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Old 02-04-2012, 11:49 AM   #26
smartpatrol
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Originally Posted by alent1234 View Post
The problem with low margin is that it only works in a growing market. As it matures or a new disruptive product comes out then the low margin companies go out of business
IMO the biggest problem is that it's a race to the bottom. If your biggest selling point is your low price, and you're essentially selling a commodity product, your customers will leave as soon as another company undercuts you.

Apple thinks very hard about every product they release. They are extremely careful not to put out a product that could tarnish their brand. They'd rather put out one AAA device than 5 B+ devices. As a result, they have earned a reputation that MS, Samsung, Motorola etc. would kill for. People get excited when Apple announces something new. It's not because Apple fans are mindless sheep. It's because Apple has earned a reputation for only putting out great products.

Along with that come customers who are willing to spend a little more for quality. Those are coincidentally the same ones who actually pay money for apps and content.

Could Samsung do that? I'd say yes, but it would take them years to build up the reputation for quality that Apple has.
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Old 02-04-2012, 12:39 PM   #27
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The problem as I see it* is getting the major players (especially Samsung since they are actually making big boy money) to get onboard with updates and the like. That whole thing is a huge mess. I don't know if locking down more like Microsoft is the answer but... something. The Galaxy S I think is back to NOT getting ICS which is kind of a big bummer seeing as it was the flagship phone last year.


*And I mean, what do I know I am not the CEO of a multi-billion dollar company
#1 reason I bailed on WinMo 4 years ago. So tired of having a perfectly fine device that gets left behind by software updates.

I was burned on the 6600 and the 700wx. I wasn't going to let it happen again. And it would have, because I probably would have gotten a Treo Pro.
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Old 02-04-2012, 01:49 PM   #28
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It helps to look at all the other graphs/formats.

http://www.asymco.com/2011/07/29/app...profits-in-q2/

Keep in mind, all this data is a year old.
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Old 02-04-2012, 01:51 PM   #29
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It helps to look at all the other graphs/formats.

http://www.asymco.com/2011/07/29/app...profits-in-q2/

Keep in mind, all this data is a year old.


Redonk



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Mega Redonk

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Old 02-04-2012, 02:11 PM   #30
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Is it supposed to make me want to use Apple more or less knowing that they will chisel more money out of me than anyone else?
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Old 02-04-2012, 02:23 PM   #31
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Is it supposed to make me want to use Apple more or less knowing that they will chisel more money out of me than anyone else?
Yea but they aren't getting it out of you. Flagship devices cost ~$199 across the board, so it isn't like everyone else is $99 (and not a hair over) and only Apple is priced at $199. So their profits are coming from their supply chain from top to bottom probably.
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Old 02-04-2012, 02:24 PM   #32
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Yea but they aren't getting it out of you. Flagship devices cost ~$199 across the board, so it isn't like everyone else is $99 (and not a hair over) and only Apple is priced at $199. So their profits are coming from their supply chain from top to bottom probably.
Yeah but if they are making that amount per unit then they could sell them at $99.
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Old 02-04-2012, 02:41 PM   #33
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Apple has more efficient manufacturing. iPhone 4s, iPad 2 and iPod touch all use the same CPU and gpu along with some other parts? Other phone manufacturers seem to make every phone a separate project with different hardware
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Old 02-04-2012, 04:01 PM   #34
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Yea but they aren't getting it out of you. Flagship devices cost ~$199 across the board, so it isn't like everyone else is $99 (and not a hair over) and only Apple is priced at $199. So their profits are coming from their supply chain from top to bottom probably.
Gotta respect the supply chain management - it has made the company the most valuable on the planet.
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Old 02-04-2012, 04:16 PM   #35
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Is it supposed to make me want to use Apple more or less knowing that they will chisel more money out of me than anyone else?
They're chiseling money out of carriers, not you. Granted carriers could past that cost onto you, but let's face it, carriers suck and they raise prices anyway.
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Old 02-04-2012, 04:25 PM   #36
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They're chiseling money out of carriers, not you. Granted carriers could past that cost onto you, but let's face it, carriers suck and they raise prices anyway.
What if I don't buy my phone from the carrier?
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Old 02-04-2012, 05:12 PM   #37
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Yeah but if they are making that amount per unit then they could sell them at $99.
Just to be nice to you?
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Old 02-04-2012, 05:15 PM   #38
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Just to be nice to you?
Is it supposed to make me use them more or less?

You did read the thread?
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Old 02-04-2012, 05:36 PM   #39
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What if I don't buy my phone from the carrier?
Is there another outlet that you can buy an iPhone on contract that isn't free/$99/$200?

