backtop


Print 54 comment(s) - last by Globemaster.. on Oct 3 at 11:04 PM


  (Source: Art of the iPhone)
Cupertino electronics maker is profiting off its loyal customers open wallets

Research by fund market analysts Canaccord Genuity gave Apple, Inc. stock (AAPL) a "buy" rating and a price target of $356 per share.  What's more interesting, though is the details behind the recommendation.

The Cupertino, California-based electronics maker has an impressive profit margin compared to its competitors.  While this was a pretty commonly known fact, the analysts offer some intriguing numbers that reveal just how amazing Apple's profit margin is.

Apple in the first half of 2010 sold 17 million mobile handsets.  Samsung, LG, and Nokia sold 400 million handsets (this figure includes all phones, not just smartphones).  And other manufacturers sold 190 million handsets.  That means Apple produced roughly 2.8 percent of the mobile units sold in the first half of the year.

However, it made 39 percent of the mobile handset industry's total profit, while Samsung, Nokia, and LG posted a 32 percent cut of the total profit, and the remaining companies made a 29 percent cut.

Producing only roughly 3 percent of your industry's products, but making close to 40 percent of your industry's profit is virtually unheard of in any business.  But that's precisely what Apple is doing with the iPhone.

So why is the iPhone so profitable?  The answer is complex.  To start, because many customers are so enamored with the phone, AT&T has reportedly given Apple an extremely lucrative contract to grow its subscribers numbers.  Thus Apple makes much more pure profit per phone.

Apple also tends to feature slightly inferior hardware to its top-of-the line Android competitors.  For example, it tends to have a smaller screen, lacks a microSD expansion slot, etc.  And Apple is extremely aggressive in negotiating its manufacturing prices, pushing companies like Foxconn to deliver higher volumes at lower prices.

At the end of the day, Apple may make as much as $400 USD in profit -- or more -- off each iPhone.  By contrast Android smartphones tend to have much smaller margins.

What that means is that Apple should have plenty of cash on hand to invest in growing its business and improving its hardware to bring the fight to Android.  On the flip side, Google has a similarly lucrative market -- internet advertising – in which it remains virtually unchallenged.  Thus Google, too has a vast cash flow and the resources to make the fight in the smartphone operating system market a fierce one for the foreseeable future.

Of course, if these numbers are true, what they also mean is that Apple doesn't really 
need to win the smartphone war.  It merely needs to hang onto its current market share and keep raking in cash from its loyal customers.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

...
By heffeque on 9/24/2010 8:09:20 AM , Rating: 5
I think no one is surprised by this.




RE: ...
By bug77 on 9/24/2010 8:25:19 AM , Rating: 3
I think fans that think Apple products are not overpriced, might be.


RE: ...
By spread on 9/24/2010 9:12:40 AM , Rating: 3
They're not buying it because of price or overall value. They're buying it because it's Apple.

Money be damned.


RE: ...
By DEVGRU on 9/24/2010 11:34:14 AM , Rating: 5
The title for the story should have been:

"Research shows: Apple screws its customers more."


RE: ...
By bug77 on 9/24/2010 12:11:41 PM , Rating: 1
Not really. As long as the customer is happy, what's the harm?


RE: ...
By hr824 on 9/24/2010 1:14:57 PM , Rating: 4
Gee I don't know, maybe you should ask the people the work 12 hour days for months at a time for slave wages that question.


RE: ...
By guacamojo on 9/24/2010 1:58:20 PM , Rating: 4
Why are you singling out Apple?

You think that the other smartphone makers employ highly-paid craftspeople working European hours to make their handsets?


RE: ...
By Landiepete on 9/27/2010 2:56:52 AM , Rating: 3
My phone has a sticker claiming 'made in Finland'. Doesn't sound very Chinese :s


RE: ...
By UnWeave on 9/24/2010 2:13:07 PM , Rating: 2
Agree with above. This is not a valid argument, since every major manufacturer of electronic goods does it.

