Apple Makes 92% Of All Smartphone Profits

Discussion in 'HardForum Tech News' started by HardOCP News, Jul 13, 2015.

  1. HardOCP News

    HardOCP News [H] News

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    Say what you want about Apple, the company sure knows how to turn a profit on its products. :eek:

     
  2. westrock2000

    westrock2000 [H]ardForum Junkie

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    I don't see how this could make sense. The article says that Apple only accounts for 10% of all phones. Apples profit margins are still only around 50-60%. Even of all the other guys were making a 10% profit margin, that's still 10% of 90% of ALL the other phones sold.

    All the other major suppliers are charging $400-700 for their highest tier phones. They are also selling a shit ton of non top tier phones. Apple ONLY sells top tier phones. If Samsung, LG, Motorola, & HTC can't make a decent profit off a $500 phone then they are all doing something very wrong.
     
  3. Advil

    Advil [H]ard|Gawd

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    If this is acutally legit, then Apple is the sleaziest, highest profit, cost cutting, corner cutting, customer brain-washing company to ever exist.
     
  4. eneq

    eneq Limp Gawd

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    Read the original article and it says "92% of all OPERATIONAL revenue" so in short its post sales and its not really the cost of the devices.

    On the other hand it speaks volumes about their app-store % and their well known money grabbing.
     
  5. Tyler-Durden

    Tyler-Durden 2[H]4U

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    No one forces anyone to buy Apple products.

    Quit whining little bitches. :rolleyes:
     
  6. Aireoth

    Aireoth 2[H]4U

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    Canaccord has a reputation for sleazy business. Kindacrap is their moniker and it doesn't quite do them justice.
     
  7. OEM

    OEM [H]ard as it Gets

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    Wait...so making money is sleazy? I bet I know which way you vote.
     
  8. GaryJohnson

    GaryJohnson [H]ard|Gawd

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    I'm not sure that's how math works.
     
  9. ThatsAgood1jay

    ThatsAgood1jay [H]ard|Gawd

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    There is math, and then there is Accounting. You can make the numbers say what ever you want when you have a good accountant.

    That being said, I can understand it. 'Android' may hold a higher market share, but that's because they pump out so many high to low buck phones they suck in a higher percentage of the bell curve of buyers. Apple tailors the experience and product so that it, either by design or by accident, certain buyers are excluded (because of price)
     
  10. Arbit3r

    Arbit3r Limp Gawd

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    Let me correct that
    "Say what you want about apple, the company knows how to gouge their customers and they are stupid enough people to pay the price for it.
     
  11. nutzo

    nutzo [H]ardness Supreme

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    When I look at the phones people in my office buy I see the following:

    Management: Highest pay (by far) and mostly iPhones

    Consultants and developers: The higher paid working staff, mostly Android.

    Sales: Some high paid, some modest pay (we have different products that different people sale, so different commission structure) Slightly more Android than iPhone.

    Marketing: Middle pay, but mostly iPhones.

    General office staff: Lowest pay, buy majority iPhones.

    So, based on the above, the main determination on which phone someone has is:
    Technical = Android
    Non-technical = Apple
    Although there are a few exception to this rule.


    2nd determination is pay/income
    More money = Apple
    Less money = Android
    There are a lot more exceptions to this rule, as some of the lowest paid employees (who always seem to complain they can't afford stuff) somehow have the money to buy the latest iPhones, while our high paid developers buy android.

    Meanwhile, I'm still using a 3 year old S3/Android.
     
  12. evilsofa

    evilsofa [H]ardForum Junkie

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    Apple, Exxon, Microsoft, Pfizer, Wells Fargo, Chevron, Berkshire Hathaway, AT&T, JP Morgan Chase, IBM, Wal-Mart, Johnson&Johnson, Citigroup, GE, Google.

    These are the America's 15 most profitable companies as of April 2014. Apple is the sleazy one because... wait a minute, hold on, isn't there a couple of companies there that got bailed out to the tune of hundreds of billions of taxpayer dollars after they screwed over millions of mortgage borrowers while not a single one of their employees ever got charged with a crime?
     
  13. sjankech

    sjankech n00b

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    So the top 15 companies by profits are

    Phones, Oil, Software, Biotech, Bank, Oil, Conglomerate, Wireless, Bank, Tech, Retail, Healthcare/biotech, Bank, Conglomerate, Advertising
     
  14. Ramses

    Ramses [H]ardness Supreme

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    Well spoken and true.

    I honestly don't believe a damn word of profits or sales or market share or any of that other stuff from anyone anymore. None of it. With the rare exception of when there is hard, plain english, inarguable data about a thing. Which isn't often.
     
  15. sfsuphysics

    sfsuphysics I don't get it

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    And regardless of profit, they simply need to "reinvest" any profit they have and all of a sudden that becomes an operational expense, and net result, no taxes need to be paid.
     
