If Apple owns nearly all of the profits, how do the other phone makers stay in business?

“Apple shipped slightly more – 78.3-million vs. 77.5-million – iPhones than Samsung did all kinds of phones,” Wil Gomez writes for Mac360. “Yet, Apple took home 92-percent of the industry’s entire profits… So, how do iPhone’s competitors stay in business?”

“They don’t. In China, the largest smartphone market on planet earth, the top sellers sell plenty but struggle to make money, hence who is on top in marketshare changes every year, while Apple, usually in the Top 5 (and ahead of Samsung) takes most of the profits,” Gomez writes. “For Google, Samsung, Microsoft, they each have a different business model so revenue from other products and services helps to subsidize what is lost while competing head to head with Apple.”

Gomez wonders, “How long will some of these competitors with pockets that are not deep even stay in business?”

Read more in the full article here.

Michael DellMacDailyNews Take: Yeah, they’re not making it up on volume. Mikey Dell can tell you all about how that race to the bottom goes.

As per tablets (iPads and iPad knockoffs), as we wrote last week:

For all of the hyperbolic blather about Microsoft’s Surface tablet in certain tech blogs, paid placements on NFL sidelines, etcetera, they’re not even in the top five. Even Huawei’s crap is outselling Microsoft’s Surface.

SEE ALSO:
Apple took 92% of smartphone industry’s profits in Q416 – February 7, 2017
IDC: Apple iPad’s hold on the tablet market remains unchallenged – February 2, 2017

24 Comments

    1. Jeff Bezos is the driving force behind Amazon. He has lots of friends in high places counting on Amazon to ruin all the brick and mortar retail stores. The big Wall Street investors really enjoy when the company they’re backing can put all the competition into the crapper. That’s what they’re counting on with Jeff Bezos. He’s going to keep expanding Amazon into everything to corner the entire retail market. He’s already got on-line shopping in his back pocket. That’s why Amazon is worth so much. Those big investors are waiting for a huge payday when other retailers are put out of business or just give up trying to compete.

      I don’t own a car anymore and I’ve always hated to go to some large store with crowds to shop so Amazon is perfect for me. I’ve been using Prime for years and never had any problems with it except for non-working hard drive which Amazon quickly replaced.

        1. Seriously dude… Why do you even care if people like Apple? You think anyone here cares anything about what you like? No they don’t.

          Your comments are stupid and juvenile.

    1. Nothing you can say will ever annoy me and countless other Apple fans. Your prey then is the weakest individuals.

      If that is the reason for your existence here to annoy people and ENJOY it — you are one sick puppy.

      Hope you get psychiatric help soon. On second thought …

            1. Hey Brainless. Go back and read my posts and suspend this childish game of deflection and blame someone else for your written words.

              I’ll type slow … “Annoying people and enjoying it is just wrong.” That would be you! 😡

              Denial is not a river in Egypt … 😆

            2. How brainless can you get?

              As I posted earlier and I repeat: “Go back and read my posts and suspend this childish game of deflection and blame SOMEONE ELSE for YOUR written words. I’ll type slow … “Annoying people and enjoying it is just wrong.” That would be you! 😡 Denial is not a river in Egypt … 😆

              DID IT SINK IN YET?!?

              When you post that you enjoy annoying a group of people, now the latest deflection is a mega corporation canard, you are one sick puppy and need help. Got it?

  1. “How long will some of these competitors with pockets that are not deep even stay in business?”

    Unless they can pull a ‘Microsoft’ and suck money from profits made elsewhere, they won’t. Call it the ‘Zune Syndrome’.

    The problem really is: Where is competition with Apple going to come from? Apple always requires competition, just like every other business venture. I’d hate to see Apple get lazy(er) because every other phone maker bit the dust.

    Possibility: Some company will wisely dodge the Android bullet and come up with something to compete with iOS on a realistic level. Fine with me! And no, it’s not Tizen kiddies. Sorry. That boat already sank.

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