Half of handset industry profits belong to Apple
0. phoneArena 08 Jul 2011, 17:59 posted on
Not only does 50 cents of every dollar in handset industry profit belong to Apple, but the company is about to hit a milestone by shipping 100 million units of the Apple iPhone over a 12 month period; according to Canaccord Genuity analyst T. Michael Walkley, the device is the top-seller at both AT&T and Verizon...
This is a discussion for a news. To read the whole news, click here
1. Praetor (unregistered)
Makes you wonder, if they're so incredibly profitable, why they need to have their products manufactured overseas.
2. appleofmyi (Posts: 1; Member since: 03 Mar 2011)
Other countries like China and Brazil offer incentives for foreign investors. It also has other cost benefits other than those incentives that makes outsourcing appealing to big companies in the US, like Apple.
15. Praetor (unregistered)
Obviously, it's more profitable to outsource to China. That's not my argument. When you're pulling in these kinds of obscene profits, at what point do you realize you can offer tens of thousands of Americans some decent jobs and still pull in merely absurd profits? And maybe, because of it, appeal to more buyers. Put your plant in Texas or some place business friendly like that. You think some state won't give them some incentives? New York was offering AMD the moon to build a plant there.
24. Patricky (unregistered)
If you were the elite person from the investment community, would you pound at Apple's stock if Apple forfeited a few cents of profit by moving the manufacturing back to USA? Further, does US still have sufficient eco-system (materials, labours, flexibility, regulation, etc.) locally to support the quick ramp up & down which is important for consumer products?
95. RM (unregistered)
In other words, Americans are too fat, lazy and stupid to put a phone together. This is so obvious it wasn't worth typing.
25. Droid_X_Doug (Posts: 4769; Member since: 22 Dec 2010)
It is not about making merely absurd profits. If you can make obscene profits, then if you don't make the obscene profits, you are deemed a failure and a threat to the corporation and are summarily dumped by the Board of Directors.
Also, with manufacturing occurring in China, there is an incentive for the Chinese govt. to give Apple favorable tax/import duty treatment. The China cellular market is a bit larger than the U.S. cellular market, so that consideration tends to win out. Remember, it is about making obscene profits if you can....
106. remixfa (Posts: 13887; Member since: 19 Dec 2008)
first off.. ur about to make me defend apple.. which makes me want to take a shower.. so u suck for that...
1) there is no such thing as "obscene" profits. Thats an idiots term for "i wish i made that much". Gross profits mean nothing. Its profit margin that counts. Idiot politicians demonize oil for their "obscene profits" because they know most normal people think they are swimming in cash. Oil companys make around the standard 8% profit margin. Thats not "obscene", thats standard.
Now companies like Apple make a bit more. If i remember correctly apple makes something like a staggering 36% profit margin which is insanely high. But the tech market in general is pretty high because of demand for the products (which are considered luxury not necessity like oil so their profit margin is much higher).
Could Apple move its production to the US and give thousands of US workers a job? Absolutely they could. Will they? Absolutely not.
1) we cant put up a factory in 90 days, there are too many regulations.
2) their profit margins would likely cut in half as they pay for all those regulations, increased worker wages, benefits, and......
3) SUPER HIGH US corperate taxes. We have the highest corperate tax structure of any country in the developed world. That is the main reason why companies outsource to other countries. They save about 15-20% in taxes alone by going to China.
Blame politicians and stupid voters, not apple. They are just playing in the system that was created for them..
5. iBlowjobs (unregistered)
Because America is full of no good lazy ass people who expects to get paid without doing anything. And Apple knows it.
6. downphoenix (Posts: 2004; Member since: 19 Jun 2010)
because its more profitable to do this. Plus these companies dont give a rip about the american public. Apple would have to charge an extra $100, easily, if they made it in the US instead of China.
35. The_Miz (Posts: 1496; Member since: 06 Apr 2011)
Because the US sucks to do manufacturing, so why not do it overseas where the labor is cheaper?
