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Apple takes 92% of smartphone market profits on just 20% of sales

NinerL
By NinerL
in Tech News
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but the base model has 32GB of storage and a 1440p display and apple's base model is 16GB and has a 1080p display. also i dont know about conditions at samsung manufacturing plants but i heard the apple ones are pretty bad considering they have to install nets to stop people from killing themselves

Foxconn is the production plant for most motherboards too. MSI, Gigabyte, EVGA, Biostar, and many others use it. Hell half the water cooling radiators are made there too. Alphacool's for example.

Software Engineer for Suncorp (Australia), Computer Tech Enthusiast, Miami University Graduate, Nerd

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Foxconn is the production plant for most motherboards too. MSI, Gigabyte, EVGA, Biostar, and many others use it. He'll half the water cooling radiators are made there too. Alphacool's for example.

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I think Fragmentation is really what drives a stake into Android's chest cavity (if it actually had one of those). I mean my Moto G 2014 is a cheaper device yes, but it provides an almost stock Android experience

That is a sales deterrent, but it doesn't effect profit on the units that are sold. Undercutting as mentioned above is also important and is where I was going with my original post.

I wholeheartedly agree though, of my last 3 years of phones, I've had two Apple Phones, 3 Windows Phones and two Android phones and both Android phones were completely different experiences. And not necessarily good ones.

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Foxconn is the production plant for most motherboards too. MSI, Gigabyte, EVGA, Biostar, and many others use it. He'll half the water cooling radiators are made there too. Alphacool's for example.

I know, but Apple's the biggest one and they're the ones who could bring about change if they wanted. Plus... Well, frankly, it's easy to not use Apple products and I hate them as a company for many more reasons, such as their BS with patents and how they act like they're the only worthwhile tech company in existence. Also, iPhones don't impress me. They're slightly smoother... and that's it. Some apps that I'd like to have access to are iOS exclusive, but it's not enough to convince me to switch.

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I know, but Apple's the biggest one and they're the ones who could bring about change if they wanted. Plus... Well, frankly, it's easy to not use Apple products and I hate them as a company for many more reasons, such as their BS with patents and how they act like they're the only worthwhile tech company in existence. Also, iPhones don't impress me. They're slightly smoother... and that's it. Some apps that I'd like to have access to are iOS exclusive, but it's not enough to convince me to switch.

Dell is also quite large. Also, Apple isn't the only one who pulls the patent bullshit -- Samsung, Nvidia, and pretty much every/all major corporations do the same thing -- Apple just gets a lot more heat for it. 

 

iPhones have a smoother OS, better camera (than most), and much tighter product integration. 

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Foxconn is old news sorted out years ago, and besides it's not like all the mono makers who have assembly lines at FoxConn are any more innocent. And lastly, I still get better battery life with my iPhone 6 than my little brother with the LG G4 or my friend with the Galaxy S5. I don't care what the benchmarks say. My experience says the iPhone is perfectly fine. And Android has a multitude of OS issues right now under Lollipop. Apple doesn't make that kind of mistake. I've never had a good experience with Android, and I'm always willing to give the next iteration a try, but the premise remains.

you are comparing battery life on different devices, being used by different people, possibly for entirely different purposes and level of usage.

i can say my nexus 5 lasts longer than a note3 being used by my brother as well. it doesn't really make any sense to compare them that way though.

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Looks at my iPhone 6 128gb and iPad on the table

SAME LOL

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Yuck! Apple fix your software then I will like you. Takes 4 months to fix effective power and yet some iPhones 6s still don't play videos or rotate when the screen is flipped. Also laggy iPhone 5c that freezes and has the screen delaminate. Come on Apple, if I am buying a $699 phone make the software feel like it.

