Linked by Thom Holwerda on Sat 28th Jul 2012 10:10 UTC
PDAs, Cellphones, Wireless In case you were still doubting whether or not Apple's lawsuits against Samsung were a case of 'if you can't compete, litigate', Samsung's financial results should seal the deal. The company shipped round and about 50 million smartphones, twice as many smartphones as Apple shipped. So, not only is Android doing better on smartphones than iOS, there's now also a single manufacturer outselling Apple. Oh, the next avenue for de-emphasizing this achievement has already reared its head: Samsung has a wider portfolio, and as such, the comparison isn't fair. Nonsense, of course - Volkswagen sells lots more models than, say, Mazda, but that doesn't mean you can't compare them. Maybe, just maybe, having a wide portfolio of devices to meet the various different needs of the market is simply a very good strategy. It'll be interesting to see just how much Apple can take back with the next iPhone, especially since the full potential of the Galaxy SIII hasn't been realised yet and will be accounted for in Samsung's next quarter as well. Fun, such a fight between titans. Just too bad one of the two titans plays dirty by opting for the courtroom.
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RE[3]: Getting tired of iSheep
by ilovebeer on Thu 2nd Aug 2012 02:45 UTC in reply to "RE[2]: Getting tired of iSheep"
ilovebeer
Member since:
2011-08-08

But this was his point. Apple are gouging the customer.

Other than the last point, none of these things are particularly positive in my mind and at least one makes me very uncomfortable (margins.)

It's like boasting to friends that you just bought a house where the builder made four times the profit off you ... Like it's a good thing? Really?

If you believe that Apple is gouging its customers then you must also believe that companies like Intel, Amazon.com, Nvidia, and so on are too because all these companies have similar profit margins. In some cases even higher. The profit margin Apple enjoys isn't that much higher than the common numbers.

If you want to talk about companies that are ripping people off, have a conversation about the members of Opec or someone else worthy of that discussion. Apple is making money off you, but they aren't bending you over and giving it to you raw.

Reply Parent Score: 2

Dr.Mabuse Member since:
2009-05-19

Apple is making money off you, but they aren't bending you over and giving it to you raw.


Compared to Samsung (20% vs 5%) in the mobile market place they are making a lot more money per device, no? Depends on your definition of gouging I guess.

Also, they are not bending *me* over full stop. I don't buy Apple. If they were more "open" (i.e. I own my device and I do with it as I please) I would consider owning one from that perspective, but the price difference still makes it a non-starter for me.

The point is that Android has momentum now and Apple has yet to make the adjustment that they *probably* cannot enjoy the margins they've had in the past if they want to to stay competitive in the market place. This reflects my experience anyway.

On the other hand ... Or maybe they do, because people don't mind paying more for the luxury of having an iPhone? Personally I feel this era is drawing to a close.

Reply Parent Score: 1

ilovebeer Member since:
2011-08-08

Compared to Samsung (20% vs 5%) in the mobile market place they are making a lot more money per device, no? Depends on your definition of gouging I guess.

You can always find a company with vastly different/lower profit margins but that's nothing more than a smoke screen to try hiding the fact that Apple's margins are only slightly higher than common margins. What says more about a companies margins? How it compares against someone else with margins far below the average, or how it compares to the average itself?

The definition of price gouging is pretty clear. It's not as if there's a lot of grey area to debate. By that very definition, Apple certainly isn't price gouging.

Btw, how many people do you know who paid full price for an iphone? I can't think of any off-hand.

It's also not as if the pricing between say an iphone and a comparable android phone is that different either.

The point is that Android has momentum now and Apple has yet to make the adjustment that they *probably* cannot enjoy the margins they've had in the past if they want to to stay competitive in the market place. This reflects my experience anyway.

The only problem with that is if you look at the last 12 months worth of sales, Apple has experienced growth while Android has flattened so it would seem that the momentum has shifted back to Apple.

On the other hand ... Or maybe they do, because people don't mind paying more for the luxury of having an iPhone? Personally I feel this era is drawing to a close.

People always have been and always will be willing to pay more for luxury. As far as this era, I think there's still a lot of fight left. I don't believe anyone has won the war yet, if it even can be.

Reply Parent Score: 2