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IPhone: 4% of market, 50% of profit

tech.fortune.cnn.com

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Re: IPhone: 4% of market, 50% of profit

#3

Post by mattparcher »

brudgers wrote: post #2

I see the graphics. I see the app store affiliate links. I do not see the source for the data upon which the graphics are based listed.

I agree that there should be more explicit citation for this article.

The original source is IDC [1], who says the mobile phone market is:

  1. Nokia, 32.4%
  2. Samsung, 21.0%
  3. LG Electronics, 8.3%
  4. Apple, 4.1%
  5. R.I.M., 3.6%
  6. Others, 30.5%
The IDC press release is referenced by Horace Dediu in his first post on the matter [2]. A later post of his [3], is the one referenced by CNN, only linked from the chart images.

[1] http://www.idc.com/about/viewpressrelease.jsp?containerId=pr...

[2] http://www.asymco.com/2010/10/30/last-quarter-apple-gained-4...

[3] http://www.asymco.com/2010/10/29/iphone-share-of-all-phones-...

Re: IPhone: 4% of market, 50% of profit

#6

Post by sliverstorm »

All this tells me is what I already knew- Apple products are priced with a very large profit margin included. They are the only ones who've been able to get away with it.

(I think it's safe to surmise that when one company is making 25x the profit as other manufacturers per device, it's not because they have figured out how to manufacture product more efficiently)

Re: IPhone: 4% of market, 50% of profit

#7

Post by ptomato »

sliverstorm wrote: post #6

All this tells me is what I already knew- Apple products are priced with a very large profit margin included. They are the only ones who've been able to get away with it. (I think it's safe to surmise that when one company is making 25x the profit as other manufacturers per device, it's not because they have figured out how to manufacture product more efficiently)

And yet, oddly, similar phones (see: android devices) are not priced significantly less.

Re: IPhone: 4% of market, 50% of profit

#9

Post by baddox »

ptomato wrote: post #7
sliverstorm wrote: post #6

All this tells me is what I already knew- Apple products are priced with a very large profit margin included. They are the only ones who've been able to get away with it. (I think it's safe to surmise that when one company is making 25x the profit as other manufacturers per device, it's not because they have figured out how to manufacture product more efficiently)

And yet, oddly, similar phones (see: android devices) are not priced significantly less.

Exactly. Unless the hardware of an iPhone costs significantly less than, say, an Evo 4g or Touch Pro 2, there's no reason their profit margin would be any better. Of course, the whole pricing model is very obfuscated at least with US carriers due to contracts, required internet plans, etc.

Re: IPhone: 4% of market, 50% of profit

#10

Post by sliverstorm »

ptomato wrote: post #7
sliverstorm wrote: post #6

All this tells me is what I already knew- Apple products are priced with a very large profit margin included. They are the only ones who've been able to get away with it. (I think it's safe to surmise that when one company is making 25x the profit as other manufacturers per device, it's not because they have figured out how to manufacture product more efficiently)

And yet, oddly, similar phones (see: android devices) are not priced significantly less.

But do android device makers get the same cut from the carrier as Apple? Notice an unlocked iPhone 4 is ~$750, and Apple probably gets a little more out of it when they sell with a contract (otherwise wouldn't they just sell unlocked phones with no particular carrier association?)
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