83. BelowtheBelt (unregistered)
Come on sniggly, Your argueing with a prepubescent boy here. And from his pic, hes obviously all ready messed in the head. I know a good arguement can be fun, but the problem with argueing with idiots is from a distance no one can tell the differance. No need to fill his little ego by commenting back. even though it is easy and tempting.
92. biscutbob (Posts: 82; Member since: 08 Jul 2011)
That adds to the profit. Cheap manufacturing.
3. Sniggly (Posts: 6244; Member since: 05 Dec 2009)
In other news, water is wet, Donald Trump is a douchebag, and heavy metal is awesome. Apple is the reason I want to go back to school for marketing.
14. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
You sell for AT&T right? I thought your store doesn't sell iPhones and it's the top selling phone by far. Must suck losing so many sales to a superior device.
29. Sniggly (Posts: 6244; Member since: 05 Dec 2009)
No. I left AT&T's employ months ago. Leave it to you to get details wrong, Taco. First, I did sell iPhones. I just avoided it if I could because Apple doesn't like to pay salespeople a just wage. Though to be fair, it doesn't take much to sell iPhones to the uneducated public. No, because I was a real salesman, I helped smart people decide to buy the Inspire and Captivate, which were the truly superior devices we had. But if someone came in absolutely bleating for an iPhone, I would sell it to them. And without pushing the iPhone, the store chain I sold for was the top ranked one in the region, asked by AT&T to expand inti other territories.
I would think, Taco, that resurrecting an old bulls**t insult like the one you just used ("you lost sales to the iPhone, ha ha ha") is too low even for you. Stop making yourself look like an epic dumbass.
37. The_Miz (Posts: 1496; Member since: 06 Apr 2011)
Sniggly as usual trying to act bold on the internet.
Yeah, excuse a customer for wanting to choose a phone that's actually good and gets high scores across the board unlike the Captivate, which iirc, took forever to get updates for.
39. iSheepHunter (Posts: 55; Member since: 07 Jul 2011)
What are you talking about? His comment clearly says he sold fairly< CLEARLY its says if they wanted an iphone he gave them one
49. The_Miz (Posts: 1496; Member since: 06 Apr 2011)
But he's been an elitist about it. It's their damn right if they want to buy the superior phone over another typical Android phone.
45. Sniggly (Posts: 6244; Member since: 05 Dec 2009)
The Captivate is a good phone, despite the lack of updates, Miz. The only thing it lacked compared to the iPhone was a front facing camera. On every other level it matched the iPhone 4 toe to toe, and it's half the iPhone 4's price, and less than half of the 32G iPhone 4 if you throw in a 16 gig SD card.
I mean, f**k, it's even sexier than the iPhone 4.
50. The_Miz (Posts: 1496; Member since: 06 Apr 2011)
You wish. Why would I waste money on a phone that can't even update when it should when I can a much better iPhone without the Android glitches and errors?
56. Sniggly (Posts: 6244; Member since: 05 Dec 2009)
WHAT Android "glitches and errors?!"
You know, you iFanboys always bitch and moan about glitches and errors, but you never get more specific than "force closing," which, if you don't have 15 apps running at the same time, is easy to avoid. You also forget the reason why Apple updates its software: THEY'RE ALWAYS FIXING BUGS TOO.
And why should you buy the Captivate? Because even though it's running Froyo instead of Gingerbread, it still kicks the s**t out of the iPhone 4.
And if you want a phone that DOES update faster, go with Motorola or HTC, both of which are pretty good about their updates. Hell, the Droid X was the first Android phone in the U.S. to get Gingerbread. Except for maybe the Nexus S.
85. The_Miz (Posts: 1496; Member since: 06 Apr 2011)
Remind me to never come to your store for a phone if you suggest the Captivate over the far superior iPhone 4. It's simple fact - iPhone 4 is better. Get over it and quit being so f***king bitter about it.
