77 cents of every dollar of profit in the mobile industry went into Apple's vault during Q2
In terms of units, Apple shipped just 6% of smartphones and tablets in the second quarter and yet wound up with the lion's share of revenue and profits. And this comes during a period of time when Apple iPhone sales are usually not running at peak performance with the next iteration of the device on the way. And McCourt points out that while Samsung sold twice as many smartphones as Apple did in the second period, it really doesn't matter because Apple took such a huge share of profits.
As McCourt noted, HP and Dell sell a lot more PCs than Apple sells Macs, but the profits are what counts. So the analyst says the same thing applies with Samsung and Apple's mobile devices. "Ultimately, profits are the feedstock of innovation;" says McCourt, "and innovation drives profits."
1. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
And someone was just saying Apple is desperate and suing Samsung because Samsung was taking all their profits.
Sticking to facts that's an amazing achievement. We have people on here constantly knocking Apple's strategy, but you can't argue with these results. Apple is dominating profits in a way no one ever has. That along with industry leading customer satisfaction and loyalty. I guess the iPhone is not so bad :).
5. MeoCao (unregistered)
SS, HTC..profits are small and that benefits the users.
What the Apple's profit turns into? Better technology?
No, just more lawsuits.
12. plgladio (Posts: 311; Member since: 05 Dec 2011)
MeoCao your writeup was good, but really sad that your comment will be hidden soon because of the previous comment.
36. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Htc is going out of business. That doesn't benefit anyone.
9. matrix_neo (Posts: 314; Member since: 03 Nov 2011)
So you're in cloud 9 now itaco50?! Im sure you're very happy coz apple added another profits in their vault. But how much apple give to you? An outdated iphone or an app launcher? LOL
20. The_Exxile (banned) (Posts: 4; Member since: 06 Aug 2012)
Yeah, great that Apple has made a phone as desirable as the iPhone.
On the other hand, Apple didn't make the smartphone accessible the way Android did.
In terms of changing the world as we know it, I think Android is a step ahead.
43. Savage (unregistered)
Yes, Apple is taking all profits, Hardly a big surprise.
How does that benefit YOU? One device a year with incremental changes? Good luck.
44. kingpet13 (Posts: 139; Member since: 02 Feb 2012)
Yeah, that was apple. Remember they're suing Samsung for stealing their customers. And customers =profit.
2. Aeires (unregistered)
If Foxconn made T-shirts, they'd be called a sweat shop. Because they make electronics, they only make the news as blips between stories. Apple strong armed Foxconn and are reaping the rewards, and yet people who buy Apple products still don't think they are over paying so the cycle continues.
3. hitmantb (Posts: 26; Member since: 26 Jul 2012)
I laugh at comparisons to Nokia and Rim of the past, these companies at their peak, were never even close to the #1 most valuable company in the world, and they never had 100+ billion in cash reserves, nor dominated industry profit like Apple has.
And the only reason Android is gaining market share is because of low end units. They get crushed by Apple in premium space. As good Samsung was in Q2, they sold 50 million smartphones, 10 million of them was GS3 variants, 5 million was GS2 + Note variants, all others were low end devices. 70% of Samsung Q2 smartphones were low end! By comparison, Apple sold 26%, and almost all of them (3GS are offered in such limited quantities at this point) are 4S and 4's.
And all other Android vendors are non-factor at this moment, because they do not manufacturer their components like Samsung, and do not have the raw muscle of Apple to dominate supply chain. None of them will put up any meaningful fight. The most they can do is drive the price lower (HTC One X already $99, can be bought for $400ish unlocked!) and all Android manufacturers loses. Heck, Microsoft makes more profit from Android than anyone other than Samsung at this time!
4. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
OEM's are actually going to be put out of business by android. They all have the same OS that google gives away for free so they have no way to differentiate their phones. They end up competing on specs and price so they feel pressured to constantly come out with new phones which totally devalues older android phones. It's a vicious cycle and none of them make a profit. Samsung is the only one with a sustainable model and they've done it by basically copying Apple's phone.
Meanwhile Apple comes out with one phone a year and rakes in the dough. It's not overpriced if people are buying them in record numbers.
14. matrix_neo (Posts: 314; Member since: 03 Nov 2011)
Are you day dreaming itaco50?! It seems you're in dreamland when you write your comments, it's very far far from reality. Pity on you....
16. protozeloz (Posts: 5375; Member since: 16 Sep 2010)
do us all a favor, don't give him worth replies
15. plgladio (Posts: 311; Member since: 05 Dec 2011)
Have you heard of SENSE, TOUCHWIZ? Take a LG Android phone and a Samsung Android phone, though the menus are same like still they show a difference in their product. The "look and feel" changes.
Its not just only the hardware need to be changed, we are in world were technology speaks rather than color and shape.
17. protozeloz (Posts: 5375; Member since: 16 Sep 2010)
again do not waist your time, its what he wants.... don't you see him hating on Samsung
32. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
You know what they say:
You can put lipstick on a pig, but...
