News - Apple ships 6% of mobile devices but milks 77% of market profits

[HEXUS]

According to analysts at Raymond James.

Read more.

[crossy]

it could be argued that Apple spends a lot more resources on innovations in product design, software design (iOS & apps) and some intangible qualities to enhance its products in the eyes of the consumer.

Sorry, so don't agree - I'd take a lot of convincing that the current Apple has been more "innovative" than any other of the major players, like Nokia, Samsung, HTC, etc. And as to "intangible qualities" - yeah, that's a polite name for "hype". And as far as I can tell, Apple's key distinction seems to be spending a market-leading amount on lawyers.

Do you think the iDevice products are really worth the money or are people falling for Apple’s prestige pricing tactics?

Hmm, I think they used to be worth the premium - simply because you were getting that peerless ease of use, and the designs were very attractive. However, post iPhone4, WinPhone and Android are nipping at the heels on "ease of use" and as to designs, well I'm going to argue that the current price-comparable models from HTC, Nokia, Samsung, Sony, etc have just as much "presence" as the iPhone4S, and in a lot of cases the iPhone is the ugly duckling.

[rabbid]

"New figures from analysts at Raymond James Equity Research shows that Apple are indeed raking it in and making a lot more money on each product sold than any other competitor."

So?
I am not an Apple fanboi, but its their choice to price their items at whatever level they want, and if people buy it then its the free choice of the individual to pay the price or to buy a competitor offering.

These are not essential items such as food, power, water, transportation.
Journalists and analysts time would be better spent on those methinks...

[mtyson]

Thanks for pointing out the for/to error. I think Apple does have a better history of innovation than many competitors. Making the OS and ecosystem for the iDevices is also no small feat. I'd like to see some new really innovative stuff though... I think Apple does indulge in prestige pricing; making things expensive and therefore more exclusive/desirable to certain people.

[crossy]

Thanks for pointing out the for/to error. I think Apple does have a better history of innovation than many competitors. Making the OS and ecosystem for the iDevices is also no small feat. I'd like to see some new really innovative stuff though... I think Apple does indulge in prestige pricing; making things expensive and therefore more exclusive/desirable to certain people.

Don't get me wrong - I'm not saying that Apple is not "innovative", as to do so would be unfair and incorrect. No, what I am saying is that pace/scope of this innovative streak has faltered - e.g. Siri as the "must have" feature of the 4S!

I'll also cry j'accuse on Apple confusing "inventing" with "popularising". Without question, they popularised the current smartphone and tablet form factors - but whether they were first to do them is a matter of some doubt in my mind. Heck, I even saw a web advert recently from them that claimed that they were "the inventor of the personal digital music player". Err, no!

They also indulge in "prestige pricing" undoubtedly - but the fact that folks still flock to them in droves is surely testament to them still having that illusive "X-factor" that makes their products more desirable. "Good on 'em" says I, since I don't think that being in that position is a bad thing - actually I'm sure it's an aspect that Samsung et al would just love to be able to emulate!

Wasn't there that Stella Artois ad campaign that had the tag line "reassuringly expensive" in which case it's not only Apple that deliberately goes for "premium pricing".

[TooNice]

So?[...] Journalists and analysts time would be better spent on those methinks...

Methinks there is demand for such information from investors would be quite interested to know that despite the decreasing market share the company's major cash cow, Apple remains a very profitable company.
(Also, some individual my take their free choice elsewhere knowing that their money is getting them less tangible)
[There are many news website that covers issues on food, power, water and transportation if that's what you are after]

[aidanjt]

[There are many news website that covers issues on food, power, water and transportation if that's what you are after]

Exactly. It makes absolutely no sense what so ever to come onto a tech site and complain about tech being reported. It's like walking into PC World and demanding to see the manager over the complete lack of food.

[matts-uk]

Methinks there is demand for such information from investors

You gotta wonder who is paying Raymond James Equity Research for this report. If they came up with it off their own backs, to sell to investors, I doubt they would want to see it plastered over technology websites, so rendering the information worthless.

[3dcandy]

Couple of things to add here...
Firstly I've seen a load of iPhone 4 users defect to Galaxy S 3's instead of 4S's. Secondly, I was in a supermarket this morning and 3 girls in front of me were having a discussion about their iPhones. All of them had damage to either the front or rear glass and all 3 of them said they wouldn't get another because of this. In fact they admitted that the design was **** for breaking easily...and all 3 of them said their next phone was likely to be a Galaxy S 3...

