Reported yesterday is that Apple and Research in Motion (RIM) together accounted for approximately 38% of the cellphone industry’s total operating profit in 2008 while only representing 3% of total unit sales. Apple’s share of industry profits clocked in at approximately 20% while holding only just over 1% of the unit market share. So the rest of the industry is in a race to the bottom (sound like NetBook vs. Laptop market?). Interestingly, Nokia is having significant issues with Smartphone marketshare but is still ahead on the profit curve. Apple and RIM accounted for only 3% of all cellphones sold in the world last year but 35% of operating profits, according to Deutsche Bank analyst Brian Modoff. The disparity will become even starker this year when, he estimates, the two will take 5% of the market in unit terms but 58% of total operating profits. <div align="center"></div> The iPhone, which is exclusive to AT&T and whose users are the heaviest Web surfers, draws the fattest subsidy, at about $400 a phone, Mr. Modoff calculates. BlackBerries draw subsidies averaging $200 from U.S. operators. Basic cellphones get a $100 subsidy. Provided by iJustApple.com. Approved by Sanity.
Standard reply by xlink: "so basically...". Did you even read the article? Nobody is talking about ripping off. It is a simple statistic fact to show that RIM and Apple is doing good in the smartphone market, is that so hard to cope with for you?
Apple and RIM accounted for only 3% of all cellphones sold in the world last year but 35% of operating profits so 97% of phones sold account for 65% of profits, or 2/3rds a percentage point of the profits as compared to 12% points of profit per single percentage of sales... based off of that observation alone it should be VERY evident that under standard market conditions one two things is happening(or both): 1 RIM and Apple have vastly superior products which noone is capable of even coming close to by any means combined with vastly superior manufacturing and cost saving capabilities... or they're exploiting the market system, creating false demand(excessive advertising) and limiting consumer options(contracts and exclusivity) in a manner which ensures higher margins. guess which possibility is more valid and accurate... Apple is a marketting genius. They produce solid products, then they advertise the living heck out of them and do everything possible to stifle their competitors be it through the abuse of laws(abusing the copy right system for example) or other anticompetative measures. Prove me wrong. I'm personally at the point where i hate the entire cell phone industry, both service providers and phone manufacturers.
^ reason why GR is crashing. --------- I don't like the cellphone industry atm either but "ripping off" and "Apple is a marketting genius. They produce solid products, then they advertise the living heck out of them and do everything possible to stifle their competitors be it through the abuse of laws(abusing the copy right system for example) or other anticompetative measures." are two different things in my opinion. I agree with your last statement. Not with your first "ripping off" one.
trying to unjustly extract profit is the same as "ripping off" in my books. heck find me one apple/blackberry fanboy, who wouldn't mind it if their iPhone contracts were $10-30 cheaper a month(along with most other cell phone contracts as well) again, I'm not one to dis iPhones or Blackberrys based on what they are, they're solid, well engineered products, I'm dissing the business practices of the companies making them.
The iPhone contract, in the UK at least, isn't massively expensive anymore, it's similar (both in price and function) to a wide range of top end mobiles. Tocco Ultra etc.
what's that tell you about the pricing of the other phone contracts? Remember that until network capacity is saturated, adding in more users is effectively free for the telcos.
The point about 'adding users is free' is irrelevant, the phone company is hardly going to charge nothing is it? The contract is based on the RRP of the phone that you're using obviously, and it makes sense. In the same vein, you pay more monthly for top quality MMORPGs (only example I could think of) when compared to poorer ones which are either cheaper or free. You pay, for quality. Adding more users to a MMORPG server doesn't cost them anything, but if they can charge for it, why not?
when you have 50% network utilization and increase non-contractual texting prices 100% over two years...
