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While competitors are only able to earn a profit 20 percent in each of its products, Apple is able to Profit 50 per cent because Apple could provide added value.

Apple Inc. at this time not only become the largest technology manufacturers in the world, but also become the most profitable companies. Disclose research firm iSuppli Corp., Apple is able to profit, of every product it sells because it provides value-added jelly. iSuppli explained, Apple could get a profit of about 50 percent of the price of products like the iPhone. iSuppli rate, the profit is enormous because of Apple’s competitors averaged only able to earn a profit and 20 percent of iPhone products classmates.

Based on the findings of iSuppli, Apple is actually using hardware components of the middle class in developing its products. However, Apple was able to sell these products at high prices because Apple presents an attractive design and architecture as well as functional. iSuppli rate, the composition of the iPhone really is not much different than 1.1 billion units of other phones that were sold in the world in 2009, the mobile chip, memory chips and power amplifiers. However, Apple’s iPhone to be special because it is able to present a balanced combination between ease of operation, convenience of use, and diversity of content.

“With the launch of the iPhone 4, Apple is increasingly asserted his expertise in building value-added hardware. As the products of other Apple, iPhone 4 is a very profitable product for Apple,” said Principal Analyst Wireless Research firm iSuppli Corp., Steve Mather.

Because of highly profitable products, iSuppli confirms, not surprisingly, Apple now has a capitalization of approximately USD234 billion, the alias is far greater than Microsoft Corp., which is only about USD219 billion. More than that, iSuppli reveals, Apple also has a cash capital of about USD 23 billion.

With that much cash capital, iSuppli reveals, Apple has become increasingly dominant in the consumer electronics market and information technology. If Apple intends, confirms iSuppli, Apple could buy half the shares actually NokiaCorp, or all shares of Motorola Inc., to control the companies, if Apple feels threatened.

“In the stock market, the value of Apple is currently the only defeat of Exxon Mobil Corp.. In fact, Exxon is the oil and gas companies. So, Apple’s products currently have a role almost as important as the oil and gas,” said Mather.

iSuppli added, another very profitable product for Apple is the iPad, especially iPad 3G 32 GB of memory capacity. Of all the family members iPad, 3G 32 GB iPad iPad regarded as middle class. iSuppli explains, 3G 32 GB iPad iPad is a variant of the most profitable for Apple because the product is promising the biggest profit margins. Apple 32 GB 3G market iPad USD729 per unit price. However, iSuppli found that the material cost of 3G 32 GB iPad was only USD275, 95.

“If all the additional costs coupled with the cost of materials, iPad 3G 32 GB iPad remains a variant of the most profitable for Apple,” said Senior Director & Principal Analyst, iSuppli Corp. Jagdish Rebello. In addition to its smartness in giving added value to each of its products, Apple is also able to dredge a big advantage because Apple has a good marketing strategy.
iSuppli provides examples of iPhone cases. In the smartphone market, Apple was only relying on the iPhone and Apple also just released a new variants of the iPhone on every year. New variants of the iPhone is targeted on high-end customers because of high priced. With new iPhone, Apple could take a big enough profit. But when the latest iPhone stormed the market, Apple does not stop production of the previous generation iPhone. Therefore, Apple is still selling the old iPhone, but at a price far cheaper than the latest generation iPhone. With the old iPhone, Apple is able to serve the middle-class consumers, as well as to increase the share in the global smartphone market.

Despite the massive Apple cut the price of the old iPhone, iSuppli asserted, Apple have nothing to lose because the price component of the old iPhone was already down sharply, compared to the price at the time Apple released the first iPhone.

“Apple’s strategy is unique as well as powerful. With only two models of the iPhone on the market each year, namely the latest iPhone and iPhone generation before, Apple is able to embrace more and more customers while maintaining profitability,” said Mather. Apple’s strategy began to be imitated by competitors.

One is the world’s largest smartphone manufacturer Nokia. In order to encourage growth, cut half of the Nokia smartphone range of options which it markets in 2010. MKM Partners LLC analyst Pablo Perez-Fernandez rate, simplicity is always the best strategy.

“Options smartphone Nokia too many and all have nearly the same appearance and function. This causes consumer confusion and leave their product,” said Perez-Fernandez.