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

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

#21
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.

The good news for Apple is that the next phase is AR, and I expect that Apple will captures the lion's share of the profits there too.

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

#22
post #7
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.

Looks to me there’s plenty of competition. Apple just consistently wins. Consumers are willing to pay more per device and it flows through to profit. The others are competing on price and their margins reflect it.

I was talking with a MediaMarkt employee last week, we were talking smartphones and we both were dumbstruck about iphone prices. We agree it's good hardware/products but the price is insance. Yet people buy them in bulk. The brand is that strong. Apparently people also rush to replace their old models every year or two.

Anyway, it just popped into my mind that I dreamt about buying a phone last night and the shop's owner just found a box with 60 iphones 13 that a customer finally didn't buy. But he had opened each box and the cardboard was ripped for each box so it was a massive loss for him. Funny coincidence.

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

#23
post #7
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.

Looks to me there’s plenty of competition. Apple just consistently wins. Consumers are willing to pay more per device and it flows through to profit. The others are competing on price and their margins reflect it.

There isn't. Only first time smartphone buyers have a choice.. you'll lose all your appstore purchases when you switch and having repurchase everything is going to dissuade anyone from switching.

Even for the first time buyers, if all their friends are on iMessage, they practically have to buy an iPhone.

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

#24
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.

I would like to try something different but the fact that almost all my family members and friends communicate through imessage & facetime keeps me locked to iphones. The network effects here in the US are really strong.

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

#25
post #18

...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/mainta…

I expect it’s more about the competition than those companies willingly leaving that level of profit on the table. In the android market, people have the option of switching to a competitor if you’re not price competitive yourself. For IOS, apple is the only game in town on hardware.

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

#26
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.

The good news for Apple is that the next phase is AR, and I expect that Apple will captures the lion's share of the profits there too.

My bet is that AR is going to go the way of 3D TVs.

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

#27

> 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.

Making more profit on way fewer units is something I think most companies would like a lot more than shipping the most units.

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

#28

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. Mic…

Apple sells a luxury product. Physical stores are the type of thing you do for a luxury product.

You can buy basic macarons at the grocery store, or go to Laduree for the luxury version. Same deal.

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

#29

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.

Apple’s market share is growing, not eroding.
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