Microsoft isn't failing in Mobile?

[Landguy]

Conina said:

Landguy said:

 

 As we all know, the money is really made off of the apps and content long term in the ecosystem.

Is this really true for the smartphone market? Apple makes over $100 billion revenue on iPhone hardware each year with a great profit margin.

Software revenue is only a fraction (10 - 15 billion) of the hardware revenue and the profit margin is also lower.

Googles AppStore revenue & profits also are only a fraction of their ad revenue & profits. 

 

You kind of prove my point.  Apple is the exception, to the rule.  Like I mentioned in the OP, Apple made 90% of all smartphone profits in the 4th quarter.  So, using someone that is selling 20% of the products and yet getting 90% of the profits is not proof.  Long term, all electronic devices margins shrink to almost nothing.  Look at the huge number of vendors selling Android phones.  Yet, they don't make a ton of $$$.  Every year that Apple sells a ton of phones, but they also sell a ton of tablets using the exact same OS.  People are buying content in the $100-$1000's of dollars in their ecosystem each year.  So, if they decide to change out of that ecosystem, they no only have to buy a new smartphone, they need to buy all of their content again.  That's why Apple is in the position it is in, and will continue to be in it for the long haul.  THey already have their hooks in 300 million+ people that buy an new phone every 24 months or less and have to buy Apples phone to keep what they have.  If Apple allowed 3rd party people to build ios phones, their marketshare(in hardware sales) would be cut in half within 12 months, as a lot of the buyers would rather pay less for a phone.  But, Apple would still make out good from the apps and content, just not as good.