Apple Most Profitable Phone Company in the U.S.
Apple has surpassed Nokia and nabbed the title for number one cell phone manufacturer in the United States.
According to Strategy Analytics, Apple is now the most profitable mobile phone maker in the U.S. The company took the crown from reigning champion Nokia. Electronista cites analyst Alex Spektor as saying, "With strong volumes, high wholesale prices and tight cost controls, the PC vendor has successfully broken into the mobile phone market in just two years."
Electronista reports that Apple is estimated to have generated about $1.6 billion in operating profit from its cellphones in the summer, whereas market leader Nokia generated $1.1 billion.
So what was it that forced Nokia out of the top spot? Apparently an increasing bias in its lineup towards low- or mid-range regular phones and underserving the U.S. market are to blame.
Read the full story here.
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Not surprised. In classic Apple fashion, they are selling hardware with an incredibly high mark up and pull huge profits from people lining up to buy them.
operating profit is the key word here.
Apparently they are achieving this with only 2.5% market share. 2.5 PERCENT!!
and yet they are the MOST profitable!
I mean in Aus, the outright price on an iphone is 2 to 3 times MORE than the ipod touch. JUST to get the phone and camera part?!??!?
I couldn't understand what was going on, now I do!
everyone who bought an iphone got suckered in by the "oh no, its only $200, or FREE .... on a really expensive 24 month contract...."
just goes to show, charge people a little amount repeatedly over time rather than a one off price, and they will be completely blind to the true cost.
yes nokia still probally sell more physical units than apple because they have a wider range, ill still buy a nokia over the Iphone
This shouldn't be news to anyone.... We know there are plenty of people that are dumb and shallow enough to buy something overpriced and flashy for image.
hey my phone has access to over 50,000 applications, the best web browsing experience on a phone and a fast processor, suck on that Iphone hatters! plus next revision of the phone is only going to be better! You can hate it all you want but i can do almost anything your phones can with mine plus more. Iphone rocks.
Boy ellmondo!...... I wish I was you! LOL, not!
You can hate it all you want but i can do almost anything your phones can with mine plus more. Iphone rocks.
Does not compute...
And on you other notes, 50,000 apps but how many are unique or just rehashes of the other 10,000 apps. My phone continually loads web pages faster than any iPhone reversion. Yes it has a fast processor, enjoy using it for your 1 app limit while I take my processor of similar speed and actually use it when I load a second, third, fifth, or twentieth app.
what surprises me the most is that apple became the most profitable cell phone company under the at&t, quite possibly the worst cell phone provider ive dealt with, and judging by other complaints they barely have service for those phones. every tech website ive went to complains about at&t's spotty service.
what surprises me the most is that apple became the most profitable cell phone company under the at&t, quite possibly the worst cell phone provider ive dealt with, and judging by other complaints they barely have service for those phones. every tech website ive went to complains about at&t's spotty service.
haha hey ellmondo
“iPhone tethering is coming soon.”
– AT&T Mobility CEO Ralph De La Vega, Nov. 6, 2008
“We plan to offer tethering on the iPhone but have not announced a date.”
– An AT&T spokesman Nov. 9, 2009
plus next revision of the phone is only going to be better!
yeah, just a shame you won't be able to get the new revision when it comes out in 12 months cause you'll still be on a 24 month contract with the old one...
Yes, it is because of retards that like shiny white products that cost only 20% of the retail price to manufacture and have no freedom to modify any component or software and pay extra cash just to get a f**king battery replaced!
/rant
i can do almost anything your phones can with mine plus more. Iphone rocks.
If that is right that is freaking OUTRAGEOUS. Nokia holds about 20% of the market, versus apple's 6... thats right 6%! Yet somehow Apple pulls off more profit from the US....
Or well, Nokia still kills everyone in terms of global sales. They own about 40% of the global market.