I guess you're trying to say that since they make more profit, they should pass more of it on to the producers. That would be nice, but just like most other large corporations they're only interested in profits, when you get down to it. Seems they're very good at it. I don't see how that would really work out, either. At 2.8% of mobile phones by number, the bonus they would pass on would only reach a select few, it's hardly fixing the problem - if it even made it to the workers, which is debatable (wasn't there something like that to do with Foxconn a while back?)

Don't get me wrong, I recognize the issue, but it is hardly localized to Apple.


RE: ...
By NoSpinHere on 9/28/2010 7:13:03 AM , Rating: 2
DevGru is right on target here guys. A key component of Apple’s continued success as noted in the article, is Apple must hold on to its market share. IPhone users or users of other Apple products (I’ll get to the latter later) get a serious dose of greed and arrogance from Apple. Apple employs “force-buy” tactics with its customers because it is a pioneer in developing new products and technology, and enjoys success at the onset because it is typically the only game in town for years thereafter, depending on the product. The on-target message in the article is - brand loyalty is key for Apple, and this is where Apple is extremely vulnerable evidenced by what’s happening now in the smart phone market. Android phones are currently taking major market share from Apple’s IPhone. Case in Point: I bought one of Google's products and experienced its customer service when using one of its Android smart phones: Six months ago I switched from an IPhone to a T-Mobile Android driven smart phone. On top of its superior Android OS (relative to Apple's IOS), Google advertises through its phone distributors (e.g. T-Mobile) “We don't forget about you”, apparently taking a stab at Apple, and they proved it with me firsthand. When a new version of Android’s OS was unveiled, Google made available an OS update for all existing Android phone users and did not force us to buy a new phone; my smart phone is now even faster than before. Conversely with the IPhone, if you want to take advantage of new technology or upgrades to the IOS, you are forced to buy a new phone. I mentioned other Apple products earlier. Well, I have been an Itunes customer since inception of the IPod Mini (say 8 years ago?) but have no loyalty to Apple or its Itunes music service. Apple’s motto clearly must be "Money first and to hell with customer service". If you import any non-Itunes song, the track skips (by Itunes' design of course), forcing you to ditch the song and buy it from Itunes. Even a simple task like changing a battery in an IPod is not allowed, forcing customers to buy yet another IPod. Some Itunes updates wipe out your playlists; for me, these were developed over years and I can’t tell you the anger I felt. “Back up your playlists” you say? Itunes backup feature forces you to use disks instead of an external hard drive or the likes. Recent industry news stated that Google will soon unveil a new music service to compete with Itunes. I hope to be Google's first customer when it hits the market, and will gladly trash my IPod and delete Itunes from my hard drive. Apple brand loyalty - it doesn’t exist in the market. People are tired of being taken advantage of.


RE: ...
By guacamojo on 9/24/2010 12:05:30 PM , Rating: 2
How do you know that Apple's customers don't find value in the product?

According to JD Power at least (other thread this morning), Apple's customers seem pretty satisfied with what they got for their money.

Again, people find value in lots of strange things, like designer clothes and jeweler-grade watches. Walmart clothes will keep you as warm, and your average Armatron has far more accurate time-keeping. And yet, these things still sell.

Do you resent Apple for being the company to make smartphones popular?


RE: ...
By FATCamaro on 9/24/2010 1:45:58 PM , Rating: 3
Just like Mercedes & Lexus then.


RE: ...
By marvdmartian on 9/24/2010 8:42:48 AM , Rating: 1
Sadly, the fanboys who will automatically buy anything MAGICAL that Steve puts out, will see no problem with this.

Keep sippin' the Kool-Aid, fanboys!


RE: ...
By superPC on 9/24/2010 8:48:19 AM , Rating: 2
Well at least we can take comfort in that only 2.8% of the overall mobile phone consumer got duped by apple magical bling. They’re still a really small number. Although like their favorite CEO they’re definitely louder than everyone else.


