Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

hyteckit

Guest
Jul 29, 2007
889
1
Really? Like this?

I'm pretty sure Apple isn't giving them away to AT&T for practically free. I'm pretty sure AT&T has to pay Apple a few hundred dollars per phone.

How else do you think Apple makes up over 70% of the handset profit share?

Samsung sells more phones than Apple, but Apple makes 250% more than Samsung. It means Apple makes tons more than Samsung per phone on average.

screen-shot-2013-02-06-at-2-53-59-p.png.CROP.article568-large.png
 

Assault

macrumors 6502a
Mar 19, 2013
513
0
in the taint
I'm pretty sure Apple isn't giving them away to AT&T for practically free. I'm pretty sure AT&T has to pay Apple a few hundred dollars per phone.

How else do you think Apple makes up over 70% of the handset profit share?

Samsung sells more phones than Apple, but Apple makes 250% more than Samsung. It means Apple makes tons more than Samsung per phone on average.

Image

And why do you or I care if Apple makes more profit in the cell phone industry? It means nothing to the consumer, only stockholders (and only then if they are making money on their stock).

I could very easily point out that you are comparing Samsung Mobile division with all of Apple. If you want to include the entire company of Samsung and all of their products, you will paint a very different picture. But again, why should we care how much money that company makes? It makes zero sense.
 

hyteckit

Guest
Jul 29, 2007
889
1
And why do you or I care if Apple makes more profit in the cell phone industry? It means nothing to the consumer, only stockholders (and only then if they are making money on their stock).


It's related to the topic of the discussion.

Not sure how your question is related to the topic of the discussion.

I could very easily point out that you are comparing Samsung Mobile division with all of Apple. If you want to include the entire company of Samsung and all of their products, you will paint a very different picture. But again, why should we care how much money that company makes? It makes zero sense.

I wasn't comparing Samsung Mobile division with all of Apple.
I was showing a pie chart of the handset profit share.
 
Last edited:

Fireblade

macrumors 65816
Jan 25, 2011
1,101
321
Italy
I'm pretty sure Apple isn't giving them away to AT&T for practically free. I'm pretty sure AT&T has to pay Apple a few hundred dollars per phone.

How else do you think Apple makes up over 70% of the handset profit share?

Samsung sells more phones than Apple, but Apple makes 250% more than Samsung. It means Apple makes tons more than Samsung per phone on average.

Image

As an Apple customer I would feel bad, knowing that Apple is ripping me off, if they make 250% more revenue.
 

Dontazemebro

macrumors 68020
Jul 23, 2010
2,173
0
I dunno, somewhere in West Texas
Kirko l
I'm pretty sure Apple isn't giving them away to AT&T for practically free. I'm pretty sure AT&T has to pay Apple a few hundred dollars per phone.

How else do you think Apple makes up over 70% of the handset profit share?

Samsung sells more phones than Apple, but Apple makes 250% more than Samsung. It means Apple makes tons more than Samsung per phone on average.

Image

You know a company's got you by the twig & berries when you're touting their profit share like it benefits you.

Like having a pissing contest except you're not even using your own piss.

Just a shame that with all that profit, apple still feels compelled to release an overpriced, antiquated phone. If anything, with all that nice hefty profit they make coupled with their lack of innovation, you as an apple product owner should be upset and demand for more.

Now that's some real world ish
 
Last edited:

jonAppleSeed

macrumors regular
Mar 21, 2013
200
0
I only worry that the decreasing market share would lead developers to make their apps for other platforms first, and we get the scraps. Kind of what developers do now, but in reverse.

Without the developers we wouldn't have the number 1 phone out there right now, and they go where there is money to be made ie. the OS with the most market share.
 

roxxette

macrumors 68000
Aug 9, 2011
1,507
0
I only worry that the decreasing market share would lead developers to make their apps for other platforms first, and we get the scraps. Kind of what developers do now, but in reverse.

Without the developers we wouldn't have the number 1 phone out there right now, and they go where there is money to be made ie. the OS with the most market share.

Mac software did just fine with a humble marketshare, thats the least of my worrys.
 

onthecouchagain

macrumors 604
Mar 29, 2011
7,382
2
Kirko l

You know a company's got you by the twig & berries when you're touting their profit share like it benefits you.

Like having a pissing contest except you're not even using your own piss.

Just a shame that with all that profit, apple still feels compelled to release an overpriced, antiquated phone. If anything, with all that nice hefty profit they make coupled with their lack of innovation, you as an apple product owner should be upset and demand for more.

Now that's some real world ish

+1

Very well said.

And all those people saying they need these high mark ups for research and development always forget that apple is sitting on a bank of billions of dollars.

I was appalled to find the unlocked iPhone 4S still selling at 549$ or whatever it is.
 

cynics

macrumors G4
Jan 8, 2012
11,959
2,156
A company goes into business to make money, not marketshare.

Any cellphone company can gain marketshare by giving phones away for free.

Apple is still the king when it comes to profit share.

Image

http://www.slate.com/blogs/moneybox...res_apple_and_samsung_have_the_whole_pie.html

Charts like this make it a bit embarrassing to own Apple products for me.

Profit shouldn't be that high on a factory line product. If Apple products were made of precious rare materials and hand crafted maybe.

Oh well, if people are willing to pay it then there isn't a problem I guess.
 

