• Report: Apple Makes More Profit Despite Samsung Selling More Units

    by
    Akshay Masand
    Published on 2012-08-07 10:11 AM
    13 Comments Comments


    As both Apple and Samsung continue to fight in the courtroom, analysts continue to do what they do best, compare the two companies' statistics. According to a report from Raymond James analyst, Tavis McCourt, Apple’s iOS devices are making its company a ton more profit than Samsung’s devices are. The report points out that although Apple only shipped around 6% of the smartphones in the U.S. this past quarter, it ended up bringing in about 43% of the revenue for the smartphone industry as a whole. Furthermore, the revenue generated has a whopping 77% of the entire industry’s operating profits, a number that is quite surprising given that iPhone sales are on a downward slump at the moment as customers seem to be holding out for the next-generation iPhone.



    Although, Samsung seemingly outselling Apple’s iPhone two to one is a nice milestone, it’s not the financial victory that it might appear to be at first. Samsung may very well be the mobile industry’s king, but Apple still seems to rule overall in the most important metric: profits. According to McCourt:

    Ultimately, profits are the feedstock of innovation; and, innovation drives profits. Until Samsung starts generating more profits than Apple, we would not be overly concerned with who has the unit share lead. Remember, HP and Dell still sell a lot more PCs than Apple sells Macs, but does it matter?
    To Apple, it probably doesn’t matter all too much because at the end of it all, it’s profit that drives the industry, not just the number of low-end devices sold within it.

    Source: AllThingsD
    This article was originally published in forum thread: Report: Apple Makes More Profit Despite Samsung Selling More Units started by Akshay Masand View original post
    1. Categories:
    2. iPhone,
    3. iOS,
    4. Apple,
    5. iPad
    Comments 13 Comments
    1. bry2k2's Avatar
      bry2k2 - 2012-08-07, 10:28 AM
      If Apple is selling less units then Samsung but turns a bigger profit, this isn't a good thing for the consumer, it just makes either their product is cheaper to make or they are charging the customer more then the competition, which only proves further that Apple will always try to get every penny from their customers that they can, without offering an equally comparative product.

      As well the top chart does not specify how much revenue Samsung brings in, it only states Apple vs Non Apple, in which overall Apple is losing by quite a bit, the second graph does not provide any specifics on what is mean by percent of share for mobile computing industry, how is this being measured? where is the data coming from?

      This wack job's final captioned is very concerning for a financial analyst, profits have nothing to do with innovation, listening to your customers and having their best interests in mind is what drives innovation. Stockpiling profits won't do **** if your product starts failing to sell, sooner or later your profits are going to disappear.
    1. Zaldora's Avatar
      Zaldora - 2012-08-07, 12:48 PM
      The real price of a iphone 4 without a contract is $320.
    1. NakedFaerie's Avatar
      NakedFaerie - 2012-08-07, 12:53 PM
      There is an easy explanation for this. ALL APPLES DEVICES ARE WAY OVERPRICED.
      EG: Apps on the App Store and Google Play. Either they are free for Android or a lot cheaper than the exact same thing on the App Store.
      iPhones cost a lot more than any Android Phone.
      Apple are in it for the money, Samsung is in it for the customer. If Apple weren't in it for the money then explain all the stupid lawsuits Apple file against Samsung.
    1. runey71's Avatar
      runey71 - 2012-08-07, 01:28 PM
      Quote Originally Posted by NakedFaerie View Post
      There is an easy explanation for this. ALL APPLES DEVICES ARE WAY OVERPRICED.
      EG: Apps on the App Store and Google Play. Either they are free for Android or a lot cheaper than the exact same thing on the App Store.
      iPhones cost a lot more than any Android Phone.
      Apple are in it for the money, Samsung is in it for the customer. If Apple weren't in it for the money then explain all the stupid lawsuits Apple file against Samsung.
      LOL If you think Samsung are in it for the customer then you are dreaming. If they thought they could get away with charging more then they would. Companies always charge what they think they can get away with.
    1. H4CK3R's Avatar
      H4CK3R - 2012-08-07, 01:35 PM
      Quote Originally Posted by runey71 View Post
      LOL If you think Samsung are in it for the customer then you are dreaming. If they thought they could get away with charging more then they would. Companies always charge what they think they can get away with.
      That's what makes me doubt the real cost of Apple's stuff. Probably costs 'em $300 to make a Mac since they make it in China, yet they charge $1,000.
    1. runey71's Avatar
      runey71 - 2012-08-07, 01:42 PM
      Quote Originally Posted by H4CK3R View Post
      That's what makes me doubt the real cost of Apple's stuff. Probably costs 'em $300 to make a Mac since they make it in China, yet they charge $1,000.
      Oh no doubt Apple charge way more than it costs them to make the product. More than most companies do. Their profit margins are a testament to that. If consumers stop paying then Apple would drop the price. They will keep doing it for as long as they can get away with it.