RE: ...
By Tony Swash on 9/24/10, Rating: 0
RE: ...
By Tony Swash on 9/24/2010 12:39:12 PM , Rating: 1
Could Apple's profit levels have anything to do with this do you think?

http://businesscenter.jdpower.com/news/pressreleas...


RE: ...
By marvdmartian on 9/24/2010 2:54:35 PM , Rating: 1
More likely they're #1 in customer satisfaction because owners of other hardware don't gush out loud about how MAGICAL the device is, and how they'd take a bullet for Lord Steve.

(okay, maybe that last bit is a little exaggerated.....but then, maybe it's not!!)


RE: ...
By xxsk8er101xx on 9/26/2010 12:23:30 PM , Rating: 2
So wait if Company A has 1 million customers and COmpany B has 200 customers and Company A 100k people complain while at Company B 40 people complain.

If you go by numbers clearly Company B has #1 satisfactory. 40 over 100k. If you go by percentages however ... Company A is #1.

So I guess it all depends on how you process the data.

SO should you be shocked that surveys can be manipulated!?


RE: ...
By acer905 on 9/24/2010 12:41:12 PM , Rating: 2
Most companies get large enough that if they start price gouging, they get slapped with massive fines and severe reprimands. Until recently, Apple was a tiny company that nobody bothered with. (Hence security by obscurity, the way of Apple) Now however, they have gotten large enough in certain sectors that they are soon to be hit with multiple private, and government based lawsuits due to their practices. That is why most companies simply cannot follow their obscene pricing strategies....

That, and there aren't enough HTC, Samsung, Nokie, etc. fanboys to waste craploads of their money


RE: ...
By guacamojo on 9/24/2010 1:56:14 PM , Rating: 2
quote:
Now however, they have gotten large enough in certain sectors that they are soon to be hit with multiple private, and government based lawsuits due to their practices. That is why most companies simply cannot follow their obscene pricing strategies....

Do you have a link referencing all these pending anti-competitive practices lawsuits? Or are you hoping for them?

Other smartphone makers would raise prices if they thought they could. They don't have enough brand equity to do that. Their phones are technically superior (and more expensive to make) but they're clones.

Apple has a meaningful brand. The "iPhone" brand (product, experience) is worth something and is exclusive to Apple. But Apple can't make anyone buy its products if they don't want to. If they ask for too much money, they'll lose customers. As far as I can tell, that hasn't happened yet.

On another note, here are some really expensive phones: (no, iPhone's not even in the top 10 according to this 2007 list)
http://theforrester.wordpress.com/2007/12/03/the-1...


RE: ...
By acer905 on 9/24/2010 8:50:17 PM , Rating: 2
Here are some links i could find just by searching Apple here at DT:
www.dailytech.com/Apples+Red+Hot+iPad+Gets+Hit+Wi th+Lawsuit+for+Overheating/article19180.htm

www.dailytech.com/Suit+Against+Apple+ATT+Over+iPh one+Exclusivity+Wins+Class+Action+Status/article190 01.htm

www.dailytech.com/Pending+EU+Law+Could+Force+Appl e+to+Allow+Flash+Rivals+to+Sync+With+iTunes/article 18915.htm

http://www.dailytech.com/Class+Action+Suit+Filed+A...

and finally, in case you were aboutto say those weren't anti-trust:

www.dailytech.com/Apples+Aggressive+Online+Music+ Tactics+Bring+US+Government+Antitrust+Inquiry/artic le18510.htm

At one point it seemed as if there was a new suit against Apple every day. Most likely the reason that they charge such an extreme price is to limit their market-share. Realistically, Apple wants to find a point where the most idiots will fork over cash every year, but not to the point where they could be put in a position of being a monopoly. However, their own practices of limiting their software to their own hardware is in itself a form of monopoly. Just like you cannot get a computer not made by Apple to legally run their OS, you can't get a device not Apple branded to run iOS. Therefore, an entire market is controlled by Apple, and they use brute force litigation to ensure that it stays that way, all while screwing the customers with their profit margins.


RE: ...
By acer905 on 9/24/2010 8:51:09 PM , Rating: 2
And i have to say, stupid spam filter. It should be smart enough to not care about links to DT articles...


