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Bert22306
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CEO
re: Analyst: Apple took 80% of handset profits in Q4
Bert22306   2/13/2012 8:38:09 PM
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And I have given Steve Jobs credit for just that. It was his genius to create this following of faithful. I started noticing the odd phenomenon way back in the days of the funny-looking Mac with the tiny little integral screen. And the phenomenon came back strong after Jobs returned to Apple, and they got into the handheld craze.

RandomJitter
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Manager
re: Analyst: Apple took 80% of handset profits in Q4
RandomJitter   2/13/2012 5:18:07 PM
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*Everyone* is vulnerable in a fast moving market. Winners have to put together teams and execute across all disciplines: Hardware, Software, Developer relations, Industrial design, Manufacturing, Supply and distribution management, and Marketing

phoenixdave
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Rookie
re: Analyst: Apple took 80% of handset profits in Q4
phoenixdave   2/13/2012 4:52:20 PM
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Greedy...yes Cult.....most likely But you have to give them credit for being able to do it! I wonder of there are any other companies in other areas that could achieve this?

junko.yoshida
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Blogger
re: Analyst: Apple took 80% of handset profits in Q4
junko.yoshida   2/13/2012 12:19:22 PM
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That's a good point, Chanj. But then, when exactly is the "shrinking of profit margin" going to start? What triggers it? If Apple continues to be the only company offering iPhones, that may not happen...

_hm
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CEO
re: Analyst: Apple took 80% of handset profits in Q4
_hm   2/12/2012 3:58:44 AM
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Apple has very high profit, but it is good that it reinvests them in new innovative product development. We should not envy their profit but should ask for more wonderful future products.

chanj0
User Rank
CEO
re: Analyst: Apple took 80% of handset profits in Q4
chanj0   2/11/2012 6:38:13 AM
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Mobile market is relatively new. Smartphone, despite being around for more than 3 years, is still considered to be a new product, early in the product life cycle. The market will become mature overtime. The shrinking of profit margin is inevitable whether Steve Jobs was still alive or not. Apple no doubt runs a successful business. They please both investors and consumers. The market is going to change. The winner is not necessarily be the best even though I do hope so.

chipmonk0
User Rank
Manager
re: Analyst: Apple took 80% of handset profits in Q4
chipmonk0   2/10/2012 9:12:41 PM
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How long can Apple keep charging a profit margin 5X of Samsung when they have to depend on Samsung Foundry to get their A5, A6 processors made ? Other Foundries ( you know who ) have not been able to match Samsung. In Smartphones Samsung has almost caught up with Apple and Apple has tried to block them with lawsuits. Samsung has also shown actual working prototypes of hardware that will double the speed of playing games / streaming videos on Smartphones while using only half the battery power. Is Apple vulnerable ?

kdboyce
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Rookie
re: Analyst: Apple took 80% of handset profits in Q4
kdboyce   2/10/2012 8:44:37 PM
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Looks a lot like the situation of Intel around the PC Hardware business. Their model essentially squeezed much of the profit out of other components in the system.

Duane Benson
User Rank
Blogger
re: Analyst: Apple took 80% of handset profits in Q4
Duane Benson   2/10/2012 5:57:43 PM
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In basic product management, you learn that there are two ways to set pricing: cost-based and demand-based. In cost-based, you're essentially trying to get by with the minimum margin that will lead to a sustainable business in your competitive environment. Demand-based means that you charge what ever people are willing to pay. If they're willing to pay a lot more than you cost-based, then you make a lot of money. Good, bad or indifferent, Apple seems to have nailed the demand-based formula. Enough people like them and their products enough pay what Apple charges and to raise volumes enough to drop Apple's costs.

old account Frank Eory
User Rank
Rookie
re: Analyst: Apple took 80% of handset profits in Q4
old account Frank Eory   2/10/2012 5:47:47 PM
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As stunning as Apple's profits are, imagine how much larger they would be if they could get the fence-sitters to jump to the 4s rather than waiting for the iPhone 5. I continue to run into people who are eligible for a subsidized upgrade, but foolishly believe the rumors out there about an iPhone 5 "coming soon". Apple's secrecy about its roadmap might actually be hurting sales in this case.

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