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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

#81
post #26

Earlier quoted context omitted.

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.

Since 3D TV's never got to a glasses-less state, they were always an incredible compromise. AR already works better than 3D TV's ever did, in that regard.

I always said, back in the day - 'I'll invest in 3D when we don't need glasses for it' - and I guess enough people collectively said that at the same time that it shut down the industry and never matured to that level.

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

#82

Earlier quoted context omitted.

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 o…

> 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. They start at $400, right? Only really, really budget Android phones come in much under that. > Yet people buy them in bulk. The brand is that strong. Apparently people also rush to replace their old models every year or two.…

> > 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.

> They start at $400, right? Only really, really budget Android phones come in much under that.

More like 489€. I don't know what's apple most sold devices for this year though.

I have an old not-budget phone (z5c) from 6 years ago that is still going strong. Stuck on android 7.1, bought used for 250€ 4 years ago.

I am still living in a world where a 200/250 phone should be okay, things might have changed.

But we were talking about the whole offer, not the least expensive phone.

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

#83
post #47

Earlier quoted context omitted.

How many consumers are even paying more? iPhones start pretty cheap — not as low as the cheapest Android phones but they're starting with much better hardware and are supported considerably longer so this starts to feel more like Sam Vimes' boots[1] where someone buying cheap Android phones spends more than an iPhone SE over the service life. Flagship Android phones cost the same, often even more, than an iPhone desp…

When you say "not as low", the cheapest iPhone I can find looks like the SE, at 389 pounds. I can find multiple Android phones for 50 pounds -- that's nearly an eigth of the price. I don't deny the SE is a better phone than a 50 pound phone, but it's also in an entirely different bracket -- I wouldn't give a 10 year old a nearly 400 pound iPhone, I'd give them a 50 pound Android, for example.

While I get your argument, Apple probably just doesn't give a shit about competing in the ultra cheap phone market, they've found their "niche" (for lack of a better term) and will probably stay the way they are for the foreseeable future.

Also, nowadays, most people (the vast majority of which don't think the same way as people on HN do) see a $400 phone as a compelling budget option[0], maybe even "low-end" if you'd go so far as to say that.

0. from personal experience with the iPhone SE2, it's a genuinely amazing phone for the price (sporting the same processor as the iphone 11 pro!) and suffers only in the battery department. Touch ID is also a great selling point for it.

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

#84

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…

Samsung has been experimenting with "stores" they have entire sections in a few Best Buys called "Samsung Experience Shop"

https://www.samsung.com/us/samsung-experience-shop/index.htm...

https://www.bestbuy.com/site/samsung-store/samsung-experienc...

Opening retail stores is a huge commitment and takes years of investment before you "might" see any returns. Samsung doesn't seem to want to take that risk. But I do agree, I recently switched most of my devices over to Apple products because they take care of their customers. And if I ever have an issue, there are 3 Apple stores within 25 miles of me.

I was recently on the Galaxy Fold subreddit and there was a user who had his $2,000 device fail. Samsung had him mail it in. It had then been two weeks with no communication at that point. Other users had the same experience with Samsung denying repairs for some of them after keeping the device for several weeks. That is completely unacceptable and slightly terrifying.

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

#85

Earlier quoted context omitted.

Why would you need iMessages? I don't find it more useful than old school sms messaging. If you want secure messaging perhaps whatsup or signal are better options anyway.

Network effect: Even if someone feels signal is better, they can't convince their whole group to start using signal. I don't use an iPhone. This is the reason I heard from iphone users.

iMessage and sms are the same app though, my android using friends can text me all the same

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

#86

Earlier quoted context omitted.

There's definitely something: Google, Microsoft or Amazon launching a sub $300 smartphone and an ad campaign making fun of people spending a thousand dollars for nothing extra. It feels like FAAMG minus Google don't want to compete with each other on the consumer side.

Nah. Half the reason people buy iPhones is to show other people they aren't poor. Buying a sub-$300 phone doesn't achieve that goal.

> Half the reason people buy iPhones is to show other people they aren't poor

While I'm pretty sure you jest here, this simply isn't true. iMessage, FaceTime, consistency with family and friends, and the (whether founded or not is up to you) trust in a machine that'll last you quite a few years and "just work" is the main reason people buy iPhones.

Not saying that this is my thought process (i have my own reasons for owning one) but it pretty much sums up what the majority of people think.