RE: ...
By Tony Swash on 9/25/2010 5:48:41 AM , Rating: 1
Lets see what this amounts to.

Item one relates to a law lawsuit from a disgruntled consumer. Nothing to do with Apple being anticompetitive.

Item two relates to a lawsuit about the exclusive deal between Apple and ATT in the US. So its really about a local US issue rather than Apple's global phone business and it relates to a condition (ATT exclusivity) that was something that ATT insisted on and not Apple. There is no evidence that this suit stands any chance of actually succeeding.

Item three relates to a possible interpretation of a possible EU action which might impact Apple. As the article says "The problem is that Apple can easily argue that it does not have a "dominant" position to abuse when it comes to the iPhone. And even the iPad, the new clear leader in the tablet industry could stake make similar claims". Looks like fluff to me but we shall see.

Item four relates to a lawsuit by a disgruntled consumer and has nothing to do with Apple being anticompetitive.

quote:
At one point it seemed as if there was a new suit against Apple every day.


That has no actual basis in truth and your belief in such stuff is probably the result of your own unhealthy Apple-phobia.

quote:
However, their own practices of limiting their software to their own hardware is in itself a form of monopoly. Just like you cannot get a computer not made by Apple to legally run their OS, you can't get a device not Apple branded to run iOS. Therefore, an entire market is controlled by Apple,


This is so silly that even a moments thought would reveal how ridiculous it is. Just substitute the name of any other company and see how much sense it makes.

"Ford is being uncompetitive because it won't allow other companies to manufacture Ford cars"

"Sony is a monopoly because it won't allow other companies to make PlayStations"

"Boeing slams Airbus for being uncompetitive because it won't give Boeing a licence to make Airbus380s"

Do you see how silly it is.

Apple can charge high prices for its products because people really, really want them and are willing to pay what it takes to get them. That simple explanation may be irritating to some but it is the simple truth of the matter.


RE: ...
By NoSpinHere on 9/28/2010 7:20:07 AM , Rating: 2
Well said Acer. I have my first born in college and will buy a laptop for her tomorrow. She asked if she should get a Mac or HP laptop. Because of my experience with other Apple products, we're going HP and definitely not going the Apple route. End of conversation.


RE: ...
By Alexstarfire on 9/24/2010 9:06:38 PM , Rating: 2
Ummm, #6 is a diamond iPhone. I suggest you brush up on reading comprehension.

Though, I don't see how this list matters. These are very special phones.


RE: ...
By guacamojo on 9/24/2010 2:07:03 PM , Rating: 2
quote:
Except possibly the other hand set makers.

Exactly.

I don't think that Ballmer was alone in thinking that Apple wouldn't gain any real traction with the iPhone.

IMO, he (along with other corporate heads) is too much of a techie to understand the value of having a fashionable (but not too exclusive) brand. That's where the profits come from.

Look at the way other handset makers have diluted their brands. Does Samsung = high-end? Not if they also have the "free" phone at the kiosk.

Lexus and Audi don't sell at the same dealers as Toyota and VW. You don't dilute your brand like that.

Apple sells one phone. It's not the cheap one. Okay, you can get it with more or less memory. Whatever. It's still only one phone.


RE: ...
By robinthakur on 9/27/2010 10:29:37 AM , Rating: 2
Your comment is completely correct. If the fact that Apple take the lions share of profit from either the Pc market or the phone market (or any other market they enter) surprises you then you clearly you are not familiar with the lower volume/high profitability market. The fact that the iPhone has been massively successful has made it a high volume/high profit item = jackpot for Apple. The fact that the device also earns Apple revenue after its purchase through iTunes and the Appstore only magnifies that effect.

Apple views its brand as its major advantage, correctly. Other manufacturers are slowly learning this, but by offering their phones for free they are essentially saying that this is what the product is worth in the consumer's eye. The fact that Apple only release one phone a year also helps re-enforce the Fashion concept and give the device some worth unlike its ccompetitors in the Android market who sell many devices none of which make a huge amount of profit on their own.

