How Apple, Inc. went thermonuclear on Samsung, erasing Android's primary profit center

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  • Reply 41 of 315
    patpatpat wrote: »
    How much of apples operating profit was from just mobile?
    I don't think Apple breaks out its mobile operating profit numbers. Many news reports put it at ~60%. However, we know that iPhones contribute to approximately 56% of Apple's revenueshttp://www.statista.com/statistics/253649/iphone-revenue-as-share-of-apples-total-revenue/

    How do you define mobile? If you include laptops, it will probably lower the margin slightly.
  • Reply 42 of 315
    MacProMacPro Posts: 19,697member
    And all this mostly pre iPhone 6 and 6 Plus! It's going to be a far larger blood bath next quarter.
  • Reply 43 of 315
    Quote:
    Originally Posted by Hopeless View Post

    Google execs must be secretly wishing they never launched Android. 

    Maybe. But sometimes they have strange ideas.

     

     
    A strong partnership with Apple would be much more profitable.

    Almost for certain. And Google had the opportunity to continue the relationship with Maps, and decided to keep the best parts for itself. So Apple built its own version, cutting off a nice revenue stream for Google.

     

    If I understand it correctly, Google was making more from iOS than from Android. And Microsoft certainly is making more from Android than is Google. Weird, indeed.

  • Reply 44 of 315
    Quote:
    Originally Posted by Benjamin Frost View Post

     
    Quote:
    Originally Posted by anantksundaram View Post

     
    Quote:
    Originally Posted by patpatpat View Post



    How much of apples operating profit was from just mobile?


    I don't think Apple breaks out its mobile operating profit numbers. Many news reports put it at ~60%. However, we know that iPhones contribute to approximately 56% of Apple's revenueshttp://www.statista.com/statistics/253649/iphone-revenue-as-share-of-apples-total-revenue/




    How do you define mobile? 

    I think it's pretty evident from my post.

     

    Perhaps you're better off asking patpatpat if he had something else in mind.

  • Reply 45 of 315
    I think it's pretty evident from my post.

    Perhaps you're better off asking patpatpat if he had something else in mind.
    Whatever definition is closest match to whatever Samsung mobile is.
  • Reply 46 of 315
    Even Samsung's logo sucks. A crooked oval. Wow.
  • Reply 47 of 315
    They have no brand loyalty. Just some buzz and a fad. It happened with Motorola and the RAZR. Then Samsung and the S3. They're up to the S5 now, but it's basically the same phone that's still running Android. It's OK, but only Apple can deliver innovative new hardware AND software that keep users excited and coming back for more. I owned a RAZR and it was a great phone for it's time. I also owned a S3 and it was a great phone when I couldn't get an iPhone. Nobody cares about Samsung or Motorola the way people care about Apple.
  • Reply 48 of 315

    I've always felt that iPhone and Android would end up like Mac and PC. Hard as hell to make money selling PCs, but there are many more of them out there.

  • Reply 49 of 315
    Quote:

    Originally Posted by karmadave View Post



    Samsung is a huge Korean conglomerate with many other LOB's. They still generates tons of cash and will be a formidable competitor, in smartphones, tablets, and PC's for years to come...



    Samsung is Microsoft. They copy instead of innovate and they will follow in the same footsteps Microsoft has.

  • Reply 50 of 315
    solipsismxsolipsismx Posts: 19,566member
    I don't think Apple breaks out its mobile operating profit numbers. Many news reports put it at ~60%. However, we know that iPhones contribute to approximately 56% of Apple's revenueshttp://www.statista.com/statistics/253649/iphone-revenue-as-share-of-apples-total-revenue/


    Go to page 27.



    edit: Mea culpa. That's net sales, not net income.
  • Reply 51 of 315
    MacProMacPro Posts: 19,697member

    When companies stop making money on a product, they stop making the product.

    Samsung stopped PCs in Europe, and is likely to follow Sony in giving up on PCs entirely, for example, the same way Apple has nearly given up on iPods or the way Microsoft stopped making Zunes after saying it was in that business to stay.


    However, Samsung will be in the phone business for some time, which should provide some schadenfreude entertainment. Because it's unlikely that it will ever be able to return to making tons of money on Galaxy phones, or return to spending billions on marketing.  

    Samsung spent $13 billion on marketing in 2013. Can't do that when your entire mobile business is only making ~ $1.3 per quarter, can you?

