Apple: How effective have they been?

By On September 14, 2012

Are you wondering how effective Apple has been?

With the recent iPhone 5 announcement, we as technology enthusiasts need to see how Apple has been doing, and maybe even look into the future.

The simple fact is that Apple makes more money. While they only have 9 percent of the mobile phone industry they earn 75 percent of the money. Samsung, RIM, and HTC are all lowing than that, and RIM, and HTC have less than 5 percent. Now while that may not seem like a lot that is. And the only reason that this is the case, is because Samsung, HTC, Nokia, and all of the other phone makers in the world make at least 50 different phones in a year. Apple only sales three.

Profit share of eight major mobile phone vendors

Although Apple and Samsung are very close in revenue: Apple is at 39% while Samsung is at 25%. However close they are, we need to look at the big difference between the two companies. Apple makes and sells three phones. iPhone 4, iPhone 4s, and iPhone 5. Samsung on the other hand makes hundreds of phones. While they may make a lot of money off the Galaxy S III or similar phones, they also have a lot of low end phones that are probably worth more than they sell for. As with the other phone companies they also make hundreds of phones, however they do not have great phones like the Galaxy S III. Apple also has more money in store, which helps in their overall health.

All three metrics

According to chart above, Apple is doing very well. In fact they have been the top profit maker in the mobile phone industry for 13 quarters in a row. I find it amazing that Apple and Samsung are the only two companies that are doing very well at all. All of the other companies like HTC, Nokia, and Sony, are either making very little or they are losing money or making none at all.

But in the end we need to take a look at what this means. What this means for us and for Apple is better products and more products. You many be wondering on how this works. If Apple makes more money then they have will have more money to put towards inventing and innovating new products. Now you may be saying to your self that that they already have to much money as it is, and while that may be true, that just means that they are running a successful business. No harm done there.

The Author

Joshua - Joshua Noyce is a young designer. He really wants to go into graphic design but until he can afford to go to college he is enjoying writing tech articles.

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  • Steve Smith

    Wow I can’t wait to see what happens after the iPhone 5 is a couple of months old