38. plgladio (Posts: 311; Member since: 05 Dec 2011)
Oh! Pig is owned by Apple?
What is Apple problem if Samsung or HTC or LG put lipstick to Pig or Ass, why Apple is interested to know or need that money (which Samsung got from putting lipstick to pig)?
That much cheap Apple is?
If so ask them to come and be my assistant I'll pay them few cents a month..
19. frydaexiii (Posts: 1231; Member since: 01 Dec 2011)
It is overpriced when it doesn't have the hardware or can't even do a quarter of what other phones of the same price range can & have.
21. The_Exxile (banned) (Posts: 4; Member since: 06 Aug 2012)
They've done it by copying the iPhone?
They did it by making sure they had a top model that people wanted across all carriers, as well as selling lower end models that are priced in a very smart manner.
They did it by making their displays sharp, their cameras work well and their interface good looking (and less like the iPhone's every time they come out with a new iteration).
They did it by giving people what they want: phones that are lighter, thinner, faster, and with the features people desire, like lots of memory, memory card slots, and a variety of screen sizes.
Samsung has built itself up to a monster share of the market by doing all of these things.
And trust me on this, there is no confusing an iPhone and a Galaxy S 3.
6. protozeloz (Posts: 5375; Member since: 16 Sep 2010)
can you provide where that info is coming from? where you get those statics from?
7. smartphone (Posts: 160; Member since: 21 Oct 2011)
Even if they got 99% of all profit their greed can't be fulfilled.
8. Tre-Nitty (Posts: 460; Member since: 16 Nov 2010)
Apple just keeps on rolling and raking in the dough. Hard to argue with their place in the industry. I say just give them their props.
11. windowsRocks (Posts: 152; Member since: 28 Oct 2011)
This is way a closed system is always better for both developer & company
34. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
They know how to run a business. No one is forced to buy Apple products so no one is getting screwed.
18. wendygarett (unregistered)
Innovation drive profits? I though profits drives innovation...
23. kanagadeepan (Posts: 667; Member since: 24 Jan 2012)
And they will again say "WE ARE NOT AFTER MONEY".... Greedy DEVILS....
24. Gusto (Posts: 28; Member since: 20 Mar 2012)
Okay, from this news we can infer only one thing, that Apple's products are overpriced.
25. Gaurav008 (Posts: 274; Member since: 20 Jul 2012)
and they said they are not interested in making profits....*sigh*...
27. wsucoug13 (Posts: 164; Member since: 04 May 2012)
This is embarrassing is your and iPhone user. Just completely getting f**ked up the ass!
28. gallitoking (Posts: 4684; Member since: 17 May 2011)
Apple has a product that caters to an average users and not geeks ( sorry 98% of people here).. they keep their customer happy, and dont saturate the market with an iphone variant every 2 months... see Apple makes you want their phone.. Android will just give it to you.. nothing wrong with that. just like nothing wrong with the Apple way
30. RapidCat (Posts: 351; Member since: 12 Jun 2012)
apple don't care about customer, they only think what they want.
unlike other os, they listen to consumer
39. plgladio (Posts: 311; Member since: 05 Dec 2011)
We (as per you 98%) wont say anything wrong about Apple if they are not sueing other companies.
They didn't invent any technology, all they did is bought and marketed and made popular.
Ex: You study in a school and become a very great business-man in the world, that's doesn't mean you have to pay to the school every month because you studied there.
Nowadays all the big gaints are buying small companies only to sue others, that's not fair for business.
29. RapidCat (Posts: 351; Member since: 12 Jun 2012)
off topic, now apple accuses samsung for copying icon.
35. Seannyc (Posts: 59; Member since: 21 Jul 2012)
My 2 cent : Andriod and apple war can go on 4ever but you have to admit apple gotta be doing something right if apple itself makes more money than all the other phone competitors combine. Im currently using an andriod phone, however Im getting myself the iphone 5 when it release. I just never felt special when I had andriod, nor can I find as many accessories as iphone. Since first year my phone is broken but no one can fix it. I really feel andriod lacks in customer support and updates
42. frydaexiii (Posts: 1231; Member since: 01 Dec 2011)
So you buy a phone just to feel special? Ok, good thing you're going over to the iCraps side. Android has no place for people who uses their phone as a status symbol to feel special (even though all iPhones are the same, I don't see how you can feel special with it, but who knows? iFan logic) & and blames the OEMs when they can't fix their own problems.
45. wsucoug13 (Posts: 164; Member since: 04 May 2012)
haha this is the dumbest post i have ever seen on here.. go get an iPhone so people can think your cool or whatever. iPhones feel like a dumb little toy after getting my GSIII
46. Savage (unregistered)
That depends if you've actually used an iPhone before and are familiar with their customer support. Otherwise, how can you know if they'll repair the fragile glass if you've broken it?
And it's stupid to buy a phone for the 'feel special' part. There are clothing items and jewellery for that.