Cash Cows

16 10 2017

Levi’s, Burger, iPhone
One hell of a profit margin?

The simple answer is YES.

If you want to calculate the profit margin for an iPhone you have to be a professional and even then, if you aren’t working for Apple in this business area, you’re faced with a lack in lots of relevant details.

What do you need for expense budgeting?

Apple’s SEC filings
Leaked manufacturing costs
Leaked prime costs of components

Most of the two latter data have to be retrieved from Chinese companies. That’s not only difficult to read for us but also to understand what’s included and why it could be reliable information. If you ever lived in an Asian country like me you know that “Think different” applies to businesses.

So you only can calculate an estimated profit per device. These factors (and some more) have to be taken into account:

  1. Taxes
  2. Licensing fees
  3. Production costs
  4. Manufacturing costs
  5. Operating expenses
  6. Wholesale to retail markup
  7. Research & Development costs
  8. Selling, general, administrative costs

#8 is a really heavy calculation and can’t even exactly be done by Apple’s employees. It includes everything from paying the electric bill, shipping and storage, additional costs along the supply chain, Tim Cook’s salary and that of all others, and, and, and.

After doing the math …

Roughly half, or more, of every iPhone sale is profit.

The numbers which lead to this result aren’t air tight. Apple makes far more profit than any other phone manufacturer, but 50 percent isn’t unheard-of for a highly successful company which also brings a lot of jobs directly and indirectly bound to the product.

The Gross Profit Margin (= (Sales – Cost of Goods Sold)/Sales) tells us the profit a company makes on its cost of sales, or cost of goods sold. In other words, it indicates how efficiently management uses labor and supplies in the production process.

Here are the GPMs of some companies playing in the same league as Apple:

  • Nike 43 %
  • Porsche 50 % (btw the only automaker)
  • Levi’s Jeans 52 %
  • Burger King 56 %
  • McDonald’s 40 %

Tesla, the company of Elon Musk (known for his failure to file for insolvency in due time) makes 17 % and is within the a range of 10-20 % typical for US industries (Source Sageworks).

We’re overpaying for more than just iPhones these days.

So if you complain about Apple
be consequent and stop eating burgers.

Oh, I forgot. That caps it all. Wireless carriers make as much as 10,000 % profit with the rates they charge for SMS plans.

Enjoy your burger
while texting with your iPhone
via your provider’s cellular equipment.
Take care when riding your Porsche back home.

Source digitaltrends

Thanks for visiting iNotes4You.

Apple’s FILES app

12 10 2017

another premature delivery
ridiculous, half-baked, and bug-ridden

Apple’s new app FILES came with iOS 11. It shows that some developers should better look for other jobs.

• Create a folder within FILES using a BOX. You aren’t able to delete it. Try to create a folder on your Microsoft OneDrive or Dropbox account. It’s not possible. Try to create a link to share a file or folder. It’s not possible. Try to move a file from eg Google Drive to OneDrive. It’s not possible. Try to rename a file on Dropbox, Box, OneDrive, or any other cloud storage. It’s not possible. Try to create different WebDAV connections. It’s not possible.

• FILES give users abso-fucking-lutely ridiculous connections between apps and files.

Look at my example. The file band_5.js appears under “Files“ in the Notification Center. It represents a part of encrypted information created by the password manager 1Password. Tapping on this entry opens the encrypted file with Apple’s iWork app PAGES. Insanely.

Dear Apple developers.

Is this your first approach to Artificial Intelligence or Machine Learning?

For me who developed applications for more than 30 years I can only say …

That’s enough to make me puke.

Please don’t try to connect objects which shouldn’t be connected. Just give us a powerful classic file manager. If you aren’t able to do this easy task we already came with Windows decades ago try to acquire Stratospheric, the company which developed an awesome app called FileBrowser. They are light years ahead of your embryonic FILES app.


Hey, Tim Cook, are you sure about your employees responsible for iOS development? I see a huge gap between your potential of developing finished software and your cash reserve. So much money but still an embryonic file management (and the sheer impossibility to release a flawlessly performing iOS update).


I know what the reason for this system behavior is but I also know that not everything should be done what’s possible.

Thanks for 💧ping by.


10 10 2017

A moderate gale is over.
Now Tim and Luca are waiting for the numbers.

People love visual content because the human being is built to absorb such kind of information.

So here is my concept map about iOS Updates for the iPhone including this year’s new hard- and software, a very special year, the 10th anniversary of Steve’s masterpiece.

The oldest model on which iOS 11 can be installed is the world’s first 64-Bit smartphone, the iPhone 5s, manufactured by Foxconn and first released on September 20, 2013. Apple wasn’t the first company using a biometric identification system but the 5s was the first smartphone with a perfectly functioning approach, the fingerprint scanner. Benchmark tests show us that it’s running smooth with iOS 11. So it still can be a powerful primary or backup device after upgrading to a newer model.

Again many people will and are already do repeat their yearly reproaches that Apple just delivered technology already implemented in the devices of its rivals.

What can we learn from history?

Well, everything has it’s preceding ideas.

Would Einstein’s Theory of Relativity be possible without Newton’s Laws?

Edison and Swan were the two most successful at combining the necessary technologies and engineering techniques to build a light bulb (electricity and the knowledge of how to economically create vacuums).