If you bought it off contract, its gonna cost more than other Android devices, but that has nothing to do with Apple charging more. Its because iPhones have a higher resale value. If you resold your iPhone you'd get your resale value too. Apple has never charged the customer directly more than its competitors on their iPhones, except gen 1. The extra revenue they're making is off of carriers.

What about all those $300 top end Android phones?
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Old 02-04-2012, 05:40 PM   #40
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...If you bought it off contract, its gonna cost more than other Android devices, but that has nothing to do with Apple charging more. Its because iPhones have a higher resale value...
What? How does that make sense? If Apple sold them for less the resale value would scale with the retail price.
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Old 02-04-2012, 06:31 PM   #41
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What? How does that make sense? If Apple sold them for less the resale value would scale with the retail price.
You know most phones sold in the US are highly subsidized, right?

There's an instant ~$350 premium added to the value of what you pay for a subsidized phone, plus iPhones are popular and hold their resale value very well.

ie: Buy a $199 iPhone from a major carrier (subsidized) and it's worth near $600 instantly if you resell it.
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Old 02-04-2012, 07:22 PM   #42
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You know most phones sold in the US are highly subsidized, right?

There's an instant ~$350 premium added to the value of what you pay for a subsidized phone, plus iPhones are popular and hold their resale value very well.

ie: Buy a $199 iPhone from a major carrier (subsidized) and it's worth near $600 instantly if you resell it.
A) I don't live in the US
B) if apple sold them for less the resale value would be less.
C) how is buying one on contract and selling it using one?
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Old 02-04-2012, 07:52 PM   #43
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A) I don't live in the US
B) if apple sold them for less the resale value would be less.
C) how is buying one on contract and selling it using one?
I was trying to explain how used phones off contract are valued in the US, I know you don't live here.

Yes, the same holds for all products, I guess I don't understand your point?

It's not.

Not trying to argue, walked into the middle of the movie I guess...

I'm no fan of the industry's pricing practices, I think they're obscene ...

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Old 02-04-2012, 09:12 PM   #44
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Is it supposed to make me use them more or less?

You did read the thread?
So they have an item that they can't make enough of, and you want them to lower the price for you.

I'm glad you're not running a business.
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Old 02-04-2012, 10:18 PM   #45
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A) I don't live in the US
B) if apple sold them for less the resale value would be less.
C) how is buying one on contract and selling it using one?
Whether you're in the US or not, Apple charges the carrier more than other smartphone manufacturers. Here in the US, it's free/$99/$200 and the extra premiums of an iPhone is charged to the carrier. I don't know what the pricing is in your country, but are you suggesting that in your country Apple charges the customer more for iPhones compared to Android devices?
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Old 02-06-2012, 04:54 PM   #46
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Yea but they aren't getting it out of you. Flagship devices cost ~$199 across the board, so it isn't like everyone else is $99 (and not a hair over) and only Apple is priced at $199. So their profits are coming from their supply chain from top to bottom probably.
So you're saying Apple is the Walmart of mobile devices?
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Old 02-06-2012, 05:24 PM   #47
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So you're saying Apple is the Walmart of mobile devices?
I don't know what that means. Apple offers a premium, luxury product for a not so premium price. Walmart offs not so premium products at not so premium prices. They do both use their money and position to gain advantages in supply, but past that...
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Old 02-08-2012, 02:07 PM   #48
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wanted comparison of company's earnings relative to previous years not relative to the entire market
How about industry wide vs. apple?



The industry outside of Apple has been fairly stagnant for the past 1/2 decade.
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Old 02-09-2012, 06:49 AM   #49
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Apple's higher relative profit could be based on a number of factors:

- More efficient costs (in production, or elsewhere in the company)
- Higher per unit price leading to higher revenue (coupled with lower costs)

Apple wouldn't release phones for different market segments, since they don't need to. It's all about branding, and the iPhone being it. The only lower-budget phones released by them will be older/legacy phones. If an iPhone 5 is released this year, then the iPhone 4 will be basement bargain status (like the iPhone 3GS was a year ago or so).
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Old 02-09-2012, 09:20 AM   #50
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http://www.bgr.com/2012/02/09/can-sm...-the-industry/

Holy crap, Samsung and Apple combined accounted for 95% of industry profits in Q4 and 90% for 2011 as a whole. Apple alone made 80% of industry profits in Q4. Amazing.

5 years down the road, I wouldn't be surprised to see only Apple, Samsung, Nokia (with MS's backing), and maybe Motorola (Google) in the smartphone race.
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