Android has constant crashing, forced closing, freezing, bloatware, malware apps(lol Googe can't even stop this), etc.
And Droids are the worst phone on the market, simple fact.
36. The_Miz (Posts: 1496; Member since: 06 Apr 2011)
And yet they make more money in one day than you ever will in your entire life.
It's the truth - Apple can put their logo on a paper bag and it'll sell. It's called BRAND RECOGNITION. They know how to run a business.
40. iSheepHunter (Posts: 55; Member since: 07 Jul 2011)
Was anybody hear saying Apple doesn"t make any money or was ANYBODY talking about brand recognition? No? then what is miz blabbering about?
51. The_Miz (Posts: 1496; Member since: 06 Apr 2011)
Miz is blabbering the truth and nothing but the truth.
61. wassup (Posts: 565; Member since: 23 Jun 2011)
And you'll argue that that paper bag is the best paper bag available.
67. jvdjj (unregistered)
Who gives a rats ass about the iPhone lol my EVO 3d will tear its mac ass out anytime anyday,and with double everything better. IPhone is one boring looking phone,with Android you can change how it looks,reinvent the screen and with iPhone its just that,u can change the wallpaper if anyone cares
41. Sniggly (Posts: 6244; Member since: 05 Dec 2009)
Did I ever say they don't know how to run a business? They obviously know what they're doing.
And don't beso sure that I'll never make the kind of money they do. I'm young, and I haven't even begun to get serious about my life. At my age Jobs was still bumming on friends' couches.
52. The_Miz (Posts: 1496; Member since: 06 Apr 2011)
Yeah, keep dreaming. Jobs had the intelligence to jumpstart his company and turn Apple into a success. All you've done so far is **** and moan in the comments because people prefer iPhones over Android phones.
You can't handle someone having a different opinion than you and fly off the handle over trivial things. I am very sure. I know your type very well and with that kind attitude whenever a comment doesn't go your way, then you really won't get very far, kid.
57. Sniggly (Posts: 6244; Member since: 05 Dec 2009)
Um, Miz, I don't like people being objectively wrong, which you are almost every time you post. You're stupider than Taco, which is quite an achievement to be sure. You demonstrate time and again that you don't know what you're talking about, you can't qualify your opinions with any backup, and you're a fan of a pro wrestler. You're like an unholy trinity of stupid, which makes my soul burn with anger.
86. The_Miz (Posts: 1496; Member since: 06 Apr 2011)
i'll remember to take my shiver pills.
Get over it, it's so sad and pathetic that you pitch a fit every time someone posts a comment you hate, and then you call them stupid lol. Funny coming from the guy who can't tell the difference between flash memory and hard drive memory.
107. remixfa (Posts: 13887; Member since: 19 Dec 2008)
the unholy trinity of stupid.. lol.
gotta say, that made me laugh. :)
74. E.N. (Posts: 2216; Member since: 25 Jan 2009)
Dude its great that you support iPhone but stop kissing Job's ass
4. 530gemini (Posts: 2198; Member since: 09 Sep 2010)
...But android is insanely ahead of course ;) (according to fandroids)
9. Sniggly (Posts: 6244; Member since: 05 Dec 2009)
Even this article states that Android has greater market share by far. Apple is ahead in profits because of how good they are at making sure they never pay more than they absolutely have to for anything, squeezing as much money as possible out of their business partners, marketing the s**t out of everything they sell, and curbstomping everyone who dares stand against them.
42. beatlesfan (Posts: 150; Member since: 03 Mar 2011)
Couldn't agree more. Its ridiculous to look at profit margins (for indirect agents of Verizon at least, but I assume its the same with direct side and for ATT) on ANY phone even a basic phone, compared to the iPhone. Yet you know damn well that every time a 2 year agreement is signed on an iPhone Apple is collecting a boat load of profits. Just another reason nobody in sales actually wants to sell the iPhone.
