Comments on: Apple and RIM Still Sucking Profits from the Smartphone Industry

By: Apple Snags 48% of Mobile Profit Pie

Apple Snags 48% of Mobile Profit Pie — Tue, 17 Aug 2010 15:31:16 +0000

[...] Even as it still takes in a large share of industry profits, RIM is attempting to fight off declining market share with a new operating system and flagship device, but it doesn’t look like enough of a disruption. My hands-on with the BlackBerry Torch shows an underpowered handset that tries to bring some appealing new features — such as a touch screen, WebKit browser and social networking integration — without getting away from the core competency of a traditional BlackBerry. Early sales estimates of 150,000 devices along with online half-priced deals less than a week after the Torch’s debut indicate that RIM needs further disruption to maintain the same level of relevance it has enjoyed for several years. It’s a war on two fronts, however. [...]

By: Ramon B. Nuez Jr.

Ramon B. Nuez Jr. — Tue, 10 Aug 2010 14:29:14 +0000

Handsets have gone from an appliance — making/receiving phone calls to mobile computers. This in large part is do to a young but robust mobile ecosystem. This environment is comprised of hardware, software, operating systems, mobile search, mobile Internet, OEMs, MNOs and content providers. Each of these parts of the greater whole are maturing at an alarming rate.

Arguably subsidies can be attributed to the success of the smartphone. Subsidies can turn a $500 handset into a $200 handset. This type of pricing can make handsets an attractive option.

I do not completely agree with Privat’s claim that customer loyalty is high. Is it customer loyalty when ETFs are $375 per line?

By: Franz

Franz — Tue, 10 Aug 2010 07:13:48 +0000

Most people sign up for a plan with the carriers, whether Andriod or iPhone, they don’t pay full price of the phones.

By: Christopher

Christopher — Tue, 10 Aug 2010 04:58:58 +0000

As far as I’m aware, only Verizon periodically offers bogo offers and its not just on their “Droid” line of Android phones but they’ve offered it on Blackberries and feature phones as well. Sprint has never offered bogo offers on Android phones, nor to my knowledge has AT&T and T-Mobile.
Additionally, the Android phones that have been coming out as of late have been much higher end than previous models leading to higher device prices.

By: jbelkin

jbelkin — Tue, 10 Aug 2010 01:39:22 +0000

What most people do not get about the ballyhoo over Android is that it DOES NOT directly compete with Apple and iOS. That is why Google says ‘activations’ and not sales because 50% of Androids are buy one and get one free and some are even buy 1-ish and get two more free. There are three markets – the high end consumer smartphone market which Apple will get 70% of the market share and where most of the profits of the industry is. RIM will hold a slight lead over Apple in the enterprise smartphone market and where there is plenty of profit also … Android and symbian will duke it out over the under $49 smartphone market (after rebate and get one free offers). this is the market Apple could care less about but will keep their toe in with a $99 phone – mostly so if the family has two “new” iphones, the kids can get the last gen one … so whiel Android will sell a few full price phones just as nokia can nove a few hundred thousand at full price, after a few weeks, all android phones fall into the BOGO bucket. Bottom line, 60% of the profits in the smartphone market will go to Apple, 25% to RIM and the rest will duke it out for 15%. market share means NOTHING without profits and Apple has nothing to worry about the android market in terms of apps creating a direct competitor – UNLESS Android telcos and makers decide on ONE OS and ONE OS look and feel, there is NO COMPETITION. That is why Android satisfaction is around 20% – Android means you have to relearn the OS when buying another phone.

By: Anonymous

Anonymous — Mon, 09 Aug 2010 20:22:33 +0000

Stacey – I am not a fan of AT&T but I have to disagree with your characterization of tie-down of Android phones by AT&T and that it is going to rile a lot of users.

With security threats in mind, AT&T is taking a reasonable precaution for many average users who can still buy apps from Google App Marketplace but can’t load apps from any wild place.

By: BlackBerry Curve 3G — High Speed, OS 6 Ready

BlackBerry Curve 3G — High Speed, OS 6 Ready — Mon, 09 Aug 2010 15:56:32 +0000

[...] Apple and RIM Still Sucking Profits from the Smartphone Industry [...]