Home arrow Opinions arrow Page 2 - Apple Surpasses Microsoft`s Earnings.....
Watch our Tech Videos 
Dev Hardware Forums 
Computer Cases  
Computer Processors  
Computer Systems  
Digital Cameras  
Flat Panels  
Hardware Guides  
Hardware News  
Input Devices  
Mobile Devices  
Networking Hardware  
PC Cooling  
PC Speakers  
Power Supply Units  
Sound Cards  
Storage Devices  
Tech Interviews  
User Experiences  
Video Cards  
Weekly Newsletter
Developer Updates  
Free Website Content 
 RSS  Articles
 RSS  Forums
 RSS  All Feeds
Write For Us 
Contact Us 
Site Map 
Privacy Policy 
  >>> SIGN UP!  
  Lost Password? 

Apple Surpasses Microsoft`s Earnings...Finally!
By: Joe Eitel
  • Search For More Articles!
  • Disclaimer
  • Author Terms
  • Rating: 3 stars3 stars3 stars3 stars3 stars / 4

    Table of Contents:
  • Apple Surpasses Microsoft`s Earnings...Finally!
  • Five iPhone Revenue Engines
  • Retail Profits
  • Media and Software Sales

  • Rate this Article: Poor Best 
      Del.ici.ous Digg
      Blink Simpy
      Google Spurl
      Y! MyWeb Furl
    Email Me Similar Content When Posted
    Add Developer Shed Article Feed To Your Site
    Email Article To Friend
    Print Version Of Article
    PDF Version Of Article


    Apple Surpasses Microsoft`s Earnings...Finally! - Five iPhone Revenue Engines

    (Page 2 of 4 )

    Apple hasfive significant revenue engineswhen it comes to the iPhone, including manufacturing profits, retail profits, mobile service provider revenue sharing, accessories sales, and media and software sales. Mobile hardware manufacturers will not be able to compete against Apple.

    One of the hindrances that mobile phone manufacturers have is that they entered into partnerships with mobile phone service providers that restrict them as far as not only how much profit they can earn in the market, but what they can do.

    Manufacturing Profits

    One of the ways that mobile phone manufacturers can make profits is their ability to incorporate software and hardware parts. These two pieces cost more than the sum of the components. However, these mobile phone manufacturers cannot make a large profit off of these parts because they have to design and customize their phones to what the mobile phone providers want, instead of what the customers want.

    The business model for mobile phone providers is that the phone hardware is treated as a commodity. Mobile phone providers lure customers to purchase their services and sign long-term contracts by either advertising the phone for free or promoting an inexpensive phone. As a result, mobile phone manufacturers canít make much profit off of their phones. The phone hardware has little or no value.

    Apple, on the other hand, is not bound by these restrictions. Instead, Apple can sell the iPhone directly to customers. Apple not only has the power to set its hardware price, which produces a significant profit, but it can develop and incorporate features into the iPhone that you wonít find in other phones that mobile providers sell.

    For example, youíll find WiFi for direct network access. You can also get free desktop-style email that includes photo attachments. However, you wonít acquire the fees to use these features that you will find in other mobile phone providersí plans. Mobile phone providers, such as AT&T, do sell the iPhone. Apple, however, calls the shots rather than AT&T.

    Apple also took the offensive and defined the mobile phone market so that it can generate profits from its hardware. The company also created its own business model, which other mobile phone manufacturers and mobile providers cannot replicate.

    More Opinions Articles
    More By Joe Eitel

    blog comments powered by Disqus


    - Apple iPad Mini Release No Big Deal
    - Cyborg Steve Mann Assaulted at McDonald`s in...
    - Are Forums Still Relevant?
    - The Top Tech Successes for 2011
    - Kindle DX versus Nook Color
    - Top Tech for 2011
    - New Exascale Supercomputer Set to Change the...
    - IT Inventory and Resource Management with OC...
    - Blizzard Forum Users Can Say Goodbye to Thei...
    - iPhone 4 Issue: Apple, Can You Hear Us Now?
    - Here`s Your Flying Car
    - Hardware News of Note
    - WorldLenns Hints at Wider Vision
    - Make Electronics: Learning By Discovery Book...
    - Opening Highlights of the Apple Worldwide De...

    Developer Shed Affiliates


    © 2003-2018 by Developer Shed. All rights reserved. DS Cluster - Follow our Sitemap
    KEITHLEE2zdeconfigurator/configs/INFUSIONSOFT_OVERLAY.phpzdeconfigurator/configs/ OFFLOADING INFUSIONSOFTLOADING INFUSIONSOFT 1debug:overlay status: OFF
    overlay not displayed overlay cookie defined: TI_CAMPAIGN_1012_D OVERLAY COOKIE set:
    status off