[HN Gopher] Apple loses top phonemaker spot to Samsung
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       Apple loses top phonemaker spot to Samsung
        
       Author : ilikecinnamon
       Score  : 37 points
       Date   : 2024-04-15 12:28 UTC (10 hours ago)
        
 (HTM) web link (www.reuters.com)
 (TXT) w3m dump (www.reuters.com)
        
       | gumby wrote:
       | Given market dynamics it was rather surprising that Apple ever
       | reached #1 at all. Perhaps it will happen again in 9 months if
       | there is some spike after the 2024 phones are released.
       | 
       | Regardless of volume, Apple takes the lion's share of profits,
       | with Samsung a distant second (and I believe nobody in third
       | place). ISTR that Apple + Samsung constituted something like 106%
       | of the total industry profit, making it a lot like the airlines.
        
         | paxys wrote:
         | Based on what? "Budget" phone manufacturers (Xiaomi, Oppo,
         | Vivo, Transsion and many others in the long tail) make tens of
         | billions of dollars in revenue every year and are very
         | profitable.
        
           | gumby wrote:
           | Revenue, yes, but minimal or no profit hence the churn. You
           | can look up the data if you have a statista subscription.
        
             | paxys wrote:
             | I'd think the financial reports of these companies are a
             | much more reliable source than statista.
             | 
             | * Xiaomi made $2.4B in profit last year
             | (https://qz.com/xiaomi-profits-earnings-apple-iphone-sales-
             | ch...)
             | 
             | * Transsion $760M
             | (https://simplywall.st/stocks/cn/tech/shse-688036/shenzhen-
             | tr...)
             | 
             | * ZTE $1.3B (https://www.wsj.com/business/earnings/ztes-
             | profit-rises-as-m...)
             | 
             | Plenty of others are private and don't publish financials
             | but also don't operate in an environment where they can
             | burn through hundreds of millions or billions of dollars
             | without any expectation of profit.
        
               | Tagbert wrote:
               | Compare that to $97B profit for Apple in 2023.
        
               | paxys wrote:
               | Why do you need to compare anything? Read what we are
               | discussing.
        
               | gumby wrote:
               | I agree with that part.
               | 
               | But like Apple, ZTE and Xiaomi have other revenue streams
               | beyond handsets (don't know about Transson, but that
               | seems like a pretty narrow margin). I took a whip through
               | the Xiaomi financials and they talk about profit mix in
               | percentages but I didn't see a break out by line.
               | 
               | In any case the analysts are pretty clear that Apple and
               | Samsung are most of the profit in the handset sector and
               | the churn at the bottom is all non-viable white label
               | businesses. Whether a few inbetween like Xiaomi can
               | sustainably make much profit remains to be seen.
               | 
               | I am interested to see if Apple's phone business (and I
               | suppose smartphones in general) has seen its best days. I
               | am going to replace my iphone in the fall, but merely due
               | to age; I don't even know what model number apple is up
               | to these days. The phones seem pretty much the same.
        
         | blackoil wrote:
         | > Perhaps it will happen again in 9 months
         | 
         | If China sales continue to plummet, it may be even lower.
        
       | ChrisArchitect wrote:
       | [dupe]
       | 
       | Some more discussion:
       | https://news.ycombinator.com/item?id=40035739
        
         | altairprime wrote:
         | [delayed]
        
       | silisili wrote:
       | One thing Samsung does to reel you in is to make ridiculous
       | offers to existing customers. I'm not sure if Apple does the same
       | or not.
       | 
       | For example, they'll often list a phone for say $1000. Then offer
       | you $800 trade in on last years model, and maybe $500 on a two
       | year old model, both objectively much more than the phone is
       | worth. Pair that with EPP discounts that almost everyone
       | qualifies for, RetailMeNot sitewide codes, credit card rewards,
       | and random Samsung offers - you can often upgrade every year if
       | you want for very little money.
        
         | 999900000999 wrote:
         | Samsung also has much better lower end. The iPhone SE starts at
         | 430$, compared to 200$ for a Samsung A14.
         | 
         | Often Samsung phones are even cheaper with a prepaid.
         | 
         | For 90% of people that A14 is going to give you the same
         | utility. However Apple probably has a much better margin here.
         | 
         | They get to own the whole stack, if I buy an an Android phone
         | I'm getting my apps from Google, my cloud storage from Google.
         | 
         | If I buy an iPhone I'm buying apps from Apple, paying for
         | iCloud and Apple TV.
        
           | karmakaze wrote:
           | That A14 is surprising. It has a huge screen, decent battery,
           | dual-sim, headphone jack, and can take a 1TB MicroSD. The one
           | I saw didn't even have much bloat installed on it.
        
         | Arrath wrote:
         | > both objectively much more than the phone is worth
         | 
         | Very attractive to someone like me who wrings the last vestiges
         | of life from their phone, I was very surprised to get half off
         | of the S22 when I traded in my ancient S7.
        
         | GoToRO wrote:
         | Either the company is making money or I'm keeping the money.
         | For some reason people like it when the company makes money. I
         | like it when I get to keep them.
        
         | gentleman11 wrote:
         | But then they take you over the data harvesting coals
        
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