Apollo 13

macrumors 6502a
May 29, 2010
679
16
well most consumers don't care about profit nor market shares, so I don't know why you ppl are pointing out consumers don't care about profits. They don't care about neither. All they care about is if they are making phone calls, texting and having a nice phone. IOS can continue to lose a lot more market share but it's not going to sway the devs away since ios users buy their apps instead of stealing them. I remember seeing a member on XDA last year complaining about everyone was stealing his app and he only had a few ppl actually purchased it.
 

Tinmania

macrumors 68040
Aug 8, 2011
3,528
1,016
Aridzona
well most consumers don't care about profit nor market shares, so I don't know why you ppl are pointing out consumers don't care about profits. They don't care about neither. All they care about is if they are making phone calls, texting and having a nice phone. IOS can continue to lose a lot more market share but it's not going to sway the devs away since ios users buy their apps instead of stealing them. I remember seeing a member on XDA last year complaining about everyone was stealing his app and he only had a few ppl actually purchased it.
You just invalidated any point you may have made. (And I gave you a chance even after, "they don't care about neither." Should have stopped there.)




Michael
 

Apollo 13

macrumors 6502a
May 29, 2010
679
16
You just invalidated any point you may have made. (And I gave you a chance even after, "they don't care about neither." Should have stopped there.)




Michael

hey...i'm just keeping it real. I don't side with either OS. I'm not a nerd.
 

Assault

macrumors 6502a
Mar 19, 2013
513
0
in the taint
hey...i'm just keeping it real. I don't side with either OS. I'm not a nerd.

Your comment about iOS users paying while Android users steal tells us of your bias. And your comment is also overly simplified.
For example, did you know the average price per app of the 100 top apps on both stores is nearly 3 times more on Android than iOS?
Did you know that Apples top 10 apps are comprised of games (which are supplemented by IAP's), while Android users download more business oriented apps, which is a one time purchase?
Did you know that China prevents access to the Play Store, so none of those 300 million Android devices show up as an analytic for paid apps, while iOS does?
Did you know that EA games has iOS subsidiaries? Android does not?

There are many factors at play, none of which can be overly simplified like your comment is.
 

adnbek

macrumors 68000
Oct 22, 2011
1,584
551
Montreal, Quebec
As an Apple customer I would feel bad, knowing that Apple is ripping me off, if they make 250% more revenue.

I don't feel ripped off. They make more than Samsung because only a fraction of Samsung's sales are from their premium phones that bring in profit, such as the S3 and the Note 2. The rest are junk phones that are practically given away.

Apple doesn't make junk phones. (it can be said an iPhone 4 is junk spec-wise by today's standards, yes, but I'm referring at the time of release)

Just like I wouldn't feel ripped off buying an S3 either. There's a a difference between a quality premium phone with good specs that makes a company profit and a junk product like the Galaxy Ace or S3 Mini that are slow, underpowered and are just manufactured for the sake of capturing more marketshare without profit.
 

cynics

macrumors G4
Jan 8, 2012
11,959
2,156
I don't feel ripped off. They make more than Samsung because only a fraction of Samsung's sales are from their premium phones that bring in profit, such as the S3 and the Note 2. The rest are junk phones that are practically given away.

Apple doesn't make junk phones. (it can be said an iPhone 4 is junk spec-wise by today's standards, yes, but I'm referring at the time of release)

Just like I wouldn't feel ripped off buying an S3 either. There's a a difference between a quality premium phone with good specs that makes a company profit and a junk product like the Galaxy Ace or S3 Mini that are slow, underpowered and are just manufactured for the sake of capturing more marketshare without profit.

But for sake of argument what does that have to do with the amount of profit from an iPhone? Forget Samsung at this point or compare profit on the iPhone to the S3 or any non apple electronic device for that matter.
 

adnbek

macrumors 68000
Oct 22, 2011
1,584
551
Montreal, Quebec
But for sake of argument what does that have to do with the amount of profit from an iPhone? Forget Samsung at this point or compare profit on the iPhone to the S3 or any non apple electronic device for that matter.

I would say the profit margins on high end devices, apple or not, are about the same.
 

TheHateMachine

macrumors 6502a
Sep 18, 2012
846
1,354
Kanta Worldpanel is actually posting a negative article about Apple. I am very surprised. Out of all the market data analysis from the various groups Kantar was the only one to bring forward data that was contrary to the likes of IDC and Comscore. Now they are aligning with them... how strange.

*dons annodized aluminium foil hat*

Guess they must have dumped their stock in Apple :p
 

cynics

macrumors G4
Jan 8, 2012
11,959
2,156

Source of what?

Apple.com?

Look at the above profit charts and their sources. They were posted by pro apple people so its not like they were cherry picked.

Here is one of a million google search hits from Apple profit margin

http://www.isuppli.com/Teardowns/News/pages/New-iPad-32-GB-4G-Carries-364-35-Bill-of-Materials.aspx

y3uve8ev.jpg


This is no secret or new info btw. They charge a lot because they can. As long as people pay it why not?

You've never wondered why an iPhone cost more then an iPad (same storage and latest design year)? Its obviously more expensive to make an iPad but not quite as popular.

Something's have 50% profit!! Half your money went directly into the bank! Lol. That's the profit of hand crafted limited supply very exclusive items not bottom dollar high volume mass pruduced Chinese labor built electronics.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.