Now much as this is a bit skewed it's the first time I can remember that a lot of people are considering jumping ship away from Apple

[crossy]

Firstly I've seen a load of iPhone 4 users defect to Galaxy S 3's instead of 4S's.
Now much as this is a bit skewed it's the first time I can remember that a lot of people are considering jumping ship away from Apple

Aye, that's my experience too - I'm seeing quite a few folks who I'd have said "iPhone user" who have then pulled out an S3. Way things are going I'll have to get rid of mine because it'll be too "common"!

That said, someone said to me recently that all Apple has to do is to make sure that the iPhone5 is just a little bit better than the 4S, and they'll be back to being the "fashionable" option. Four inch screen and in white would probably be enough - especially the latter since a few folks I know who are Apple fans were bitching that it's difficult to tell the 4S from the "lesser" 4.

More worryingly for Samsung, on the odd occasion where I've been using my S3 without a protective case, it's been mistaken for a new iPhone. Maybe that's what Apple need to do - drop the Bauhaus 4/4S look and go back to the sculpted curves of the 3 series iPhones.

[aidanjt]

More worryingly for Samsung, on the odd occasion where I've been using my S3 without a protective case, it's been mistaken for a new iPhone. Maybe that's what Apple need to do - drop the Bauhaus 4/4S look and go back to the sculpted curves of the 3 series iPhones.

Its shaped like a bar. So clearly Samsung stole the idea from Apple.

[kopite]

I`d like Apple to do that Crossy if only so Samsung could then come out and counter sue them for copying

[pp05]

That is crazy figures.

This means Android OEM's are competing between themselves.

[aidanjt]

That is crazy figures.

This means Android OEM's are competing between themselves.

I know, competition, shocking revolutionary idea right? Imagine if Apple actually had to compete. It would be chaos. They might even have to reduce prices.

[matts-uk]

I know, competition, shocking revolutionary idea right? Imagine if Apple actually had to compete. It would be chaos. They might even have to reduce prices.

You mean to say all those other manufacturers invited Apple to take their market share away?

Apple are where they are because they chose to compete on their own terms. By listening to what 'people' had to say and making devices which they imagined would work 'better' for them, in my opinion. It might not be the cut your own throat, volume over margin, tactics preferred by corporate accountants, too nervous to sponsor original thinking. It's still a form of competition.

Anyone of the established players could have made an iPhone or an iPad but the fact is, they didn't. They went to some lengths to convince everyone they wouldn't want one, if you remember. It took Apple to force the establishment to compete on something other than price.

Won't it be great if Apple become yet another company regurgitating 'Super, new, improved' washing powder products, just as quickly as they can get them to market. I think not.

[aidanjt]

It might not be the cut your own throat, volume over margin, tactics preferred by corporate accountants,

Actually, corporate accountants prefer big fat cash reserves like Apple's. In the real world, you have to 'cut your own throat' to do R&D, and produce volume, its the entire purpose of an economy to produce and deliver the things people want and need at a reasonable cost, and the more people reached the better. Invention and volume is the measure of success, not by 'innovation', which is really just incremental wheel reinvention, adding a 1 inch notch per iteration to improve grip by 0.0001% . The entire global economy as a whole is enhanced by technology accessibility.

too nervous to sponsor original thinking. It's still a form of competition.

No, living in a bubble universe where everyone is jealous of your rectangle device, so they're stealing from you and you want exclusive rights to the rectangle is not competition. Not even close.

Anyone of the established players could have made an iPhone or an iPad but the fact is, they didn't. They went to some lengths to convince everyone they wouldn't want one, if you remember. It took Apple to force the establishment to compete on something other than price.

I'm sorry to bust your reality distortion bubble, but smartphones existed before the iPhone. Apple merely reinvigorated the market with lots of advertising bucks.

Won't it be great if Apple become yet another company regurgitating 'Super, new, improved' washing powder products, just as quickly as they can get them to market. I think not.

Which is exactly why I'm wholly unimpressed by them. That's all they've done, that, and cry to the courts that their competitors are also using rectangular cardboard boxes to contain their washing powder products.