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This quote stands out the most, "One key to Apple’s profit dominance: higher prices. Apple’s iPhone last year sold for a global average of $624, compared with $

by Dwolb 11y ago

This quote stands out the most, "One key to Apple’s profit dominance: higher prices. Apple’s iPhone last year sold for a global average of $624, compared with $185 for smartphones running Android" Literally Apple can command a 3x price premium in the same product category. I'd like to see Android flagships broken out from this number, however. The issue of Apple profit dominance is pretty complex and I'm sure there are really smart people looking to understand and attack it.

gtk40 11y ago
As a consumer, I'm glad other companies aren't extracting as much profit this way. I'm quite happy with my Moto G which I got for a small fraction of what I would have paid for an iPhone, and it's just as good for my use.
paublyrne 11y ago
That average price includes phones of low specs and high specs, while Apple only does high(ish) spec. The Samsung Galaxy is similarly priced to the iPhone. There is plenty of price premium built in there though, that's for sure.
- JohnTHaller 11y ago
  Apple only does premium phones whereas Samsung et al do premium as well as mid-market as well as down-market devices. The iPhone is basically always more expensive than the equivalent Samsung Galaxy device. The Galaxy S6 is currently $549 for a 32GB version with a high-res 5.1" QHD screen (better than 1080p). The semi-equivalent iPhone 6 is $649 for a 16GB version with a mid-resolution 4.7" screen (approximately 720p) is a full $100 more expensive than the S6. Upgrading the iPhone to the next memory size up (64GB) adds $100. Upgrading to a high def screen (6 Plus with a 5.5" 1080p screen) is another $100. One big reason Apple makes so much more profit than everyone else is that they sell lesser specced phones for a higher price than the competition's higher specced phones. Most people think of the iPhone 6 as being equivalent to the Galaxy S6 despite having a smaller, lower resolution screen, 1/2 the storage space for music and pictures, slower processor, etc.
JimmaDaRustla 11y ago
It helps that most consumers can "sweep" the price of their phone under their 2 year service contract. Especially considering that cost of services don't fluctuate when not in a contract, or when you get a cheaper phone. Damn, I wish the FCC or CRTC would put the ban hammer down and force mobile service contracts to be adjusted based on the retail price of the phone. I just don't understand how they stand to gain so much when a customer chooses to get a cheaper device.

by Dwolb 11y ago

gtk40 11y ago

As a consumer, I'm glad other companies aren't extracting as much profit this way. I'm quite happy with my Moto G which I got for a small fraction of what I would have paid for an iPhone, and it's just as good for my use.

paublyrne 11y ago

That average price includes phones of low specs and high specs, while Apple only does high(ish) spec. The Samsung Galaxy is similarly priced to the iPhone. There is plenty of price premium built in there though, that's for sure.

JohnTHaller 11y ago
Apple only does premium phones whereas Samsung et al do premium as well as mid-market as well as down-market devices. The iPhone is basically always more expensive than the equivalent Samsung Galaxy device. The Galaxy S6 is currently $549 for a 32GB version with a high-res 5.1" QHD screen (better than 1080p). The semi-equivalent iPhone 6 is $649 for a 16GB version with a mid-resolution 4.7" screen (approximately 720p) is a full $100 more expensive than the S6. Upgrading the iPhone to the next memory size up (64GB) adds $100. Upgrading to a high def screen (6 Plus with a 5.5" 1080p screen) is another $100. One big reason Apple makes so much more profit than everyone else is that they sell lesser specced phones for a higher price than the competition's higher specced phones. Most people think of the iPhone 6 as being equivalent to the Galaxy S6 despite having a smaller, lower resolution screen, 1/2 the storage space for music and pictures, slower processor, etc.

JimmaDaRustla 11y ago

It helps that most consumers can "sweep" the price of their phone under their 2 year service contract. Especially considering that cost of services don't fluctuate when not in a contract, or when you get a cheaper phone. Damn, I wish the FCC or CRTC would put the ban hammer down and force mobile service contracts to be adjusted based on the retail price of the phone. I just don't understand how they stand to gain so much when a customer chooses to get a cheaper device.