The problem with fashion is that fashion is fickle, however, as long as Apple are the only manufacturer to pay close attention to the form as well as the function of its devices and have an over-arching inclusive design across its entire range, and is also seen as a leader in design then the problem is mitigated somewhat. Its not like anyone put any massive amount of thought into the design of the Samsung Galaxy S for example, its just a device which looks embarassingly like an old version of an iPhone.


yeah
By lolmuly on 9/24/2010 11:16:19 AM , Rating: 2
apples whole strategy is based around perceived profits, they're simply capitalizing on human stupidity.

It's the same reason people are willing to pay 1.50 or more for a coca-cola in a glass bottle, when they could buy a 2-liter for .99, or for that matter generic for .80...




RE: yeah
By tng on 9/24/2010 12:06:31 PM , Rating: 2
The reason that people by the Coke in a glass bottle is that most of that is made in Mexico using real sugar, not high fructose corn syrup.

I pretty much quit drinking any soda from anybody because of this, I am not willing to pay the extra for the sugar type.

Apple does market stuff well..... Considering that the hardware is inferior to most Android sets, but I think that most people want the GUI, they have no idea about the hardware.


RE: yeah
By acer905 on 9/24/2010 12:36:54 PM , Rating: 2
Don't know how widespread it is, but Jones Soda makes dozens of different flavors, all with cane sugar. Their Green Apple is probably one of the best things I've ever drank.


RE: yeah
By tng on 9/24/2010 12:41:25 PM , Rating: 2
Yeh, had that and it is good, I prefer the Key Lime Pie soda.


RE: yeah
By CarbonJoe on 9/24/2010 3:41:19 PM , Rating: 2
quote:
The reason that people by the Coke in a glass bottle is that most of that is made in Mexico using real sugar, not high fructose corn syrup.


No, they buy it for the Mexican water they use. LOL


RE: yeah
By Tony Swash on 9/24/2010 5:55:19 PM , Rating: 1
quote:
apples whole strategy is based around perceived profits, they're simply capitalizing on human stupidity.


This repeats a common proposition put forward regularly on this forum. It goes like this:

When confronted with an Apple product doing very well in the market place do you

a) Believe that tens of millions of people are stupid, behaving irrational, buying stuff thats inferior and over priced

or

b) Believe that a hand full of unrepresentative techies have once again failed to see or understand the features of an Apple product that renders it so popular and so make unconvincing claims about millions of other people that they don't know anything about

Unless someone can come up for a convincing reason to believe (a) I will tend to go with (b)


RE: yeah
By Alexstarfire on 9/24/2010 9:18:24 PM , Rating: 2
Well, just talking to people would lead me to believe (a) can be true for any product. I understand that people can't know everything about everything, but most seem to be dumb enough to either not ask for an opinion or just ignore the opinion of those with more knowledge.

At his point in the game I think it's same to say that many may not switch off of iWhatever because they are quite firmly entrenched. Hard to switch from Apple if all the software and products you own only work/work best on Apple products. A good analogy would be looking at cell phone contracts. Once you enter a contract it's not so simple to get out. Not that you can't, but that there isn't much of a reason to. Only difference is that this "contract" I'm speaking of is never-ending. Apple isn't a alone in this regard, though they are certainly the first that came to mind.


RE: yeah
By Tony Swash on 9/25/2010 9:36:17 AM , Rating: 1
quote:
apples whole strategy is based around perceived profits, they're simply capitalizing on human stupidity.


This repeats a common proposition put forward regularly on this forum. It goes like this:

When confronted with an Apple product doing very well in the market place do you:

a) Believe that tens of millions of people are stupid, behaving irrational, buying stuff thats inferior and over priced

or

b) Believe that a hand full of unrepresentative techies have once again failed to see or understand the features of an Apple product that renders it so popular and so have to make unconvincing claims about millions of other people that they don't know anything about.

