

  • Reply 29 of 81
    akqiesakqies Posts: 768member
    jamesmac wrote: »
    Woah, slow down.  The A7 is one fantastic bit of engineering, and if anything, I'd say SOC design is one of Apple's key strengths.  The move to a new ISA as part of ARMV8, plus hardware cryptography account for most of the performance gains.  The real benefits of 64 bit won't be seen until RAM exceeds 4GB.  The tight integration of hardware vs. software also helps Apple versus Android running on ARM or Intel BT.

    That's just not accurate. As noted by both Mike Ash and AnandTech 64-bit doesn't in itself mean more than 4GB of RAM. You can see this 64-bit systems that use much less than 4GB RAM and 32-bit systems that use much more than 4GB RAM.

    It's odd that you note there is a benefit from the ARMv8 ISA but fail to see that it's only available for 64-bit operation.
  • Reply 30 of 81
    Quote:
    Originally Posted by sog35 View Post

     

     

    notice they did not breakdown Samsungs mobile profits?  Profits are up because of their chip fab operations.  It will take a few quarters but Samsung mobile profits will drop.  Why would anyone pay $600 for a copycat phone when you can get a chinese copycat phone for $200?  Notice the article mentions they can't survive on the flagship phone alone?  Welcome to plunging margins Samsung as you are now competing against chinese manufacters. 


     

    No... the article did not say anything about them not being able to survive on the flagship phone alone. This is what it said:

     

    “Companies can’t survive with a single device for more than six months or a year, ...”

     

    What the article said about high priced phones was this:

     

    "Samsung sells at least 40 smartphone models, according to its U.S. website, helping it weather stalling demand for high-end devices."

  • Reply 31 of 81
    Quote:

    Originally Posted by pedromartins View Post

     

     

    Since they are the only ones innovating and competitors price inferior products at the same price, how are they overpricing, no matter how much net profit they have?


     

    No one else is charging $830 for a cell phone.

    Most manufacturers charging >$600 delivers a far more sophisticated phone than what Apple does.

     

    Where exactly did Apple innovate with the latest phones?

    iOS 7 was mainly adding features Android has had for years. (With a really ugly and confusing UI added.)

    An iPhone 5S is an iPhone 5 with an inappropriately used 64-bit processor that essentially peters away the speed it gained in wasted memory and cache. The fingerprint sensor is old technology tried on laptops several years ago, but rejected because it often gets in your way. (For example, the Moto X NFC unlocking is superior to the finger print unlocking.) Just where do you see innovation?

     

    Take a good look at your iPhone 5S... it's the same as the last phone. It's got a tiny screen. It has an OS that has an unprecedented level of bugs. It has a UI that not even most designers love. And you paid a premium price for it!

  • Reply 32 of 81
    Quote:
    Originally Posted by sog35 View Post

     

     

    you said Samsung released mobile profits.  YOU ARE WRONG.  They have not and will not till the end of the month.

     

    My proof is Galaxy S4 sales have been pathetic.  That is their cash cow.  You can figure out the rest.

     

    I never said Samsung is struggling.  I said their mobile division will be hurting soon because of cheap chinese phones


     

    You've said a lot of things... with absolutely nothing to back it up.

     

    ie. - Galaxy S4 sales have been pathetic - Where is your proof for this statement?

     

    [ps. I have edited my comment to include the words "mobile division of" in the earlier post because that was the original intent as is shown in my earlier original comment.]

  • Reply 33 of 81
    Quote:
    Originally Posted by akqies View Post





    That's just not accurate. As noted by both Mike Ash and AnandTech 64-bit doesn't in itself mean more than 4GB of RAM. You can see this 64-bit systems that use much less than 4GB RAM and 32-bit systems that use much more than 4GB RAM.



    It's odd that you note there is a benefit from the ARMv8 ISA but fail to see that it's only available for 64-bit operation.

     

    Yes, of course 64 bit systems can address less than 4GB of RAM and yes, 32 bit systems can address more than 4GB of RAM.  The issue is, how efficiently? 

     

    True, but Apple is pushing the 64 bit aspect of the A7 design aren't they?   I can't say I blame them, as it's good marketing to do so, and most people wouldn't know an ISA from a hole in the wall.

  • Reply 34 of 81
    sflocalsflocal Posts: 6,095member
    Quote:

    Originally Posted by brians View Post

     

     

    1) Computing devices are commodities, have been for a couple of years now.

     

    2) Apple does sell "cheap crap", they just charge alot for it. 

     

    3) Apple does not "provide excellent customer service". Service is really only through Apple Stores, which are only in larger cities. Apple Stores are terribly inefficient. I far preferred it when I got my Apple products at CompUSA.

