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They still take the vast majority of profits from three enormous markets, smartphones, tablets, and PCs. Long way from trouble.

ksec 9y ago
Sorry I should have word it more carefully, Not that I think it is worry for Apple, but and overall general Economy. The only reason why Apple is earning 85-95% of profits of smartphone industry per year is because all other manufacturer are posting loses. When everyone decide not to make a dime like Amazon, ( or they cant ), the ones who do will obviously emerge as winner from a Profits POV. What I find worrying is 1. Apple is obviously working in diseconomy of scale, i,e they aren't paying less per component unit with their massive scale, they are likely paying more then everyone else. 2. It is very clear there is an inflation in component ( Or everything else in Asset ) happening. From NAND, Wireless, Memory, Fabs, Screen, everything is getting more expensive, which we wont quite used to because we expect the same Screen, memory or CPU with similar characteristic or performance will cost less 3 - 4 years down the road, but this has not happen. Both point relates to interest rate, the way those company were sustainable because they are making some profits in a likely stable or monopoly environment, and getting very cheap cash flow. That is what i am worry about. I wish someone could tell me what happens when too much liquidity is injected into the system..... but it seems history hasn't written a page on this yet.
- valuearb 9y ago
  Pretty much all your assumptions are wrong. There is no evidence 1 & 2 are true, in fact the opposite. Apple sells more single models of phones and tablets than virtually anyone. Almost every phone they sold the last year was a 7 or a 7+. And the reason for their profit dominance isn’t other companies losses, it’s they are competing against commodity makers with compelling unique products and value. Beyond iOS and iTunes is their custom SOCs, which are years ahead of their competitors.

ksec 9y ago

Sorry I should have word it more carefully, Not that I think it is worry for Apple, but and overall general Economy. The only reason why Apple is earning 85-95% of profits of smartphone industry per year is because all other manufacturer are posting loses. When everyone decide not to make a dime like Amazon, ( or they cant ), the ones who do will obviously emerge as winner from a Profits POV. What I find worrying is 1. Apple is obviously working in diseconomy of scale, i,e they aren't paying less per component unit with their massive scale, they are likely paying more then everyone else. 2. It is very clear there is an inflation in component ( Or everything else in Asset ) happening. From NAND, Wireless, Memory, Fabs, Screen, everything is getting more expensive, which we wont quite used to because we expect the same Screen, memory or CPU with similar characteristic or performance will cost less 3 - 4 years down the road, but this has not happen. Both point relates to interest rate, the way those company were sustainable because they are making some profits in a likely stable or monopoly environment, and getting very cheap cash flow. That is what i am worry about. I wish someone could tell me what happens when too much liquidity is injected into the system..... but it seems history hasn't written a page on this yet.

valuearb 9y ago
Pretty much all your assumptions are wrong. There is no evidence 1 & 2 are true, in fact the opposite. Apple sells more single models of phones and tablets than virtually anyone. Almost every phone they sold the last year was a 7 or a 7+. And the reason for their profit dominance isn’t other companies losses, it’s they are competing against commodity makers with compelling unique products and value. Beyond iOS and iTunes is their custom SOCs, which are years ahead of their competitors.