Apple Rules the Mobile Space When it Comes to Profits

[cereal killer]

We've all seen market share numbers being tossed around and the heated arguments of how Apple has lost it's edge in the mobile space to Android. This next bit of news turns market share numbers, speculation and rumor on it's head. VisionMobile, a market research firm, has put the mobile device market data into a chart that compares the market a year ago with today. The chart is an eye opening look at the many companies selling handsets and how few of them are making any money. The chart clearly shows Apple, Samsung, HTC, and Motorola Mobility seeing profits. As you can see HTC and Motorola are barely above water while Sammy is quite the dominant force in Android.

The most telling piece in this chart is how Apple overshadows all the manufacturers when it comes to the single most important thing in any business, profits. Another thing that catches our eye in this chart is how drastic things have changed from just one year ago. Look at the radical shift in volume, revenue and profits all these companies experienced from '11 to '12. It's astounding how fast the market changes, and depending on what side of the fence you are on, that can be quite unnerving. Fashionable today can be gone tomorrow.

Via: Infoworld

 

[BigZig]

The only reason apple makes so much profit is that apple fan boys are willing to over pay for anything with an apple logo on it. All apple products are over priced!!!!

 

[ndtaylor77]

The only reason apple makes so much profit is that apple fan boys are willing to over pay for anything with an apple logo on it. All apple products are over priced!!!!

Overpriced and still selling. They must but doing something right.

 

[nikecar]

Mac Users See Pricier Rooms At Orbitz - Internet - E-business/e-commerce - Informationweek

Nothing new. They overpaid for underpowered devices.

 

[TatDroid]

The subsidised price of a basic iPhone is $199 - which is the same or LESS than many top tier Android phones. But where Apple does make out like a bandit, is that they spend R&D dollars on only 1 phone per year - and then they crank out many tens of millions of units of that one phone. A manufacturer's dream come true.

 

[jseah]

The subsidised price of a basic iPhone is $199 - which is the same or LESS than many top tier Android phones. But where Apple does make out like a bandit, is that they spend R&D dollars on only 1 phone per year - and then they crank out many tens of millions of units of that one phone. A manufacturer's dream come true.

They also make out because the subsidy the carriers has to pay for a subsidized iPhone is higher than any other phone. It was reported that the average subsidy on an iPhone is over $450. This basically means that it doesn't really matter whether someone buys a subsidized iPhone or buys it at the unsubsidized price. Apple essentially gets the same money.

 

[BigZig]

Overpriced and still selling. They must but doing something right.

The only thing they are doing right is to be the only show in town to get Apple products. If Samsung was the only company making and selling Android I guarantee they would have higher profits than Apple. i'm just sayin.

 

[pinoy_92]

they make shiny stuff and flies are attracted to it.

no offense to anyone who owns an iphone.

 

[kodiak799]

It doesn't change or invalidate the point being made, but it's apples-to-oranges if they aren't backing out Itunes and Appstore revenues from that.

If you look at the profit growth for Apple, that's the IPad. On the Android side, I think you are seeing the commoditization of the space and also a struggle of OEM's to sell profitable volumes of handsets (where Apple has it spot on, as someone else noted). But Sammie is coming on very, very strong.

 

[npro1464]

On a side note: Look at Nokia and RIM! We all know the sad story behind RIM, but I think there's a bigger story behind Nokia here. Ever since they dropped Symbian (2011) and gave up on MeeGo for Windows Phone OS, their profits and revenues plummeted!! Need we any more evidence that this was a completely failed strategy? Would they have been better off with Android or toughing it out with MeeGo? What does this tell us about Windows Phone? From all the articles from the "tech experts" clamoring over Windows Phone, can we safely say it just isnt working out?

 

[acousticshade]

The subsidised price of a basic iPhone is $199 - which is the same or LESS than many top tier Android phones. But where Apple does make out like a bandit, is that they spend R&D dollars on only 1 phone per year - and then they crank out many tens of millions of units of that one phone. A manufacturer's dream come true.

Yes, but the I-phone is no longer a top tier phone. Thus it's overpriced.

 

[Cripton805]

This is no surprise. During the last year, the Razr and Bionic are the most likely key to Motos jump on profit.

:hail::hail: Samsung for it's major rise.
I'm glad to see competition. Hopefully Windows mobile starts showing up on next years charts.


Im surprised Apples profit had minimum rise since they released the iPhone to different carriers last year. Does that mean their profit would have lowered if they had not??? Good move Apple... Good move..

 

[hotice]

If I made a toaster that toasts one slice of bread at a time and sold it for twice what the going rate was for toasters that toast four slices of bread I'd make a killing on that as well. This assumes my marketing department is good enough to sell millions of stupid devices. Apple demonstrated this ability well with the iPod Shuffle. Only an idiot would design an MP3 player with no screen. Only a genius could sell it.