A record quarter following the launch of the iPhone 6 and iPhone 6 Plus has left Apple in control of nearly all profits in the smartphone business.
According to Strategy Analytics, with $18.8bn in operating profits for Q4 of last year, Apple took a record-breaking 89 percent share of the $21bn the smartphone industry made in profit that quarter.
While Apple's premium pricing combined with strong sales of iPhone 6 and iPhone 6 Plus helped drive its share of profits, Android handset makers slid to just 11 percent of all profits made by the industry, down from 29 percent in the corresponding quarter a year ago.
Over the period, Android handset makers' total profits declined from $4.8bn to $2.4bn.
With Android, you get more for less. With Apple, you get less for more. That's how it works.
Android kinda needs that to happen right now. There's just a few too many small companies making too much crap. It's giving Android a bad rep.Originally Posted by raghu78
The Android smartphone market is even more unhealthy than the PC industry which has notoriously low margins. The problem is the vast majority of Android hardware manufacturers / phone makers don't make any profit at all. Its an unhealthy situation. At some point there will be a change and the Android ecosystem will see smaller companies go out of business and some serious consolidation into fewer, large companies.
Which might be good for Google or whoever has interest in expanding the Android ecosystem numerically, but doesn't change the fact that they don't make any money! I mean, selling 10x more phones and making 10x less money = super failure
So, those are not overpriced. Overpriced = don't sell.
Google couldn't really care less actually. Google doesn't make money off of Android handset sales as far as I know, they make money off of people buying things through the app store. So more phones out there is more beneficial for Google.Originally Posted by pcfoo
Which might be good for Google or whoever has interest in expanding the Android ecosystem numerically, but doesn't change the fact that they don't make any money! I mean, selling 10x more phones and making 10x less money = super failure
So, those are not overpriced. Overpriced = don't sell.
People don't pay for an ARM chip with 1GB RAM, they pay for being part of the "cool kids" that hold a fancy iphone, much like ppl that buy a Porsche don't weigh the steel and leather, nor go for HP/$ spend. You buy a "club membership" with that money, the device or car is just the "key" to the club.
I could care less for iPhones and I am kinda anti-Applish as far as the ways they try to fortify their business, abuse & shush smaller companies through litigation etc, but man, hats off!
You mean you're safe inside Apple's castle... as long as you keep giving Apple money.
If you're that concerned about security neither iOS or Android are secure at stock.
I wouldn't really say they have "small margins," they most likely just have what a "normal" profit margin is expected to be. Apple's profit margin per product sold is just enormous in comparison, hence why so many people rightfully label them as overpriced. I believe the iPhone 6's profit margin is in the ballpark of 70%.
So true, with Android you do get more for less lol... more bloatware, more spyware, more headache, more cleaning, more freeing up memory, more inconsistency, more people changing back over.
This sums it up well
With Apple, you get more ignorant rambling, confirmation bias, fanboyism, and a tendency to ignore facts... Lets also not forget about the sunk cost fallacy...
It was the quarter that apple launched the first true upgrade for the iphone in years and one that brought it up to par in screen and form with current industry offerings. Of course they have had record sales and profits. The question is how will they be able to replicate this success.Originally Posted by raghu78
The Android smartphone market is even more unhealthy than the PC industry which has notoriously low margins. The problem is the vast majority of Android hardware manufacturers / phone makers don't make any profit at all. Its an unhealthy situation. At some point there will be a change and the Android ecosystem will see smaller companies go out of business and some serious consolidation into fewer, large companies.