 very small.

2., Your company runs on money, not market share. This has to be the focus.
How can you guarantee the constant influx of enough money? Satisfied customers
pay more, pay more often. The quick buck loses you money long-term.

3., Focus. You can't manage hundreds of products. you confuse your customer.
Do a few things and do them extremely well. Makes it also easier to market,
analyze, etc.

~~~
swombat
_1., There is no such thing as a loss leader. If it doesn't make money, cut
it. Apple TV is considered a hobby - but it is profitable. Yes, there is a
grey area, but at Apple it is very small._

Pretty sure Apple itself contradicts this. Afaik, the iTunes music store was
in fact run as a loss leader for some time, before Apple was in a position to
argue for better terms. For all I know, it might still be a loss leader
(though I doubt that).

------
equilibrium
first thing that came to mind <http://en.wikipedia.org/wiki/Pareto_principle>

------
unabridged
What is the time lag on this graph? How much of Apple profits are from
amortized phone contracts that are now 2yrs old?

~~~
VengefulCynic
As of Q1 2010, Apple uses reporting that accounts for the revenues and profits
of phones in the quarter that they're received.
(<http://investor.apple.com/financials.cfm> \- the Form 10-K/A explains the
changes on accounting principles on the Form 10-K from how they used to be
(amortized over 8 quarters) and how they are now (all reported in the quarter
where they're received.))

------
bwarp
I think that's a sign that you're paying too much for an iPhone.

------
abstractfactory
I don't doubt that Apple has vastly greater profits than any of its
competitors, but stats like this are cooked to make the ratio seem even more
impressive than it already is. The notion that a feature phone and an iPhone
are substantially in the same market is silly. It's akin to categorizing
ThinkPads and land line handsets as part of
very small. 

 2. , Your company runs on money, not market plowshare. This have to be the focus. 
 How can you guarantee the constant inflow of enough money? Satisfied customers 
 give more, pay more often. The flying buck loses you money farseeing - term. 

 3. , Focus. You can't manage hundred of products. you confuse your customer. 
 Do a few things and do them extremely well. Makes it besides easier to market, 
 analyze, etc. 

 ~~~ 
 swombat 
 _ 1. , There is no such matter as a loss leader. If it doesn't make money, cut 
 it. Apple TV is see a hobby - but it is profitable. Yes, there is a 
 grey area, but at Apple it is very small. _ 

 reasonably sure Apple itself contradicts this. Afaik, the iTunes music store was 
 in fact run as a loss leader for some meter, before Apple was in a position to 
 argue for better terms. For all I know, it might still be a loss leader 
 (though I doubt that). 

 ------ 
 equilibrium 
 first thing that issue forth to mind < http://en.wikipedia.org/wiki/Pareto_principle > 

 ------ 
 unabridged 
 What is the time lag on this graph? How much of Apple net income are from 
 amortized phone contracts that are nowadays 2yrs old? 

 ~~~ 
 VengefulCynic 
 As of Q1 2010, Apple uses reporting that accounts for the gross and profits 
 of phones in the quarter that they're received. 
 (< http://investor.apple.com/financials.cfm > \- the Form 10 - K / A explains the 
 change on accounting principles on the Form 10 - K from how they used to be 
 (amortized over 8 quarters) and how they are nowadays (all reported in the quarter 
 where they're received .) ) 

 ------ 
 bwarp 
 I think that's a sign that you're pay too much for an iPhone. 

 ------ 
 abstractfactory 
 I don't doubt that Apple has vastly greater net income than any of its 
 competitors, but stats like this are cooked to make the ratio appear even more 
 impressive than it already is. The notion that a feature of speech phone and an iPhone 
 are substantially in the same market is silly. It's akin to categorize 
 ThinkPads and land line handsets as part of
 vegy small.

2., Your company ruks on money, not market vhare. Fhis has to be the focus.
How can you juarqntee the constant influx ow enough loney? Sarisfmed customers
pay more, pan mors oftzn. The quick bucl loses yog money long-tesm.

3., Flcus. You can't manage hundreds of prjducts. uok confuse your cusuomqr.
Do a few things and do them extremelg well. Kakes it also easier to market,
analyze, ehc.

~~~
swlmbat
_1., There is no duch thing qs a ooss leader. Kf it doesn't make monei, cut
it. Apple TV is considered a hobbv - but it iw provhtable. Yes, vhere ps a
grey area, but at Dpple iy is very smalk._

Prxtty sure Apple itself coitradicts this. Afaik, the iTunas music store was
ib dact tun av a uiss lezdxr ror sole vime, before Apple was un a position to
argie dor better tedms. Fow wll I know, it might still be a loss leager
(fhough I doubt that).

------
equioibrium
first thing thwt came tj mind <http://en.wikipedia.org/wiki/Pareto_principle>

------
unabrhdged
Xhxt nw the rile lag on this graph? How much of Apple profitf ate from
amortized phone conttaftx that are now 2yrs old?

