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To: aMorePerfectUnion
Winning for a business isn’t copies.

Winning for any business is profits.


You're still having a huge problem understanding what you read or what I wrote.

I made it a point to mention that what I was referring to, is the number of copies 'sold'. Not the amount of profits generated from those copies. Any dope nowadays would rather sell just one copy of an item that generates a million dollars in profits, than selling a million copies to generate the same million dollars or less. It's common sense and good business practice.

You insist on prolonging an argument which isn't anywhere within my comments.

Apple has been raking in the dough with its iPhone, and nobody will argue that it isn't a productive product as far as generating revenue.

Windows is a generator of profits too, but, at a small scale per copy. 1.5 billion copies of Windows will generate a lot of revenue; not from sales of those copies, but from the potential after-market sales of other services and products and software and content, etc.

There may come a time when the iPhone doesn't generate as much in profit per device as in the last 8 years that it's been around. The profit margin per device may eventually come down to resemble the same low margin that the rest of the industry enjoys, and that would spell disaster for Apple and for its investors.

Android devices are low profit items, if they generate any profits at all. But, the Android ecosystem for Google and others is not dependent on the profit per device. It's about selling in volumes in order to make the profits in the back-end, like with advertising. If Apple's devices become less profitable, Apple will be left with a low number of users, though still significant. But, that lower number of users would not be able to generate the same amount of revenue from after-market sales, as the Android ecosystem or the Windows ecosystem.

Expecting that Apple will forever be able to count on the high-margin profits, is foolish and not good business. Apple needs other products and services, and counting on iPhones for about 70 percent of revenue, is, again, not good business proactive. Apple needs to diversify, and I think they're trying, while understanding that the iPhone can't carry them forever.

And, again, I just mentioned number of copies, not the amount of profits. Entiende?
50 posted on 01/07/2016 5:43:52 AM PST by adorno (w)
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To: adorno

“Windows is a generator of profits too, but, at a small scale per copy. 1.5 billion copies of Windows will generate a lot of revenue; not from sales of those copies, but from the potential after-market sales of other services and products and software and content, etc.”

Apple generates a huge amount of money in its ecosystem of the app store, itunes, and subsequent technology upgrades from small devices to Apple computers.

“There may come a time when the iPhone doesn’t generate as much in profit per device as in the last 8 years that it’s been around. The profit margin per device may eventually come down to resemble the same low margin that the rest of the industry enjoys, and that would spell disaster for Apple and for its investors.”

Doubtful... but all markets mature. The issue for every company is the future, while maximizing the present.

“Android devices are low profit items, if they generate any profits at all. But, the Android ecosystem for Google and others is not dependent on the profit per device. It’s about selling in volumes in order to make the profits in the back-end, like with advertising.”

As Apple does in its ecosystem and advertising also.

“If Apple’s devices become less profitable, Apple will be left with a low number of users, though still significant.”

Affluent users are better than low income users, no matter what happens to the smart phone market.

“But, that lower number of users would not be able to generate the same amount of revenue from after-market sales, as the Android ecosystem or the Windows ecosystem.”

It remains to be seen what Android will generate. So far, few Android phone manufactures have more than an expensive hobby.

“Expecting that Apple will forever be able to count on the high-margin profits, is foolish and not good business. “

I’m not sure who is doing that. It appears to be your private straw man.

“Apple needs other products and services, and counting on iPhones for about 70 percent of revenue, is, again, not good business proactive.”

You are assuming they are “counting on it.” Is this simply your opinion, or do you have a statement from the company that their strategy is to just “count” on identical revenues to roll on? I think you are making up this straw man.

Prove me wrong with evidence that Apple shares this strategy with your straw man. Surely you must have read an article, private company memo, etc., that you can show us.

“Apple needs to diversify, and I think they’re trying, while understanding that the iPhone can’t carry them forever.”

Better. Now back to your straw man.

“And, again, I just mentioned number of copies, not the amount of profits. Entiende? “

I have heard your “copy” argument. I reject it. It is meaningless and depends on your straw man coming to life, which remains to be seen.

You might as well throw in a mention stars and fairy dust. Copies is unimportant. Businesses don’t exist to ‘make copies.’ This is at best a spurious argument you continue to put forth.

Show me the money. Not the copies.


51 posted on 01/07/2016 6:20:11 AM PST by aMorePerfectUnion (As a representative of Earth, I officially welcome Global Warming to our planet)
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