    Ah, schadenfreude served cold .... :smokey:
  • Reply 52 of 315
    mpantonempantone Posts: 2,024member
    Quote:

    Originally Posted by patpatpat View Post



    How much of apples operating profit was from just mobile?



    Well over sixty percent. Apple does not break out profit by product category, however iPhones make up 56% of the company revenue, iPads 13%, and iPods 1% according to MacRumorsMacs make up 16% of the revenue, the iTunes Store 11%.

     

    The gross margins on the iPhone are very high, less so for the iPads. When iPhone sales excel in a given quarter, it is reflected in the company-wide gross margin number. This would not be the case if the iPhone category gross margin is weak.

     

    The fact that the company took the word "Computer" out of its name several years ago truly reflects the reality of what the company does today.

  • Reply 53 of 315
    Quote:


     LG could double its profitability and quadruple its sales and it would still be earning less than the beleaguered Samsung.


    Tee hee, he said beleaguered… finally, the torch is passed!

  • Reply 54 of 315
    entropysentropys Posts: 4,129member
    This is just a glorious demonstration of how capitalism works. competition drives continuous improvement and increased production that in turn is desired by consumers. aaple was made to improve its products because samsung was a competitive threat. Now it remains or be seen if samsung can keep up. Here is how it was seen sixty years ago, before we went and got all Keynesian:

    [VIDEO]
  • Reply 55 of 315
    MacProMacPro Posts: 19,697member
    entropys wrote: »
    This is just a glorious demonstration of how capitalism works. competition drives continuous improvement and increased production that in turn is desired by consumers. aaple was made to improve its products because samsung was a competitive threat. Now it remains or be seen if samsung can keep up. Here is how it was seen sixty years ago, before we went and got all Keynesian:

    I question your premise that "aaple [sic] was made to improve its products because samsung was a competitive threat".

    I simply don't think that has even the slightest basis in fact.

    That would be like trying to argue the Eagles play better because of Milli Vanilli. ;)
  • Reply 56 of 315
    I think this article is pretty far off the mark. It's clearly the Chinese that are eating Samsung's lunch, not Apple. Xiaomi, One Plus, Lenovo, Meizu to name a few. They all have direct competitors to Samsung's S and Note line of phones. And if you look at their growth it's coincides with Samsung's decline.

    AI should do some more research.

    I doubt many people were considering getting a Note 4 vs an iPhone 6 plus. They were looking that the Note 4 at $700 and one of the many 5.5" -6" Chinese phones with top end specs at less than half the cost. We're talking S-LCD screens, Qualcomm 800 series chips, all the top components at HALF the cost. Pretty clear.

    That was the thermonuclear strike, not the iPhone 6 Plus.
  • Reply 57 of 315
    I question your premise that "aaple [sic] was made to improve its products because samsung was a competitive threat".

    I simply don't think that has even the slightest basis in fact.

    That would be like trying to argue the Eagles play better because of Milli Vanilli. ;)

    I see the larger 6 and 6 plus as a definite improvement. Samsung dominated the large form factor segment until now.
  • Reply 58 of 315
    Quote:
    Originally Posted by SolipsismX View Post



    I don't buy the premise because I don't consider having better products than your opponents in a free market is going thermonuclear.

     

    Well, Apple didn't set out to make a product that would hurt Samsung, but that's exactly what happened.

     

    They say the best revenge is success. And the iPhone 6/6P serve up a huge portion of that.

  • Reply 59 of 315
    Quote:

    Originally Posted by sog35 View Post





    Did you not read the article by Daniel?



    Samsung sold almost the same amount of phones so far in 2014 as 2013. The difference is they are selling 50% less top end phones. Xiaomi does not make top end phones so Xiaomi is not hurting Samsung, Apple is. Looking at the numbers Samsung is actually selling MORE mid and low end phones than last year.



    But the media does not want to give Apple any credit so they say Xiaomi is killing Samsung.

     

    You're wrong in that it's Apple but you're right in that it's not Xiaomi.  

     

    The reality is, it's not "just" Xiaomi.  it's Xiaomi, Lenovo, One plus, and Meizu that is eating Samsung's lunch.

     

    Just do a little bit of research and you'll see their grow coincide with Samsung's decline.

     

    Not need to argue, the facts are out there if you care to bother looking.

  • Reply 60 of 315
    boredumbboredumb Posts: 1,418member
    Quote:

    Originally Posted by SolipsismX View Post



    I don't buy the premise because I don't consider having better products than your opponents in a free market is going thermonuclear.

    I think perhaps you mean you don't buy the rhetoric - the premise seems well-supported.

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