“Windows is a generator of profits too, but, at a small scale per copy. 1.5 billion copies of Windows will generate a lot of revenue; not from sales of those copies, but from the potential after-market sales of other services and products and software and content, etc.”
Apple generates a huge amount of money in its ecosystem of the app store, itunes, and subsequent technology upgrades from small devices to Apple computers.
“There may come a time when the iPhone doesn’t generate as much in profit per device as in the last 8 years that it’s been around. The profit margin per device may eventually come down to resemble the same low margin that the rest of the industry enjoys, and that would spell disaster for Apple and for its investors.”
Doubtful... but all markets mature. The issue for every company is the future, while maximizing the present.
“Android devices are low profit items, if they generate any profits at all. But, the Android ecosystem for Google and others is not dependent on the profit per device. It’s about selling in volumes in order to make the profits in the back-end, like with advertising.”
As Apple does in its ecosystem and advertising also.
“If Apple’s devices become less profitable, Apple will be left with a low number of users, though still significant.”
Affluent users are better than low income users, no matter what happens to the smart phone market.
“But, that lower number of users would not be able to generate the same amount of revenue from after-market sales, as the Android ecosystem or the Windows ecosystem.”
It remains to be seen what Android will generate. So far, few Android phone manufactures have more than an expensive hobby.
“Expecting that Apple will forever be able to count on the high-margin profits, is foolish and not good business. “
I’m not sure who is doing that. It appears to be your private straw man.
“Apple needs other products and services, and counting on iPhones for about 70 percent of revenue, is, again, not good business proactive.”
You are assuming they are “counting on it.” Is this simply your opinion, or do you have a statement from the company that their strategy is to just “count” on identical revenues to roll on? I think you are making up this straw man.
Prove me wrong with evidence that Apple shares this strategy with your straw man. Surely you must have read an article, private company memo, etc., that you can show us.
“Apple needs to diversify, and I think they’re trying, while understanding that the iPhone can’t carry them forever.”
Better. Now back to your straw man.
“And, again, I just mentioned number of copies, not the amount of profits. Entiende? “
I have heard your “copy” argument. I reject it. It is meaningless and depends on your straw man coming to life, which remains to be seen.
You might as well throw in a mention stars and fairy dust. Copies is unimportant. Businesses don’t exist to ‘make copies.’ This is at best a spurious argument you continue to put forth.
Show me the money. Not the copies.
Show you the money? How about the facts, as they appear on the ground right now?
Apple is about 70% dependent on iPhones to rake in the revenue and profits.
The other services Apple offers, are dependent on iPhone usage. So, basically, even the ‘iStore’ and iCloud and every other service, is an extension of the iPhone. Take away the iPhones, and the other services collapse. So, iPhone and ‘iServices’ are one and the same; it’s one ecosystem where everything revolves around the iPhone. Were the iPhone to lose its luster, the profits at Apple would drop precipitously. The 12% or so marketshare of the smartphone market that Apple enjoys, would not be enough to produce enough revenue from the ‘iServices’. The Android marketplace doesn’t have to worry about the number of users dropping precipitously, and whatever money is made from the ecosystem won’t be affected.
Apple is its own worst enemy,where they control the whole ecosystem, from hardware to software, and all of that serves to keep the number of users to a relatively low number when compared to Android/Google.
When it comes to your ‘straw man’ references, there aren’t any. The facts speak for themselves. It is you, as a member of the Apple-cult, that prefers to remain in denial about the problems which Apple faces. Throwing the argument back at me, doesn’t change the facts, and the investors and analysts are all asking the same questions that I have.
You remind me of that other cult, namely the Muslim-cult, where nothing that can be said will convince them that, they have a problem with their religion. Your religion is the Apple-cult. Try to get a ‘real’ and ‘normal’ religion.