If that is right that is freaking OUTRAGEOUS. Nokia holds about 20% of the market, versus apple's 6... thats right 6%! Yet somehow Apple pulls off more profit from the US....
Oh well, Nokia still kills everyone in terms of global sales. They own about 40% of the global market.
Maybe this is a case of innovation = profit.
Many seem to forget that the sum of all parts is not equal to value. If you believe in that philosophy, than you should avoid steakhouses and stick with the dollar menus.
What Apple has done here is nothing short of amazing. After two years of hardly any major revision, the iPhone continues to rise in sales. Apple also blew up a market (apps) which may be the way we purchase all programs in the future.
I find it disappointing however that after two years, there is still no decent competitor. The DROID brought my hopes up, but it's design is not mainstream.
Apple sucks
They sell the phone for $500 when it costs them under $150-200 to make. No wonder they're profitable - AT&T is a pile of retards, offering a similar service. Somehow it remains profitable....
Not a surprise with their prices.
2 reason they are making so much profit
1. AT&T's calling plan includes the price of the phone( that's is why they can afford to give a phone away with 2yrs contract)
Why is the iphone is not free? Profit number 1
2. The iphone is sold at MSRP = profit number 2
... that's why nokia wanna sue apple... [sarcasm]
The rhetoric in these comments is getting out of control. Is it that you all see the iphone and Apple as icons of capitalism run amok? Or as icons of affluence or ostentatiousness? Are you bashing Apple because, by extension, you're effectively bashing people who aren't as interested in computers as we all are? Let's look at the facts... In 2 years a company with no experience making phones is now the most profitable company in the market. Apple, whether rightfully or not, upset the status quo. And what happened? Sure they made tons of money, but more importantly they forced other established companies to react and build better phones. Phones like the Eris or Droid probably wouldn't exist if it wasn't for Apple forcing HTC, Motorola, and Google to compete. Isn't this how capitalism is supposed to work? Shouldn't we be grateful to those who do buy Apple products, because they're driving Microsoft, Dell, HP, and the rest of the Wintel world to step up their game? Maybe the people buying Apple products *are* saps, but even so they're important to the system. And anyways, Apple actually does do a few things well, and it's totally possible that despite the cost there are people out there for whom Mac is the right decision. If Apple does well, even as PC users we benefit. Thankfully, there's room in the market for more than one type of computer. So how about we all cool it a little and stop turning the PC vs. Mac debate into yet another manifestation of the deep-seated tendency of the human psyche (or psychosis, as the case may be) to want to identify with an in group and exclude outsiders. We've already got racism, sexism, ethnocentrism, political parties, and heck, even sports, we don't need any more reasons to divide ourselves into groups. Can't we all just get along???
The rhetoric in these comments is getting out of control. Is it that you all see the iphone and Apple as icons of capitalism run amok? Or as icons of affluence or ostentatiousness? Are you bashing Apple because, by extension, you're effectively bashing people who aren't as interested in computers as we all are? Let's look at the facts... In 2 years a company with no experience making phones is now the most profitable company in the market. Apple, whether rightfully or not, upset the status quo. And what happened? Sure they made tons of money, but more importantly they forced other established companies to react and build better phones. Phones like the Eris or Droid probably wouldn't exist if it wasn't for Apple forcing HTC, Motorola, and Google to compete. Isn't this how capitalism is supposed to work? Shouldn't we be grateful to those who do buy Apple products, because they're driving Microsoft, Dell, HP, and the rest of the Wintel world to step up their game? Maybe the people buying Apple products *are* saps, but even so they're important to the system. And anyways, Apple actually does do a few things well, and it's totally possible that despite the cost there are people out there for whom Mac is the right decision. If Apple does well, even as PC users we benefit. Thankfully, there's room in the market for more than one type of computer. So how about we all cool it a little and stop turning the PC vs. Mac debate into yet another manifestation of the deep-seated tendency of the human psyche (or psychosis, as the case may be) to want to identify with an in group and exclude outsiders. We've already got racism, sexism, ethnocentrism, political parties, and heck, even sports, we don't need any more reasons to divide ourselves into groups. Can't we all just get along???
