Posted on 01/31/2011 10:43:14 PM PST by Swordmaker
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.
Apple continues to dominate the market when profit is measured, according to a new report from Asymco's Horace Dediu. 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.
After data for the fourth quarter of 2010 was released last week, Apple placed fifth overall among global cell phone makers with 4 percent market share. Meanwhile, research firm Canalys published a report Monday showing that Google overtook Nokia as the top smartphone platform maker in the fourth quarter.
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. Additionally, the average selling price of the iPhone increased from approximately $610 in the previous quarter to $625.
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.
iPhone profits could continue to soar as Apple adds the new CDMA iPhone 4 to its lineup. According to Apple's Chief Operating Officer Tim Cook, the launch of the iPhone 4 on the Verizon network will not adversely affect the iPhone's ASP and profit margins. After being speculated for years, the iPhone will come to the nation's largest carrier on Feb. 10.
Verizon is conservatively projecting sales of 11 million iPhones in 2011, but executives have said that the handset could help the company's growth "really explode over the next several years." According to a recent analyst survey, Verizon could see as many as 25 million new iPhone subscribers this year.
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You could say it is a manipulation of data. Apple iOS is only available on Apple handsets. Android, Symbian, etc is available on multiple handsets from various vendors.
If you look at the PC desktop market, it would look similar because Windows, Linux, etc are distributed among hundreds of hardware manufacturers while OS X is only available for one hardware manufacturer.
All this tells me is that Apple products are overpriced.
I'll remember that the next time someone touts that "Android" is beating the iPhone in market share.
On a cost-benefit ratio, this tells me that apples shoving out crap that people are willing to pay more.
Nice work if you can get it.
Interesting how Nokia’s market share has remained constant, but it looks like they’ve cut prices. Which means that they are the better buy.
That apple has 4 percent market share tells me that it’s NOT selling, but they charge so much per unit, that they make a profit.
Way overpriced for what you are buying. The only way they can do this on 4 percent market share is to cut the costs on what they ship out (so that they put less into it than the other manufacturers), and because of the brand, people perceive them to be worth more, so Apple can jack up their price without losing their market share.
Captive markets are amazing things.
On a cost-benefit ratio, this tells me that apples shoving out crap that people are willing to pay more.All this tells me is that Apple products are overpriced.6 posted on February 1, 2011 7:02:14 AM EST by EricT.
What Apple's quantity and profit numbers mean to me is that Apple dominates the market for expensive phones. Since my wife and I share a single Tracfone, you will understand that we are not the people who are making iPhones a runaway success - but somebody is.Interesting how Nokia’s market share has remained constant, but it looks like they’ve cut prices. Which means that they are the better buy.I don't drive Cadilacs, either - but people do make money selling them. Just because I wouldn't buy a new Mercedes-Benz is no sign that I would be philosophically opposed to the development and production of them - nor, in principle to investing my own money in companies that make luxury cars. To the contrary, the top end of the market defines what the middle of the market may come to approximate over time.
And that is especially true of Apple: who have they copied - and who has not copied them? In recent years Apple has pretty much showed the rest of the personal digital electronics industry what excellence was. And made money hand over fist, doing it. I own some AAPL stock, and I own a Mac and gave my wife a couple of iPods. I'm not sure I can justify an iPad, but some day an App might convince me. I'm just not an early adopter, particularly. Some day I might wait in line for hours to meet Sarah Palin. To get an electronic gizmo a day or two earlier than I could otherwise? Not so much.
On a price basis, that's pretty certain. And to you or me, all else might be equal - or near enough.
Or maybe it's an exercise in creative semantics and statistical prestidigitation.
Your inane posts remind me of the blond who said, “Don’t hate me because I’m beautiful.” Of course, Apple is the blond.
You don’t understand Apple’s success, you hate it, and you feel a need to condemn it. Why? The millions of us who buy their products don’t attack you for your false frugality. We are happy they are very profitable. That means they will be around a lot longer turning out fantastic products.
If you don’t like their products, if you think they are overpriced junk, there is a simple solution - don’t buy them.
“buy their products don’t attack you for your false frugality.”
Umm, isn’t that the point of terming it ‘false frugality’.
You are attacking us, because we can see the forest for the trees.
The business model for apple is simple. Control the means of distribution. Ship out underpowered cheap crap. Slap an apple label on it, so that people who are ‘brand aware’, will do the selling for you. Jack up the price so that those who want to be ‘good apple clients’ *know* they are getting quality.
If the majority of those who bought cell phones agreed with you, then Apple would have a larger market share. The majority seem to think that Nokia is the better deal.
I’ve spent more than I care to admit buying Ipods for people who have requested them on their Christmas list.
My verdict?
They are terrible machines. I kept having to buy replacements, because they would consistantly get damaged.
Would I buy it for myself? Hell no. I’m not impressed by the prices, nor am I impressed by the durability of the machine. I don’t really see the ‘quality’ enter the picture.
Restricting it to the mobile handset market, Apple keeps 100% of the profit from the handset and the OS. Everyone else splits the profit, and because they discount heavily, there's less profit per unit. Same thing with desktop and laptop computers. MS owns the OS world, but Apple gets 100% of the profit on Apple products.
There's been a lot of criticism of Apple's strategy. Despite that, a lot of manufacturers would kill to be able to implement Apple's strategy successfully. Think MS wouldn't jump at the chance to corner the computer hardware market and quit getting blamed cause some third rate company made a fourth rate computer that crashes and the user blames MS? Think they wouldn't love to corner the profits from A to Z on the hardware sales for computers with the Windows OS?
I’m going to presume that Apple’s profit numbers include its profits from the iTunes App Store, no? Looking at just handset sales, without the extra software revenue, the picture might not be quite as skewed...
Meeting and exceeding the customers expectations is the key to a successful business...
Do you consider using the term "false frugality" to be an attack? Nearly all, if not absolutely all, apples to apples comparison, yes the pun was intended, show that the cost to own for Apple products is always lower than the competition.
However, if you want an attack I'll give you a real attack!
My true opinion is that most criticism such as yours is simply an off-hand way of tooting your own horn, a way of saying "I am so smart and you Fanbois are so dumb! I can build a computer from chewing gum and old pencil shavings for $32 bought from New Egg that is faster, more powerful and far superior to your sissy Apple products."
Well, hooray for you! You are a super star! I am so happy for you I could .... !
Now go away! Pad on down to the coffee shop in your Birkinstocks and talk bits and bytes with the other geeks!
When some people look at Apple's success, it may be a case of sour grapes.
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