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Apple profits leave little left over for cellular industry rivals

Apple profits leave little left over for cellular industry rivals

The mobile market has been looking for an answer to Apple's iPhone, but it continues to suck all the air out of the room. Apple's focus on an exclusive product and prestigious brand has allowed the company to claim more earnings than all its major competitors combined, with a mere fraction of market share. Apple's iPhone is so popular the "Antennagate" issue of last summer had virtually no effect on sales. Experts are saying Apple's domination of the mobile industry makes it unlikely that Android, which depends on devices that compete on price, could ever pose a threat.

Apple has got the golden affect

Just how overwhelming Apple's performance has been was highlighted in an article by Fortune appearing on CNN. Apple stock was given a "buy" rating and a $ 356 per share price target by Canaccord Genuity, a fund market analysis firm. As part of its recommendation of Apple stock, Canaccord Genuity offered evidence of how the business capitalizes on its innovations. From January to June this year, Apple sold 17 million iPhones. That total represents a share of the market of just 3 percent. The world's top three handset manufacturers—Samsung, Nokia and LG—teamed up to sell 400 million phones. Apple racked up the numbers where they counted. The business amassed 39 percent of industry profits in that time frame. Apple left its heavyweight rivals competing among themselves for 32 percent. To put Apple's performance in context, Canaccord Genuity said the other handset corporations scramble for making a profit and an operating margin of 10 percent is acceptable. On the other hand, Apple is thought for making a gross margin of 50 percent on the iPhone, with an operating margin of 30 percent.

Apple does not live by recognition alone

Until the iPhone was created, making nearly 40 percent of industry profits with a mere 3 percent market share was unthinkable. Distinctive advertising aside, you will find important reasons why Apple has managed to run circles around the cellular industry, said Jason Mick at Daily Tech. Mick said the iPhone's popularity enables Apple to demand a very lucrative contract from AT and T, who is depending on the iPhone to gain subscribers despite its poor customer satisfaction record. Apple gains another profit advantage over Android competitors by using less costly hardware. Apple also drives a hard bargain with its manufacturers. Apple's battle plan has resulted in piles of cash to spend on invention within the iPhone/Android war. But Mick said, why bother?. Continuing to win over loyal iPhone users is enough to keep Apple where it wants to be.

The iPhone's energy builds

Apple haters hoped Antennagate would be Apple's comeuppance. But the media maelstrom amounted to nothing. The "Death Grip" reception issues that fanned much media attention upon the release of the iPhone 4G did not phase the business. Consumer Reports begun the Antennagate furor in July when it said it would not recommend the iPhone. Consumer Reports is sticking to its guns. Apple could care less as the iPhone, as reported by Computerworld, finished first in J.D. Power and Associates' smartphone customer satisfaction survey for the fourth year in a row.

More on this topic


Daily Tech


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No Heisman authorized after Scandal with Reggie Bush

University of Southern California running back Reggie Bush tore up the gridiron in 2005. Bush's gridiron excellence - which earned him the Heisman Trophy - wasn't enough to carry his team past Texas in the title game, but his brilliance was evident. However none of this prepared University of Southern California for what was soon to come. As Bush left USC for the NFL, a Reggie Bush scandal involving pro agents flared up. The NCAA Committee on Infractions came into deal with the flare-up. For the first time in the 75-year history of the Heisman Trophy, a winner (Reggie Bush) had to forfeit the award for accepting money and gifts from agents while he was nevertheless in college. USC also felt the sting in the form of penalties.

3rd and 4th seasons Scandal with Reggie Bush shenanigans

It took the NCAA Committee on Infractions more than four years to investigate the Reggie Bush scandal, however after identifying without a doubt that both Bush and his family accepted cash and gifts as bribes to accept the agents' professional services, the organization made the only allowable ruling. USC now faces four years probation, which wipes away the possibility of bowl game births over that span. Not only that, but Southern Cal loses 30 athlete scholarships over the next three seasons. Recruits and current players are also being authorized to leave if they wish and not suffer a penalty, as outlined by the brand new York Daily News. Some key players have already said goodbye to USC, and new head coach Lane Kiffin can have to discover a way to right the ship.