(Pssst... I have secrets to tell) Apple makes nearly 400% profit on every phone they sell over it's lifetime (which isn't very long, BTW...). How do they do this? Simple. 'Good' marketing, and exclusivity. Note that they DO NOT do this by having a better product, but you 'mericans are suckers for a good advert.
Not surprised. In classic Apple fashion, they are selling hardware with an incredibly high mark up and pull huge profits from people lining up to buy them.
Pretty much. When your phone cost $300+ WITH a contract, you had better hobe you are making more money than the others.
Add to that a over priced plan and you make a lot of money.
But I bet the apps cost is figured into that too.
Its just sad that Apple leagued themselves with a crappy 3G provider like AT&T...... Apple always acts like a high class but instead of Verizon with a expansive 3G they go AT&T with a super small 3G.....
hey my phone has access to over 50,000 applications, the best web browsing experience on a phone and a fast processor, suck on that Iphone hatters! plus next revision of the phone is only going to be better! You can hate it all you want but i can do almost anything your phones can with mine plus more. Iphone rocks.
Thats great. And I have a EnV Touch that does everything the iPhone does but it cost me $100. Plays MP3s/WMAs, MP4 for movies, does Youtube, full HTML and flash browser support, has apps too.
Not to even mention the Droid that has more than the iPhone such as a better camera, can run MULTIPLE apps and can change the battery to name a few.
Kinda sad how many people get bought into the Apple hype and yet there are better out there. Oh and the Omnia 2 (AKA Omnia HD) that has 13.5 hours of talk time, 8MP camera, 6.9 hours of 720P HD video playback and can even record 720P HD video in divx, WMA, MP4. Verizon will pick that up next year.
iPhone = highly over rated.
Surprising because ATT&T sucks. Is this just handset profits or does it include App Store and iTunes Music iPhone downloads?
No one forces anyone to buy a particular phone, At the end of the day Apple proved that user interface and ease of use counts for more features. It is what sold me and several of my friends was the fact the phone was intuitive and responsive.
Did apple revolutionize the smart phone market? Yes it did, and as a consumer we have all benefited from this. We now have the palm pre, sony erickson, and several other smart phones that are now more user friendly and the capabilities are superior to what existed pre Iphone. I am all for competition and if Nokia ignored making the user interface better and competing at a lower end of the market that is saturated then that is their own fault. At the end of the day running a business is about profit not market share.
Well, this report proves that America's intelligence is in a great jeopardy!
just goes to show, charge people a little amount repeatedly over time rather than a one off price, and they will be completely blind to the true cost.
That's pretty much true for any subscription. And yes, even gaming may eventually be on a subscription basis only.
(Pssst... I have secrets to tell) Apple makes nearly 400% profit on every phone they sell over it's lifetime (which isn't very long, BTW...). How do they do this? Simple. 'Good' marketing, and exclusivity. Note that they DO NOT do this by having a better product, but you 'mericans are suckers for a good advert.
You have all the answers but for some strange anomaly your conclusion is wrong bitch.
(Pssst... I have secrets to tell) Apple makes nearly 400% profit on every phone they sell over it's lifetime (which isn't very long, BTW...). How do they do this? Simple. 'Good' marketing, and exclusivity. Note that they DO NOT do this by having a better product, but you 'mericans are suckers for a good advert.
When the iPhone was released there was absolutely NOTHING that could compete against it. Only in the last few months has anything actually worth while come to the market. I say this as a long time smartphone buyer who has had several phones from several different makers. I havent bought a phone in over a year, but the iPhone is the best phone I have ever had. And ceejer is right, it if wasnt for the iPhone, HTC, Motorola, etc would all still be making the same crap phones they had before.