Unless someone can come up for a convincing reason to believe (a) I will tend to go with (b)


RE: yeah
By Hoser McMoose on 9/25/2010 9:39:44 PM , Rating: 2
quote:
apples whole strategy is based around perceived profits,

Uhh, last time I checked Apple's quarterly earnings, those profits are not just perceived, they are VERY MUCH real!

Besides, you say this as if it's somehow a bad thing? Earning profit is the *ONLY* reason for corporations to exist, and this is not a bad thing in any way. Profits mean employees can get paid more and people who hold stock in their retirement funds can live well and enjoy their so-called golden years.

All this statistic tells you is that Apple is MUCH more successful at what they do than most of the other companies. You can attribute that to their market or playing off of human stupidity or whatever, but the fact is that they offer a product that people are more than willing to pay their hard earned cash for. Who are you or I to say that these people are somehow wrong for deciding on an iPhone vs. an Android phone or anything else? It isn't my money or your money that these iPhone buyers are spending, it's their own.

Now, don't get me wrong, I personally think the iPhone is overpriced for what it offers and I'm instead looking at an Android phone.

... but I'm also kicking myself for not buying Apple stock back in late 2008 when it was trading at $90/share. An annual return of nearly 100% would have done wonders for my investment account!


The saying is...
By Motoman on 9/24/2010 9:52:26 AM , Rating: 4
..."a fool and his money are soon parted."

Might need to embellish that a bit to describe the horrendous markup the fool pays while parting from his money.




RE: The saying is...
By guacamojo on 9/24/10, Rating: -1
RE: The saying is...
By tng on 9/24/2010 12:13:24 PM , Rating: 2
Well yes he is calling them fools in a larger sense.

How would you describe someone who buys of phone that is tied to a network that is of lower quality than others for a price that is much higher than comparable phone that have better hardware?

There is only on word to describe this, Fashion.

The iphone is a new fashion, much like that watch or the designer clothes.


RE: The saying is...
By guacamojo on 9/24/2010 1:38:44 PM , Rating: 2
quote:
The iphone is a new fashion, much like that watch or the designer clothes.

Well said. I'd guess that fashion plays a major role in Apple's profit margin.

It might be reasonable to guess that the typical iPhone customer is probably more fashion-conscious (and hence more willing to pay a premium for fashion) than those who think it foolish to pay a premium for a technically-inferior phone.

These customers see a value there, beyond the speed rating of the processor or the resolution of the camera. Maybe they like the UI. Maybe they like the sales and support experience. Or maybe, like many have said, because it has an Apple on it.

I still think that it's arrogant to label someone a fool for placing a value on fashion.

An aside: maybe I should have said "dang" arrogant in my previous posting to avoid the -1? Or are people really convinced that fashion-consciousness = foolishness?
quote:
How would you describe someone who buys of phone that is tied to a network that is of lower quality than others for a price that is much higher than comparable phone that have better hardware?

IIRC, AT&T is the second-largest carrier in the U.S. I'm a Verizon customer myself, but I'd hardly say that being exclusive to AT&T is that much of a detriment. How many people voluntarily get T-Mobile or Sprint phones?

As far as hardware goes, most people probably don't care about the processor speed or camera resolution of their phone. It it sluggish? Does it take lousy pictures? If not, then it's not a detriment.

Since you asked me, I wouldn't describe these people as anything other than iPhone owners. The few I know have different reasons for buying, and none of them are particularly foolish. Style was a factor for some, but not all of them.


RE: The saying is...
By Globemaster on 9/26/2010 9:53:31 AM , Rating: 2
May be true for some, but not for me. I bought the first MP3 player sold at retail in the US, then I bought the Creative Jukebox back in like 2000? and stayed with Creative, just because I hated Apple's business model and the DRM.

Over the years, however, I got busier at work to the point where I was up to 13 hour days last year and with 2 kids now, didn't have time to manage all the complexity. The Creative stuff didn't "just work" and I was using it with Napster which only gave 30 day licenses on the music. So, when I traveled overseas to remote places with no internet, my music would stop playing on an arbitrary day of the month.

