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Apple Captures 75% of Global Handset Market Operating Profit in Q2 2021

counterpointresearch.com

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Re: Apple Captures 75% of Global Handset Market Operating Profit in Q2 2021

#11

Post by rjzzleep »

InTheArena wrote: post #5
gbrown wrote: post #2

I really wish there was more competition in this space. Here's hoping someone like Canonical tries again now that the open-hardware world is starting to expand.

there will be - but it will be in the form of a Chinese mandate to provide phones that do not use Western Operating systems or without western data privacy protections. Ideas like what Canonical and Firefox tried to do were great, but didn't have enough in it for the powers that be to be successful.

Chinese actually just passed a bunch of data privacy protections. I'd say they're to protect chinese users from western and private companies, whereas the government is free to influence and access.

It's conceptually similar to the protections in the west. Protect users, but share data with the 5 eyes. It's just that they won't block you from searching for Uyghur or Winnie the Pooh or something similar in the process.

It's kinda interesting because this concept seems to work fine in China for the simple reason that they have so many domestic services. Other countries that just try to copy the China model without the domestic information services(i.e. Iran) have a huge mess on their hands.

Re: Apple Captures 75% of Global Handset Market Operating Profit in Q2 2021

#12

Post by tonyedgecombe »

archildress wrote: post #6
gbrown wrote: post #2

I really wish there was more competition in this space. Here's hoping someone like Canonical tries again now that the open-hardware world is starting to expand.

There's plenty of competition - note that despite capturing 75% of profits, Apple accounted for only 13% of units shipped.

I don't think there is for premium devices. If I wanted to buy an upmarket car there are a lot of choices but for phones it's just Apple or possibly a high end Samsung.

Re: Apple Captures 75% of Global Handset Market Operating Profit in Q2 2021

#13

Post by echelon »

lapdanz wrote: post #4

Apple will dominate the market until the market itself becomes irrelevant. Good news for Apple is that in the next 5 years I don’t see something in the horizon to challenge the market of smartphones.

Apple does, which is why they're planning their next moves into XR.

Re: Apple Captures 75% of Global Handset Market Operating Profit in Q2 2021

#14

Post by ericmay »

InTheArena wrote: post #5
gbrown wrote: post #2

I really wish there was more competition in this space. Here's hoping someone like Canonical tries again now that the open-hardware world is starting to expand.

there will be - but it will be in the form of a Chinese mandate to provide phones that do not use Western Operating systems or without western data privacy protections. Ideas like what Canonical and Firefox tried to do were great, but didn't have enough in it for the powers that be to be successful.

Yea but kind of a dangerous game to continue playing - does China want to have factories and suppliers close down and relocate out of China? Where will those people work?

It may happen anyway but these scenarios are never easy or clean-cut.

Re: Apple Captures 75% of Global Handset Market Operating Profit in Q2 2021

#15

Post by stuff4ben »

Begs the question of if one would rather sell the most but make just a moderate amount money or sell moderately but make the most money? In the short-term I could see that being a good thing as you build up your war-chest and invest. But long-term your marketshare will erode and you'll be making a lot of profit on fewer sales. I'm no economist, so I have no idea which is the better position to be in.

Re: Apple Captures 75% of Global Handset Market Operating Profit in Q2 2021

#16

Post by CarelessExpert »

gbrown wrote: post #2

I really wish there was more competition in this space. Here's hoping someone like Canonical tries again now that the open-hardware world is starting to expand.

Define "competition". Apple has a minority of the actual handset market, but they have a majority of the profits.

You can speculate as to why they can wring so many extra dollars out of their customer base, but it's not clear to me that the overall handset market, itself, is structured in a way that gives Apple an unusual advantage.

Re: Apple Captures 75% of Global Handset Market Operating Profit in Q2 2021

#18

Post by cs702 »

...with only a 13% share of units.

That is, all other vendors together sold 87% of units, but earned only a combined 25% of industry-wide profit.

The vast majority of those other vendors are companies headquartered in Asian countries with a long history of promoting market share, access to information, and knowledge transfer at the expense of short-term profit. They might be making less money willingly to grow/maintain volume, grow/maintain access to a large volume of user data, and acquire/maintain expertise.

Re: Apple Captures 75% of Global Handset Market Operating Profit in Q2 2021

#19

Post by gtirloni »

> In Q2 2021, it captured 75% of the overall handset market operating profit and 40% of the revenue despite contributing a relatively moderate 13% to global handset shipments

So they charge a premium for their phones, that's all. Android completely obliterates Apple if you count number of units shipped.

Re: Apple Captures 75% of Global Handset Market Operating Profit in Q2 2021

#20

Post by criddell »

I think one of the smartest things Apple did was open physical stores and not depend on carrier stores and Best Buy.

I've often wondered why their competitors don't do the same thing? Why isn't there a Samsung store a block away from every Apple store? Having a physical location for purchases, repairs, and support is why I always recommend Apple devices when somebody who isn't super technical asks me what to buy.

Microsoft made a half-hearted effort, Sony was there too soon with their stores, Dell had crappy little mall kiosks. Apple has shown you can make pretty great revenue-per-sq-ft with a store. Samsung copies everything else Apple, why not the stores?

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