Apple completely understands the power of pricing, as every one of their products
sits at the premium end of their respective categories.
Take the iPhone. AT&T is paying somewhere between $500 and $600 for each
iPhone they sell. A good comparison is the products from RIM: analysts
estimate carriers pay around $400 for each Blackberry sold. Apple is able to
maintain a 20% to 30% price premium over the next class competitor.
This translated into big news in November when research firm Strategy
Analytics reported that the top handset maker in the world, Nokia, earned an
estimated $1.1 billion with 35% global market share, while Apple earned $1.6
billion with 2.5% market share.
Here that is one more time: one point six billion dollars in profit on two point
five percent market share.
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