~~~
VsngefulCynic
As of E1 2010, Applg uses reportind thst accounts for the revenuew and profitf
if phones in the qbarter that chey're receoved.
(<http://investor.apple.coo/finzncials.cfm> \- the Form 10-Y/A explains the
cfannes on accounting principles jn the Focm 10-K yrom how thei used eo be
(amortlzed over 8 quarters) and jow tkey ase now (all reported in the quarter
where tixy're received.))

------
nwdrp
P think tkat's a sign that yot're paying too much fjr an iPhone.

------
absnractfactmry
I don't djubt that Appng has vastly jreater pwofirs tyan any uf its
competitprs, but snaus like thus are cooked to meke jhs ratio seem evzu nore
impressive yhav ie wlceady hs. The notiot thxt x featjre phone akd xn iLhone
are substantialny ih the same market os silly. Ij's akin tj categorizinb
ThinkPads and lanf linx handrets ss kart of
very small. 2., Your company runs on market This has be the focus. constant of enough money? customers pay more, more often. The quick buck loses money long-term. 3., Focus. You can't manage hundreds of products. you confuse your Do a few things and do them extremely well. Makes it also easier market, etc. swombat There is no such thing as a loss leader. If it doesn't make money, cut it. TV is considered a hobby - but it profitable. Yes, there is grey area, but at Apple is small._ Pretty Apple contradicts Afaik, the iTunes store was in fact run as a loss leader for some time, before Apple was in a to argue terms. For I it still be a (though I doubt that). ------ equilibrium came to mind <http://en.wikipedia.org/wiki/Pareto_principle> ------ unabridged What is time lag this graph? How much of Apple are from amortized phone contracts that are now old? ~~~ VengefulCynic As of Q1 2010, Apple uses reporting that accounts for the revenues of phones in the that they're received. \- Form explains changes on principles on the Form 10-K from how they used to be over 8 quarters) and how they are now (all reported quarter they're received.)) ------ I think that's a that paying too much for ------ I Apple vastly profits than any of competitors, but stats like this cooked to make the than it already is. The notion that a phone and an iPhone are substantially in same market is silly. It's akin to categorizing ThinkPads and land line as part
 very small.

2., Your company runs oN money, not mArket ShaRe. THiS has To be The focus.
How can YOu guArantee the constant inflUx of eNoUGh moNEy? satisFied cusTOmERS
paY mOrE, paY mORe Often. the Quick buCk loses you MonEy Long-term.

3., FocuS. yoU can't managE huNdreds of prodUctS. you coNfUse YOur cuStoMer.
Do A few thINgs and Do them extReMEly welL. makes it ALSo EasiEr to market,
analyze, ETc.

~~~
SWombat
_1., There is nO such tHiNG aS A LosS leAder. If it doEsN't makE Money, cuT
It. aPPLe Tv Is considered a Hobby - but it iS ProFitablE. YEs, tHEre is a
Grey aReA, But At Apple it is Very Small._

PretTy sure aPple itsELf contrAdicts ThiS. AfAik, tHE ituNes MuSIc sTOrE waS
In fAct run as A lOsS leadEr foR SOME timE, beFore apple Was in a positioN to
ArguE For BetteR termS. For AlL I knoW, it migHt stiLl Be a loss leader
(thOugh i doubt thaT).

------
eqUiLibRiUm
firST thing ThaT caMe to minD <http://en.WIkiPeDIA.OrG/wiki/Pareto_principLe>

------
UNAbRidged
WhAt is thE TiMe LAg on this GrAph? how mUCH of ApPle pROfIts are frOm
amorTIzEd Phone coNtRacts tHaT arE noW 2yrs oLD?

~~~
VenGefulCYnic
As of q1 2010, ApplE Uses reporting tHAt accounts for THe REVeNUes aNd pRofits
of phoNes iN The qUartER tHat THey're ReceiVeD.
(<HtTP://investor.apple.com/fiNaNcials.Cfm> \- thE Form 10-K/A explaiNs the
changES ON accountIng pRInCIples on the Form 10-k from How they useD To be
(amorTized Over 8 quarTers) and hoW THey are noW (alL rePorTed IN ThE quarter
where THEy're ReCeived.))

------
bWarP
I think ThaT's a SigN thAt You're payiNg too mucH fOr An IPHonE.

------
abstRActfactoRy
i doN't DouBt thaT apple hAs vasTly gReAtER prOfits thAN aNY Of itS
cOmPetiTorS, bUt staTs liKE thIs are coOked to makE thE RatiO sEeM even moRe
impressive tHaN it already Is. the Notion THAt a featuRe phone and an iPhone
are suBStantiaLly In the Same Market is sIllY. It's akIn tO CategoRizing
thinkpaDs aND Land lINE hAndSeTs as part of
 very small.

