3 ms·
>First of all it is not at all certain that the integrated approach is winning for smart phones. In fact depending on what definition of winning one uses, it ca
by kunle 14y ago
>First of all it is not at all certain that the integrated approach is winning for smart phones. In fact depending on what definition of winning one uses, it can be easily said that the integrated approach is losing. There are more android devices being sold than iOS devices and the gulf is widening.
If you define winning as profits generated (which is an important definition because sustained profits earn you the right to keep playing, while market share does not), then the integrated approach is definitely winning, as Apple consumes the lion's share of mobile profits (there are several sources but for reference see here: http://www.asymco.com/2012/05/03/the-phone-market-in-2012-a-tale-of-two-disruptions/ http://www.asymco.com/2012/05/03/the-phone-market-in-2012-a-...).
How things play out in 10 years is anyone's guess, but for now the profits, momentum and sentiment remain firmly on the side of the integrated approach.
- cageface 14y agoWe're really only five years into this game. Everything is still up for grabs.
- fpgeek 14y agoThe profit story isn't nearly as black-and-white as you're portraying. First, Apple may be #1 in this particular way of slicing the market, but #2 is Samsung and they're a poster-child for the modular approach - to the point where Apple (and other competitors) use many of their components. Second, when the modular approach was winning the last time around, PC makers weren't the big winners (that was generally a tough business). Instead, Microsoft and Intel were. This time around, that's not Samsung (Galaxy), HTC, LG, Motorola, Sony, etc (profits Asymco looks at) that's Google, Qualcomm, nVidia, TI, Samsung (Exynos), etc (profits Asymco doesn't look at, unsurprisingly, as it isn't obvious how to get them). IIRC, everyone on that second list is generally profitable and very bullish on Android (though none of them breaks out Android specifically, AFAIK). Moreover, Apple's iPhone profits include some amount of return from their SoC and iOS development, so ignoring the second list subtly tilts the scales.
- nl 14y agoYeah, that "Apple consumes the lion's share of mobile profits" is rapidly becoming a myth. Eg: [Samsung] posted a record net profit for all its divisions of 5.05 trillion won ($A4.43 billion) in the first quarter, thanks largely to strong smartphone sales.[1] [1] http://www.smh.com.au/digital-life/mobiles/samsung-galaxy-s3-to-hit-10-million-sales-20120625-20xvx.html#ixzz1yskenc7t http://www.smh.com.au/digital-life/mobiles/samsung-galaxy-s3...
- coob 14y ago1) Why are you referring to mobile profits, then citing the net profit of the entire company? Samsung do a lot more than phones. 2) Even if you're comparing the whole company's profits, AAPL still win, they raked in 6 billion USD in profit last quarter.
- nl 14y agoDid you read the quote, especially this part: thanks largely to strong smartphone sales? There is no argument that Apple is making more money. The point is that others are also making excellent mobile profits.