Smart Phone sales

[Tyler Aviss]

However, with the large part of OS development being done by google, the
actual phone manufacturers only have to worry about hardware, and possibly
drivers
On 2011-02-07 1:31 PM, "Lennart Sorensen" <lsorense-1wCw9BSqJbv44Nm34jS7GywD8/FfD2ys at public.gmane.org>
wrote:
> On Mon, Feb 07, 2011 at 03:07:36PM -0500, William Muriithi wrote:
>> This is an interesting article. What I found interesting is the
>> profit graph at the bottom. Seem like Apple is getting half of the
>> smart phones profit share. That is despite selling only half of the
>> android volume. Since a non subsidized iphone cost $700 and most of
>> the android phones cost $550 to $700, -Not a big price difference, it
>> imply Apple manufacturing process may be far more efficient. Its kind
>> of odd, how they pull that out as all manufacture their phones from
>> China.
>>
>>
http://www.bbc.co.uk/blogs/thereporters/rorycellanjones/2011/02/android_topples_symb.html
>
> If apple sells 1 million units of one model, that distributes the
> development costs of the circuit board, custom connectors, case molds,
> etc, as well as getting nice volume discounts on the screen and such.
>
> If 2 million android phones are sold, but is spread of 20 models,
> each one only has 100000 units to distribute those same costs over.
> That's not nearly as profitable in the end. The android phones may well
> turn smartphones into a commodity. Commodities are not where you make
> huge profits however.
>
>> The android market size also has another implication. Its now highly
>> likely that WebM may actually get entrenched at the expense of H.264
>
> But apple and Microsoft have H.264 patent royalties to worry about
> (customer interest doesn't matter nearly as much of course).
>
>> Anyway, just thought it may be of interest to you
>
> --
> Len Sorensen
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