Apple insists on a very large profit margin. They can be underpriced by someone with the money to commit to large volume production.
Yes, Apple does enjoy it's profit margin, but that doesn't mean that anyone else can make an equivalent device cheaper and at a profit, Apple has a number of things going for them that no one else has.
1 - Buying power. Apple has been the largest consumer of flash memory since around the time that the first Nano came out. Not to mention the buying power from using a lot of the same hardware across multiple devices and selling more than any other single company (iPads+iPhones+iPod Touches and to a lesser extent Macs).
2. Huge cash reserves -- Apple can invest billions in other companies and buy out all of their capcity for year.
3. Apple retail stores/online store (not a problem for Amazon obviously). Apple captures the wholesale and the retail markup for many of its products. Besides when you walk into an Apple store there is no competition from other companies -- unlike Best Buy or even Amazon.
Ummm.. Android owning 56% of the smartphone market appears to be at least "approaching" the "getting their clock cleaned" - and a large percentage of that happened remarkably recently.
Last time I checked, the purpose of a publicly held company is to make money, not to chase market share. Apple currently makes 2/3 of all profits in cell-phones -- globally.
So that's why people are leaving their Iphone 3GS's for new Android handsets. The fastest selling OS is Android, people are buying it because it's better.
People are buying it because it's cheaper and the iPhone is not available on their carrier. If people were *leaving* the 3GS for Android, the iPhone wouldn't be gaining market share and the 3GS wouldn't still be the second best selling phone in the U.S.
If you really think that people are clamoring for the low-end Android phones because they think it's better, I've got a bridge......
They get 6% of the global smartphone hardware business thrown in for free, and a bunch of other stuff. That looks like a good deal. I'm sure some would prefer that Android surrendered instead, but that seems like it is not going to happen.
So what good is having 6% of the global market share if:
a) Share is actually declining, b) It is unprofitable
As you note, it's barely a dent for google. Google will make almost as much income in the time it takes for the deal to close, or half as much at least.
Google paid a net $9 billion for MMI (12 billion - 3 billion in cash)
Any positive for resale value is completely nullified by the fact that standard accessories are outrageously priced... Want a wall-charger? $30. Charge/sync cord wear out?
I think Mac OS X is Unix because the Open Group that certifies operating systems as "Unix" said so. Despite the protests of random slashdot poster #593017.
Like i said: you're a dishonest bunch. Apple actively blocks support for open formats in iOS. You cannot make a plug-in for supporting WebM in Safari on iOS.
Right, because it's a great idea to allow native third party plug-ins in a browser....What could possibly go wrong?
But on another note, you are free to write an application and register in iOS that your app can handle the WebM format and it will be launched when clicked.
Eh.. $99/year so I can keep track of where my iPod is and sync my computers and iStuff via the wireless network instead of the USB port? No thanks. It might be very well done, but the price is in no way related to the utility to me of what they provide for it.
Find my iPhone has been free for months and it just helped me find my stolen phone a few days ago.
Great post. And news flash: closed, proprietary systems generate massive profits for their owners.
Well, common "Slashdot Wisdom" was that "open always wins" and that Apple's closed proprietary nature was going to end up making the iPhone/iPad like the Macintosh (which also generates more profit than any other computer maker. ) and relegate it to a niche player.
This fails to be true on a number of cases such as gas,
In the case of gas, when gas becomes "too expensive", the free market adjusts. People drive less frequently, more people move closer to where the jobs are,they take public transportation, or they buy more fuel efficient cars,
food, healthcare (if not in Canada), diapers, etc. All of these essential items will always sell well regardless of price because these are things people have no choice but to purchase.
And if disposable diapers are too expensive, people find alternatives.
But since when was an iPad required?
but comes at too high a price for someone in China who is willing to sell his kidney for one.
Then that person chose to place a value on both his kidney and the iPad. He made that choice. Should Apple reduce the price of the iPad because some fool was willing to sell his kidney?
English: Android outsells iOS. Fanboi-speak: Did you count the iPod Touch?
Android is an operating system. iOS is an operating system. What's the problem of comparing the number of devices that are sold with each operating system installed?
English: The iPad is too expensive. Fanboi-speak: The iPad is no more expensive than a reasonable laptop computer.
In a capitalist society, a product that is "too expensive" if it doesn't sell. The iPad sells well. By definition, it isn't too expensive.
Meanwhile, Apple is in the middle of a giant lawsuit against Samsung for it's mobile phone division, which is starting to seriously make a run for crown of the Android market, and is eating away at Apple's business.
Apple:
1. Generates more revenue than any other company in the world selling cell phones (yes they generate more revenue than Nokia)
Firewire was the superior standard 10 years ago and USB killed it
How did Firewire fail? For what it was meant for, high throughput scenarios, it worked and there are plenty of devices available that take advantage of it. My office Dell laptop has a port as well as my Sony desktop.
Not supporting Flash means locking people out of a LOT of websites, most notably YouTube and other video-serving sites.
Care to name some of these sites? Youtube hasn't required Flash for years. If you click on a Flash video from an iOS device it now takes you to non-Flash version of the website and not the YouTube app.
Slashdot Mirror
Yes, Apple does enjoy it's profit margin, but that doesn't mean that anyone else can make an equivalent device cheaper and at a profit, Apple has a number of things going for them that no one else has.
1 - Buying power. Apple has been the largest consumer of flash memory since around the time that the first Nano came out. Not to mention the buying power from using a lot of the same hardware across multiple devices and selling more than any other single company (iPads+iPhones+iPod Touches and to a lesser extent Macs).
2. Huge cash reserves -- Apple can invest billions in other companies and buy out all of their capcity for year.
3. Apple retail stores/online store (not a problem for Amazon obviously). Apple captures the wholesale and the retail markup for many of its products. Besides when you walk into an Apple store there is no competition from other companies -- unlike Best Buy or even Amazon.
Last time I checked, the purpose of a publicly held company is to make money, not to chase market share. Apple currently makes 2/3 of all profits in cell-phones -- globally.
http://www.electronista.com/articles/11/07/29/asymco.shows.apple.at.two.thirds.of.mobile.income/
People are buying it because it's cheaper and the iPhone is not available on their carrier. If people were *leaving* the 3GS for Android, the iPhone wouldn't be gaining market share and the 3GS wouldn't still be the second best selling phone in the U.S.
If you really think that people are clamoring for the low-end Android phones because they think it's better, I've got a bridge......
So what good is having 6% of the global market share if:
a) Share is actually declining,
b) It is unprofitable
Google paid a net $9 billion for MMI (12 billion - 3 billion in cash)
Google only made 8.5 billion last year.
http://www.google.com/finance?q=NASDAQ:GOOG&fstype=ii
http://apple.slashdot.org/story/01/10/23/1816257/Apple-releases-iPod
"No wireless. Less space than a nomad. Lame."
"Yeah, this should compete favorably with the solid state units, but they've already lost to the CD-MP3 units, IMO."
"You can download the source code"
Where is the source code for HoneyComb?
and giving away the product sounds vaguely familiar....
http://www.winsupersite.com/blog/supersite-blog-39/commentary/hypocritical-google-lashes-apple-microsoft-140075?utm_source=twitterfeed&utm_medium=twitter
Didn't Microsoft get sued for doing the same thing?
http://www.amazon.com/Wall-Charger-Apple-iPod-Nano/dp/B000F7JYJQ/
$2.68
http://www.amazon.com/White-Cable-iPhone-Touch-Classic/dp/B002CCUWKM/
$1.12
So now you require "special" earphones for the iPhone?
The iPad can use any BT keyboard.....
http://arstechnica.com/apple/news/2007/08/mac-os-x-leopard-receives-unix-03-certification.ars
I think Mac OS X is Unix because the Open Group that certifies operating systems as "Unix" said so. Despite the protests of random slashdot poster #593017.
Right, because it's a great idea to allow native third party plug-ins in a browser....What could possibly go wrong?
But on another note, you are free to write an application and register in iOS that your app can handle the WebM format and it will be launched when clicked.
Find my iPhone has been free for months and it just helped me find my stolen phone a few days ago.
1. I think you meant 180
2. Motorola is far from doing "okay"
http://www.forbes.com/2011/04/29/mobile-earnings-after-the-bell-motorola-mobility-holdings-research-in-motion-marketnewsvideo.html
http://www.comscore.com/Press_Events/Press_Releases/2011/4/Apple_iOS_Platform_Outreaches_Android_by_59_Percent_in_U.S
Well, common "Slashdot Wisdom" was that "open always wins" and that Apple's closed proprietary nature was going to end up making the iPhone/iPad like the Macintosh (which also generates more profit than any other computer maker. ) and relegate it to a niche player.
In the case of gas, when gas becomes "too expensive", the free market adjusts. People drive less frequently, more people move closer to where the jobs are,they take public transportation, or they buy more fuel efficient cars,
food, healthcare (if not in Canada), diapers, etc. All of these essential items will always sell well regardless of price because these are things people have no choice but to purchase.
And if disposable diapers are too expensive, people find alternatives.
But since when was an iPad required?
Then that person chose to place a value on both his kidney and the iPad. He made that choice. Should Apple reduce the price of the iPad because some fool was willing to sell his kidney?
Android is an operating system. iOS is an operating system. What's the problem of comparing the number of devices that are sold with each operating system installed?
In a capitalist society, a product that is "too expensive" if it doesn't sell. The iPad sells well. By definition, it isn't too expensive.
Apple:
1. Generates more revenue than any other company in the world selling cell phones (yes they generate more revenue than Nokia)
http://news.cnet.com/8301-27076_3-20056289-248.html
2. Has 50% of the worldwide profit in cell phones compared to 13% for all Android manufacturers combined:
http://www.asymco.com/2011/05/16/iphone-share-of-phone-market-in-q1/
3. The iOS app market is more than 17x bigger than Android's by revenue:
http://techcrunch.com/2011/02/21/861-5-percent-growth-android-puny/
Android from a business perspective isn't really doing that great.....
Really? What about your app settings, sms text messages, the position of your icons, etc?
How is it a "security flaw" that you can hack your own device purposefully that you have physical access to?
I can do the same on my iPad. You may not know this, but iOS devices have a few third party apps available for them.
http://www.google.com/finance?q=NYSE:MMI&fstype=ii
You mean the same Motorola that is still not making a profit?
How did Firewire fail? For what it was meant for, high throughput scenarios, it worked and there are plenty of devices available that take advantage of it. My office Dell laptop has a port as well as my Sony desktop.
Care to name some of these sites? Youtube hasn't required Flash for years. If you click on a Flash video from an iOS device it now takes you to non-Flash version of the website and not the YouTube app.
So if I want to develop an ebook client for the Kindle, how would I go about doing so?