69. iwebdroidberry7 (Posts: 230; Member since: 17 Jan 2011)
Why is it ridiculous to look at sales and profit? Sheep went nuts over the article this week about how many SSGS2 have been sold.
"Its ridiculous to look at profit margins ... unless its Google"
71. Sniggly (Posts: 6244; Member since: 05 Dec 2009)
The ridiculous part is how much indirect stores make off the iPhone versus how much profit Apple makes off the phones. This is a major problem for indirect retailers.
10. RORYREVOLUTION (Posts: 2801; Member since: 12 Jan 2010)
We already get that the iphone is the most over hyped, over priced feature phone in the world. The rest of us will enjoy our smart phones.
12. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Then why are you so obsessed with the iPhone? Stick to android central where you can side load some apps and widget away!
31. AndroidOS (Posts: 100; Member since: 21 Jun 2011)
You know Taco, I disagree with almost everything you say on Phonearena.
But I do know that when you're debating with someone on this site (even outnumbered 1 to 1,000,000,000) you won't result to childish and ridiculous name calling like "fag" and "f agdroids."
You can always have a respectable debate without getting too serious unlike Gemeni.
And for that, you will always have my respect :)
17. E.N. (Posts: 2216; Member since: 25 Jan 2009)
The #1 reason (and often the only reason) why many say they prefer Android is because of customization and "making your phone you" (That's ripped off right out of HTC's commercials, and I thought iPhone users were the ones brainwashed). If that's the #1 reason and not flash, notification, and any other capabilities, then Android is definitely the platform for feature phone users (which explains why most Android users don't use their phones to the fullest). Cause full out customization, personalization, live wallpapers, and pimping out of your homescreen is totally going to help you and your business do well.
30. Sniggly (Posts: 6244; Member since: 05 Dec 2009)
E.N., there is a large number of factors which lead to me liking Android. There's no one reason.
However, iphone users have a reason: because it's cool. And smooth. Wanna know what else had those qualities? Most teen centric feature phones.
38. The_Miz (Posts: 1496; Member since: 06 Apr 2011)
And better than most Android phones. Actually, practically all of them imo.
46. Sniggly (Posts: 6244; Member since: 05 Dec 2009)
And your opinion is worthless, Mr. "12.888 megabytes out of 8 gigabytes is HOGGING MY MEMORY! OH MY!"
The iPhone is better than the bottom of the barrel Android phones, but at best on the same level with the high end Android phones.
54. The_Miz (Posts: 1496; Member since: 06 Apr 2011)
Oh lord, did you just confuse flash memory with hard drive memory? XD
No no, it's way higher up than the high end Android phones.
59. Sniggly (Posts: 6244; Member since: 05 Dec 2009)
No, I didn't. I refer to it as the hard drive in order to differentiate it from RAM. I know it's not technically accurate, but I'm still leagues ahead of you. I mean, good lordy, if 0.16 PERCENT usage is a lot to you, you have some major OCD issues.
87. The_Miz (Posts: 1496; Member since: 06 Apr 2011)
XD, well I see why you're the perfect candidate to work at a cellphone place considering all the misinformation you're spewing left and right. But whatever makes you sleep at night, kid.
76. E.N. (Posts: 2216; Member since: 25 Jan 2009)
If you reread the comment above, you'll see that I know that there's many reasons to choose iPhone over Android and vice versa but most people choose customization and personalization as a top choice and some even give me that as their only reason.
But you made it seem like everyone who has Android is high-tech when you said "the rest will enjoy our smartphones." But when people buy iPhone, its (generally) mainly for the applications and when people buy Android, (generally) it's more for the customization. Not that customization is not important but I'm pretty sure that applications are more of a smartphone-oriented choice.
53. The_Miz (Posts: 1496; Member since: 06 Apr 2011)
Yeah, enjoy Android being buggy, laden with manufacturer skins, and bloatware while the iPhone crowd enjoys a well put together phone with a better interface and proper updates from Apple.
