Apple KILLS the Mobile Phone Market Profits Ping!
If you want on or off the Mac Ping List, Freepmail me.
Posted on 02/09/2015 9:57:34 AM PST by ctdonath2
Canaccord Genuity’s Mike Walkley this morning ... writes that his assessment of vendor data in smartphones suggests, whose shares he rates a Buy, captured 93% of industry profits in Q4 ... while Samsung Electronics has a minority of profit and all others operate at no profit or at a negative margin
(Excerpt) Read more at blogs.barrons.com ...
If you want on or off the Mac Ping List, Freepmail me.
Not really. . . Apple took home 87% in the previous quarter. . . and that was not just this guy's assessment. Now Samsung has had a 19% drop in profits while Apple has had the best quarter of any business in history. That makes it a foregone conclusion. The question was just exactly how much was the blow-out going to be. I predicted 93% and I was right-on.
Try One product, 20% of the market, nearly all of the profits. . . finished the quarter with demand exceeding supply. Underpriced.
It is a FACT that workers at FoxConn who work on Apple contracts receive a payrate THREE TIMES the normal factory rate of pay for other assembly line workers. So, no, they do not receive equally cheap labor. The others get far more cheaper labor.
When did Microsoft, Exxon, or Wally ever produce something worth being excited about. . . or even mildly happy about.
With over ONE BILLION iOS devices sold, of which approximately 700 MILLION of those are iPhones, exclusivity is hardly a word I would tend to use in reference to the iPhone line. Desirability, yes, Usability, yes, Utility, yes. But certainly not "Exclusivity." You can buy either of the iPhone 6 models right now for ZERO dollars down at Walmart right now. That is hardly exclusive.
The quarters are analogous covering the same calendar quarter. And, no, Samsung shipped, not sold as they do not report numbers sold (only Apple actually reports numbers of phones sold to end users), 74.4 million phones, ~30% of which were smartphones, ~40% feature phones, and ~30% dumb phones. Samsung's phone product mix was revealed in last year's Apple v. Samsung patent infringement trial when Judge Lucy Koh required Samsung to reveal it under oath. Apple sold 74.5 million Smartphones. Those numbers are not in question. Apple also sold 21 million iPads. The profits in the phone industry do not include tablets, a separate market entirely. These are FACTS. Your uninformed guess is WRONG.
More ad hominem attacks from the true Alinsky master, VanDeKook. Your anti-Apple delusions feed this hatred that compels you and CodeToad to post on these threads. MAPS:
Swordmaker's and Kathy's proposed diagnosis for the new ICD-10 addenda:
90210 iOS Munchausen's Apple-Plexy Syndrome (MAPS), The overwhelming compulsion to post negative, judgmental, aggressive, and false commentary on any website thread related to Apple products wherever found, including phobic reaction to projected Apple user euphoria. First and subsequent encounters.
Get psychiatric help. . . or just skip these threads and read something that doesn't cause you distress.
How can Apple be said to have a "monopoly" in cell phones when they have only 20% of the cell phone market regardless of what percentage of profits they take home? The sheer numbers of Android Phones overwhelms Apple, remember? Apple is but one company with a minority presence in the market. . . outnumbered by the 225 Android makers.
Hide of a rhinocerous and sphincter of a water buffalo.
Your basic premise is wrong. I've gone over this before. You keep ignoring the economics of the use of my iPhone. It doesn't cost me any more to have the best iPhone because the iPhone's RESALE value at the end of two years is MORE than I pay to initiate the contract for a new one by a considerable amount. . . so I can sell my old one, initiate a new contract, and POCKET the difference. Not so with any of the top of the line Android phones.
In the past, I have handed down my older iPhone to a family member why uses it for two years. . . and does not have to pay to buy a phone, or initiate a contract for their phone. . . and then two years they get my phone and hand THEIR iPhone down once more to another family member. My ORIGINAL iPhone was finally returned after being used by various family members for SEVEN AND A HALF YEARS and is still being used by my three year granddaughter as an iPod to play games, all on the original battery.
So your scenario of iPhone use is not valid. Most people hand them down, or sell them to finance the upgrades. You just don't understand how they are used, or why. You are one of those people who know the price of everything but the value of nothing.
No, it is not. Apple has been taking home the lion's share of profits in the Cell phone industry. . . ALL phones, for the last several years. No cherry picking here. Apple and Samsung have been doing this for quite some time. Now Samsung has blinked as well. . . dropping 19% in this quarter after a drop of 30% in the last quarter. You can't deny the facts.
It is also true that Apple has been taking home at 50% of the profits in the Personal Computer market for quite sometime. In 2012 it was 45% but has grown since then. . . 53% in 2013.
From Forbes Magazine of April 18, 2013:
Apple's Mac Took 45% Of The Profits In The PC MarketThis is one of those terribly revealing numbers about business. That Apple AAPL +0.65%‘s Mac took some 45% of all the profits available in the PC business in the last quarter of last year. Add that into the usual figure given for tablets and smartphones, that Apple and Samsung between them take more than 100% of the profits for the sector, and you can begin to see where Apple’s river of cash comes from. . .
. . . and even higher now.
Apple has 51% of the US Market Share. . . by number sold, not profits.
Apple has 24% of the China Market Share.
Apple has 46% of the Japan Market Share.
Apple has 33% of the SOUTH KOREAN Market Share. . . the home market of Samsung and LG.
And all of those are smartphones. Not the 30% smartphone, 40% feature phone, 30% dumb phone product mix that Samsung was forced to reveal in discovery last year by Judge Lucy Koh.
No, freedumb, often it is the Apple haters who initiate these threads. . . so they can post the kind of drivel you post. I find it quite amusing when they do that. They particularly love to post FUD articles when they find them to tweak Apple and Apple users.
You fail in that you still think we are bragging about US. FAIL! The fact is that people who switch to Apple products find their experiences in computing are better. . . but you cannot understand that and think we are lying. . . or that the difference is miniscule. It is not. There is a qualitative difference. You just refuse to believe it could be and refuse to learn. There is none so blind as he who refuses to see.
If Samsung made the best phones, they'd have the best resale value two years on. Instead they are landfill. Why? Because they are spec sheet junky trash. The Samsung Galaxy 5S ships with a SpO2 sensor, for Pete's sake. I work in the medical field. . . and I know a lot of doctors and not one of them can come up with a reason for having a Blood Oximeter on a smartphone. Not one. Yet the Galaxy 5S has one.
It also has an atmospheric hygrometer. . . tell me how accurate can it be to report atmospheric water percentages when most phones are kept next to a sweat producing human body? Atmospheric Hygrometers are supposed to be kept ten feet from water sources. . . yet they included one on the Galaxy 5S!
These are some of the things that, according to the geeks, make the Samsung Galaxy 5S better than the iPhone. . . but ignore the lag in loading streaming video, stuttering playback, non-syncing of video and audio, and other such issues. Just because it might look cool on a specifications list does not mean it should be on a cellular phone.
> When did Microsoft, Exxon, or Wally ever produce something worth being excited about. . . or even mildly happy about.
Now, now, that's not fair. You're forgetting Microsoft Bob. Now there was a product worth being excited about.
A product built in a Asian concentration camp to save 16 bucks per phone.
Interesting description for a factory in a city of 10,000,000 people that employs ~200,000 people all of whom stood in long lines to apply for work at the factory, choosing to work there for starting wages seven times higher than the national minimum wage. Tell us again how these people are concentrated there? Held captive? Forced to work there?
Factory should be here. A 20 buck per phone tariff should be charged to US consumers.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.