▓ƆԀ▓ S▓₱▓Ɇ▓c▓s▓: i7 6ʇɥפᴉƎ00K (4.4ghz), Asus DeLuxe X99A II, GT҉X҉1҉0҉8҉0 Zotac Amp ExTrꍟꎭe),Si6F4Gb D???????r PlatinUm, EVGA G2 Sǝʌǝᘉ5ᙣᙍᖇᓎᙎᗅᖶt, Phanteks Enthoo Primo, 3TB WD Black, 500gb 850 Evo, H100iGeeTeeX, Windows 10, K70 R̸̢̡̭͍͕̱̭̟̩̀̀̃́̃͒̈́̈́͑̑́̆͘͜ͅG̶̦̬͊́B̸͈̝̖͗̈́, G502, HyperX Cloud 2s, Asus MX34. פN∩SW∀S 960 EVO

Just keeping this here as a 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I can only help but feel if all these companies would streamline their product lines and not undercut each other at every turn then this wouldn't be the case... Although, I guess Game Theory and laws regarding price fixing prevent that from becoming a reality. 

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you are comparing battery life on different devices, being used by different people, possibly for entirely different purposes and level of usage.

i can say my nexus 5 lasts longer than a note3 being used by my brother as well. it doesn't really make any sense to compare them that way though.

My S3 once lasted me 6 days.

 

I only used it for like max 5 phone calls a day though, nothing else, not even web browsing.

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That's to be expected, since they have like over 100% net profit on their phones.

 

Heck, they would even make profit if sold it for the contract price off-contract.

 

That's not to say other high-end phones don't have high profit %, but there's no other manufacturer that sells only high-end products. As mentioned in the article, some even sell phones for a loss of profit.

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Dell is also quite large. Also, Apple isn't the only one who pulls the patent bullshit -- Samsung, Nvidia, and pretty much every/all major corporations do the same thing -- Apple just gets a lot more heat for it. 

 

iPhones have a smoother OS, better camera (than most), and much tighter product integration. 

Apple does it more than most. Also, Apple has way more influence than Dell. It's not even close.

 

I don't care. It's a barely smoother OS (hell, it really just trades blows at this point), the camera is only impressive for video and is average at best in other respects, and why would i care about product integration unless I'm fully committed to their ecosystem? Even if I wanted to be, I don't have $2000 for an "okay" AIO to go with a $750-850 phone, a $600-700 tablet, and a $1000+. And don't tell me that it'll last longer or "you get what you pay for" or I'll just put you on my ignore list.

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Apple does it more than most. Also, Apple has way more influence than Dell. It's not even close.

 

I don't care. It's a barely smoother OS (hell, it really just trades blows at this point), the camera is only impressive for video and is average at best in other respects, and why would i care about product integration unless I'm fully committed to their ecosystem? Even if I wanted to be, I don't have $2000 for an "okay" AIO to go with a $750-850 phone, a $600-700 tablet, and a $1000+. And don't tell me that it'll last longer or "you get what you pay for" or I'll just put you on my ignore list.

Yeah that would be a shame to be put on your ignore list. 

 

You get what you pay for and Apple products do last longer. 

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It would be interesting to see a broader picture of the mobile market and where the money is actually being made. After all, profit on Android phone sales matter about as much as sony or M$ making a profit on console purchases. getting someone inside the ecosystem is more important, even if it means subsidizing manufacturers to sell for less.

 

Google's business model relies on having as many users as possible to generate ad revenue, and having a diversified user base so that ad targeting is more effective within the google ecosystem. The Apple model relies on weeding out frugality, and then milking those still left for as much money as possible. If you are an apple user, it is expected that you are spending lots of money on apps, hardware, music etc. - if you are not, then you are not the target demographic Apple wants as a customer.

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It would be interesting to see a broader picture of the mobile market and where the money is actually being made. After all, profit on Android phone sales matter about as much as sony or M$ making a profit on console purchases. getting someone inside the ecosystem is more important, even if it means subsidizing manufacturers to sell for less.

 

Google's business model relies on having as many users as possible to generate ad revenue, and having a diversified user base so that ad targeting is more effective within the google ecosystem. The Apple model relies on weeding out frugality, and then milking those still left for as much money as possible. If you are an apple user, it is expected that you are spending lots of money on apps, hardware, music etc. - if you are not, then you are not the target demographic Apple wants as a customer.

