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Apple makes 92% operating income of smartphone despite only having a 20% market share
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Everything Goes
13-07-2015
Apple markes 92% operating income of smartphone industry despite only having a 20% market share. Good times if your a shareholder


Quote:
“Roughly 1,000 companies make smartphones. Just one reaps nearly all the profits.

Apple Inc. recorded 92% of the total operating income from the world’s eight top smartphone makers in the first quarter, up from 65% a year earlier, estimates Canaccord Genuity managing director Mike Walkley. Samsung Electronics Co. took 15%, Canaccord says.

Apple and Samsung account for more than 100% of industry profits because other makers broke even or lost money, in Canaccord’s calculations.

One key to Apple’s profit dominance: higher prices. Apple’s iPhone last year sold for a global average of $624, compared with $185 for smartphones running Android, according to Strategy Analytics. In its fiscal quarter ended March 28, Apple sold 43% more iPhones than a year earlier, at a higher price. The average iPhone price in the quarter rose by more than $60 to $659, on the strength of the larger-screen iPhone 6 and 6 Plus models.”

http://www.wsj.com/articles/apples-s...-92-1436727458

http://www.neowin.net/news/apple-tak...ustrys-profits
clewsy
13-07-2015
That just shows you how foolish iPhone owners are for paying top wack and the reasons why so many are just getting out of the market and making these own network device's
Mark in Essex
13-07-2015
Originally Posted by clewsy:
“That just shows you how foolish iPhone owners are for paying top wack and the reasons why so many are just getting out of the market and making these own network device's”

That's exactly what I thought when I saw this article.

Still I noticed in another news article that they are eventually doing something clever and actually adding a keyboard that has upper and lower case characters when you have the caps lock on - I wish they bought that to other mobile platforms as it seems the obvious way to do it.
coopermanyorks
13-07-2015
Spot the Android users ..............
kidspud
13-07-2015
Originally Posted by Mark in Essex:
“That's exactly what I thought when I saw this article.

Still I noticed in another news article that they are eventually doing something clever and actually adding a keyboard that has upper and lower case characters when you have the caps lock on - I wish they bought that to other mobile platforms as it seems the obvious way to do it. ”

It'S nEvER caUSed mE Any PRobLeMs.
clewsy
13-07-2015
Its not about being an android user, its just stating the facts that the iphone is clearly carrying a large amount of added value.

Also goes to prove why so many manufacturers appear to be going into network branded or even wanting to get into the google nexus stable. I suspect the next nexus will go back to low price, high value offering to increase sales after the last one became a bit of a flop on the sales front.

Oh I have had an iphone in the past before I get accused of being an android fanboy
Quackers
13-07-2015
I have no issue paying £600 for a phone. Especially if I can just walk into an Apple Store if it develops a fault and get it swapped there and then. People will only pay what they think it's worth.
Anika Hanson
13-07-2015
Originally Posted by clewsy:
“Its not about being an android user, its just stating the facts that the iphone is clearly carrying a large amount of added value.

Also goes to prove why so many manufacturers appear to be going into network branded or even wanting to get into the google nexus stable. I suspect the next nexus will go back to low price, high value offering to increase sales after the last one became a bit of a flop on the sales front.

Oh I have had an iphone in the past before I get accused of being an android fanboy ”

The nexus line has never been high quality. It's always lacked in comparison to its Samsung and HTC counterparts.
Anika Hanson
13-07-2015
Originally Posted by Quackers:
“I have no issue paying £600 for a phone. Especially if I can just walk into an Apple Store if it develops a fault and get it swapped there and then. People will only pay what they think it's worth.”

Exactly. You get what you pay for.
lightspeed2398
13-07-2015
Originally Posted by Anika Hanson:
“Exactly. You get what you pay for.”

You can pay more for an S6 Edge today than an iPhone. I'd rather buy an iPhone because of the brick and mortar (glass and more glass and wooden tables) retail outlets and the fact that I know it's going to be updated for a good amount of time and good support generally.

I use both platforms (nexus 5/iphone 6+) on a daily basis and there isn't much difference in them now. If Google did another Nexus 5 style phone I'd be very tempted. I still think of Android as more bleeding-edge though and the iPhone platform as a little more "refined"
alan1302
13-07-2015
Originally Posted by lightspeed2398:
“Android as more bleeding-edge though and the iPhone platform as a little more "refined"”

Think that's probably a good way at looking at them.
clewsy
13-07-2015
Yep I think Apple has a good product that works, but its never really cutting edge. It's just good at what it does and you know the next version will always make yours limited on features ...that said its good branding by apple.

If google did a something just the size of the 6 plus I think it would sell. They went way too big with the last offering and the price made it less appealing to the target market.
finbaar
13-07-2015
Quite obviously you don't get what you pay for if Apple are making so much money. And are iPhones so unreliable that you need to take them back all the time? I have had 17 phones (i think) in the last 5 years and only had an issue with one of them after I ran it over. I still got it replaced under guarantee though in a shop. Apple selling an image of being "premium" and "exclusive". Just look how they copied jewellery stores when designing their shops. It's funny how some are taken in by this and some can see right through it.
kidspud
13-07-2015
Originally Posted by finbaar:
“Quite obviously you don't get what you pay for if Apple are making so much money. And are iPhones so unreliable that you need to take them back all the time? I have had 17 phones (i think) in the last 5 years and only had an issue with one of them after I ran it over. I still got it replaced under guarantee though in a shop. Apple selling an image of being "premium" and "exclusive". Just look how they copied jewellery stores when designing their shops. It's funny how some are taken in by this and some can see right through it.”

