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Posts Tagged ‘Margins’

What If…Apple Only Offered the 64GB/3G iPad and Sold It For $499

Even though the iPad is still more than a month away from shipping, iSuppli conducted a preliminary itemized parts breakdown. The results aren’t that surprising: Apple’s making a boatload on these things. Suppli concluded that the $499 16GB/no 3G model only costs $229 to manufacturer with the $829 64GB/3G model costing only $117 more to make even though it carries a $329 premium. Nice, eh?

These numbers can be broken down even further showing Apple’s insane margins. The 3G module only costs $24.50, but Apple charges $129 more for the option. The NAND memory chips are really the only difference between all three options, but their real costs of $29 for 16GB, $59 for $32GB, and $119 for 64GB are nowhere near proportionate with the iPad’s prices. All this data shows that Apple’s abandoning its long-held K.I.S.S. strategy.

So what if Apple got back on the keeping it simple bandwagon, only offered the high-end 64GB with 3G iPad and still sold it for $499? After all, the company would still be making at least $153 on each iPad sold. Would that turn around the iPad’s outlook?

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TEDxSV: Reid Hoffman On Philanthropic Movements On The Web

We’re at TEDxSV, a Silicon Valley outpost of TED’s conferences on innovation, which is taking place today at Stanford University. First up is LinkedIn founder and angel investor Reid Hoffman, who is addressing the concept of iMovements on the web. I’ll be live-blogging his remarks.

Hoffman says that one of his ambitions is to be a public intellectual, to be able to influence millions of people with innovations and change. Hoffman thinks that the internet, which is scalable and low-cost, is the optimal platform for cause-based organizations. The web is more about people than technology, Hoffman asserts.

When Hoffman invests in a startup, he looks at three things: scalability, margins and the structure. These three attributes are the same things that make web-based causes or philanthropic movements more effective. Three types of cause-based organizations have developed on the web because of this potential, which are non-profits (Hoffman highlights micro-lending platform Kiva.org as an example of this), hybrid infrastructure organizations such as Mozilla or Creative Commons, and companies developing their own cause-based movements on the web.

One of the things that Hoffman finds interesting is that corporations, because they have the reach of millions of people, they can make cause-based initiatives part of their web based platform. This is exemplified by Facebook’s Causes application.

The causes that success capitalize on the internet “peer play” says Hoffman. So how do you coordinate the actions of millions of people in the world to make social change? Hoffman says that micro-groups on the internet can help organize these causes effectively.

The key part of the future of cause-based movements will be the boiling up of problems and issue and the coordinated intelligence and collective ideation on how to tackle these problems. There is a value in the crowdsourcing of ideas to help make social change, concluded Hoffman.

Crunch Network: CrunchGear drool over the sexiest new gadgets and hardware.

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iPhone leads Apple past Nokia to #1 in mobile phone profits

Filed under: Apple Financial, iPhone

Apple doesn’t make the most mobile phones but, as of the third quarter of 2009, the Cupertino company does make the most money from them. Research firm Strategy Analytics says Apple is now the world’s most profitable mobile phone maker, kicking Nokia from the top spot between July and September.

Apple’s phones only command about 2.5% of the world’s cellphone market, though the iPhone’s cool factor and the company’s premium pricing let it rake in about $1.6 billion in operating profit from the iPhone in the third quarter of 2009, besting cellphone stalwart Nokia and its $1.1 billion in operating profit for the same period.

Alex Spektor, an analyst with Strategy Analytics, says, “With strong volumes, high wholesale prices and tight cost controls, the PC vendor has successfully broken into the mobile phone market in just two years.”

What did Nokia do wrong? Reverse what Apple did right. Nokia seems to have slipped thanks in part to lower margins from the weak economy and a less-than-stellar presence in the United States, though Spektor thinks there is time to turn the Finnish ship around. He suggests the company focus more on the U.S. and less on traditional ‘non-smart’ phones, which don’t make as much money per unit as the likes of the iPhone or the Blackberry.

While Nokia may not make the most money, at this point it still makes the most handsets. Nokia’s worldwide market share for mobile phones sits at 37.9%. At least for now.

[via The Mac Observer, Electronista]

TUAWiPhone leads Apple past Nokia to #1 in mobile phone profits originally appeared on The Unofficial Apple Weblog (TUAW) on Wed, 11 Nov 2009 17:30:00 EST. Please see our terms for use of feeds.

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Research finds iPhone hurting operators, Boy George unavailable for comment

We’ve long since known that Apple (as opposed to AT&T) was getting the better end of the pair’s exclusive partnership here in America, but new research from Strand Consult has found that the situation is fairly similar all around the globe. According to the report, nary a one of the telecom operators it studied had seen a boost in market share, revenue or earnings as a result of introducing the iPhone, and some carriers even issued profit warnings due to the heavily subsidized handset. The study goes on to shed pity on firms like SingTel and TeliaSonera, both of which are purportedly seeing margins and ARPU (average revenues per subscriber) sink due to Apple’s darling joining the fray. But really, we can’t help but express our doubts about the all encompassing, almost sensationalized nature of this; we’ve watched AT&T’s profits soar ever since it snagged the iPhone, and considering that every iPhone buyer also coughs up a significant monthly fee for a data plan, we can’t imagine revenues tanking that severely. Or, you know, maybe we’re all just getting a really good deal on our bloated iPhone plans.

[Image courtesy of NiallKennedy]

Continue reading Research finds iPhone hurting operators, Boy George unavailable for comment

Filed under: Cellphones

Research finds iPhone hurting operators, Boy George unavailable for comment originally appeared on Engadget on Mon, 17 Aug 2009 14:31:00 EST. Please see our terms for use of feeds.

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Apple reports 2009 Q3 earnings: $8.34B in revenues, profit of $1.35 per share

Filed under: Apple Financial

For the quarter just completed, Apple reported 8.34 billion dollars in revenue, and earnings of $1.35 per share (versus the $1.17 consensus estimate). 2.6 million Macs sold, 10.2M iPods, 5.2M iPhones, 36.3% margins. Guidance for the next quarter is $1.18 to $1.23 per share (all via CNBC). “Best non-holiday quarter ever,” says the company.

Full press release below. See you all back here at 2pm PT/5pm ET for our liveblog of the analyst conference call. Note that we will be listening to the call and cannot ask questions (much as we might like to!).

Continue reading Apple reports 2009 Q3 earnings: $8.34B in revenues, profit of $1.35 per share

TUAWApple reports 2009 Q3 earnings: $8.34B in revenues, profit of $1.35 per share originally appeared on The Unofficial Apple Weblog (TUAW) on Tue, 21 Jul 2009 16:37:00 EST. Please see our terms for use of feeds.

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