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To: Swordmaker

In my cursory reading, missed the analysis of iOS divorced from it’s proprietary phone. Android and apps are not tied to a phone manufacturer and Apple products certainly are. The costs of being a phone manufacturer/seller are certainly substantial.

It is an apples to oranges comparison.

Just had to put that in.

DK


3 posted on 01/25/2016 9:04:46 PM PST by Dark Knight
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To: Dark Knight
In my cursory reading, missed the analysis of iOS divorced from it’s proprietary phone. Android and apps are not tied to a phone manufacturer and Apple products certainly are. The costs of being a phone manufacturer/seller are certainly substantial.

I think you are mis-applying costs for revenues. Apple takes home a bit more than 94% of the profits of the Cellular phone industry. Samsung had ~11%. LG had ~1%. All of the other 500 or so cellular phone manufacturers either broke even or lost money on their operations, which explains why the three who showed a profit totaled more than 106% of Cellular phone profits. The other posted losses of more than 6% to bring the industry back down to 100% profit.

All but Apple are participating in a price competition race to sell the most phones for the lowest prices and they are all losing the race. Apple alone is satisfied in winning the race they alone are running, the profit race. As such, Apple does not divorce its product lines into operating systems and hardware.

Nor does Apple expect to make any money off of amorphous secondary advertising income, as does Alphabet/Google, who usually leaves the hardware revenue to its partners, except when they ill-advisedly try to compete with their partners with a phone from time to time.

6 posted on 01/25/2016 10:08:10 PM PST by Swordmaker (This tag line is a Microsoft insult free zone... but if the insults to Mac users continue....)
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