Apple Ping!
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I guess all you tech-wise freepers understand these things. Me? Not so much. My daughter gave me a Samsung Galaxy5 for Thanksgiving present…Best Buy was giving them away for $1 plus a two-year contract with Verizon— Verizon being the only company that provides good service to her very rural location, that was perfect.
So I should be happy?
I am totally flummoxed by this thing…if I can just make calls and send texts, that’s really all I want. But even that is a miserable experience.
A youtube how-to use the Galaxy5 refers to Samsung as Samsh*t and now I know why. To be fair tho, a techie will not have the same problems I have with it….probably not.
Does anyone like this thing?
Of the Android and Apple phones, I’ll take Windows any day. Best interface by far. Unfortunately, there aren’t any apps.
For those who want another source for a similar type of article about Apple and its sustainable profits!
Another Way Apple Inc. Trounces Competitors: Sustainable Smartphone Profits
http://www.fool.com/investing/general/2014/12/26/another-way-apple-inc-trounces-competitors-sustain.aspx
Some investors have argued that Apple’s high-end pricing strategy is unsustainable. Competitors such as Xiaomi and Samsung have gained market share by broadening their product portfolio and offering lower-priced devices.
But those market share gains have not translated into profit share gains. Even Xiaomi — which aims to turn profits by selling high-margin accessories, apps, themes, and other services — just revealed in a regulatory filing that its margins are miserable. Last year, the Chinese company turned an operating margin of just 1.8%.
Meanwhile, Samsung saw its mobile division’s operating margin decline to 18.7% last year, as its high-end phones are overshadowed by its mid-to-low-end devices. Comparatively, Apple posted an overall operating margin of 28.7% for fiscal 2014, and its iPhone units typically carry higher margins than all of its other products.
All about the bottom line
Xiaomi has been wildly successful selling phones in 2014. Last quarter, the company became the third-largest smartphone manufacturer in the world and overtook Samsung as the largest smartphone maker in China, with 14% of market share in that country in the second quarter.
Xiaomi’s triple-digit unit sales growth this year may help its operating margins as it capitalizes on production efficiencies and sells more software and accessories. Still, it’s hard to see it climbing higher than the low single digits.
Those sales increases have directly cut into sales of Samsung’s high-end smartphone devices. Galaxy S5 sales are lagging its predecessor by 50% over the first six months of sales in China — the company’s second-largest market. As a result, the company has had to spend additional marketing dollars to help unload a surplus of units. The impact is clearly visible on the mobile division’s dwindling operating margin.
Last quarter, Samsung reported an operating margin of just 7.1%. That’s a huge decline after 10 straight quarters of 15%-plus operating margin for the division.
So how has Apple performed in China?
With Samsung struggling to sell its high-end devices, one might assume Apple is facing similar issues in light of the low-margin high-end competition from Xiaomi. But Apple continues to prove those assumptions wrong, as the company grew iPhone unit sales 32% in Greater China last quarter despite not launching the iPhone 6 in China until the current quarter. (The iPhone 5s launched at the very end of Apple’s fiscal fourth quarter of 2013, making that growth even more impressive.)
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I like my Samsung. I got it at the time because of the bigger screen. Seems that I’ve started seen Apples with the same sized screen. I assume they’re just as good or better. There’s a piece of me wishes we still all had land lines, only in our homes, and a big phone book to look up numbers. It was harder to reach me then. A good thing, I’m thinking.