Yes, it's amazing how they manage to maintain such high level customer satisfaction and grow their customer base.
alan1302
13-07-2015
Originally Posted by finbaar:
“ And are iPhones so unreliable that you need to take them back all the time?”

No, there not.
d123
13-07-2015
Originally Posted by finbaar:
“Quite obviously you don't get what you pay for if Apple are making so much money. And are iPhones so unreliable that you need to take them back all the time? I have had 17 phones (i think) in the last 5 years and only had an issue with one of them after I ran it over. I still got it replaced under guarantee though in a shop. Apple selling an image of being "premium" and "exclusive". Just look how they copied jewellery stores when designing their shops. It's funny how some are taken in by this and some can see right through it.”

The jealousy and anger are strong in this one...
alan1302
14-07-2015
Originally Posted by finbaar:
“Just look how they copied jewellery stores when designing their shops. It's funny how some are taken in by this and some can see right through it.”

You can see right through it as the shops have windows. Bit ironic in an Apple shop of course
BKM
14-07-2015
Originally Posted by Everything Goes:
“Apple markes 92% operating income of smartphone industry despite only having a 20% market share. Good times if your a shareholder ”

That's globally - iPhone has (last time I saw figures) 50%+ in its home market (the USA)

Also I think 20% is of the total mobile market. The figures for high-end smartphones would be more interesting.
Aye Up
14-07-2015
Generally Apple and Google make similar products and OS. Feature wise they are both comparable imho. Though I do find 92% of Apple's profits coming from iPhone slightly worrying, at the moment they are expanding in China where they are raking it in. Google has several product lines which bring in substantial revenue for them, Apple doesn't. Apple's ecosystem isn't as diverse, sooner or later that growth and accordingly revenues will slow. They rely too much on iPhone sales, their computing division isn't blazing a trail. I suppose thats why thes went after Beats Music and launched their own variant from that.

To be fair to Cook & Co they are investing in new acquisitions and product development, Apple Watch is about 12 months away from reaching maturity imho, its selling well but I think it will do more when inevitably they release one with a round face. Apple fell lucky releasing 2 product lines which pissed on the market and cleaned it up, that wasn't continued with Apple Watch.

Based on current profits and projections Apple should peak around 2017-2018, it will broadly be flat after that, though still very very very profitable. People slag off Microsoft for god knows how many failings, yet they still pull in billions in profit each year. The only way Apple will grow further beyond the current projections is if they release new product lines, apparently they don't have anything in the pipeline at the moment.
Stereo Steve
14-07-2015
There are snobs on both sides. Get over it and don't worry about it. Buy what you want. I've had iPhones for years and now have a phone which looks a bit like a toilet and runs on Android. Do I want another iPhone? Yes. Will it change my life? Not much. At some point in your life you have to realise the difference between want and need. My current phone does exactly what I want it to and I'm not in any 'tribe'.
tdenson
14-07-2015
Originally Posted by clewsy:
“Its not about being an android user, its just stating the facts that the iphone is clearly carrying a large amount of added value. ”

I agree with you, but probably for the wrong reason. I suspect you didn't mean the word "value" but are referring to premium pricing. IMO it does carry a large amount of added value and is therefore worth the price (to me).
aurichie
15-07-2015
Personally I'm happy paying a premium for Apple devices if it allows the company to continue doing what they do best - building great products and investing in new technologies.

I bet if you love Sony or HTC you only wish they were as successful as Apple has been in the mobile space. The way it's shaping up both of these companies could be out of mobile by next year at the very latest.
Stiggles
15-07-2015
Originally Posted by aurichie:
“Personally I'm happy paying a premium for Apple devices if it allows the company to continue doing what they do best - building great products and investing in new technologies.

I bet if you love Sony or HTC you only wish they were as successful as Apple has been in the mobile space. The way it's shaping up both of these companies could be out of mobile by next year at the very latest.”

What new technologies?

At the moment I have a Sony z2 and i don't wish they were more successful. It does what I want and looks fantastic. I don't have love for companies. Seems very chidlish to do that.
Stig
15-07-2015
Originally Posted by Stiggles:
“At the moment I have a Sony z2 and i don't wish they were more successful. It does what I want and looks fantastic. I don't have love for companies. Seems very chidlish to do that.”

Exactly. I don't understand the 'tribal' attitude with technology.

I used to use Windows Phone for a few years, as it suited me. I then had a rethink of my requirements and now have an iPhone as it suits me needs.

Back to the original topic; if Microsoft makes a loss on it's phones or Surface tablets, is that a good thing or a bad thing for me as a user? Then ask the same question regarding Apple profits. I'd rather be using a platform which is popular (so I get the apps I want) and successful (so it's going to be around for at leas the medium term).
ShaunIOW
15-07-2015
I'm not surprised at their profits if the new iPod Touch is anything to go by - the price difference between the 16Gb and 128Gb model is £170 seeing as a good quality fast 128Gb MicroSD card can be got for £65 they really are taking the piss, especially as that £65 is retail so for a company with Apples buying power and ability to buy in bulk it'd be a hell of lot less for them.
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