The mobile phone environment is different than the consoles though. Sony/Microsoft make money off of everyone buying the games -- whereas with mobile phones most people aren't buying things that net that company money....In total I've spent $15 on my iPhone 5s in the 18 months I've owned it (and that was on a Belkin case bought off Amazon), $0 on Droid X, HTC Thunderbolt, and Razr Maxx in the four years I owned them, and $8 on my Galaxy Note 8 (and that was on a Belkin case bought off Amazon). 

 

And I question how much ad revenue they're actually making (in addition) since Apple also earns ad revenue. 

 

Edit: Actually I have spent some money on my Note 8, I spent $5 in Papyrus to get additional features (PDF editing and extra tools). 

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iOS 8 wasn't exactly a perfectly stable OS -- although I've never had an issue with it nor has it ever crashed on me (other than one a friend sent that stupid message :unsure:) 

I never had issues either. Although my iPhone 5 was starting to lose battery life quite a bit before I bought the 6 last week.

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isuck2.png

The excuse of people who just don't like being inferior but are too lazy to do anything about it :P

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I know, but Apple's the biggest one and they're the ones who could bring about change if they wanted. Plus... Well, frankly, it's easy to not use Apple products and I hate them as a company for many more reasons, such as their BS with patents and how they act like they're the only worthwhile tech company in existence. Also, iPhones don't impress me. They're slightly smoother... and that's it. Some apps that I'd like to have access to are iOS exclusive, but it's not enough to convince me to switch.

Fair enough, though I think Apple is still not quite Foxconn's biggest client. I forget if that's Samsung or Wal Mart.

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you are comparing battery life on different devices, being used by different people, possibly for entirely different purposes and level of usage.

i can say my nexus 5 lasts longer than a note3 being used by my brother as well. it doesn't really make any sense to compare them that way though.

This is not the logic you are looking for.

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How can you compete against a company like Apple when they play the game like this. It's no wonder why nearly every other tech giant is losing profits. I wouldn't call Apple to be broken up but I think there should be a limit on how much profit you can charge for anything. The margins for Apple shouldn't be as high as they are it's crazy.

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Looks at my iPhone 6 128gb and iPad on the table

Especially that 128GB... $200 or whatever of almost pure profit. Why does that have to be the upselling feature you have to pay so much extra for...

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How can you compete against a company like Apple when they play the game like this. It's no wonder why nearly every other tech giant is losing profits. I wouldn't call Apple to be broken up but I think there should be a limit on how much profit you can charge for anything. The margins for Apple shouldn't be as high as they are it's crazy.

Wait, let me get this straight....the reason other companies are doing badly is because Apple charges too much...

 

I must be missing something. 

Especially that 128GB... $200 or whatever of almost pure profit. Why does that have to be the upselling feature you have to pay so much extra for...

Like $170 profit :P 

 

And because they can -- it's downright stupid to sell something for less if you don't have to. 

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Yuck! Apple fix your software then I will like you. Takes 4 months to fix effective power and yet some iPhones 6s still don't play videos or rotate when the screen is flipped. Also laggy iPhone 5c that freezes and has the screen delaminate. Come on Apple, if I am buying a $699 phone make the software feel like it.

 

i currently run the ios 9 beta and thats more stable than android

 

Apple does it more than most. Also, Apple has way more influence than Dell. It's not even close.

 

I don't care. It's a barely smoother OS (hell, it really just trades blows at this point), the camera is only impressive for video and is average at best in other respects, and why would i care about product integration unless I'm fully committed to their ecosystem? Even if I wanted to be, I don't have $2000 for an "okay" AIO to go with a $750-850 phone, a $600-700 tablet, and a $1000+. And don't tell me that it'll last longer or "you get what you pay for" or I'll just put you on my ignore list.

 

whoa there calm down no need to ignore him....jeez

 

btw butt hurt much....

 

dont bother replying i already had you on my ignore list months ago....

 

How can you compete against a company like Apple when they play the game like this. It's no wonder why nearly every other tech giant is losing profits. I wouldn't call Apple to be broken up but I think there should be a limit on how much profit you can charge for anything. The margins for Apple shouldn't be as high as they are it's crazy.

 

spoken like a person that dosnt understand capitalism 

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