Earlier it was reported that Apple has more cash than the US government. Let’s face it, Jobs&Co know how to make money. Sure, Apple only has 10% (max) of the PC market, and around the same share of the overall mobile hardware market. But is that what makes the difference in the business world? Guaranteed, any other company would give up its position in the market to have Apple’s bank balance.
The most recent figures show that Cupertino makes more profit from iPhone sales than all the other phone manufacturers put together. In fact, you could double the profits made by the competition combined and it would just about match what Apple makes – at least, in the last quarter. It’s been a dramatic growth for Apple, jumping from 1% to 66% in the space of 4 years! Nokia, once top dogs have slipped from making 55% the industry’s profits to not even being recognised in the top vendors chart.
Currently the top four money makers are Apple, HTC, Samsung and RIM. It’s not a surprise that Android’s most popular hardware partners are up there. Google powered handsets have seen a rise in popularity since the platform became available on a wider range of manufacturers. Samsung’s Galaxy range has been a massive success, the most recent version – the Galaxy S II – has sold more than 3 million units already, before a US release.
So what does the future hold? Is Apple going to keep expanding its profit margins or will it drop prices to gain a larger foothold in market share? What would you prefer, market share or the majority of the profits?
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