According to the report, Apple made $1.6 billion in operating profit off of the iPhone in Q3. Nokia, meanwhile, made $1.1 billion. Let’s put this in perspective. Recent numbers suggest Nokia controls roughly 35% of the worldwide handset market. Apple? About 2.5%.
Not 25%. Two point five percent.
This isn’t all about just pricing your product at a higher price point and then making more profit. This is about focusing on a single design – a single product – when everyone else is trying to hit every single segment of the market. Nokia has more models of phones this year (approx. 35) then Apple will put out in the next 10 years. And that’s just on the Canadian site! I’d imagine Nokia has more variations than that if you count the rest of the world. Apple sells one phone wherever they have product to sell – China being the only current exception due to special laws on the phone there.
Send your mom to that Nokia page and tell her to pick out a phone. Then send her to Apple’s cell phone page and see if she can figure out what to buy. That is why Apple is winning where it counts – not just because they seemingly charge more for their products.
It’s why they’re winning where it counts in computers as well.
From this Techcrunch.com article.