With only ~ 12% market shares. Android keeps making garbage products and Apple keeps making money. Long AAPL.
Not exactly Android making "garbage products". Some smartphone manufacturers are making "garbage products". Android or some fork of it is just the least expensive or fastest way to put an operating system in it.
With that said even the "garbage products" will generally allow texting, phone calls, web browsing, casual game playing, posting Facebook/Twitter, "other" social sites and a camera with video. I'd guess that pretty much covers what most folks use a smartphone for.
So, if you own 85% marketshare and you make only 10% profit, can you generally call that business garbage? BTW, your analogy doesn't fly with me because of those features you listed, $30 android phones from Walmart can do. Tell me those phones are not junks.
That's not an accurate description of the smartphone market.
In reality, there are basically two smartphone manufacturers making money: Apple and Samsung (with Apple taking the lion's share of the profits). At least a year ago, there was one company that was breaking even (HTC if I recall correctly).
Everyone else is losing money. That means the more handsets those other companies ship, the more money they lose.
Marketshare isn't the only metric, the company still needs to make money. If you want some examples of companies that failed to do so, look at Research In Motion (RIM, now BlackBerry), Nokia, Motorola. All of those were fairly significant handset players in the past.
This always begs the question, why do manufacturers not copy Apple's business model?
IMO it's not so much the business model as the customer relationship that's taken decades to develop. There's many companies that follow the general idea of marketing premium products at a premium price, and attention to detail coupled with customer service. Not unheard of at all.
This always begs the question, why do manufacturers not copy Apple's business model?
They've tried. They've failed. See Google and their multiple attempts at producing premium phones, while failing all the other value-add that Apple delivers as part of their premium phone experience. I recall even the Nexus phones didn't get the latest Android OS updates after a year or two or something, rather pitiful for a supposed flagship. This is because they aren't truly aligned with their customers and have different priorities for their business.
With only ~ 12% market shares. Android keeps making garbage products and Apple keeps making money. Long AAPL.
Not exactly Android making "garbage products". Some smartphone manufacturers are making "garbage products". Android or some fork of it is just the least expensive or fastest way to put an operating system in it.
With that said even the "garbage products" will generally allow texting, phone calls, web browsing, casual game playing, posting Facebook/Twitter, "other" social sites and a camera with video. I'd guess that pretty much covers what most folks use a smartphone for.
With only ~ 12% market shares. Android keeps making garbage products and Apple keeps making money. Long AAPL.
Not exactly Android making "garbage products". Some smartphone manufacturers are making "garbage products". Android or some fork of it is just the least expensive or fastest way to put an operating system in it.
With that said even the "garbage products" will generally allow texting, phone calls, web browsing, casual game playing, posting Facebook/Twitter, "other" social sites and a camera with video. I'd guess that pretty much covers what most folks use a smartphone for.
This always begs the question, why do manufacturers not copy Apple's business model?
Because to do so would take an inordinate amount of money for research and development, which Apple spends, and the vast majority of Android manufacturers simply don’t have.
With only ~ 12% market shares. Android keeps making garbage products and Apple keeps making money. Long AAPL.
Not exactly Android making "garbage products". Some smartphone manufacturers are making "garbage products". Android or some fork of it is just the least expensive or fastest way to put an operating system in it.
With that said even the "garbage products" will generally allow texting, phone calls, web browsing, casual game playing, posting Facebook/Twitter, "other" social sites and a camera with video. I'd guess that pretty much covers what most folks use a smartphone for.
I think you omitted the part of what makes "garbage products".
With only ~ 12% market shares. Android keeps making garbage products and Apple keeps making money. Long AAPL.
Not exactly Android making "garbage products". Some smartphone manufacturers are making "garbage products". Android or some fork of it is just the least expensive or fastest way to put an operating system in it.
With that said even the "garbage products" will generally allow texting, phone calls, web browsing, casual game playing, posting Facebook/Twitter, "other" social sites and a camera with video. I'd guess that pretty much covers what most folks use a smartphone for.
I think you omitted the part of what makes "garbage products".
I don't think so. "Android" doesn't make any devices. LOL
51% of the profits is clearly not enough for the greedy big investors. Apple is going to have to take about 80% of global smartphone profits in order not to be considered doomed.
Apple just took 51% of the revenue, not profits. They've been taking over 90% of the profits for years! In Q3 2016, they took over 100%: their profits were greater than the entire industry net profits, if you include those that made net losses. So no, taking over 80% of profits wouldn't do any good on Wall Street. In fact, it would mean a giant decline for Apple.
With only ~ 12% market shares. Android keeps making garbage products and Apple keeps making money. Long AAPL.
Not exactly Android making "garbage products". Some smartphone manufacturers are making "garbage products". Android or some fork of it is just the least expensive or fastest way to put an operating system in it.
With that said even the "garbage products" will generally allow texting, phone calls, web browsing, casual game playing, posting Facebook/Twitter, "other" social sites and a camera with video. I'd guess that pretty much covers what most folks use a smartphone for.
I think you omitted the part of what makes "garbage products".
I don't think so. "Android" doesn't make any devices. LOL
You said "Some smartphone manufacturers are making "garbage products". This is what I like to know what you mean by "garbage products".
