Category Archives: Smartphone

How can Apple and Samsung make 109% of phone profits?

dannyboybroderick-Lies-damn-lies-and-statistics
‘There are three kinds of lies – lies, damn lies and statistics’ so the saying goes, and this headline from Yahoo goes some way to prove it.

Yahoo news published an item this morning suggesting that Apple and Samsung were making 109% profits, and a lot of comments were about these two phone giants making more than 100% of the industry profits. Just how is this possible? If I have one cake and I divide it between two, how can I give 53% to one and 56% to the other? It just doesn’t make sense.

In fact, it is just a trick with statistics, using two different measures to create an eyecatching headline. So, how do I create 109% profits? The answer is because the other players in the phone market are making big losses. As an example –

1) Industry profits = $1b. Made up with losses of $90m by Nokia et al., $530m of Samsung profits and $560m of Apple profits.

2) Samsung profits = $530m, or 530m / 1b = 53% of industry profits.

3) Apple profits = $560m, or 560m / 1b = 56% of industry profits.

Total profit made by Apple and Samsung = 109% of industry profits. Simple. But how do you show this in a pie chart or explain it to your 8 year old child?

It just goes to show that you can have your cake and eat more than 100% of it!

Read the original Yahoo news item here – http://uk.finance.yahoo.com/news/apple-samsung-earn-smartphone-profits-221159143.html

Start queueing now for iPhone 5s

After my last post about whether the new iPhone 5s was worth buying or not, I joked about people queuing up to buy it. It’s not something I would do, but there are others who are more desperate to get their hands on the new phone.

It seems some people really do have too much time on their hands these days. Can someone just find them a job please?

Here’s the original Sky new item…

iPhone 5S Sale Queue Starts Four Days Early

New iPhone 5c or iPhone 5s – worth an upgrade?

So I hear the big news today that the new iPhones are on their way. Will you be one queuing up outside the nearest Apple iStore?

I already have a tent, a nice 2-person affair which I can put up easily by myself. I have to say that I will not be one to be camping outside my local iStore. But I’m sure there will be others who are happy to queue for hours, ready to buy their shiny new iPhone at midnight of whatever day it is released.

So far, I have read that it will have a fingerprint reader to avoid the passcode screen. Does that mean someone will have to take your finger as well as your phone when it gets stolen? Apart from the funky colours for the 5c and obviously faster processor, what more will this phone be able to do?

The thing is that it’s the apps that make the phone. Steve Jobs had this insight at the time he brought out the iPhone, hence the creation of iTunes App Store. Everything bought through Apple ensures they get a cut of everyone’s efforts in developing and creating on their hardware.

Expected prices are $99 for an iPhone 5c on a contract, or the iPhone 5s for probably double. This should translate to £99 for an iPhone 5c or £199 for the iPhone 5s on contract if we are lucky.

Mobile phone contracts in the UK will usually mean a 2 year affair costing £35 up to get these sort of prices on the handset.

My view, as always with mobile phones is buy the outgoing model soon after release. It will save you hundreds for the duration of the contract, and will not get dumped by Apple too quickly.

Would love to hear what you guys think, so please leave a comment.