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.
HOW???? One manufacturer, making one handset in two memory capacities, with 4.2% of the market, competing against multiple manufacturers making literally DOZENS of various styles and capacities of Android handsets with the BALANCE of the 95.8% of the market share, takes home 51% of the profit and YOU say it's a "manipulation of the data???? How? In what way? Exactly how is this data being manipulated to distort those data, that set of facts? Do you want to say that the iPhone simply is NOT competing with Android???? Is it in a market all by itself?Mp< A case of ADS, Apple Derangement Syndrome, is on display if you want to claim that, Eric.
It might. Or it might just be a the normal conservative principle of being skeptical of information until you can varify it's veracity. Is it really an objective analysis, or is it a case of the reporter "putting on the kneepads" to assure future access?
Is it "hateful" to wonder?
How? The market sets prices: Willing buyers purchasing from a willing seller.
Apple is selling every iPhone they can make... and the demand is far outstripping supply. Acting Apple CEO Tim Cook stated that Apple could have sold far more Apple iPhones last year if they could have ramped up manufacturing to a higher capacity faster. High end Android phones sell for the around same price. Ergo, iPhones are not overpriced.
You are assuming wrong... this is just the profit from the sales of the hardware. The iTunes App store profits are reported separately.
This is not a "reporter putting on the kneepads" but just one of multiple economic analysts who are finding the SAME THING from the same raw data that is available to everyone. No one is finding anything different. If they were, that would be reported and the data would be available to refute it.
No, it's not hateful to wonder. But you don't verify information by calling it "creative semantics and statistical prestidigitation". If you are really interested in verifying the information, that you should do that rather than saying it's fake before checking the facts.
The “raw data” can still be an apples-and-oranges comparison. One day you read about how Apple is making all their money on their hardware, and it’s supported by comparing their gross profits to other hardware vendors. Then next day you read about how much money they’re making on their OS, comparing their gross numbers to other OS vendors. And everybody just smiles and nods.
Look at that original post again. You offered a possible, speculative interpretation of the data. I offered another, equally speculative. Mine was not presented as fact any more than yours. I did not accuse you of stating that speculation as fact, because you didn’t.
What speculative interpretation? The graph shows that Apple has 4% of the market and 50% of the profits. That is stating exactly what the graph shows.
I offered another, equally speculative.
No, you didn't. You questioned the accuracy of the graph.
Apple Derangement Syndrome, is on display if you want to claim that, Eric.
It seems that the derangement is all on YOUR part.
One manufacturer, making one handset in two memory capacities, with 4.2% of the market, competing against multiple manufacturers making literally DOZENS of various styles and capacities of Android handsets with the BALANCE of the 95.8% of the market share, takes home 51% of the profit and YOU say it's a "manipulation of the data????
What you posted, and what the article purports, is a manipulation of the data.
Apple has 4.2% of the market. That is correct.
Apple does not have 51% of the profit.
Look at the two charts in the article. The first chart is profit and includes 7 manufacturers.
The second chart is market share and it includes the same 7 manufacturers as well as approximately 25% of the market that belongs to OTHERS.
Where is the profit from the OTHERS????!!!!
25% of the market data is missing from the profit report......a manipulation of data.
Your exact words, which were explicitly quoted in my reply so that there could be no misunderstanding about what I was replying to:
Perhaps it's quality over quantity.
Your exact words, which were explicitly quoted in my reply so that there could be no misunderstanding about what I was replying to:
Perhaps it's quality over quantity.
Oh, OK. So why do you think Apple has 4% of the cell phone market but 50% of the profits?
Why would you try to put words in my mouth like that, under a banner of civility and "no flame wars"?
What are you talking about? I asked a civil question: why do you think Apple has 4% of the cell phone market but 50% of the profits?
You asked why I hold an opinion I never expressed.
I may have misunderstood. If you’re asking what I attribute Apple’s making 50% of the profits while holding 4.3% of the mobile market share to, then you’re begging the question of the accuracy of the data and the subsequent conclusions.
No, I simply asked a civil question: why do you think Apple has 4% of the cell phone market but 50% of the profits? If you don't want to respond, that's OK.
I will respond with the observation that your question is a textbook example of the logical fallacy of begging the question, and having reocognized that, that is all the answer that is warranted.
You are wrong about begging the question. The statistics show that Apple has 4% of the cell phone market, but 50% of the profits. That is the starting proposition. All logical discussions start from a proposition. If you have nothing to say about the proposition, that is OK.
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