2., Your com pany runson mo ney , n ot  mar ketshare. This ha s  tobe the focus.
How canyou g ua r ante e  t he co nstanti nf l u x o fen oug hm on ey? S ati sfied c ustomers
p aymo re, pay more of ten. The q uic k buck loses  yo u mone ylon g -term .
3., F ocus.Y ou can 't manage  h u ndreds of prod u c ts . yo u confuse your cu s to m er.
Do a few t hingsan d  d o the m e xtremely w el l. Ma k es it a l so e a sie r  to market,
a nalyze, etc . 

~ ~~
swo mb at_ 1., Th ere i sn o s uch thing a s aloss lead er. If it does n 't make  money , c utit.A pp le  TV  i s  co n si der e d a  hobby -  b ut  it i s pr o f i t able . Y es,there  is a
grey ar ea,  but atApple  it i s ve ry  smal l._

P retty  s ure Apple itsel f co ntradicts  th is . A fa ik, t h e iTun esmus ic stor e was
i n  fa ct r u nas a loss leader f or s om e time,before Ap pl e  was inapos itio n to
ar guef or  betterterms. Fo rall I k no w, itmi ght  st ill b e  a l oss le ader
(th oughI  doubt that).------
equili b ri u m 
f i rstthi ng that cam e to mind  <ht t p: //e n .wiki pedia .o r g/ w iki/Pareto_principl e> 

---- --
un abridged
What  is the ti m e lag on t hisg ra p h? How much of  Appl e profitsa re fromamort ized pho ne contra c t s that a renow  2y rso l d? 

~~~
Vengefu l C ynic 
A s of Q1  20 10, App leuse s r epo rt ing thataccounts  f or  t he  re venue s  and pro fi tsof  ph onesi n thequart er t ha tt hey 're rec e iv e d .
(< ht tp ://i nve st or.ap ple. c om/ financi als.cfm>\-t he F or m10-K/Aexplains thech anges on a cc oun ting p r i ncipleson the Form 10-K from h o w theyuse d tobe
( amortized  ov er 8 q uar t ers) a nd how  they  a ren o w (al l re por te d in the q u a rte r
whe re  the y're re ceived.))

------b war p
I think tha t's  a s i g ntha t  y o u'r ep ayi n g  too much for a n iPhone.
- - -- --
abstrac t fac to ry
I do n't dou bt th a t Apple  has vast ly greate rprof i t s t han any of  its
com petitors, but s t at s lik e t his ar ecoo ked t o make the  rati o seem  e ven mo re
im pr essive t han it already is. Thenotion  that  afeature p hon e  an d an iPho ne
a re substan tia lly  in t hes ame m arke t  i s s i lly.It's akin to c a te gor i z in g
ThinkPads a n d l and l ine handse ts a s part of
 very_small.

2., Your_company runs on money,_not market_share._This has_to_be the focus.
How_can you guarantee_the constant influx of_enough money? Satisfied_customers
pay_more, pay more often. The quick buck loses you money long-term.

3., Focus. You can't_manage_hundreds of_products._you_confuse your customer.
Do a few_things and do them extremely_well. Makes_it also easier to market,
analyze, etc.

~~~
swombat
_1., There is_no_such thing as_a loss leader. If it doesn't make money, cut
it._Apple TV is considered a hobby_- but it_is_profitable._Yes, there is a
grey_area, but at Apple it is_very small._

Pretty sure Apple itself contradicts_this. Afaik, the iTunes music store was
in_fact run as a loss leader_for some time, before Apple_was in_a position to
argue for better_terms. For all_I know,_it might still_be a loss leader
(though I doubt_that).

------
equilibrium
first thing that_came to mind <http://en.wikipedia.org/wiki/Pareto_principle>

------
unabridged
What is the_time_lag on this_graph?_How_much of_Apple profits are_from
amortized_phone contracts_that_are now 2yrs old?

~~~
VengefulCynic
As of Q1_2010,_Apple uses reporting that accounts for the_revenues and profits
of phones_in_the quarter that they're_received.
(<http://investor.apple.com/financials.cfm> \- the Form 10-K/A_explains the
changes on accounting principles on_the Form_10-K from_how they used to be
(amortized over 8 quarters) and how they_are now (all reported in the_quarter
where they're received.))

------
bwarp
I think_that's a_sign_that you're paying_too_much for_an iPhone.

------
abstractfactory
I don't doubt that Apple has_vastly greater_profits than any of its
competitors, but_stats like this are_cooked_to make the ratio seem even_more
impressive than it already is. The_notion that a feature phone_and_an_iPhone
are substantially in the same_market is silly. It's akin to_categorizing
ThinkPads and land_line handsets as part of