Anyway, I finally decided to try a Nano with the Nike+ for running in Dec 09. It was so unbelievably easy to use. Now, without the DRM, I have far less issues with iTunes anyway, but I still buy from Amazon most of the time (although I have to admit I like .aac better than .mp3). Anyway, in 10 months, we now have a nano, touch, 3gs, 4, ipad and Macbook. Granted, I put 8 Gb RAM in myself and use a VM for Windows 7 so I can play my lower graphic Steam windows only games, but it's really pretty sweet. Everything works, everything syncs and I've used the iphones 1000x more already this year for smartphone tasks than I did with 10 years of Symbian and Windows phones. Also, when I travel on short trips, it's much easier to put my macbook in my laptop than my 11 pound Sager with its Q9650, 3x HDDs and 2 pound power supply, although my Sager is obviously my choice for gaming.

Now, I'm not completely to the dark side - I just built a Windows 7 desktop with AMD 3xCore from Newegg parts last weekend for my mother in-law, so the technophobe argument doesn't work on me. I also tri-boot XP-32, 7-64 and Ubuntu on my Sager. I just have discovered that if you use a hammer for everything, everything gets nailed and if you use a screwdriver, everything gets screwed. So, I use the appropriate tool for the task and happily switch back and forth between products and companies.


RE: The saying is...
By robinthakur on 9/27/2010 10:11:41 AM , Rating: 2
Clearly nobody has replied because you don't fit into their preferred smug/stupid stereotype of people who buy Apple. I am similar to you, although I bought the second iteration of the iPod onwards. I would only change from iPod/iPhone etc if they started becoming difficult to use, breaking constantly or the support was terrible, but honestly, neither has happened in my direct personal experience.

I still use Windows 7 at home, and build my own pc hardware, but for things like a phone or MP3 player, you do just want it to work consistenly. In fact, I would say that if Apple users do encounter issues they tend to scream about it more because they just aren't as used to coming across them as their pc brethren and they are less likely to fault find because they view the device as an appliance, not as a technical plaything. I like Apple for their industrial design and the way they approach each software feature, not first from a technical perspective but from a usability one. Most of the comments on here reflect the fact that this is a technical news site full of technically savvy users and are not representative of the general population. If it were everybody would be buying Zune HD's and Archos tablets...

It reminds me of when I built my Windows home media centre pc. It was technically brilliant when it worked, but due to issues with it waking up but not waking the screen (and numerous other problems) nobody apart from me in the household could work out how to use it consistently and it was swiftly disposed of for a less technically capable solution which delivered a better overall experience.


RE: The saying is...
By Globemaster on 10/3/2010 11:04:48 PM , Rating: 2
Exactly. I don't like Apple's closed ecosystem, but it's better than it used to be and it just works. I'd rather use an open source, but it never seems to work easily. Maybe they'll get there with Android, we'll have to wait and see...


This...
By EasyC on 9/24/2010 11:27:03 AM , Rating: 2
Literally made me sick. How long until we start watering our crops with Gatorade?




RE: This...
By frobizzle on 9/24/2010 11:54:19 AM , Rating: 5
quote:
Literally made me sick. How long until we start watering our crops with Gatorade?

Please! It's Brawndo that we will be watering our crops with. Brawndo contains electrolytes and electrolytes are what plants crave!

Got it , now? ;-D


RE: This...
By EasyC on 9/24/2010 12:06:59 PM , Rating: 3
PC Users: I think we should use water on the crops.
APPLITES: Water? Like from the toilet?


Why?
By dani31 on 9/24/2010 8:13:20 AM , Rating: 4
quote:
So why is the iPhone so profitable? The answer is complex.


No it's not complex.

It is so profitable because it's MAGIC.




RE: Why?
By thefrozentin on 9/24/2010 1:28:09 PM , Rating: 2
It is profitable because it has more GBs?


