That is the profit for devices. This is actually good for consumers, we can get more phone for less money/margin. Hence the rise of Chinese Android OEMs.
But isn't that what we're discussing? The claim is that the iPhone will kill off high end devices because no other manufacturer can make money selling expensive devices. If 90% of the profits flow to Apple, that kinda suggests Samsung, HTC, and all of the other manufacturers are left fighting over the scraps.
Funny too, Google with Ara or whatever it's called, the modular phone bit, is heading a direction where one could quite possibly pay even LESS for a basic chassis, then buy modules. One of those modules is likely the cell radio lol. I love how Google does this stuff and invests and invents things that are really really cool, but not profitable for shit. Least not that I can tell. It's one of the reasons I buy stuff from them, hoping they can keep it up.
People talk about them not being profitable, but I don't see any evidence that they are really that concerned with profits. I don't think some folks can wrap their heads around that from a business pov. Imagine what Apple could do for the world and to advance and try new things with that giant pile of money if they were so inclined.
High-end Android is defined by the spec sheet, not by the margin the products can support. I mean we still get high-end Windows computers from OEMs and the margins on Windows PCs are TERRIBLE. I expect Android to be the new that within a couple years.
Actually it might never get as bad as PCs (in regards to a lack of name brands) if only because the subsidy model will still have to exist to sell iPhones. Because it has to exist it will be applied to Androids, which means whoever has the hottest Android phone will have a bubble of margin that is hard to pop.
I mean Verizon and AT&T are hooked on putting a billion apps on people's phone and dictating the experience on Android. Apple will never let them do that. As Verizon showed with the Droid campaign they will lift up a company that gives it what it wants.
apple has a lot of the profits now, but that will soon change if android can offer something equivalent or better than iphone for a cheaper price. nobody can deny that the iphone costs way more than it should. i just think android vendors havent yet found the right mix of features/software to make huge profits. Samsung still makes decent profits, im not exactly sure how htc and lg stay afloat.
Confused, my iPhone 6+ with 64 gigs of storage cost me exactly what a Note 4 with half that much storage would have cost me. iPhones are flagship phones and the pricing is on par with flagship Android handsets.
Anyone ever do a teardown guestimate on profit margin for something like a note 4? Last I read it was something like 300% on an iphone lol....
I beg to disagree. iPhone rose to fame because of aesthetic and as a status symbol. When you have an iPhone, it somewhat equals prominence or fame.. just my thought. There are customizations that aren't available in IOS so I don't think that iPhone will beat android users.
Apple doesn't gouge nearly as much as you might think. One of the biggest mistakes a lot of people make is confusing the bill of materials (i.e. the raw parts cost) with the actual price of developing, making and selling a device. That doesn't take into account R&D, patent licensing, shipping, sales and marketing. By the time you factor all those in, the "300%" profit is closer to around 35-38%.
Samsung isn't typically far off. For example, the estimated bill of materials for a Galaxy S5, when new, was about $250... and that was for a 32GB version, not the 16GB model people typically bought. And as we all know, the GS5 still sold for $600-plus off-contract. And this is why the "lol Apple stuff is overpriced" myths bug me -- a lot of it is based on misunderstandings of incomplete data.
Apple doesn't gouge nearly as much as you might think. One of the biggest mistakes a lot of people make is confusing the bill of materials (i.e. the raw parts cost) with the actual price of developing, making and selling a device. That doesn't take into account R&D, patent licensing, shipping, sales and marketing. By the time you factor all those in, the "300%" profit is closer to around 35-38%.
Samsung isn't typically far off. For example, the estimated bill of materials for a Galaxy S5, when new, was about $250... and that was for a 32GB version, not the 16GB model people typically bought. And as we all know, the GS5 still sold for $600-plus off-contract. And this is why the "lol Apple stuff is overpriced" myths bug me -- a lot of it is based on misunderstandings of incomplete data.
not to mention their always proprietary connections that cost money. THE LIGHTNING CHARGER PORT! OMGWTFBBQ.
Meanwhile people with iphones at work are amazed that my charger for a nexus works with LG, HTC, Samsung, Motorola. It's like amazing to the sheeple. And yet that same connector with Qualcom Quick Charge 2.0 charges the phone at more than Lightning speeds. OMGWTFBBQ. It's pretty overwhelming to apple fans.
meh. apple stuff is overpriced. i have read plenty of complaints about apple hardware issues as well.
I beg to disagree. iPhone rose to fame because of aesthetic and as a status symbol. When you have an iPhone, it somewhat equals prominence or fame.. just my thought. There are customizations that aren't available in IOS so I don't think that iPhone will beat android users.
The older I get and after having several top of the line phones, I'm almost sure a $200ish out the door off contract midrange is going to be what I'm buying from now on. The tech is just so good at that price point and only getting better that it just ins't worth it anymore to blow $500+.
The Samsung Galaxy S6/Edge is probably Samsung last attempt at righting their high end ship! It looks great and feels great to from all the reviewers posts.
Wonder if they are going to have a U.S. version with all the radios inside. If they do and the reviews are decent; I may jump ship. But it depends on what the iPhone 6S is going be like too! If Apple does do a lot to the 6S; I sticking with Apple!
Yup. Smart phones are hitting the wall that PC's hit about 10 years ago. Top end PC's used to cost thousands. Now $400-$500 will buy you a perfectly usable one.
Phones are so powerful right now that they are good for several years. The software has hit a maturity point where they aren't crippled and needing more updates to be useful. And the low end phones like the Moto G and cheap Lumia's are fine for texting, emailing, basic web browsing and simple apps. You don't need to spend $600+ for high end hardware to do most of the things you need to do any more.
More and more people are going post paid or skipping outside of the subsidy model and going BYOD. They are doing this through the 2nd hand and lower end device markets. That area is just going to continue to grow. There's not a lot of money there. How much can Microsoft even be making (if not losing?) on those $50 Lumia 635's? That perfectly usable device costs less than the sales tax on an iPhone 6.
I'm not so sure it's the iPhone killing high end android. It's just the market in general has hit a maturity point where there's not as much value in a flagship device.
It'll take them a few years just like the big screen but eventually Apple will give up and make a budget device too.
And no, they are no longer a status symbol. You can't be a status symbol and at the same time sell a ton of them. It's either or. You're a Toyota Camry or a Ferrari. A thousand dollar gold iwatch would qualify as a status symbol for example.