What a Difference 5 Years Makes…
Amazing what five years does. In the first half of 2007 Apple did not sell a mobile phone. In 2012, they control 75% of the profits of the entire mobile phone industry, and 40% of all revenues. This is today’s chart from Business Insider:
This shows two things. Firstly how Apple have come to dominate the industry, and they do this selling one model of phone, in three flavours (iPhone 4S, 4 and 3GS). The majority of their units and revenue come from just one model of iPhone, the new iPhone 4S. Apple don’t produce a myriad of handsets and configurations, and this helps to sharpen their image in the market. Everyone knows about the iPhone and most people either have one or intend to get one.
Secondly, Apple’s profit level on these phones far exceeds any other manufacturer. Many Android phone makes would envy the margins that Apple hold, while they pump pout low-cost handsets with thin dividends. Apple makes less than 10% of the total handsets sold, and yet rake in 75% of all of the profits.
It is an amazing story and shows just how far Apple Inc. have moved in the first five years. They have a sharp position in a crowded market, but manage to make their iPhone business one of the most profitable in the tech sector.
This shows two things. Firstly how Apple have come to dominate the industry, and they do this selling one model of phone, in three flavours (iPhone 4S, 4 and 3GS). The majority of their units and revenue come from just one model of iPhone, the new iPhone 4S. Apple don’t produce a myriad of handsets and configurations, and this helps to sharpen their image in the market. Everyone knows about the iPhone and most people either have one or intend to get one.
Secondly, Apple’s profit level on these phones far exceeds any other manufacturer. Many Android phone makes would envy the margins that Apple hold, while they pump pout low-cost handsets with thin dividends. Apple makes less than 10% of the total handsets sold, and yet rake in 75% of all of the profits.
It is an amazing story and shows just how far Apple Inc. have moved in the first five years. They have a sharp position in a crowded market, but manage to make their iPhone business one of the most profitable in the tech sector.
blog comments powered by Disqus