  16. temujin987

    temujin987 [H]ard|Gawd

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    yaaaawn. someone only got capitalism vs communism as an argument...
     
  17. Rob94hawk

    Rob94hawk 2[H]4U

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    IIRC didn't Apple extort Verizon's customers when Verizon started to sell the iphone by giving Apple a commission for every smart phone they sold?
     
  18. evilsofa

    evilsofa [H]ardForum Junkie

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    I'm not sure I follow what you're saying here. The best I could find was stories about Verizon salespeople steering customers away from buying iPhones because the salespeople weren't getting commissions, but that doesn't seem to match what you're saying at all.
     
  19. rigurat

    rigurat Limp Gawd

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    Although I personally prefer Android and Windows, I own Apple stocks, so if the company makes money, it's good for me too. Apple stocks is the only thing Apple I actually buy, nothing else.
     
  20. Arbit3r

    Arbit3r Limp Gawd

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    their commissions were going straight to apple not them.
     
  21. Retronym

    Retronym Something big is coming.

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  22. Ponder

    Ponder Gawd

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    Likely part of their cell phone contract...until recently, cell phone providers gave very little incentive not to turn over phones rapidly Contract plan holders pay for upgrades regardless if you used it or not. Basically ,if timed well, the phone would be near free to the end user. Now with new non-contract plans/reasonable prepaid there is an incentive to "think differently."

    The other reason...it is perceived as a social tool. This is a leftover from the early success of Apple products. They are seen as a way to improve ones social status. Therefore a luxury that many find worthwhile. The larger screen size of the new iphone does help it stand out... which is why sales have increased in said demographic. It is also often their only device, while more affluent consumers like have multiple devices.(tablets, computer, tv devices)

    So from your informal study we have learned those with money buy whatever they want, Creative types prefer Apple products, Technical types like maximum control over their device, and the poor will get picked on for buying anything...

    I see very little price difference between most "flagship" devices. I also rarely see a reason for someone on a contract plan to buy anything else. They are normally frontend free a few times a year. So everyone(on said plans) will get a new phone every two years. Having said that, over the last few years non-contract pricing and prepaid has helped change the market. It might be the best deal for consumers to go another route.

    S3 user as well. Samsungs bloat, poor design choices, and designing a phone for every niche has hurt their bottom line. Yes you can root the newer devices, but not everyone likes to root their devices. Other makers have improved their devices.
     
  23. 63jax

    63jax Limp Gawd

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    i can't understand how they can fool people over and over gain each year to buy that really modest device, maaaan....:/
     
  24. OEM

    OEM [H]ard as it Gets

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    What other argument is there that matters? They're a business. They aren't in it to be nice to you, they're in it to make money.
     
  25. OEM

    OEM [H]ard as it Gets

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    Your user name fits this thought process.
     
  26. westrock2000

    westrock2000 [H]ardForum Junkie

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    What's modest about the phones? Please site a component of the phone that was not at least as good as other top tier phones at the time the device was released.

    Is screen resolution and physical size your go to argument?

    Battery life?
    Available storage size?
    Processor performance?
    Camera quality?
    Screen quality?
    Fit and finish?
    User experience?

    I'm just wondering, which of those do you think Apple products falls behind in?
     
  27. Quix

    Quix 2[H]4U

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    Everything except CPU per thread performance, where they lead. Fit and Finish is tied with their more competent competitors (certainly some companies are worse). And you missed value for money. A 64GB iPhone 6 Plus $849, a 64GB One Plus One is $299. Specs are extremely similar.
     
  28. Dan

    Dan [H]ardness Supreme

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    Not going to lie... im thinking of switching to a iphone 6+ from my LG g3. I bought my android cause i want to do custom shit, install custom roms all that fun shit... 1.5 years later i havent done a single one. I text, make phone calls and watch porn. I find compatibility issues all the time and bugs, freezes, crashes with my android. (Brave frontier for example. If you dont turn the graphics ALL THE WAY DOWN it crashes every single battle). The past 3-4 experiences ive had with apple support were top notch. I had the infamous GPU issue on my 2010 15" mbp and apple took it and repaired it with no questions asked at a cheap as fk price. Same thing with my friends phone, he had issues and everything was resolved. I dont have the money for a $2500 macbook pro but the $ is in the experience, not always the product. The way every apple product seemlessly syncs transfers data and backs up without you even knowing whats going on is a pricess service I may see myself switching too:eek: Ill be damned i never thought i'd say those things
     
  29. Darunion

    Darunion 2[H]4U

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    The same way any consumer electronics company does it, marketing. Do you really think apple is the only one to overtalk their products? Every feature every item that is marketed could be argued that it is a stupid feature to a certain person. Why this always becomes a topic of android/apple, pc/console, coke/pepsi, pokemon/digimon and who is better and the other group sucks I will never know. People just buy what you enjoy and is the best value to you, get off your soapbox because all you do by preaching one company over the other is look like an idiot and a freelance salesperson.

