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Apple accounts for 51% of mobile phone industry profit
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Author:  Amnesia10 [ Tue Feb 01, 2011 3:49 pm ]
Post subject:  Apple accounts for 51% of mobile phone industry profit
Apple’s 4.2% mobile phone market share accounts for 51% of industry’s total profit

http://www.macdailynews.com/index.php/w ... total_pro/

Quote:
"With just 4.2 percent of the global mobile phone market, Apple's iPhone accounts for a massive 51 percent of the total profits, a new report claims," Josh Ong reports for AppleInsider.

"Apple continues to dominate the market when profit is measured, according to a new report from Asymco's Horace Dediu," Ong reports. "The iPhone maker managed to add one percent to last quarter's 50 percent share of profits from the top eight mobile phone vendors in the December quarter, the report noted."

Ong reports, "Apple revealed earlier this month that it sold 16.24 million iPhones in its first quarter of fiscal 2011, resulting in $10.5 billion of revenue for the company... The Cupertino, Calif., company hit a major milestone in the December quarter when it passed Nokia to become the world's largest mobile phone vendor in terms of revenue... The iPhone's share of global handset profits has been steadily climbing. In August of 2009, Apple was reported as making 32 percent of the industry's profits."
Author:  l3v1ck [ Tue Feb 01, 2011 9:38 pm ]
Post subject:  Re: Apple accounts for 51% of mobile phone industry profit
I'm not surprised. iPhones are a rip off compared to the prices people pay for other smartphones. They must make a huge profit on each one sold.
Author:  Amnesia10 [ Tue Feb 01, 2011 9:47 pm ]
Post subject:  Re: Apple accounts for 51% of mobile phone industry profit
l3v1ck wrote:
I'm not surprised. iPhones are a rip off compared to the prices people pay for other smartphones. They must make a huge profit on each one sold.

I think Apple has a 30% gross margin on hardware, which is is a dream for any manufacturer.
Author:  jonbwfc [ Tue Feb 01, 2011 9:54 pm ]
Post subject:  Re: Apple accounts for 51% of mobile phone industry profit
And yet people do buy their stuff. In increasing numbers. The buying decision, it suggests, is more complicated than just the number on the price ticket.

I did read an interesting management science article once as to what the 'best' measure of business success was - share dividend, company value, profit margin, gross figures etc. The conclusion, which I thought even at the time was a gross cop-out, is that a company should be judged a success not if any one factor is bigger than it's competitors, but if more of these factors were improving faster than it's competitors. I.e. it's effectively the delta of the company as a whole. On some measures Apple would be winning but on others it wouldn't even be in the game - Apple hasn't paid a share dividend in donkey's years for example.

It just goes to show that company balance sheets and such are still, at the end of the day, just statistics. And statistics are subjective enough to say what you want them to say, generally speaking.

Jon
Author:  Amnesia10 [ Wed Feb 02, 2011 12:10 am ]
Post subject:  Re: Apple accounts for 51% of mobile phone industry profit
I have a friend who has derided me for ages because I am mac user, but a couple of days ago he bought an iPhone 4 and says it is the best phone he has ever had.
Author:  ChurchCat [ Wed Feb 02, 2011 2:32 pm ]
Post subject:  Re: Apple accounts for 51% of mobile phone industry profit
l3v1ck wrote:
I'm not surprised. iPhones are a rip off compared to the prices people pay for other smartphones. They must make a huge profit on each one sold.


"Rip off" is rather strong I think. They are premium phones and the mark up on them is about 30%. So assuming that most manufactures make say 10 to 20 percent you are paying more, but perhaps not that much more.

CC
Author:  jonlumb [ Wed Feb 02, 2011 2:40 pm ]
Post subject:  Re: Apple accounts for 51% of mobile phone industry profit
l3v1ck wrote:
I'm not surprised. iPhones are a rip off compared to the prices people pay for other smartphones. They must make a huge profit on each one sold.


I've just bought an iPhone 4, and on an equivalent contract against the Nexus S it was £70 more for the Nexus S handset. iPhone wiped the floor against the S on a number of fronts as well.
Author:  Amnesia10 [ Wed Feb 02, 2011 3:52 pm ]
Post subject:  Re: Apple accounts for 51% of mobile phone industry profit
jonlumb wrote:
l3v1ck wrote:
I'm not surprised. iPhones are a rip off compared to the prices people pay for other smartphones. They must make a huge profit on each one sold.


I've just bought an iPhone 4, and on an equivalent contract against the Nexus S it was £70 more for the Nexus S handset. iPhone wiped the floor against the S on a number of fronts as well.

Yes but Apple have real buying power being able to buy up a significant slice of the worlds production a component if necessary, like they did with Flash ram a few years ago.
Author:  l3v1ck [ Wed Feb 02, 2011 9:52 pm ]
Post subject:  Re: Apple accounts for 51% of mobile phone industry profit
jonlumb wrote:
l3v1ck wrote:
I'm not surprised. iPhones are a rip off compared to the prices people pay for other smartphones. They must make a huge profit on each one sold.


I've just bought an iPhone 4, and on an equivalent contract against the Nexus S it was £70 more for the Nexus S handset. iPhone wiped the floor against the S on a number of fronts as well.

When I got my HTC Desire it was a brand new design and the iPhone 4 was just about to come out. To get the iPhone for free (like I did with the Desire) I'd have had to pay £10 a month more (for two years) to get the same contract.
Now the iPhone has bee out quite a while the price has dropped a bit. I'm sure it'll shoot back up when the next model comes out.
Author:  ChurchCat [ Wed Feb 02, 2011 10:16 pm ]
Post subject:  Re: Apple accounts for 51% of mobile phone industry profit
l3v1ck wrote:
I'm sure it'll shoot back up when the next model comes out.


If the price is too high it won't sell. The iPhone 1 suffered from this I think. Few people will allow themselves to be ripped off. The phone will be priced at what the market will stand.

I guess that is true for all products really.
Author:  big_D [ Thu Feb 03, 2011 6:29 am ]
Post subject:  Re: Apple accounts for 51% of mobile phone industry profit
ChurchCat wrote:
l3v1ck wrote:
I'm not surprised. iPhones are a rip off compared to the prices people pay for other smartphones. They must make a huge profit on each one sold.


"Rip off" is rather strong I think. They are premium phones and the mark up on them is about 30%. So assuming that most manufactures make say 10 to 20 percent you are paying more, but perhaps not that much more.

CC

Most would dream of being able to make a 10% margin on hardware these days.
Author:  Amnesia10 [ Thu Feb 03, 2011 8:36 am ]
Post subject:  Re: Apple accounts for 51% of mobile phone industry profit
big_D wrote:
Most would dream of being able to make a 10% margin on hardware these days.

Let alone anywhere near Apples 30%.
Author:  saspro [ Thu Feb 03, 2011 9:24 am ]
Post subject:  Re: Apple accounts for 51% of mobile phone industry profit
Amnesia10 wrote:
big_D wrote:
Most would dream of being able to make a 10% margin on hardware these days.

Let alone anywhere near Apples 30%.


3% is our average, I dream of the day I could get 5-10%
Author:  timark_uk [ Thu Feb 03, 2011 11:35 pm ]
Post subject:  Re: Apple accounts for 51% of mobile phone industry profit
All your profits are belong to Apple.

Mark
Author:  bobbdobbs [ Fri Feb 04, 2011 10:50 am ]
Post subject:  Re: Apple accounts for 51% of mobile phone industry profit
timark_uk wrote:
All your profits are belong to Apple.

Mark


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