Linked by David Adams on Wed 17th Aug 2011 17:46 UTC
PDAs, Cellphones, Wireless Ars Technica is reporting that US Retailer Best Buy has been able to sell less than 10% of the TouchPad tablets that it ordered from HP, and now wants HP to take them back. Similarly, deal-a-day site Woot offered TouchPads at a very aggressive price, and only managed to sell 612 of them. This is for a site that often sells out goofy tech widgets in hours. When the TouchPad was gearing up for release, there seemed to be a fair amount of interest among geeks. Is it just that it hasn't resonated the same way with the general public, or have people just been disappointed once they've put their hands on one?
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RE[8]: Comment by kovacm
by spiderman on Thu 18th Aug 2011 12:56 UTC in reply to "RE[7]: Comment by kovacm"
spiderman
Member since:
2008-10-23

I think you are mistaken as to where the money goes.
In the Apple case, it certainly does not go in R&D or in customer support.
And Google is not the only company to profit from Android.
I believe the top profits are distributed as follow:
1. The carrier (At&t, Vodafone, Orange...)
2. The hardware manufacturer (Samsung, htc, Motorola...)
3. Microsoft
4. Google
Nokia is also probably getting its cut as they do on any phone, including the iphone.

For the iphone, profits are distributed differently:
1. The carrier
2. Apple

I don't believe the iphone generate any more profit than Android. It's just distributed differently.

Reply Parent Score: 2

RE[9]: Comment by kovacm
by Windows Sucks on Thu 18th Aug 2011 13:36 in reply to "RE[8]: Comment by kovacm"
Windows Sucks Member since:
2005-11-10

I think you are mistaken as to where the money goes.
In the Apple case, it certainly does not go in R&D or in customer support.
And Google is not the only company to profit from Android.
I believe the top profits are distributed as follow:
1. The carrier (At&t, Vodafone, Orange...)
2. The hardware manufacturer (Samsung, htc, Motorola...)
3. Microsoft
4. Google
Nokia is also probably getting its cut as they do on any phone, including the iphone.

For the iphone, profits are distributed differently:
1. The carrier
2. Apple

I don't believe the iphone generate any more profit than Android. It's just distributed differently.



Hummmm, interesting.

When you look at Android profits that does not make sense.

Google last year made $1 billion off Android. Lets double that for this year and say $2 billion, add in MS who they are saying might make about $500 million.

That's 2.5 billion. I will even round that up to $3 billion for margin of error.

You add 3 billion to what all the manufactures are making together and you will would not get close to the profits Apple makes.

And this bears out by the fact that phone carriers are quick to jump on the iPhone if they can get it because they know over the long term they make more profits.

Here in the US is what we see with Android devices:

1. Android phones don't keep sales value long. For instance the iPhone 4 is still selling well at full price in the US over a year later. Still number one, while Android phones start selling at lower prices in some cases before they even come out. And no one Android phone is outselling the iPhone 4 even after a year, Antennagate, weak back glass and all.

2. As we saw in a report yesterday, Android sales are falling at Verizon, flat on TMobile, Flat on Sprint and modest growth on ATT. But there is big growth on prepaid carriers who sell lower end Android phones (That cost less and have lower margins)

3. Also A report came out today that Apple has cut it's production costs by %50. More profits.

4. If Apple does not invest in customer support then they wouldn't be number one in customer support for almost everything they sell (Computers and iOS devices) for years and years in the case of computers. That doesn't just happen by accident.

http://androidandme.com/2011/08/news/android-carrier-marketshare-sh...

http://9to5mac.com/2011/08/18/apple-squeezes-suppliers-cuts-prices-...

That doesn't mean Android is bad. But when it comes to tablets those thin profits are even thinner. Plus there is almost no subsidy and the sales through carriers suck big time (Apple knew this which is why they didn't take that approach and also who wants to be stuck with a tablet for 2 years on contract)

A couple of companies like Sammy (If they don't run from Android like they seem to be) and Asus will sell well but none will sell like the iPad. Just like with the iPod. Combined sales will not catch the iPad ether.

http://iphone.appleinsider.com/articles/11/08/17/samsung_seeks_to_s...

Reply Parent Score: 2

RE[10]: Comment by kovacm
by spiderman on Thu 18th Aug 2011 14:19 in reply to "RE[9]: Comment by kovacm"
spiderman Member since:
2008-10-23

When we talk about profits, it's what the corporation gets after all expenses are paid. Customer support is an expense. The profits don't go into customer support or they are not profits.

And please don't link those sites. I know how to use Google. If you have a stake on those sites, please purchase adwords. If you don't, there is no need to link them.

Edited 2011-08-18 14:26 UTC

Reply Parent Score: 2