58. Sniggly (Posts: 6244; Member since: 05 Dec 2009)
Proper updates? Lol, you mean to say the updates which usually brick half of the iPhones they get downloaded onto?
I'll enjoy my updates which don't brick my phone and bring excellent new features and a smoother experience, thank you very much.
72. Sniggly (Posts: 6244; Member since: 05 Dec 2009)
Well, there was a version of iOS 4 that completely beat the s**t out of older iphones, for one.
88. The_Miz (Posts: 1496; Member since: 06 Apr 2011)
You mean like how the updates to GB f**ked up a lot of Android phones lol? Keep digging that hole
100. Sniggly (Posts: 6244; Member since: 05 Dec 2009)
No, there were supposedly some issues with some Motorola phones after the update, but I know that mine hasn't suffered them. Gingerbread is a vast improvement overall.
7. theBankRobber (unregistered)
I'm tired of the same old the iPhone is the top selling phone, its one phone. If Android had one phone it WOULD outsell iPhone. Android has a huge userbase because people like the features of the Android OS. But since Android gives users choice of what they are looking for in a device hardware wise, it will always look as if the iPhone is the top selling phone. But OS wise Android mops the floor with ios, if you total how many Android devices they sold total vs how many iphones, Androids total would be more and everybody knows it but tries to derail the amount.
8. Hen (unregistered)
Actual you would get the complete opposite. Android benefits from its wide variety a flavors (models) from the upper to lower end. Also, everybody already knows that Android OS as a whole with its long list of OEM's outsell iPhone. That is why the OS leads in marketshare. Nobody is trying to derail anything they are just stating the obvious. Even though Android leads in marketshare and is rapidly growing, Apple's profits and sales continue to rise and in the land of business that's all that matters. You can sell X amount of Android devices but neither of them come close to Apple's accomplishments with one device. As for blowing, iOS out of the water, what are you smoking? Outside of allowing more customizations and being allowed to choose from more devices, there is no more appeal. If the OS was so light years ahead then why are developers not running to them full steam ahead? The reason that iOS will continue to thrive is because of the overall user experience they provide with their device performance and app store with lots of high quality content available. When you can provide a great user experience, people will stay with you and this statement is definitely true when you look at the customer satisfaction ratings for iPhone which is almost 20 points higher than Android. What I dont understand is why do so many Android users feel its there duty to come to every iOS-iPhone thread and talk about their OS? You like what you like and thats it. As with sales numbers, not very many people care about widgets, live wallpaper, dual core, 4.3" screen and flash. If they did, Apple would be selling less sale phones and profits would be taking a nose dive but thats not happening now or no time soon. Fact is if Apple released the iPhone to Sprint and Tmobile, it would quickly outsell every device in the line up by a long shot. Just enjoy what you have man. Your device is cool lol
34. Whateverman (Posts: 3074; Member since: 17 May 2009)
@Hen. I won't even get into the what OS is better thing, but what interested me about your post is when you asked why Android fan come to iPhone threads?
Most Android fans are just cellphone fans, period. We like the tech, but you will see us in Android, WebOS, Blackberry, Symbian, WP7 as well as ios articles. We say our peice, may have a short debate with each other, but it really only gets heated when we have an opinion about ios. And yes, sometimes you will find an Android fan coming in just to argue, but not many. But SOME iOS fans are instantly offended by our mere presents on "THEIR" articles.
Have a look at the first Android fan's post in this thread, Sniggly. There was nothing offensive about his post, yet taco swooped in to defend his preferred platform! From what? My thing is many of the iOS fans here are reasonable people, but there are a few here that refuse to let any non-iOS owner have an opinion about that phone. They attack, they insult and many of us are tired of the crap. I come here to see what's new in my industry and the comments section is for everyone. If they don't like what we have to say that is fine, give me your side and leave out the attacks. But there are a few iOS fans that just will not allow us to have our say without it getting ugly.