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All posts tagged "profit"


Thursday, February 24, 2011

iOS App Store Just Breaks Even

Posted by Jeff Campbell in "Apple Software (OS X)" @ 07:00 AM

http://www.macobserver.com/tmo/arti...ove_break_even/

"Apple runs its popular App Store for iOS mobile apps just above the breakeven mark, according to Apple CFO Peter Oppenheimer. Mr. Oppenheimer made the announcement during today's Apple shareholder meeting - one of the few revelations unveiled during the event - in response to a question about the company's iOS subscription plan for newspapers and magazines."

This was from the stockholder's meeting yesterday, during a question and answer section with Tim Cook, Phil Schiller and Peter Oppenheimer. I remember reading about similar statements, mostly about iTunes and the fact that it wasn't operated as a profit generator so I can't imagine them planning on operating any of the app stores as profit generators either. It certainly generates some profit, but their goal has always been the hardware sales and keeping customers involved in the Apple infrastructure, or ecosystem as some analysts have called it.


Wednesday, September 22, 2010

Apple Share of the Profit Pie? 39%

Posted by Jeff Campbell in "Apple News" @ 11:22 AM

http://www.macobserver.com/tmo/arti...mobile_profits/

"Apple sold a tiny percentage of mobile handsets during the first half of 2010, but the company managed to rake in the lion's share of the industry's profits, according to Canaccord Genuity analyst T. Michael Walkley. In a research note obtained by The Mac Observer initiating coverage of Apple, Mr. Walkley said that Apple sold 2.8% of all mobile handsets, but claimed 39% of manufacturing profits."

I guess it isn't too surprising, given that Apple doesn't get into the "buy one, get one free" that has flooded the market with Android as well as other types of phones. One interesting note about this is that Apple sold 17 million handsets during this period, while Nokia, Samsung and LG combined sold over 400 million units. All those units sold versus the relatively low number that Apple sold in comparison, and they only earned 32% of the profits. Quite a shocker when you put it that way. While this isn't so good for consumers that want an iPhone, it certainly is great for anyone that is a stockholder of Apple. That and the fact that Apple had another record day yesterday, high of $283.77 USD, up $0.54 USD.

UPDATE: And today another record, up $3.98 USD to $287.75 USD via MacDaily News.


Thursday, August 19, 2010

Apple's Impact on the Mobile Phone Industry

Posted by Jeff Campbell in "Apple iPhone, iPod Touch, iPad" @ 05:00 AM

http://www.asymco.com/2010/08/17/an...biggest-losers/

"The mobile phone market is intertwined with the telecommunications industry which is vast and there are numerous competitors which are much more dynamic and better capitalized than the moribund PC or music player vendors. It's also a regulated and fragmented global market with 1.2 billion units and 5 billion consumers-far greater than any of the markets Apple played in for its first 30 years."

An interesting analysis on several data points of the industry since Q2 2007, but most impressive is the fact that RIM and Apple combined, moved from 7% in 2007 to roughly 65% in 2010 of the profits available to all the smartphone manufacturers. Talk about a transfer of wealth, the total of which the author figures to be between $4 and $6 billion, depending on the time period. It's also interesting that this was done in such a short time and without much of a fight, it appears they just rolled over. Or perhaps, more to the point, they were taken by surprise with the success of the iPhone. What are your thoughts?


Wednesday, November 11, 2009

A New King of the Hill

Posted by Jeff Campbell in "Apple iPhone & iPod Touch" @ 12:00 PM

http://www.iphonealley.com/current/...one-maker-in-q3

"Apple has officially dethroned Nokia as the world's most profitable mobile phone maker in this year's third fiscal quarter, according to a report from Strategy Analytics."

Image Credit: Sitcomsonline.com

Not to be confused with this King of the Hill, but Apple has bested Nokia and is now king of the profit hill when it comes to mobile phones, at least in the 3rd quarter of this year. According to the report, Apple's operating profit for the iPhone handset division was at $1.6 billion versus Nokia's $1.1 billion for the same 3rd quarter of 2009. Not bad for only being in the market for two years.


Wednesday, June 3, 2009

Apple and RIM Continue to Kick Butt

Posted by Vincent Ferrari in "Apple iPhone & iPod Touch" @ 11:00 AM

http://www.techcrunch.com/2009/06/0...dustry-profits/

"When you look at sales of the iPhone or Blackberry as a percentage of total cell phone sales, they are still a tiny smidgen of the one billion phones estimated to be sold this year. But when you look at what really matters-their share of revenues or operating profits-the picture looks a lot different. Deutsche Bank analyst Brian Modoff calculated the share of operating profits going to each major mobile handset manufacturer and came up with the eye-opening chart above. It shows Apple (pink) and RIM (turquoise) increasingly taking a disproportionate share of industry profits, mostly at the expense of Nokia's diminishing handset operating profits (blue)."

Jeez... It really is a two-pony race at this point. Interestingly enough, HTC isn't included on the list, so I have to wonder just how accurate it is seeing as HTC makes pretty much every Windows Mobile phone on the market. More analysis over at Tech Crunch if this sort of thing does it for you.


Thursday, January 22, 2009

Q1 2009 Results Exceed Expectations for Apple

Posted by Jeff Campbell in "Apple News" @ 07:00 AM

http://www.engadget.com/2009/01/21/...r-1-61b-profit/

"Apple reported first-quarter earnings significantly higher than analysts had expected coming off a disappointing holiday season for most tech companies, but provided its usual conservative guidance."

Economic downturn and dismal holiday sales didn't seem to affect Apple. For the three-month period ending December 27th, they recorded $10.2 billion in revenue, net income of $1.6 billion and earnings per share of $1.78, all categories exceeding figures for the same period last year. Of course one of the first questions asked was "how is Steve?"


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