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[BBC] Samsung overtakes Apple as 'most profitable phone firm'

post #1 of 54
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Quote:
Samsung has become the most profitable mobile phone company in the world, overtaking Apple, a report says.

Samsung's handset division had an estimated operating profit of $5.2bn (£3.4bn) in the second quarter of 2013, according to Strategy Analytics.

Apple's iPhone operating profit was estimated at $4.6bn, with the iPhone range "underperforming".

http://www.bbc.co.uk/news/business-23463111
post #2 of 54
I am not surprised Samsung make a variety of phones with different price points Vs Apple with just one...it was bound to happen.

It won't be long until Apple wished it hadn't put all its eggs, the hen, and the coop in one basket.
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post #3 of 54
Quote:
Originally Posted by darkstar585 View Post

I am not surprised Samsung make a variety of phones with different price points Vs Apple with just one...it was bound to happen.

It's kinda sad when you put it this way actually, Apple has only one phone whose sales are underperforming, and they still make almost as much money as Samsung? Just shows how powerful Apple really is.
Quote:
It won't be long until Apple wished it hadn't put all its eggs, the hen, and the coop in one basket.

Are you saying it's a bad thing all of their products are connected via iOS? It's the other way around. As for them having only one handset, that'll probably change. Even if it doesn't, their flagship phone is always a very good piece of hardware.
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post #4 of 54
Quote:
Originally Posted by darkstar585 View Post

I am not surprised Samsung make a variety of phones with different price points Vs Apple with just one...it was bound to happen.

It won't be long until Apple wished it hadn't put all its eggs, the hen, and the coop in one basket.

I agree. Samsung has taken full advantage of Android's fragmentation and makes phones at multiple price points across the board. Apple is losing steam, probably because their phone releases have had the same marketing strategy since the first iPhone. We've all heard that song and dance for so long, I don't think it's wowing people anymore.

It's not that iPhones are bad phones or anything, but there are plenty of people who just want a mid-range smartphone so they can call, text, and occasionally check their bank account balance with an app. You don't need even half the power an iPhone is packing to do that, so why pay a premium for one when a mid tier Samsung Stratosphere or Stellar will do what you want at a fraction of the price?

That being said, I love the heck outta my Galaxy S4. I've never owned an outright flagship phone before, but I think this thing has now spoiled me.
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post #5 of 54
Quote:
Originally Posted by HanSomPa View Post

Quote:
Originally Posted by darkstar585 View Post

I am not surprised Samsung make a variety of phones with different price points Vs Apple with just one...it was bound to happen.

It's kinda sad when you put it this way actually, Apple has only one phone whose sales are underperforming, and they still make almost as much money as Samsung? Just shows how powerful Apple really is.
Quote:
It won't be long until Apple wished it hadn't put all its eggs, the hen, and the coop in one basket.

Are you saying it's a bad thing all of their products are connected via iOS? It's the other way around. As for them having only one handset, that'll probably change. Even if it doesn't, their flagship phone is always a very good piece of hardware.
It has nothing to do with iOS. It's the fact that more than half of Apple's revenue is derived from the iPhone. If you take it away, cashflow would plummet.

I wouldn't be surprised if Samsung's flagship was more profitable than Apple's flagship in current and future generations considering the volume Samsung moves as well as the fact that Samsung's mobile business is extremely vertical compared to that of Apple.
post #6 of 54
Quote:
Originally Posted by HanSomPa View Post

Are you saying it's a bad thing all of their products are connected via iOS? It's the other way around. As for them having only one handset, that'll probably change. Even if it doesn't, their flagship phone is always a very good piece of hardware.

Not at all, I am saying Apple relies heavily on the success of the iPhone as it's main source of revenue as the other devices it produce have far lower profit margins/desirability to upgrade when the latest model comes out. All it would take is a few consecutive years of under performing to seriously hurt the company. investors see this as a potential risk hence why stock prices dived.
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post #7 of 54
The 2nd poster pointed out facts.
I bought a 60 euros cellphone 2 years ago. Does everything that a smartphone should do.
Can't see Full HD movies? I'm fine with that. Can't play graphic intensive Games? Fine with that.
Can make calls, send text messages, browse the web and check/send e-mail.
Have a 32Gb mSD card for my music and it handles its battery for 3 days.
When the screen broke cause of a bike accident I had I paid 10$ to buy a new screen and replaced it myself.

Believe it or not, not every1 needs what Apple offers with their iPhone, and pleasing a bigger market is the key to success.
More people publicly talking good about Samsung too...
post #8 of 54
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post #9 of 54
samsung proved that you can toss a heap load of asians onto one project and make it succeed... apple did the same thing, until they lost their jobs.
post #10 of 54
It always confuses me how some people criticize Apple for having one product, that being the iPhone, that outperforms all of their others in terms of profitability. They aren't going to intentionally try to lower their total iPhone revenue in order to bring it down toward their other products, and if they could bring their desktop, laptop, tablet, or mp3 player revenue up to that of the iPhone comfortably, obviously they would do it. It's reasonable that Apple would try to make as much money as they can in all of their divisions. It just so happens that one of them has become a bigger success than the others.
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