With only ~ 12% market shares. Android keeps making garbage products and Apple keeps making money. Long AAPL.
Not exactly Android making "garbage products". Some smartphone manufacturers are making "garbage products". Android or some fork of it is just the least expensive or fastest way to put an operating system in it.
With that said even the "garbage products" will generally allow texting, phone calls, web browsing, casual game playing, posting Facebook/Twitter, "other" social sites and a camera with video. I'd guess that pretty much covers what most folks use a smartphone for.
I think you omitted the part of what makes "garbage products".
I don't think so. "Android" doesn't make any devices. LOL
You said "Some smartphone manufacturers are making "garbage products". This is what I like to know what you mean by "garbage products".
Perhaps something like the $10 LG Sunrise would qualify. Even that does the basics tho.
The problem Apple has in the phone market is that unit shipments are probably about as high as they will ever be and the days of huge growth in units are mostly over. Given that, the only way Apple can continue growing profit in phones is to increase the selling price or squeeze costs. As Apple uses many of the very same components (or similar ones) and already assembles in China, the push for higher selling price is the low hanging fruit. But you can only jack up the price so much without destroying demand.
The LTE iPad Pro I am typing this on was just a little under $1,100 and O cannot see spending that much on a phone. I would much rather the combination of LTE iPad and LTE Apple Watch and no iPhone. At some point, the general public may well realize the iPhone is soon to be redundant. Not yet, but soon.
Wow! Yeah the iPhone is soon to be redundant. But thanks for buying the iPad Pro and the LTE Apple Watch. Always have to be some asshole talking trash when this kind of news comes out. Apple still thanks you.
With only ~ 12% market shares. Android keeps making garbage products and Apple keeps making money. Long AAPL.
Not exactly Android making "garbage products". Some smartphone manufacturers are making "garbage products". Android or some fork of it is just the least expensive or fastest way to put an operating system in it.
With that said even the "garbage products" will generally allow texting, phone calls, web browsing, casual game playing, posting Facebook/Twitter, "other" social sites and a camera with video. I'd guess that pretty much covers what most folks use a smartphone for.
I think you omitted the part of what makes "garbage products".
I don't think so. "Android" doesn't make any devices. LOL
You said "Some smartphone manufacturers are making "garbage products". This is what I like to know what you mean by "garbage products".
Perhaps something like the $10 LG Sunrise would qualify. Even that does the basics tho.
You still does not explain what do you mean by garbage.
This always begs the question, why do manufacturers not copy Apple's business model?
IMO it's not so much the business model as the customer relationship that's taken decades to develop. There's many companies that follow the general idea of marketing premium products at a premium price, and attention to detail coupled with customer service. Not unheard of at all.
No, it absolutely is the business model. Customer relationship is simply one facet of it. It always comes down to everything that makes Apple unique and the overarching theme of that uniqueness is design.
From apple owning the whole software & hardware technology stack, to their tireless focus on a few products, to the fact that they don’t sequester different products into separate business silos. No, nobody has the balls to copy Apple’s business model at the scale Apple has.
Samsung makes refrigerators and washing machines as well as a thousand nameless android handsets. How focused can upper management be on their handset division;especially if it’s not making any money? Sony makes TVs, gaming consoles, cameras, has movie studios & record labels, sells projectors and head units & speakers for cars. Handsets are an insignificant portion of their business. And on down the list.
And here Apple sits, with cash reserves greater than small nations, any resource they desired available to them, yet they don’t do any of that stuff. Could they? Of course! But they don’t. And that takes tremendous discipline, focus and restraint. Passion for what you do on an extremely deep level. Being driven not by sales, money, & market share, but by a desire to create the best that you know how to create. From the intern all the way up to the C level.
Very few few companies have that, certainly none at Apple’s level. Only one close that comes to mind is Konigsegg.
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In reality, there are basically two smartphone manufacturers making money: Apple and Samsung (with Apple taking the lion's share of the profits). At least a year ago, there was one company that was breaking even (HTC if I recall correctly).
Everyone else is losing money. That means the more handsets those other companies ship, the more money they lose.
Marketshare isn't the only metric, the company still needs to make money. If you want some examples of companies that failed to do so, look at Research In Motion (RIM, now BlackBerry), Nokia, Motorola. All of those were fairly significant handset players in the past.
From apple owning the whole software & hardware technology stack, to their tireless focus on a few products, to the fact that they don’t sequester different products into separate business silos. No, nobody has the balls to copy Apple’s business model at the scale Apple has.
Samsung makes refrigerators and washing machines as well as a thousand nameless android handsets. How focused can upper management be on their handset division;especially if it’s not making any money? Sony makes TVs, gaming consoles, cameras, has movie studios & record labels, sells projectors and head units & speakers for cars. Handsets are an insignificant portion of their business. And on down the list.
And here Apple sits, with cash reserves greater than small nations, any resource they desired available to them, yet they don’t do any of that stuff. Could they? Of course! But they don’t. And that takes tremendous discipline, focus and restraint. Passion for what you do on an extremely deep level. Being driven not by sales, money, & market share, but by a desire to create the best that you know how to create. From the intern all the way up to the C level.
Very few few companies have that, certainly none at Apple’s level. Only one close that comes to mind is Konigsegg.