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Oct 28By smarthomer

How do major technology corporations make their profits?

After Apple announced its iPhone 5 phone and after that Amazon announced its Kindle Fire HD tablet, the two ads showed how profitable companies ’models differ regarding equipment and devices and how their strategies differ in the markets they seek to.

A glimpse of each company

Apple is mainly a company, hardware, devices, and for three contracts of its history. The company chose the best equipment and the application of a completely compatible operating system with it.Looking at all Apple devices, starting from the Mac and the iPod operators, then the iPhone and the iPad, it appears clear that Apple reaps its returns from selling these devices in the first place..

In comparison, Amazon is a service company, and since its launch it was taking a mediator position by providing the best purchase experience for consumers to sell them more goods provided by other suppliers through the Amazon store.

Whether the materials sold via Amazon, DVDs, music or films, the source of Amazon returns comes from linking sellers to consumers through their platform.While it had a long history in the field of charging real physical goods, it has become the most popular destination for e -books and the second largest source of digital music.

The other big player on the scene is the Google of the company coming from a background in advertisements, as it sees the world with the eyes of ads.On its early days, the company achieved a wealth than providing more effective and efficient ways for companies and people to target the appropriate consumers for ads..Every new service launched by Google focuses on expanding its ads, even when it sponsored and launched the Android system, it was a step to collect information about millions of users and provide it to companies for use as targeting standards in their ads.

The last player is Microsoft, which has long been a software company since its birth at the hands of Bill Gates, where he worked hard to declare the idea of buying software and operating systems to this day.

The essence of Microsoft is the idea of providing useful software that can operate the user device, whether it is a computer, phone or otherwise, and in order to benefit from this matter you have to pay a specific financial fee, and this is the reason that made it difficult for Microsoft to merge itself with the Internet in its beginnings because the applications areOn the web was free.

Apple: profit from the devices

For Apple, all the company's efforts revolve to achieve most of its income by selling devices to users, as it sells a smartphone in a unique design at a high price.It is wrong to assume that this price is only the important part of Apple's return.

Apple always looks at the future and pumps a lot of money regarding the development of equipment, as it enters into long -term partnerships with the suppliers to ensure that it gets the pieces of its devices at the lowest costs on the company to maintain the margin of its high profitIt looks through approval to request large quantities of the pieces that you need in exchange for obtaining a large discount on the price of each piece.

Looking at the software aspect, there are two important elements for the company's returns, which are iTunes and the application store, and Apple is working hard to keep the prices of applications and content as much as possible because consumers who paid large sums in buying the device cannot bear higher prices for applications compared to other systems whose devices are cheaper and their applications are cheaper.

Ultimately, Apple's main source.

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Microsoft: Software is the foundation

Microsoft's ambition during the past years was to provide a system that any company can adopt so that its operating system is, and this model that has always succeeded in the personal computers and which brought it to control and the leadership of the operating systems market, but this model did not succeed to apply the same to the phone marketSmart.

Microsoft noticed that its future requires investing a lot of money in research and software development, which the company can provide advanced new benefits that benefit from the great capabilities of the development of equipment.

In any case, the software started to move gradually to the web, and many of the potential for desktop software are available through web browsers..Here, a problem appeared in front of Microsoft, which is the adaptation to the idea that the software prices fall significantly and that it has become not possible to go towards software and paid applications.

If it is necessary, the possible model today in front of Microsoft is the payment by subscriptions, and the rest of the software companies, then they suffer from adapting to the new models that see returns as more dynamic elements.

But the company is still looking at its future as a software provider. Today, it sells the Windows Phone system to manufacturers who will merge the system with their devices.Microsoft's competitive advantage is cohesion in experience and dealing with various manufacturers, which is the same cohesion that it dealt with with Windows for personal computers, which helped the company to keep its customers to the operating system even when they changed their devices.

But in order to be able to sell the system, the company must guarantee that it is able to find subscribers and in a world where there are free alternatives and an approximate level of what Microsoft offers offers.For this reason, Microsoft has gone into the prosecution of companies that manufacture Android devices, hoping that you will get some returns through issues related to patents..

Can Microsoft survive by selling operating systems and software?Perhaps you will not do, so you allied with Nokia in the hope of the future that it will take it and become a company and devices like Apple

BlackBerry hesitant

Looking at the Canadian BlackBerry company manufacturer for BlackBerry phones, it is not known in any way that goes on, as the company mainly sells smartphones, but most of the creativity and the company distinguish is on the software side and the operating system.

As a result, it seems that the company cannot resolve its order, whether it wants to be a hardware company, devices or a software company.This is a dangerous position for other companies that they are trying to keep as a competitor, and the important decision against BlackBerry today is how do you want to make profit?

Google: The ads are the basis

When Google entered the world of smartphones, it started to provide a free phones operating system and made it open source.This seemed to withdraw the rug from under Microsoft and its control in the world of personal computers by providing an alternative in the field of smartphones, which could gain Google a competitive advantage.It is a point that is calculated in favor of Iman Google that the smartphone will replace personal computers and try to become the dominant force in this field.

As for Google, this operating system provides it means that it can collect more data and therefore it can be used in an advertisement.

With more Android phones, Google hopes to get more opportunities to generate returns through ads, whether they are coupons, direct visual ads or ads within applications.

Amazon: Buy from us

But Google is now weakened by a company that uses its Android operating system, which is Amazon with its Kindle Fire tablet, which will provide consumers an experience of access to the stores at the store at cheap prices and it is an opportunity for sellers as well, and the Amazon goal here is very clear and I sometimes declared it even if it is implicit, it is when it sellsServices and equipment such as Kindle Fire, so you do not want to achieve any profit at all, not in terms of equipment, applications, software, or even ads..

Amazon's goal is to bring more users and buyers to its services and store and thus sell more quantities from them, as Amazon is looking for a way to ensure the continued use of buyers to the Amazon platform as their first electronic market and buy everything they need through it, and for this reason free temptations such as re -electronic books comeFree, free shipping, free broadcast services, and others.

فلو كنت تبحث عن كتاب إلكتروني لماذا ستتجه إلى المنافس الشرس Barnes & Noble في حين يمكن أن تستعيره مجاناً من أمازون؟ وإذا أردت سماع الموسيقا على سحابة أمازون مجاناً فإنك لن تفكر نفسك بأن تشغل الآيتونز.

In the end, Amazon's main role in the mobile devices sector is to ensure that customers remain and sell them all the products they need through the store.

Other ways of success

By reviewing all these principles of work for different companies, it appears clear to us that success in making equipment and devices is in several different ways, yes Apple has the greater profit margin, and Android is spreading amazingly, but in the end it does not mean the success of a company by applying its method of work will guaranteeThe effectiveness of the same method for another company if it wanted to imitate it.

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