- Posts tagged Revenue
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Google focusing on the user
In the post, Google argues that it’s only making decisions and developing products based on what is best for the user. “It’s still unclear exactly what the FTC’s concerns are, but we’re clear about where we stand. Since the beginning, we have been guided by the idea that, if we focus on the user, all else will follow,
Keep in mind that when Google talks about focusing on the "user", they're not talking about you and me. With $8.3 of their $8.57 billion in revenue (97%) coming from advertising, their users are ad firms.
iPhone average selling price is increasing
What's interesting to note about Apple's stellar Q2 results isn't just record iPhone sales, but that those sales continue to come with higher ASPs.
Reviewing the data sheet reveals an ASP of $622 a year ago, $645 in Q1, and $660 for the quarter just ended. So it isn't just about Apple selling 2.4M more iPhones than the previous quarter, it's that each one was $15 more.
Maybe Verizon plays a role. This could be indicative of the deal Apple cut with them for a CDMA phone, but the consensus was Verizon got better terms than AT&T because there was no exclusivity.
It seems equally possible that iPhone users simply aren't buying cheap. Apple didn't get over 2M more buyers last quarter because AT&T sold the 3GS for $49. Consumers are buying high-end, perhaps opting more for the 32GB model.
Something else worth noting is that while RIM and Android drive sales figures upwards on the backs of "Buy One Get One" deals, rebates, or cheap phones, Apple doesn't need any of that.
Android or iPhone: Where is the Mobile Developer Money?
Android has more developers, yet its percentage of paid apps is much smaller than the iPhone platform. Why is that?
One might think the "open" nature of Android attracts a larger base of developers willing to contribute for nothing, but the fact is it's hard to sell apps on Android. You can only pay for apps in 13 countries, and you can only sell priced apps from nine countries. This is nuts compared to the iPhone's 90 countries, and just another Android "dirty little secret." Take heart, though, you can always sign a petition to make it better.
I know it doesn't have to be about money. Many people do labors of love for "free." Maybe it's a learning experience, a way to unwind, or a sense of community or connecting with people. These could all be valid payments for your work. Not wanting monetary compensation is a personal choice that can't be judged. Indeed, though I buy a lot of apps I appreciate "free" software as much as anybody.
Having said that, if money's what you're looking for the iPhone platform is clearly where you want to be in mobile development.
Business Insider On the Outside Regarding Apple Long-Term
Fast forward 5 to 10 years and it’s not hard to imagine seeing Apple with a small (but probably very profitable) share of the smartphone market. It will be a niche player in the market it revolutionized and could have dominated. History seems bound to repeat itself!
Actually, it's pretty hard to imagine the above outcome. In order to do so you'd have to forget that:
- Phones aren't PCs; that model doesn't apply.
- There's zero price advantage in non-iPhones. Indeed, Apple set the price points at $99 and $199, which initially could only be met by competitors via mail-in rebates.
- The iPod model is far closer to the iPhone model, and no one's touched Apple in this area.
- Android gains are almost all on the back of Verizon, who can't sell the iPhone.
- Android's becoming more fragmented every day. (A new phone released this week is using version 1.5.)
Ignore all of that—as many seem to—and it's still hard to imagine Business Insider's projected outcome. Because nowhere in the scenario does Apple's Board of Directors toss out their brilliant CEO (and the team he's put together) to bring in a line of unprepared bozos as replacements. Nope. Ain't happening.
Chart: Apple revenue by product
This is from Jason Snell's excellent breakdown on Apple's 2Q results.
There was a brief Twitter dialog about this kind of chart being better than a "stacked" chart, since it's hard to get a bead on what each product contributes when they're piled on top of each other. With a chart like this, each product is plotted from zero, so the iPhone's rapid rise from nothing to exceed them all is very evident.
Apple's best non-holiday quarter ever.
Here's the data sheet. They blew past everybody's projections:
- 2.94M Macs
- 10.89 iPods
- 8.75 iPhones
Especially amazing when you consider the March quarter is always the worst one of the year. It doesn't have the holiday sales of Q1, K-12 education sales of Q3, or higher ed sales of Q4.
And while everybody is sitting around waiting for the iPod to die, it's still there selling 10M or more a quarter.
Of Apple's revenue, 28% is Mac, 14% is iPod, and a whopping 40% is the iPhone.
Next quarter, with the iPad added into the mix, is going to be an interesting one to see.
Apple Press Release: Over 300,000 iPads First Day
These sales included deliveries of pre-ordered iPads to customers, deliveries to channel partners and sales at Apple Retail Stores.
When did Apple start including deliveries to the channel in their sales figures? Are these really "sales"?
