Apple profits 2014 is unsustainable?

Apple Took 93 Per Cent of Mobile Industry Profits in Late 2014 – gizmodo.co.uk

Apple profits 2014 seems unsustainable. The other side of this “success story” is that customers willingly gave Apple that profit from their pockets in an eroding middle, lower class economy when other tools exist for much less.

I find it a fascinating model. On the other end of the spectrum, I can run a perfectly competent smartphone for under $300 (even $150) bought outright, no contract on $5 a month wifi only MVNO if I was so cheaply inclined.

Does that profit momentum continue? It is running on desirability, which can be a fickle monster. So if you have 20% of the market share (and less depending on country) and 93% of profits. That could flip pretty quick if demand falls and lowering handset price, even a fraction, in a world that looks at success as only going up. How do you sustain that?

About Paul Kuehnel


Paul Kuehnel
has worked for the York Daily Record/Sunday News since 1984.

Follow him on Twitter @paulkuehnel.

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