That's just accounting for people who actually care about what phone they own, which you'd be surprised to find is actually a quite small percentage...

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

#87

Earlier quoted context omitted.

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.

The most expensive (non-novelty) phones sold right now are from Samsung. At every price point that Apple sells at, Samsung has a similar product. Apple also sells their handsets through carriers, big box stores, and online through places like Amazon. You can often buy their stuff for less at these places yet the stores are still packed because people will pay more if it's a better experience.

> People will pay more if it’s a better experience

Luxury does not mean expensive, though $ can be a proxy. It often is much more about feeling (relaxed, comforted), experience (end-to-end, straightforward), and status (“high-class”).

Samsung sells better phones for more $. Apple is much more about “if you don’t mind the price, we’ll take care of everything and it’ll be simple, comprehensive, and your friends will respect our product.”

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

#88

Apple has brand loyalty, and apparently, they earned it. In buying an Android handset, your options shift over time. Samsung has the most brand loyalty, and some high-end handsets, as well as some lower end ones. The rest of the brands seem to waffle between trying to be high-end, and being the best value. For example, OnePlus set out to be compete against the high-end with really low prices, but over time, the price…

Huawei went after Apple, including on quality. They were shot down right when their sales overtook Apple's (maybe a coincidence, who knows...)

Were they taking sales from Apple, to any major extent? Or just shifting around the Android market? If the latter, I can't imagine Apple'd care. Samsung's been doing the same thing (being the Apple of Android) for quite a while, and it hasn't mattered much.

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

#89
post #71
post #48

Earlier quoted context omitted.

Maybe. I'm not so sure. In theory , a company like, say, Samsung could stop making cheaper, money-losing phones and invest primarily on making increasingly better, premium, profitable phones like the Galaxy Fold, but they choose not to do that, year after year.

If they did they would be dead in a year. They sell a fraction of the >$1000 phones apple sells by the shipload. Their bread and butter is the cheap stuff. The same way nobody wants to spent $35k on a honda when they could have a tesla.

Looks like Honda Accord is approaching $32k on average[0].

200k Honda Accords sold in the U.S. 2020[1]. 450k Tesla Model 3 + Y sold globally[2].

Though Model 3 and Y average price closer to $49k and $65k respectively[3].

If I have a point, it's that if you have $35k to spend, you're probably getting a high trim level Honda Accord. Because you need another $15k to get an "average" Tesla Model 3.

(Obviously the Model 3 is worth spending $50k for lots and lots of buyers!)

[0] https://www.cargurus.com/Cars/price-trends/Honda-Accord-d585

[1] https://www.best-selling-cars.com/usa/2020-full-year-usa-hon...

[2] https://www.best-selling-cars.com/brands/2020-full-year-glob...

[3] https://www.cargurus.com/Cars/price-trends/Tesla-m112

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

#90
post #70
post #62

Earlier quoted context omitted.

What differentiates those premium phones? It runs the same Android of which I rather have a stock version than the bloat-ware rubbish that phone makers install on there for me. The iOS devices link into a web of ease-of-use, and come with a reasonably well make stock version of iOS. And then there's trust. Whom does an average user trust more with their data? (Apple/USgov, or Google/USgov+Samsung/SouthKorea+...)

Believe it or not, but "stock Android" has been tried about 10 times. It failed. Only techies care. Regular users want a ton of features. Edit: Sales numbers tell you all you need to know about "stock Android" success :-)

Regular users don't actually know anything about the difference. They look at how many megapixels the camera has and the resolution of the screen and things like that, because they're numbers you can compare. Regular users don't know what "stock Android" is. And then they come home with a phone full of bloatware and complain about it after.

Nobody actually buys the phone for the bloatware. These companies are wasting their money developing it. They just want the phone with the better camera.

The real problem is that techies can't improve Android because the hardware vendors are shipping custom kernels and their hardware can't use the stock kernel. So Android is "open source" but there is no ecosystem of people scratching that itch with the improvements flowing to the ordinary users because it's so hard to modify what came with your device. Especially when many of the techies still care about the better screen and camera.

Think about it this way. There is no reason every Android phone on the market shouldn't come with the option of stock Android. Even if you think the majority of "regular users" wouldn't want it, the availability of it would get them a few sales from techies, right? And then we would really find out what people want, because they get the choice without it being tied to the rest of the hardware.

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