      There are many reasons why Samsung may charge less for their phones. Competition with other Android phone makers is one. A lower price point to attract a customer base (preferably by taking it away from Apple). They got so used to the pre-iPhone cut throat era and never updated their pricing policy. However doing it for the customer cause it makes them feel all warm and fuzzy isn't one of them LOL
    1. The6uest's Avatar
      The6uest - 2012-08-07, 02:10 PM
      Apple also keeps the price of their phones high longer than other phones. Their newest 16GB phone always sells for $200 (w/ contract) for almost a year until just before the next iPhone is released. Other phones typically drop by $50-100 within a few months after being released. Of course that's also because new Android phones are coming out all the time..
    1. Anonymous's Avatar
      Anonymous - 2012-08-07, 04:05 PM
      Quote Originally Posted by NakedFaerie View Post
      iPhones cost a lot more than any Android Phone.
      Your stupidity angers me. An s3 costs the same as a 4s, 200 USD. Go back to your cave and troll there.
    1. Googly2moogly's Avatar
      Googly2moogly - 2012-08-07, 04:24 PM
      With Apple you get quality product, with Samsung it even feels cheap to hold it in hand.
    1. Dark_Ninja's Avatar
      Dark_Ninja - 2012-08-07, 05:21 PM
      Quote Originally Posted by Anonymous View Post
      Your stupidity angers me. An s3 costs the same as a 4s, 200 USD. Go back to your cave and troll there.
      Lol dude I love ur comments. Bluntness is the way to be because people don't understand otherwise.
    1. The6uest's Avatar
      The6uest - 2012-08-07, 06:38 PM
      Quote Originally Posted by Anonymous View Post
      Your stupidity angers me. An s3 costs the same as a 4s, 200 USD. Go back to your cave and troll there.
      I think he meant it costs more to build but who knows..
    1. Anonymous's Avatar
      Anonymous - 2012-08-07, 06:41 PM
      Quote Originally Posted by The6uest View Post
      I think he meant it costs more to build but who knows..
      Don't feed the troll.
    1. Mrteacup's Avatar
      Mrteacup - 2012-08-08, 08:47 AM
      Probably cause Samsung makes a million different phones for random prices and all those non smartphones just end up stocking up and not selling. Free phones is considered a sale. They can't even make much profit on their non smartphones.

      Quote Originally Posted by NakedFaerie View Post
      There is an easy explanation for this. ALL APPLES DEVICES ARE WAY OVERPRICED.
      EG: Apps on the App Store and Google Play. Either they are free for Android or a lot cheaper than the exact same thing on the App Store.
      iPhones cost a lot more than any Android Phone.
      Apple are in it for the money, Samsung is in it for the customer. If Apple weren't in it for the money then explain all the stupid lawsuits Apple file against Samsung.
      Apple doesn't even need money from lawsuits but they also get the same petty feelings we all get when someone steals our ideas GIVES US NO CREDIT and worst of all makes money off it.

      Also... Youve got your facts wrong prices are a lot more on android store then apples app store. I've seen countless articles to back them up. Also you do realize apples expenses for building iPhones only makes them about 50$-75$ off each phone.

      You talk like you know the facts but you don't

      Also THE ONLY big company out there I have seen that actually cares about customers not money is amazon. That is THE ONLY ONE. All the rest are in it for money as are we. We all act like we wouldn't try to get money after taking years of development and hard work but I know and maybe you haven't realized yet that all of us would want our hard work to pay off

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