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Apple's Share of Mobile Phone Profits Rises to 93% on iPhone 6 Launch
Posted on 2/10/15 at 11:56 pm
Posted on 2/10/15 at 11:56 pm
quote:
The latest numbers from Canaccord Genuity reveal that Apple accounted for 93% of mobile profits during the fourth quarter, leading the financial services company to raise its price target on Apple shares from $135 to $145. The firm also predicted that iPhone adoption could grow to 650 million users through 2018 as more smartphone owners upgrade to the iPhone 6 and iPhone 6 Plus.
LINK
Why is no one else able to make money selling smart phones even after all these years? Even Samsung has dropped to single digits.
5
Posted on 2/11/15 at 6:21 am to hikingfan
quote:
Why is no one else able to make money selling smart phones even after all these years? Even Samsung has dropped to single digits.
Apple is crushing the Dog eaters in Japan. It's so bad Samsung is actually now losing money there and about to pull out.
quote:
Having seen profits slip due to its falling mobile sales, the flailing South Korean tech giant is reportedly considering throwing in the towel altogether in Japan, where it’s struggling more than elsewhere.
Samsung currently represents a miniscule 4 percent of the Japanese smartphone market, which puts it in sixth place. According to sources with Samsung, staying in Japan is actually losing rather than gaining the company money.
While Samsung hasn’t traditionally been a top-seller in Japan, here in 2015 it’s doing worse than ever: with the company’s favorite metric, marketshare, shrinking from 17 percent two years ago to low single digits today.
Apple, on the other hand, is doing well — even in the face of Japanese customers’ preference for homegrown brands. Despite once being considered a market where Apple couldn’t give its products away for free, the iPhone 6 and 6 Plus have proved to be monster hits among Japanese consumers. Late last year, the iPhone 6 held seven of the top eight smartphone positions in the country (and nine out of the top 14).
Apple has been so impressed by Japanese sales, in fact, that in 2014 it shifted its chief of sales for Japan and Korea to North America, where it was hoped they could carry over some of their winning sales magic.
In the quarter ending in December, it was claimed that the iPhone 6 and 6 Plus was outselling Samsung’s Galaxy S5 and Note 4 by a 5-to-1 ratio.
LINK
Posted on 2/11/15 at 6:31 am to hikingfan
Apple's marketing department is second-to-none.
Posted on 2/11/15 at 8:08 am to Superior Pariah
quote:
Apple's marketing department is second-to-none.
This has got to be a huge part of it. HTC makes a much superior phone and has 0% share? WOW
Posted on 2/11/15 at 8:20 am to Superior Pariah
until recently they outsourced most of their marketing. Also, what apple spends in marketing pales in comparison to samsung.
Apple marketing budget the past 3 years:
FY2012 $1.0 billion
FY2013 $1.1 billion
FY2014 $1.2 billion
Apple spent 0.6% of sales on advertising in its fiscal 2014. This is a new low.
Where as Samsung has been spending over $4 billion a year in advertising, 4x more than Apple.
Ahh, the old Apple tricks consumers into buying their products angle. It couldn't possibly be that a majority of people prefer Apple and iOS over HTC and Android. Let's look at some tech reviews shall we?
Verge iPhone 6+ score: 8.7
Verge iPhone 6 score: 9.0
Verge HTC One score: 8.5
Engadget iPhone 6+ score: 87
Engadget iPhone 6 score: 90
Engadget HTC One score: 87
Let's look at Geekbench scores (higher is better):
Singlecore:
iPhone 6+: 1606
iPhone 6: 1612
HTC One: 911
Multicore:
iPhone 6+: 2876
iPhone 6: 2885
HTC One: 2675
So yeah, "much superior"
. Now, I'm getting fed up with some of Apple's shite, but to say the M8 is "much superior" really shows your Android bias.
Apple marketing budget the past 3 years:
FY2012 $1.0 billion
FY2013 $1.1 billion
FY2014 $1.2 billion
Apple spent 0.6% of sales on advertising in its fiscal 2014. This is a new low.
Where as Samsung has been spending over $4 billion a year in advertising, 4x more than Apple.
quote:
This has got to be a huge part of it. HTC makes a much superior phone and has 0% share? WOW
Ahh, the old Apple tricks consumers into buying their products angle. It couldn't possibly be that a majority of people prefer Apple and iOS over HTC and Android. Let's look at some tech reviews shall we?
Verge iPhone 6+ score: 8.7
Verge iPhone 6 score: 9.0
Verge HTC One score: 8.5
Engadget iPhone 6+ score: 87
Engadget iPhone 6 score: 90
Engadget HTC One score: 87
Let's look at Geekbench scores (higher is better):
Singlecore:
iPhone 6+: 1606
iPhone 6: 1612
HTC One: 911
Multicore:
iPhone 6+: 2876
iPhone 6: 2885
HTC One: 2675
So yeah, "much superior"
. Now, I'm getting fed up with some of Apple's shite, but to say the M8 is "much superior" really shows your Android bias.This post was edited on 2/11/15 at 8:43 am
Posted on 2/11/15 at 8:52 am to hikingfan
quote:
Why is no one else able to make money selling smart phones even after all these years?
