How Apple made itself recession-proof

“Apple lives on cream – the very top of the market. Researcher IDC says its larger-screened iPhone has pushed Samsung aside to hold a majority of the more expensive end of the market – devices costing more than $650. But it’s not just the phone cream that it has grabbed,” The Guardian reports. “After 30 years in the personal computer market, Apple has just recorded a historic sales high of 5.7 million Macs in a quarter. Like Stella Artois, Apple positions itself as reassuringly expensive; it is a top-end brand in markets that have mainly been commoditised, with profits drained from all but a few. Apple intends to remain one of the few.”

“Apple makes more than three times as much profit from iPhones as Samsung does from its mobiles,” The Guardian reports. “Similarly, in personal computers, Apple’s Macs have an average selling price of $1,205; most PCs sell for half that or less. At those prices, and with an estimated 18% operating margin, Apple made two-thirds of the $1.8bn profit made by the six biggest manufacturers in the second quarter of the year, but sold only 7% of the machines. The two biggest, Lenovo and HP, shipped 20% and 18% of PCs worldwide, and made 20% and 11% of the profits.”

“Overall, Apple may have wormed its way into the ‘affordable luxury’ sector – taking its place alongside scotch whisky and nail polish in the pantheon of recession-proof items,” The Guardian reports. “‘Across the board, our goal is to make the best in the categories we choose to compete in,’ said Phil Schiller, Apple’s marketing chief, in an interview last week. ‘It’s what we’re doing and it’s reflected in customers choosing our products over anyone else’s. So I do think people are showing with their choice that they do value quality and beauty of the hardware, and that is not diminishing.'”

Read more in the full article here.

MacDailyNews Take: In other words:

Newsflash: Apple sells premium products at premium prices to premium customers.

SEE ALSO:
Apple iPhone owns over 90% of smartphone profits, so why do others even bother fighting over Apple’s scraps? – October 8, 2015
Apple’s iPhone owns 92% of smartphone industry’s profits – July 13, 2015
Beleaguered Samsung finding it tough to compete Apple’s revolutionary iPhone – October 6, 2015
Apple’s iPhone juggernaut continues with record-breaking sales while Android peddlers fight over scraps – September 28, 2015
Judge Lucy Koh orders Samsung to pay Apple $548 million for patent infringement – September 22, 2015
Poor man’s iPhone: Android on the decline – February 26, 2015
Study: iPhone users are smarter and richer than those who settle for Android phones – January 22, 2015
Why Android users can’t have the nicest things – January 5, 2015
iPhone users earn significantly more than those who settle for Android phones – October 8, 2014
Yet more proof that Android is for poor people – June 27, 2014
More proof that Android is for poor people – May 13, 2014
Android users poorer, shorter, unhealthier, less educated, far less charitable than Apple iPhone users – November 13, 2013
IDC data shows two thirds of Android’s 81% smartphone share are cheap junk phones – November 13, 2013
CIRP: Apple iPhone users are younger, richer, and better educated than those who settle for Samsung knockoff phones – August 19, 2013

10 Comments

  1. Apple’s Macs have an average selling price of $1,205; most PCs sell for half that or less/

    And surprise, that’s exactly what each is actually WORTH. There is no such thing as an ‘expensive’ Mac. There is instead such a thing as a CHEAP Windows box, cheap as in skimped on everything, especially value.

    1. IOW: This line is total rubbish:
      Overall, Apple may have wormed its way into the ‘affordable luxury’ sector

      The ‘worms’ are those who don’t bother to research the actual value of computers when they make comparisons. Macs are no ‘luxury’. They cost more because they’re consistently WORTH MORE. (I’m yelling today so the deaf can hear me).

  2. It’s more that the iPhone is simply a absolute necessity at this point and in the future, It’s at the top of what you make sure you pay for every month.

    Face it, if you forget your iPhone on the way to work, you’ll turn around to get it, even if you are already at the office, I do, and or be miserable the entire day and even lose money, and more by not having the phone on you,

    It’s more important than TV, Home phone, certain food, etc.

  3. I have always heard Apple was and is King. I have been told if I ever used any Apple products nothing else would matter. The only thing I have wondered over the years is since most of the programs run on Microsoft based programs how is the Apple Os compatible with these programs.

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