    I mean i hear the same sales pitches from scentsy, mary kay, pampered chef. Good quality items but with a high profit margin because they know how to source properly and sell at a level people are willing to buy. Don't like apples prices? Don't buy it. I have had bad experiences with android myself: HTC Inspire, Samsung galaxy tab 1 and 3, asus transformer, (my first google nexus was actually a great phone and I still use it time to time for bluetooth accessories that are not apple MFI compatible.

    (now the MFI thing is dumb and I hate them for that lol)

    ./endrant
     
  30. OEM

    OEM [H]ard as it Gets

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    Maybe because it does enough for a lot of people? I'm not so A.D.D. that I need a new "feature" every phone that hardly ever gets used?

    Just a thought.
     
  31. Brahmzy

    Brahmzy [H]ardness Supreme

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    Wake me up when there actually really is a better phone than an iPhone. Mmmmk? Thanks.

    This "It's cool to hate Apple" stuff got old 3 years ago.
     
  32. nutzo

    nutzo [H]ardness Supreme

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    Don't disagree with any thing you listed.
    Most the people who complain they can't afford anything yet have the latest iPhones, also pay much higher monthly rates, just so they can get the subsidized iPhones. Most of them are paying more for a single phone (and with a 2 year contract) then I pay for a family plan with 3 phones and no contract.
     
  33. ssnyder28

    ssnyder28 2[H]4U

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    This
     
  34. nutzo

    nutzo [H]ardness Supreme

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    Time to wake up :)
    SD card slot for storage expansion, replaceable battery, water proof, 1080p screen, ability to side-load apps the vendor doesn't approve of.

    All features Apple doesn't think anyone needs, and why I'll never buy an iPhone.
    It's also why I won't buy some Android phones :)
     
  35. /usr/sbin

    /usr/sbin Successfully Trolled by Megalith

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    Not to change the topic, but /IMO this is why Windows 10 is "free", with "forced updates". I can see a future in windows where everything has to go through the Windows Store, and funny enough MS takes the same 30% cut as Apple does in their store.
     
  36. WaltC

    WaltC [H]ard|Gawd

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    Ars left out the meat of the numbers, though, which is that Apple's share of the global smartphone market has fallen to 20%...! Ars has always been an Apple shill, though. Years ago when the iPhone was new all you heard about from Ars was Apple's smartphone market share---which was at one time above 70%. Now all you hear about from Ars is Apple's supposed share of the profits--they haven't brought up smartphone market share in years, because is Apple getting clobbered there. It's really kind of funny...;)
     
  37. WaltC

    WaltC [H]ard|Gawd

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    What's a smartphone that I should give a darn about owning one? I much prefer being a smart operator with a dumb phone than being a dumb operator with a smartphone...;) Loathing Apple isn't "cool," it's smart...
     
  38. Weenis

    Weenis I said WEENIS, not...

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    SD card slot for storage expansion - gone
    replaceable battery -gone in certain phones
    , water proof - few phones had it (I have one) -now gone
    ability to side-load apps the vendor doesn't approve of - getting harder

    You forgot to add :
    Android devices are LOADED with garbage from carriers
    Firmware/OS upgrades are once every 8-12 months, at best. Which force you to load carrier bullshit back on.

    I have an S5, I like it a lot. It was sweet when it was new. The only reason I'd consider an android device again is for a note's stylus. Honestly, the only thing android really has going for it are potentials to do things. Most of which are far too much of a pain in the ass to be worth it.

    Also, call quality is super sporadic. It's not cell signal either.

    You don't have to justify why you like your choice, I get really tired of seeing this over and over again.
     
  39. HockeyJon

    HockeyJon [H]ard|Gawd

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    Why? Corporations exist to make money, deal with it. I'm sure you don't take a pay cut at work just because you're a "nice guy".
     
  40. HockeyJon

    HockeyJon [H]ard|Gawd

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    This right here. People are also forgetting about the following:

    1) Cloud storage is increasingly making the need for local storage less. I initially preferred the SD card option, but I can see why it's not a necessity any longer.
    2) You probably don't need full 1080P resolution for a 4 inch screen you're holding a few feet away from your face. It's just like people spending $400 more for a 4K TV they watch from 10 feet. Yes, it's 4K, but your eyes can't resolve the difference at that distance. Making a higher resolution screen requires more video power, so then people would complain about shorter battery life.

    I have both Apple and Android devices. Even as someone who typically favours open source, I have no issues at all with my none jail broken iPhone.