     

    4) Apple isn't delivering premium products. They deliver a tiny phone, poor software and enough "shiny" to keep the fan base happy. They only charge premium prices.


     

    I just about sprayed my morning coffee out my nose laughing when I read your iHating troll post.  Guess there are trolls that drink way so much koolaid, they tend to believe all the nonsense coming out of their mouths as fact.  Bravo sir.  What next?  The moon landing was fake?



    Preferring your service to come from CompUSA was the icing on the cake.  Thanks for the laugh.  Every retail store is "inefficient" as you so proudly determined.  That's why they have something called "online" purchases.  But hey, keep on drinking whatever it is you're drinking.  You certainly added a comic element to my day today.

  • Reply 35 of 81

    Well, that would make sense seeing as they put the price up on that.  And therefore the 5c isn't a true 'hundred pound' less '5', is it?

     

    Not in the UK it aint.

     

    And Apple upped the price of the entry iMac as well by £50.

     

    In a triple dip recession, you'd think they'd look after their 'fans' as much as they do their profit lines and share holders.

     

    Lemon Bon Bon.

  • Reply 36 of 81
    @ AI Moderators

    The posts in this thread from brians and JamesMac are obvious troll-posts.

    So why in the F*** ARE THEY ALLOWED TO KEEP ON POSTING and not been banned!!!!????

    Or are you AI Mods doing this yourself to pad your page/ad views?

    *** People... click on that red flag in the corner and report these idiots :no: ... or do you secretly enjoy every thread turning into a repeat of the DaHarder Days?!
  • Reply 37 of 81
    asdasdasdasd Posts: 5,686member
    brians wrote: »
    No one else is charging $830 for a cell phone.
    Most manufacturers charging >$600 delivers a far more sophisticated phone than what Apple does.

    Where exactly did Apple innovate with the latest phones?
    iOS 7 was mainly adding features Android has had for years. (With a really ugly and confusing UI added.)
    An iPhone 5S is an iPhone 5 with an inappropriately used 64-bit processor that essentially peters away the speed it gained in wasted memory and cache. The fingerprint sensor is old technology tried on laptops several years ago, but rejected because it often gets in your way. (For example, the Moto X NFC unlocking is superior to the finger print unlocking.) Just where do you see innovation?

    Take a good look at your iPhone 5S... it's the same as the last phone. It's got a tiny screen. It has an OS that has an unprecedented level of bugs. It has a UI that not even most designers love. And you paid a premium price for it!

    The Anandtech article on the iPhone 5S begs to differ. Troll off ( for you are a genuine troll).
  • Reply 38 of 81
    jragostajragosta Posts: 10,473member
    brians wrote: »
    No one else is charging $830 for a cell phone.
    Most manufacturers charging >$600 delivers a far more sophisticated phone than what Apple does.

    Nonsense.

    The iPhone as a 64 bit processor. Motion sensor. Integral fingerprint sensor. Performance equal to or greater than anything on the market. "Most" manufacturers offer those things?
  • Reply 39 of 81
    Quote:

    Originally Posted by ThePixelDoc View Post



    @ AI Moderators



    The posts in this thread from brians and JamesMac are obvious troll-posts.



    So why in the F*** ARE THEY ALLOWED TO KEEP ON POSTING and not been banned!!!!????



    Or are you AI Mods doing this yourself to pad your page/ad views?



    *** People... click on that red flag in the corner and report these idiots image ... or do you secretly enjoy every thread turning into a repeat of the DaHarder Days?!

     

    As someone who has been in this industry for almost 30 years, holding senior positions within two of the largest tech companies in the world, I didn't feel my comments were what you kids call 'trolling'.  

     

    I presume that you feel that because this is an Apple based site, I should make only positive remarks about all things Apple, rather than the truth?    

     

    Might I suggest an alternative?  How about robust discussion about Apple and where it (and its products) stands in the market versus its competition, rather than simply fawning over everything that comes out of Cupertino?   I presume that I'm not allowed to comment that the screen on the iPad mini is inferior to its competition without incurring some wrath?  Even though this, by most metrics, would be viewed as a fact.  It's simply a truth you don't want to hear?

     

    Many of the comments that I read here are uneducated and show a remarkable ignorance of the industry, are factually incorrect and yet these are fine as long as they have a pro-Apple spin?

     

    One of the biggest complaints against Apple is that they are a closed environment, and I see that you wish to take this approach to the next level by now banning free speech.

     

    I wish you well.

  • Reply 40 of 81
    Originally Posted by ThePixelDoc View Post

    The posts in this thread from brians and JamesMac are obvious troll-posts.

     

    Brian, yes. James, why? He just seems misinformed.

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