Quote:
Originally Posted by HarryT
According to a BBC News report this morning, Apple currently have about a 70% share, world-wide, of all the profit (not revenue, but profit) made in the entire Smartphone sector. If that's really true (and it's an astounding figure, if it is), rumours of their demise may be a little premature.
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The number is about right.
Remember, the previously dominant players (Nokia, RIM) have been bleeding red ink for a couple of years and the rising Android tide is predicated on "comparable to Apple but much cheaper".
When one vendor has 30% market share with higher prices and a 50% margin, and the competition has a 10-20% margin and lower prices, they need a lot of volume to make up the difference.
Also, Apple's been doing once-a-year refreshes while the competition does 3 and even four; that increases development and marketing costs.
So Apple spends less and brings in more net, despite selling less.
Nice trick, no?