RE: Why?
By snakeInTheGrass on 9/26/2010 9:59:56 PM , Rating: 2
It's the same magic that makes people buy the nicer product while really not giving a crap whether they can recompile the kernel themselves on their battery-hogging-almost-as-good iPhone knock-off. It's like consumers don't factor in being able to optimize a display driver or fix a bug in their mail client in their spare time as a positive. Strange indeed, there must be something wrong with them.


And your surprised!
By Dr of crap on 9/24/2010 8:53:16 AM , Rating: 2
It's like the fools that will jump on to be the first to buy the Volt or the Leaf. Buying both of them is like burning dollars, because you won't make back the extra cash you have to lay out to buy it over the life of the car.

And so it is with all the "first products". The iphone was first, and it was over priced, but some of you had to have it. I don't understand this, but that's another post.

If you'd wait and take a look, you'd see that the price will drop and there will be others to pick from.
But if some like to be free of their money, ...
maybe you could just send it my way!




RE: And your surprised!
By guacamojo on 9/24/2010 2:14:29 PM , Rating: 2
Except that the iPhone wasn't first.

It wasn't the first smartphone.

It wasn't the first touchscreen phone. Okay, AFAIK it did multi-touch first on a phone, but that's probably not why it's so popular.

Much like the iPod before it, iPhone was a second- or third-generation product.

So your "first products" explanation seems to have a few holes.


Some pertinent information
By Tony Swash on 9/24/2010 5:41:31 PM , Rating: 2
This may be of interest in terms of understanding the evolution of the phone market and Apple's place in it. Make sure you read the comments on these articles - they tend to be a bit more substantial and cogent than the average comment around here.

http://www.asymco.com/2010/08/17/androids-pursuit-...

http://www.asymco.com/2010/09/21/can-android-chang...

http://www.asymco.com/2010/09/13/when-will-the-sma...




By Funky Santa Clause on 9/27/2010 1:39:22 PM , Rating: 1
Couple of facts for you U.S fanboys.!!

- There is a Nokia branded phone in the pockets of 1.6 Billion people! Thats almost a quarter of the planet! There has never

ever EVER been any brand even remotely as dominant globally, as Nokia is today

- Nokia is beating Apple and everyone else with old models, beware of the new ones..=)
http://graphics.thomsonreuters.com/F/07/GLB_SMPHN0...

- Nokia has lost most of its market share in the US market where Blackberry, the iPhone and various Android phones now are

popular. So by faulty leap of logic, many see that Nokia is somehow 'losing to iPhone' (or Android or Blackberry). In reality

that is a market anomaly that applies to North America only, where only 8% of the planet's mobile phones are sold.. Nokia

utterly dominates the rest of the world (with the exception of those countries where strong domestic rivals control that

country, South Korea, Japan and yes, the USA).

MISSED THE APP STORE

And I should mention the App Stores. While all the silly hype globally in mobile is about apps - I have been repeating and

repeating and repeating, that it is a trivial - trivial - sized non-business (today). It may - it may - become meaningful

somewhere years down the line. We heard from Apple - the leader in app stores - earlier this year, that the total earned by the

Apple iPhone App Store last year was under a billion dollars. A billion out of what, over 200,000 actual apps that exist in the

App Store?

A billion may seem like a "big number" to those who don't understand mobile, but hey, Crazy Frog the ringing tone - yes just

one - one - ringing tone - sold half a billion dollars - in paid downloads to mobile phone users - in one year - three years

before Apple even opened up its app store. Put that into your iPhone app and think again.

http://communities-dominate.blogs.com/brands/2010/...


By vision33r on 9/27/2010 11:23:42 PM , Rating: 2
How is the iPhone 4 considered weaker hardware?

It's the phone, the industry studies as a benchmark.

The A9 CPU other than the Tegra 2 has a very good 3D processor with the PowerVR GPU (Sega Dreamcast)

6 axis gyro, the thinnest smartphone, and an IPS LCD display, the only phone on the market. The OLED display on the Samsung is nice, but it's not a sharp panel.




“We do believe we have a moral responsibility to keep porn off the iPhone.” -- Steve Jobs














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki