apple-profits

What’s more important, smartphones shipped or smartphone profits? That question is at the heart of a debate over competing figures used to bolster Samsung or Apple. A day after a Samsung-friendly market research firm claimed the South Korean firm shipped three times as many phones, new figures show Apple profit higher than most of its rivals combined.

Sales of 33.8 million iPhones during the last quarter earned more than the mobile units of Samsung, LG, Nokia, Huawei, Lenovo and Motorola all together, according to a Wednesday report. The report also ignited a new debate over how corporate figures can be twisted to fit any preconceived notion – such as Apple’s losing battle against Android…

On Monday, Apple announced an operating profit of more than $10 billion. Although many media outlets reported the news as a sign that the Cupertino, California company is losing strength compared to 2012, company-centric AppleInsider noted the profit level was more than that of Samsung Mobile, and many others.

Apple actually earned enough more to have beaten not only Samsung Mobile (…$6.3 billion), but also the phone businesses of Nokia Devices and Services (-$118M), LG (-$75M) and Google’s Motorola (-$192M).

Earlier this week, Strategy Analytics, known as a Samsung supporter (the company is a client of SA), issued a press release claiming Samsung’s phone shipments of 120.1 million handsets was 3.5 times larger than Apple’s iPhone.

Assuming the estimate was correct, AppleInsider postulated:

That means that Apple’s 33.8 million iPhone sales earned more money for the company than Samsung’s 120.1 million, Nokia’s 64.6 million, LG’s 14.4 million and Huawei’s 12.1 million phones sales combined.

Dissecting the Strategy Analytics news release, the site points out that the pro-Samsung note mentions “global mobile phone” rather than smartphones. Such categorization permits Nokia to be thrown into the rankings, despite its long span on life-support and “being sold off to Microsoft for scrap.”

Smartphone sales (Strategy Analytics, 102913)

Additionally, the report notes much of Samsung’s gains came mass-market devices like the Galaxy Y, a 3G Android 2 smartphone “inferior to Apple’s iPhone 3G from 2008.”

As for the Galaxy S4, a Samsung device comparable to the iPhone 5 or new iPhone 5s, those sales “softened,” according to Strategy Analytics. More bluntly, sales of the S4 have been a major disappointment.

Airbrushing facts with mealy-mouth phrases such as “softening markets” to describe tanking sales is not something to be encouraged. If not called out, the practice only reinforces the maxim that numbers can be tortured to tell any story you want.

Consumers will lose confidence in press reports filled with unquestioned claims, leaving smartphone buyers to fend for themselves among slick, high-price ad campaigns.

  • Fevostone

    So In my eyes they should let us the people who got them there buying there products every year a discount if you have bought more than 3 devices off them.

    • quitcherbichinn

      you are a customer that is all. why would you deserve a discount just because you buy a product? get rid of your sense of entitlement please. no one forced you to buy anything so you aren’t owed anything special. i hated when people like you came to my desk at Sprint….”i’ve been a customer for xx years and you owe me…..” no. just no.

      • Nate McKelvie

        Hahahaha yes the world today is just filled with “entitlement issues”

      • Jerry Cox

        quitcher’s problem seems to be that you aren’t a business owner and have failed to realize the value of the customer… Loyal customers are entitled. IMO

      • quitcherbichinn

        so under threat, i as the business, must give you something for free because you bought 1 of my products…otherwise you won’t buy my products anymore? that’s just stupid. you are not entitled anything just because you buy a product. business isn’t charity. perks and bonuses are nice things to get but they should never be EXPECTED! and threats shouldn’t be given because you don’t get a freebie! I am well aware of the value of the customer and the value of this TYPE of customer…this TYPE of customer isn’t worth anything and will ultimately cost you more headaches and more profits than they are worth.

      • felixtaf

        Loyal customers are entitled/valued with better service and customer satisfaction. Not a discount!

      • Jerry Cox

        It seems that we agree that they do deserve something in return for their loyalty and that providing them nothing is out of the question.

        The beautiful thing about that is that the business decides what they will give the customer, not the customer.

      • quitcherbichinn

        go and tell your utility company that you deserve a discount because you have had electricity from them for 10 years….or try telling your mortgage company you deserve a 10% discount on your mortgage because you have been in debt to them for 10 years. neither is going to happen. so why is Apple expected to give you a discount because you are a customer? stop. just stop. like Felix said..and i agree with him…they owe the customer good customer service…and Apple already provides that. from my experience they are one of the best with customer service and satisfaction. they are a luxury brand, not a bargain brand. if you want bargains, discounts, and pandering then by all means move yourself to an android device and a company such as Samsung or LG.

      • Taf Khan

        The problem is that companies try and entice new customers with better offers than they are willing to give existing customers. Now that sucks! It’s also the reason why people often switch providers only then later to return as a new customer.

      • troothseek3r

        quitbitching, u say u “hated” people like ^Fevostone. the past tense of the word makes me think you were fired from that job.
        i, for one, can certainly think of a reason why… 😉

      • quitcherbichinn

        you know what they say about assuming right? you make an ass out of you…so by all means keep making assumptions. =)

        yes…i DO loathe and detest “entitled” people. those who think they are owed something for free…those who think *I* owe them something. hate to break it to you but i don’t owe you or anyone else anything. you don’t deserve anything you want just because you want it. i understand this is the promise of the Obama administration and all of the government programs to give you free shit and shit you don’t deserve but i refuse to accept it.

        the ONLY thing you deserve as a customer is a THANK YOU for buying my product. that’s it.

      • quitcherbichinn

        lol

      • Fevostone

        I think he needs to get a life if you ask me and we all know that apple products are way over priced. Don’t get me wrong I love my iOS devices but come they bring more out every year..!

      • quitcherbichinn

        then don’t buy their products. they are a luxury brand and charge accordingly. are you going to go to Porsche next and tell them they are evil because they charge too much? if you can only afford a Dodge Neon then maybe you should stick with what you can afford.

      • Fevostone

        Please it’s nothing to do with wot i can’t afford you ask most people and I bet they say that iPhones are about 15-30 % over priced. And on that not I have a 5s iPad 4 iMac nexus 7 galaxy note 3 Apple TV 65″ samsung smart tv but yeah I’m totally out my league LOL

      • quitcherbichinn

        yep and welfare folk have the same 65″ Samsung tv as well…they aren’t that expensive.

        the point really is this…you have the power. it’s all in what you purchase. Apple charges what they do simply because they can. there is the fact a lot of it goes to R&D, packaging…there’s a lot more to pricing a product than what the components involved cost.

        in the end businesses exist for ONE reason…to make money. how much money? ALL OF THE MONEY. no business comes into being so they can be mediocre, just get by, lose money, or go bankrupt. i really don’t get the whining…not just from you…about what products in the marketplace cost. don’t buy what you don’t like. the ONLY people holding a gun to your head forcing you to buy a product is the US government with their obamacare. that’s the only product i know of that you, and i, are being FORCED to purchase. no one is forcing you to buy anything from Apple.

      • Fevostone

        Man ur deep chill I’m 100 % sure that most people agree with me about the price am sure you could go all night comparing other products

      • quitcherbichinn

        i’m gonna bet…given the fact they just sold another 33 million or so iPhones this past quarter that you are wrong and to the tune of BILLIONS of dollars! if most people agreed with you then most wouldn’t buy the product and Apple wouldn’t be setting sales records. but tell yourself whatever you have to in order to sleep at night…and to make yourself right. =)

      • Fevostone

        LOL 7.13 billon people in the world :-/

      • quitcherbichinn

        yes and the day that ANY company sells 7.13 billion of ANY product in 1 quarter…then your stupid comment has validity.

      • Fevostone

        True but wait till next year wen apple make a iphone with a bigger screen and they mite get closer LOL or and lower the price..!

      • Fevostone

        Or and good night..!

      • quitcherbichinn

        as much as i Love Apple…they are never going to sell 7.13 billion of anything in a quarter….neither is any other company. i wouldn’t hold my breath on them lowering prices…that rarely happens and when it does it is usually old tech they are replacing. the fact they raised the price of the iPad mini 2 by $70…yeah lowering a price for a new product ain’t happening.

        oh and here…i’ll let ya have this one for free. Apple upping the price of the iPad mini 2 to $399 instead of $329 PISSED ME OFF!! so now instead of $629 for a 128gb mini 2 it’ll cost me $699. doesn’t mean i won’t get it and i’m not going to dwell on it….but at the unveiling i yelled at the tv about it! =) so i guess we can have a happy medium and agree that i’m right and you are a LITTLE right. =) we’ll say me 90% and you 10% lol

      • Fevostone

        That was just a joke a pipe dream and you can have a 100% if you make sure you promise me you will defo get out more..

      • Ted Forbes

        Perhaps this article already answered the suggestion; …”the report notes much of Samsung’s gains came mass-market devices like the Galaxy Y, a 3G Android 2 smartphone “inferior to Apple’s iPhone 3G from 2008″…

        Now I know this is not exactly what is suggested but people are still purchasing 2008 technology in bulks at low prices even today and liking it.

        So yes you can get an Apple at a lower cost today, perhaps at half price or even less. The thing is its older technology.

        Its older technology, people are buying it, stores are still selling it, carriers are still servicing it and Mobile phone companies are still raking in billions from it.

        Its older technology not for most of us, but its cheaper, its name brand and it works.

      • coLin

        Ever since Steve Jobs founded Apple, they were pointing towards educational purposes. Now some schools are adopting iPads instead of PCs, airline companies are switching to iPads instead of pounds of papers etc…
        The comparison with Porsche is just STUPID!
        /* there are a lot more to explain but I think is pointless in this moment ;P */

      • quitcherbichinn

        far from stupid, it is on point. in fact Porsche is a perfect comparison.

      • coLin

        Porsche is not involved in educational projects like Apple. Therefore – not good example

      • quitcherbichinn

        doesn’t matter how many times you type it, it doesn’t make it true.

        Porsche sells luxury automobiles….Apple sells luxury products. Samsung sells bargain general consumer level merchandise. Apple has NEVER sold cheap products or inexpensive products. they have ALWAYS charged a hefty premium for their products. THAT IS THE WHOLE CONCEPT BEHIND LUXURY BRANDING. just because Apple has been lucky enough to sell products to schools doesn’t make them a bargain company. they still sell products to schools at a hefty premium. the fact you can’t grasp this concept is indication enough that you should NOT go into business.

      • Fevostone

        Look at the chart the money apple are making they are way ahead of the rest yes…! And now I know we as customs can get a device like a phone or tablet for half of the price witch are just as good so I’m thinking they could easy knock down the prices on some of there products and still make millions. Do you know how much it cost to make a iphone a bet you it know more that a 3rd of the price so get ur head out ur arse…!!

      • quitcherbichinn

        the cost of the components is NOT the cost of the building the phone. get an education…learn business…learn accounting….you will learn these things. there are a LOT of factors that go into the price of a product. the single basic fact is…Apple is a LUXURY brand and thus they charge higher prices. They are no different than Porsche or Ferrari in that regard. part of what you are paying for is the name and the prestige of the brand. this is why you have options for your purchasing needs. if you don’t like the prices Apple charges then don’t buy their products and be done with it. you, as the consumer, have the ultimate power…the money. don’t whine about what a company charges…that is within their right to do.

      • Fevostone

        Give ya head a shak not everyone is a geek like you a lot of people don’t give a rats arse about that they just want a good deal so just stop been a ifan

      • quitcherbichinn

        then they shouldn’t get an Apple product. it is not meant for everyone just as a Porsche isn’t meant for everyone. just because you want something doesn’t mean it should be given to you. you pay what they want for the product or you buy something else…it’s really that simple. that is business. we aren’t communist or fully socialist in this country yet….if you want something you pay for it.

      • Fevostone

        Really pal get out more…!!!!

      • quitcherbichinn

        i get out every day…people are nice and let me out of my cage. thank you for your concern though!

        if you want cheap then get a Samsung product or a Vizio product or something like that. Apple is luxury..Apple is quality…Apple isn’t synonymous with cheap or low quality. so please get your head out of your ass.

      • Fevostone

        Good night..!

      • quitcherbichinn

        finally!

      • quitcherbichinn

        …and i may be an asshole but i’m not a geek….so if you are going to call me names at least call me the right one. thanks =)

      • Ted Forbes

        K

    • Arturo Millan

      I’ve been buying Pepsi for almost 17 years without missing a single day. Yet I don’t(or at least I don’t think) deserve a discount…

      • TesticularFortitude

        True. You deserve to have your head examined. 😉

      • felixtaf

        Thats too much Pepsi man… Not good for heath! U deserve good health!

      • Fevostone

        Who sed anything about deserving like…? And I’m sure that you will agree that apple are on top because of the price of there products. So at least make the prices on par with other devices witch are just as good these days.

      • quitcherbichinn

        well why don’t you tell Porsche or Mercedes or, hell…even Lamborghini that they need to lower their prices to match other cars like Chevrolets or Buicks. See what they say. See what their buyers say. LOL Apple is a LUXURY brand, Samsung is not. that is your difference. if you don’t like paying for the LUXURY product then go and buy an Android phone and be done with it. a company will charge what they can get away with charging….Apple has LONG been established as a luxury company and charges for the quality they deliver. if people didn’t pay the prices then the products wouldn’t have the associated cost. if Samsung could get away with charging $800 for a phone…and actually have people pay for it…you bet your sweet ass they would charge you that much.

    • Ted Forbes

      Good point,I remember those days,those were the booming days. Most people here don’t seem to know anything of those days, they either don’t know about it or don’t remember.

      Those days will come again when cash will be plentiful and businesses and cooperations would be willing to do whatever you ask, whatever it takes, whatever the cost to pile in the cash while it is plentiful before it stops, just LIKE TODAY. As for now you can just keep asking….

  • troothseek3r

    this article and its tone only reminds me of just how royally Apple is ripping us off.

    based off the figures in this article, Apple could sell the iPhone at 1/2 its current price and still make almost $2 billion profit per month just from iPhone sales.

    🙁

    • quitcherbichinn

      you aren’t being ripped off. YOU make the decision on what you buy. if you don’t like their pricing then you don’t buy their products. but yeah you are right…how dare they make money!!! damn evil corporation being in business to make money and not go bankrupt…how dare they!

      • troothseek3r

        exactly!
        finally you’re talking some sense, and we happen to agree on something. 🙂

      • quitcherbichinn

        you do catch on to the fact that everything after the 2nd sentence is complete sarcasm, right?

      • Umut Bilgiç

        Please become the president or something.. Your words makes sense

      • quitcherbichinn

        lol

        i couldn’t possibly do worse than what is currently in there. =)

      • troothseek3r

        lol

        i think he was being sarcastic 😛

      • Umut Bilgiç

        Hahahah 😀 still doin good man

      • Hugh Jassol

        Exactly. This is why everyone should STOP upgrading their devices every year.

        ….However, that will never happen becuase everyone “wants”…. but not in terms of free stuff like you tried to allude to earlier but instead, they want the next/best greatest thing.

        I know very few who want or expect things for free. On the other hand, I know many who always want or expect to keep up with the Jones’.

        Apple has no reason to change their MO (yet). 😉

      • Liam Mulcahy

        I agree

    • felixtaf

      That means their is a rip-off in every product sold in the market. The price we pay for quality, brand value and service they offer.I can buy a fountain pen for 1$ or 1000$. Both will write well. But i cant ask the 1000$ pen manufacturer to sell his pen for 2$ to make less profit for him. Price is for the manufacturer to set.
      Plus, Apple products wont lose value even after a year. 2010 macbooks are selling for 700-800$ (used).

      • troothseek3r

        you know what… you’re right. i paid for a quality product. i was willing to spend $700 for a phone, and i’d do it again if i think it’s worth the money. but what makes me feel ripped off is that while Apple is pulling these OUTRAGEOUS percents of profits vs. their cost, they are just hoarding the cash and not putting it into research and development for new and innovating products (at least not enough to have something to show for it).

        case in point: Apple Maps and Siri. they were just terrible, half-baked products that shouldn’t have been released without more testing and development. I can see how the Obamacare website faltered. that’s a government project and like everything else in DC, they can’t make this work right either. but this should absolutely not be the case for Apple, a company with the highest profit margins in the history of the world!
        i did not pay top-dollar to be taken to wrong location in the middle of freakin’ Manhattan, the center of the world or whatever!
        there has not been any remarkable innovations by Apple since the iPhone 4 or iPad.

        i doubt i’ll buy another iPhone until they come out with something that deserves that much investment. so should others, too, even if it is just to remind Apple they can’t expect people to upgrade every year or two just for incremental bumps in hardware specs.

        it’s not like they’re using our money to pay higher wages to the people who work under truly terrible conditions for less than a dollar per hour to manufacture these products for us.

      • felixtaf

        You sound jealous in the first paragraph.

        Innovation is there… We dont see it. There is no breakthrough product came out after iPhone and iPad in mobile tech (I will give credit to Note series). Touch-ID is not jus an average fingerprint scanner. Its a very diff tech than what we see in laptops or Moto atrix.

        You are complaining about half baked siri/Apple maps (YOU ARE RIGHT). But they had no other go. Also, nothing was perfected in Day 1.

        We jus see quadcore, 3gb ram, 41mp cam as innovation. If those are innovations, Apple is innovating too. Making a dualcore device beats every other quadcore devices in performance is an awesome achievement.

        Apple is doing… But they can DO better. But we cant demand them.

      • troothseek3r

        that’s my problem with Apple fans, bro.

        if u can admit “they can do better”, why take a product that’s less than the best but have to pay the highest price for it?

        using your stationery analogy… forget the one that sells for $1; now you’re either gonna buy a $600 pen or the $1000. but you know the $1000 sometimes doesn’t write well and u have to shake it every once in a while to get it running again. same is the situation with $600 pen. only difference between the two: one has black ink and the other has blue ink. what do you do?

        a. buy the $600 pen since both are pretty much same quality and the ink color doesn’t matter

        b. complain to the $1000 pen-maker that their product isn’t the best out there and demand they either improve, or lower their price to match others with same quality!

        c. keep buying the $1000 pen because you can put your hands in the air like you just don’t care.

        let’s assume that, with all other things equal, you’d prefer the blue ink ($1000 pen)

        i doubt anyone thinks option C is the right choice. so why make a conscious decision to keep selecting it and not even let the company know what they’re doing feels unfair (pretty much, option B)?

      • felixtaf

        You jus admitted that its YOUR problem with Apple fans. Btw whose problem is that?

        They can do better, I agree. Did I say am buying all their products now? They have their latest and greatest 5s, But I still have my latest and greatest iPhone 5!

        For a, b,c – there is a thing called preference. People r using their money to buy things they like. Why shud you or me fuss about it? People with money will buy or save money to buy (like me). Am saving for iPad 5 (Air) for almost an year (little by little). Reg ur analogy, 1$, 600$ or 1000$, its their money. their option, their decision and their problems. Dont like it, then dont buy it.

        Am not selling my kidneys to buy an Apple product (unlike some idiots). Am saving to buy. People with money will buy what they prefer. No one is forcing them to buy.

        I use Apple products (iPhone and iPad). I can afford a Mac, but I prefer windows and still using windows.

        Its the preference matters. you can get satisfied with a 1$ pen or 1000$ pen or even a 600$ pen. Its your decision!

      • quitcherbichinn

        you sound like a spoiled baby.

        dude if you don’t like the products they offer then don’t buy them. that is certainly your right. why whine and bitch about what they offer? you obviously aren’t their target market and you obviously don’t care for their products.

        that is YOUR opinion and preference.

        I happen to love my Macbook Air, i love my iPad mini, and i have loved ever version of the iPhone since day 1 of the 2g in 2007…june 29th to be exact. same with day 1 of the iPad, iPad 2, iPad 3, iPad mini, macbook pro 15″ with Retina, Apple tv2 and 3, and Macbook Air 13″ w/Haswell. unlike you…..i LOVE my Apple products!! their quality is unrivaled. for me it’s just perfection.

        so here we are….a war of opinions. in the end…it doesn’t matter what either of us think…it’s what the public as a whole thinks and with the record breaking success Apple has been having, it appears the public agrees with me more than they do with you.

      • Droid power

        Your money goes into the never ending patent wars of Apple with other OEMs. There are two ways of reaching the top, either work hard or pull others down. The latter sounds better to Apple.

  • appleyay

    yup cause all their damn stuff is 30% over priced

    • But still, there’s plenty of people willing to pay for all that stuff.

  • lrd555

    @ the current rate, Motorola & HTC may fail to exist a year from now. Nokia be gone too. Maybe then Wall St. will see what measure really counts.

  • John Smith

    you did get a discount….FREE SHIPPING! now quit complaining and go get on welfare and unemployment you cheap ba$daRd$

  • n0ahcruz3

    How’s the YOY profit? Thats how u measure growth

  • Droid power

    I wouldn’t be surprised with Apple making the highest profits of all. They make a device and sell it at a price which 3-4 times it’s manufacturing cost. On the top of that, you pay a hefty additional price for the bigger storage options which doesn’t make sense to me, looking at the ever dropping prices of removable storages.

  • da puck

    Let’s make it short. This world is filled with idiots. Genius rules the world. Now genius feeds on idiots. In this case apple is a genius and ifans are idiots honestly. I pay for efficiency. If I can get my work done on 5 dollars why give someone 10 just because there luxury is a stupid thing. So let the idiots buy apple one day they will understand till than apple will sell there products overpriced. And they will squeeze as much money as they can. When this plan won’t work anymore. They will just change there approach and try to find another way to squeeze more money. Samsung makes there products out of cheap plastic so they are also trying the squeeze money out of us thats there approach. Look at Nokia the make tough things that’s there approach. Stop blaming companies this is business. Business means make money more money. Hey bitch innovate so we make more money. If there is anyone to blame it’s you.