I think there are 2 answers. First, Apple's success and market share allows them to get favorable deals from suppliers like nobody else. Second, Android phones sell based on specs, so they constantly have to put the latest tech and the most tech in all of their phones. iPhones sell based on the brand. I didn't even realize the iPhone 6 was up to 1 GB of RAM until someone here talked about it only have having 1 GB the other day. If a Android phone maker tried to sell a phone with 1 GB of RAM it'd be a free phone. Not trying to get sidetracked into the iOS vs. Android and RAM requirements debate, just trying to point out that Apple is able to sell what the market clearly considers a competitive product with "lower quality" parts in many areas. Although it certainly uses higher quality parts in other areas.
Posted on 2/11/15 at 9:54 am to colorchangintiger
quote:Is this across all product categories?
Where as Samsung has been spending over $4 billion a year in advertising, 4x more than Apple.
Posted on 2/11/15 at 10:01 am to TigerinATL
So is all the - Android is the best operating system because it is open source and is out selling the iPhone 10-to-1 and will eventually render the iPhone irrelevant - just a bunch of Google fan-boy hubris? Apple took $93 of every $100 profit made by smart phone makers in Q414. They took $79 of every $100 profit made by smart phone makers in the entire calendar year 2014. Both selling a fraction of the number of Android phones sold by all other OEMs. Just think about that for a second.
Apple's marketing team = GENIUS. They have nailed the STP (Segmenting, Targeting, Positioning) and 4Ps (Product, Price, Place, Promotion) of the marketing framework with the iPhone. Their marketing team sets the bar for every corporation in the business world.
Apple's marketing team = GENIUS. They have nailed the STP (Segmenting, Targeting, Positioning) and 4Ps (Product, Price, Place, Promotion) of the marketing framework with the iPhone. Their marketing team sets the bar for every corporation in the business world.
Posted on 2/11/15 at 10:18 am to Korkstand
quote:
Is this across all product categories?
For Apple, yes. For Samsung, electronics only.
This post was edited on 2/11/15 at 10:21 am
Posted on 2/11/15 at 10:47 am to colorchangintiger
quote:Even if we only count electronics, that is still a TON of consumer products to advertise. Phones/tablets, computers, TVs, audio equipment, cameras, etc. And I don't know how marketing dollars for the extremely wide variety of components they make factor into that. I would expect a company that sells much more than 4X as many products to spend 4X as much on marketing.
For Apple, yes. For Samsung, electronics only.
But the real marketing genius of Apple is how they manage to multiply the value of their advertising dollars to achieve the same effect as spending several times more. Think about how cheap it must be to put on a WWDC, and then look at all the press coverage they get as a result.
Posted on 2/11/15 at 12:14 pm to colorchangintiger
quote:
colorchangintiger
How about you compare the HTC One to the Iphone 5S which was out when the One was released? To compare a phone that has been out for years with one that was just released months ago, isn't apples to apples.
I agree that iOS is a huge reason why people buy Apple products. My wife will not even consider an Android phone.
As far as the advertising side of things, I was saying that Apple is much better at it than anyone else, not that they spend more than anyone else. There's a difference.
This post was edited on 2/11/15 at 12:16 pm
Posted on 2/11/15 at 12:35 pm to hikingfan
I hope Samsung goes bankrupt.
Posted on 2/11/15 at 12:41 pm to seawolf06
quote:
How about you compare the HTC One to the Iphone 5S which was out when the One was released? To compare a phone that has been out for years with one that was just released months ago, isn't apples to apples.
Because the data is for last quarter and I compared the flagship phones of both companies from that quarter. Why would you compare the latest flagship phone from HTC to the replaced-6-months-ago flagship phone from Apple?
quote:
To compare a phone that has been out for years
quote:
Following a number of leaks which occurred during the months prior, the second-generation One was officially unveiled in a press conference on March 25, 2014
This post was edited on 2/11/15 at 12:43 pm
Posted on 2/11/15 at 12:42 pm to colorchangintiger
I'm this close to switching to Apple.
Posted on 2/11/15 at 12:50 pm to SabiDojo
Do it. Do it. Not many people regret it.
Posted on 2/11/15 at 11:39 pm to hikingfan
Love my iphone 6.
Idgaf about the brand. But I will say imessaging has changed the game for me in selecting my phone. Automatically imessaging people with iphones is so nice.
Sure, there are messaging apps out there, plenty of em. But apple having it built in to your texting makes it far superior and easier. I wish all my friends had iphones honestly.
Idgaf about the brand. But I will say imessaging has changed the game for me in selecting my phone. Automatically imessaging people with iphones is so nice.
Sure, there are messaging apps out there, plenty of em. But apple having it built in to your texting makes it far superior and easier. I wish all my friends had iphones honestly.
Posted on 2/12/15 at 8:54 am to Street Hawk
I switched and I have zero regrets. Apps are just so much better on iOS than their android counterparts.
It's been well known for years that part of androids market share dominance was due to all the free phones and buy one get one deals. i think 3 things have been huge for Apple....ability for telecoms to sell the older 5 and 5s on subsidies from $0 to $99, increase in non contract plans which eliminate subsidies of any phone, thus not giving people a reason to choose a free android over a pricier iPhone, and finally the larger screen 6 which some people such as myself have been holding out for
It's been well known for years that part of androids market share dominance was due to all the free phones and buy one get one deals. i think 3 things have been huge for Apple....ability for telecoms to sell the older 5 and 5s on subsidies from $0 to $99, increase in non contract plans which eliminate subsidies of any phone, thus not giving people a reason to choose a free android over a pricier iPhone, and finally the larger screen 6 which some people such as myself have been holding out for
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