87% of profits from 18% of sales In 2019 Apple secured just 18% of world smartphone sales, down from around 30% only two years earlier. At the same time, however, Apple secured 87% of all of the profits arising from the sales of iPhones worldwide in 2019. There are many reasons for this, including a […]

87% of profits from 18% of sales In 2019 Apple secured just 18% of world smartphone sales, down from around 30% only two years earlier. At the same time, however, Apple secured 87% of all of the profits arising from the sales of iPhones worldwide in 2019. There are many reasons for this, including a lower cost of production and a premium pricing model. Another reason is that Apple gets the reality right and then gets the perception right.In most cases, cosmetic changes such as a new name, visual branding, strapline, shop design or even web design on their own will pay very small dividends. Consumers in 2020 are far too educated and experienced to be seduced by cosmetic changes or to see a product as more attractive as a result. It is, however, another matter entirely when cosmetic changes or factors support real or substantive changes that deliver tangible…