Question: How does a newcomer introduce just one cell phone, and absolutely obliterate their competition with respect to profit?
Answer: They build an iPhone.
Top Cell Phone Manufacturers' Estimated Revenues Compared to Apple's
In the cell phone game, the Apple iPhone only accounts for 8% of the total industry revenue, but 32% of the total industry profit. How they managed this feat is quite simple. They pull in a 40% operating margin, in an industry that averages only 7.5%. The next most profitable company in the industry, RIM, only takes in 20.7% operating margin.
[ iSmashPhone.com ]
