[Sigia-l] Apple's Profit Margins (was: Mac-like design)

[Manu Sharma]

Ziya wrote:

> Remember Apple's goal is a mere 1% of worldwide phone market, 
> which is not much more than a rounding error on Nokia's or Moto's 
> biz model.

True, the Nokias and the Motos are probably selling 10 or 20 times 
as many phones but it's a safe bet that Apple's making at least 50 
times on each iPhone. If not more.

For example, Nokia's bestselling phone - the 1100 - which has sold 
over 200 million units is available for a mere $26.99 on Amazon 
today. Apple probably makes that much from its share of just a 
couple of months' AT&T subscription.

The same is true about Motorola, Samsung and all other phone 
makers - their bestselling phones are either ultra cheap or heavily 
subsidised. In other words, they have puny margins.

Can't wait for Apple's fourth quarter results to shock the world. It 
will be a slap on the face of everyone who ever ridiculed Apple's 
market share.

iPhone will establish once and for all that market share isn't 
everything.

For more on this, see...

iPhone's $200 Price Cut = $2 Billion Customer Handout
http://tinyurl.com/29nryw

Manu

PS: I also think Apple will grab much more than its stated 1% share 
of world market. They've already achieved 0.1% (1 million) in about 
10 weeks of iPhone's release.