Apple’s iPhone is causing outrage within the cellular market with its outrageous performance. Apple’s focus on an exclusive product and prestigious brand has allowed the company to claim more earnings than all its major rivals combined, with a mere fraction of a share of the market. Even “Antennagate,” which could have killed many handsets, couldn’t stop Apple from setting sales records with the iPhone 4. Even with Android on the rise, cellular industry analysts say Apple’s iPhone is so lucrative it’s unlikely the business feels threatened. Resource for this article – Apple dominates mobile industry with a fraction of market share by Newystype.com.
Apple has got the golden affect
The iPhone has always attracted a great deal of media attention. But the true nature of Apple’s money-making machine was detailed by Fortune on CNN.com. Apple stock was given a “buy” rating and a $ 356 per share price target by Canaccord Genuity, a fund market analysis firm. The experts used data about Apple’s performance to back up its advice to buy the company’s stock. The company sold 17 million iPhones within the first half of 2010–a 3 percent a share of the market. The three biggest cell phone makers within the world, Samsung, Nokia and LG, dominated with a combined 400 million units sold. Apple, however, won the game by collecting 39 percent of total market profits. Apple left its heavyweight rivals competing among themselves for 32 percent. The significance of Apple’s performance was put in context by Canaccord Genuity. As a rule, cell phone manufacturers are lucky to make 10 percent operating margins, or any profit at all.! It’s estimated that Apple makes about 50 percent gross margin and more than 30 percent operating margin for its iPhone.
What’s powering Apple’s business design?
Producing 3 percent of an industry’s products for making almost 40 percent of the industry’s profit was unheard of until Apple came along with the iPhone. Apple has far outgained its rivals with more than slick marketing campaigns, according to Jason Mick at Daily Tech. A big factor is the carrier iPhone owners love to hate. Apple has wrought an exceedingly rich contract from AT and T, who’s using the iPhone to gain customers. Apple also leverages the operating system to gain cost efficiencies from a lesser grade of hardware. Apple also drives a hard bargain with its manufacturers. This strategy gives Apple plenty of money to innovate within the battle against Android. Beating Android, Mick said, probably isn’t at the top of Apple’s list. Continuing to impress loyal iPhone users is enough to keep Apple where it wants to be.
The iPhone’s momentum increases
Apple has been able to maintain a high level of customer satisfaction despite Antennagate. The media’s flogging of “Death Grip” reception interference failed to choke off sales of the iPhone 4G. When Consumer reports tested the iPhone reception problem and said it could not recommend the iPhone, Apple bashers reacted with glee. Recently, the magazine reiterated its position on the product. However the iPhone marches on. According to Computerworld, the J.D. Power and Associates customer satisfaction rankings for smartphones lists the iPhone at the top of the list—its fourth consecutive first place finish.
CNN
CNN.com
Daily Tech
dailytech.com
Computerworld
computerworld.com
No comments:
Post a Comment