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You're over-simplifying what can't be over-simplified. If you look at Apple's business holistically you'll know that their profits come not only from smartphon
by fredoliveira 14y ago
You're over-simplifying what can't be over-simplified.
If you look at Apple's business holistically you'll know that their profits come not only from smartphone sales, but from a wide range of products. Do they have great profit results Q/Q and Y/Y in general? Absolutely. Does that mean others don't have the same kind of profit per smartphone unit sold? No. And that's the key difference between what we're saying.
- cooldeal 14y agoWhile I agree with you in general, Apple charges the carriers much more than other manufacturers, to the extent that carriers' margins are knocked down really low, and Sprint was expecting to be profitable on the iPhone only a few years after launching it. In fact, the lower the sales of the iPhone, the higher the margin of the carrier(assuming same number of handsets). http://money.cnn.com/2012/07/24/technology/att-verizon-iphones/index.htm http://money.cnn.com/2012/07/24/technology/att-verizon-iphon... The carriers are rumored to be pushing back on the iPhone prices, but they know they need it or the competition will lap up the sales for the expensive data plans.
- huxley 14y agoApple apparently brings in 75% of all profits in the smartphone industry: http://www.asymco.com/2012/02/03/first-apples-rank-in-mobile-phone-profitability-and-revenues/ http://www.asymco.com/2012/02/03/first-apples-rank-in-mobile... So it is hard to imagine how any of the other players have anything near Apple's profit per smartphone unit sold. Samsung was a distant 2nd at about 16% of profits during the period when Samsung was reportedly outselling Apple in total units sold.