'Like free agency without a salary cap'

Kiffin compares USC's dilemma to a kind of free agency, despite the fact that such a thing would technically be against NCAA rules if it were really happening. As Kiffin put it, "We're dealing with free agency with no salary cap on our players". "They can leave anytime to go anywhere and they can play right away. There is no cut-off date until after the final day of add-drop. It makes for a difficult situation".

USC desires to burst out of the gate strong this year

USC produces quality quarterbacks, and the hope is that sophomore Matt Barkley will continue the school's winning tradition. Barkley's road won't be entirely smooth, however. The media can be in hot pursuit of a train wreck story from USC. For his part, nevertheless, Barkley appears to be realistic about the situation. He told the Daily News that "I signed (at USC) because it was the best chance for me to get to the league". Kiffin easily started to worry that Barkley would head to the NFL before his senior season, and Barkley's response wasn't totally reassuring.

Within the meantime, USC will take the wait-and-see position on their 2010 season. The Reggie Bush scandal might be devastating.

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Los Angeles Times

New York Daily News


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Global threat seen in new drug-resistant superbug

PillsThe world might be battling a new superbug infection, on behalf of Brits venturing to India for nip-and-tuck discounts who have brought home a fatal stowaway. A new superbug infection could spread worldwide after infecting plastic surgery clients in south Asia who brought it home to Britain. The most powerful antibiotics accessible won't stem infections born from a bacteria-jumping gene in the new superbug. While Large Pharma chases lucrative conditions like erectile dysfunction, experts say governments have to do something to encourage more investment in antibiotic research.

Superbug gene helps bacteria defeat antibiotics

After travelling from Britain to India via medical tourism, a new superbug infection is threatening to spread all over the world. There are few drugs strong enough to treat it, researchers said. Reuters reports that a newly found gene-- New Delhi metallo-beta-lactamase, or NDM-1-has been found by researchers in clients in both south Asia and also the U.K. Bacteria are altered by the NDM-1 gene to become highly resistant to most antibiotics, including carbapenems-the most powerful class available. Drug experts say the research pipeline has no new antibiotics in progress to suppress it. Reuters said that Timothy Walsh, who led the study, fears that with international travel for cheap cosmetic surgery procedures increasing, the new superbug could soon spread to hospitals worldwide.

Superbug gene transfers drug-resistance

Researchers published an article Wednesday in Lancet Infectious Diseases that said the superbug gene was already well-established in India, where hospitals aren't equipped to detect it and also the drugs aren't available to fight it. The Associated Press reports that the superbug gene has been identified in 37 individuals in Britain with drug-resistant bacterial infections after having plastic surgery in India or Pakistan. The superbug gene has also been detected by medical researchers in Australia, Canada, the U.S., the Netherlands and Sweden . The superbug has "an alarming potential to spread and diversify," since the gene is found on DNA structures called plasmids that are copied and very easily between bacteria , the authors of the Lancet article said.

Superbug takes a backseat to Big Pharma profits

The pharmaceutical industry lacks interest in superbugs. Because bacteria adapts so easily, new antibiotics don't have the shelf life to be sufficiently lucrative . The Wall Street Journal reports that in order to earn enough for shareholders, Large Pharma wants governments to subsidize research with large tax breaks. Pharmaceutical businesses also blame strict research and development demands from official regulators that cut into potential profits. However, Pfizer and Merck within the Americas, Novartis in Switzerland and GlaxoSmithKline and AstraZeneca within the U.K are engaged in antibiotic research .

Additional reading


Associated Press

Wall Street Journal

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Hello LiveJournal!

Hello world! My name is Anna and this is my first blog post on LiveJournal. I am very excited to be here. I am a big-time blogging machine from Denton, Texas. I hope to meet new people and build new friendships along the way. I look forward to sharing useful information with all my readers, as well as learn new things from others' point of view. You can never learn too much. :)

Anna Yang