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>The profit on an average Android phone is about a penny. This is an exageration right? I know we're giving $10 to MSFT for every phone or whatever, but a penn

• sz4kerto 11y ago
  No, not really -- most of the companies float around breakeven.
• hkmurakami 11y ago
  Remember the low end models that have large market share in developing countries.
• tdkl 11y ago
  "Look around the Android market, and it’s Apple that captures north of 90% of the device market’s profits. Samsung soaks up the little that’s left, and manufacturers like LG, with its well-received G3 and G4 family, tend to make around 1 cent per phone in net profit."[0] [0] http://www.extremetech.com/computing/211972-htc-declared-effectively-worthless-lgs-profit-margins-fall-to-a-penny-a-phone http://www.extremetech.com/computing/211972-htc-declared-eff...
• Rebelgecko 11y ago
  I found a few articles that backed it up for various companies, but they all used formulas like "total profit of mobile division per quarter / total number of phones sold", which seems like an awful metric. It's not like increasing the cost of a phone by 1¢ would double their profits. With the same method, you can look at a bunch of Tesla's quarterly reports and say that they lose tens of thousands of dollars for every car they sell. It's marginally true, but not very informative.