There is no need to talk about COPYING. Success comes up when intelligence combines the right things at the right time in a sexy apparel with high durability and a perfect user experience. This alone is already a technological achievement and innovation crowds of people today derive benefits from.

Regarding Apple’s success the most important thing Steve Jobs overtook from Alan Kay (one of the key scientists behind the graphical user interface and the object-oriented programming) was the belief

People who are really serious about software should make their own hardware.

Jobs made it to the core principle of Apple.

The company’s chip design regularly shows us that “less can be more”. Also with it comes less fragmentation (admittedly not relevant for people getting a new device every year) but it’s tough on developers keeping their code best performing on thousands of different configurations.

Less fragmentation could be useful, but …

A major opportunity to reduce the total environmental and social impacts caused during raw materials extraction and manufacturing of smartphones and tablets is to use the devices as long as possible. Nevertheless, it is observed that smartphones and tablets are often used for no longer than 3 years. In many cases, the reason for early replacement of smartphones and tablets is not attributed to a defect. A large number of these products are replaced even though they are still functional – psychological obsolescence. Short innovation cycles, aggressive advertising, tariff models of service providers, Apple’s trade-in offers, and of course thoughtless users are the sources for increasing environmental damages.

Use it up, wear it out,
make it do, or do without.

A saying which seems to be not worth thinking about in our times.

Want to know why the iPhone is special?

Just look at the 2013

iPhone 5s

Thanks for 💧ping by.

Hey, Martin Cooper is calling!

1 10 2017

Martin Cooper of Motorola made the first publicized handheld mobile phone call on a prototype DynaTAC on April 4, 1973.

Some specs

of “the Bone” compared with the iPhone X …

  • Features Making calls (Sending Animoji, etc)
  • Full charge 10h (2h)
  • Talk time 0.5h (21h)
  • Weight 790g (174g)
  • Height 250mm (144mm)
  • Memory 30 phone numbers (a lot more)
  • Display LED (OLED)
  • Price $3,995 in 1984 (equals $9,383 in 2017)
  • Risk falls on a floor, floor breaks (falls on the floor, screen breaks)

So the iPhone X is $8,384 cheaper than “The Bone”.

Ready for your order? Or any further questions?

Just call Martin Cooper

or Craig (@HairForceOne) Federighi.


Do you know that Apple’s first “iPhone” wax the “iTunes Phone” (the ROKR E1) built by Motorola?

Here’s Steve Jobs presenting it in 2005 …

Thanks for reading.

Watts Up

27 09 2017

Power to your iThing

🚽 WC is the traditional water closet

But talking about this would be off-topic.

Lets talk about *W* ireless *C* harging that means bringing Watts up to your iThing after laying it down on a little machine which functional principle was already born about 150 years ago.

Without the groundbreaking publication of “A Dynamical Theory of the Electromagnetic Field” in 1865, by Scottish J.C. Maxwell wireless charging wouldn’t be possible. So much for the copycat discussion and the simple fact that everything has its preceding ideas.

Again Apple isn’t the first offering WC but after listed as one of the 213 members of the Wireless Power Consortium they now want *to make the things better than they are*. And they will do it again. Others will follow.

How WC works …

ction chargers use an induction coil. An alternating current creates an alternating electromagnetic field around the coil. A second induction coil in the iPhone takes energy from the electromagnetic field and converts it back from alternating to direct electric current to charge the Li-Ion battery.

The source field must cover the receiving coil which results in a short range of energy transfer. So iPhone and charger must be in close contact without any metallic objects between them (they would be a shielding for the electromagnetic field) except an additional case for the iPhone (Leather or Silicone). A metal plate, sometimes used for magnetic car mounts, may already be obstructive.

Over greater distances this method is highly inefficient and wastes the vast majority of the energy put into the transmitting coil. Greater distances between sender and receiver coils can be achieved when the inductive charging system uses *resonant inductive coupling*.

Think of it like this …

A tuning fork can cause another to vibrate when both are tuned to the same pitch. Using the resonance phenomenon energy transfer can drastically be increased and wouldn’t require a close contact between charger and iPhone.

xcited to see what’s coming next after Apple will massively engage in the WPC. AirPower is just the beginning.

Thanks for taking your time.

How Apple works

25 09 2017

In a fascinating interview with Calcalist radio, the largest economic newspaper in Israel, Horace Dediu gave us a scintillating insight into how Apple works. Horace Dediu is a well-respected analyst who knows a thing or two about Apple.

“Apple cannot possibly be perceived as normal or average, but is analyzed as such. This is a company that breaks all categories, as based on the growth front and on the value or dynamic versus static. It just works differently. ”

Dediu posits that Apple uses the same strategy as an army.

“You have to look at Apple as adopted by the pattern of military activity. The army has no obligation to produce profits, but it has a deep commitment to achieving goals. Everyone focused and training for a specific task, and then another mission.”

No obligation to produce profits?

Maybe this is valid for Elon Musk’s company TESLA. But it’s not valid for Apple. During Steve Jobs’ time as CEO it was Tim Cook who optimized the supply chain and so laid the foundation for Apple’s growth. On the other hand Tim has strong beliefs manifested in a statement he made in 2014:

“If you only want me to make things, make decisions that have a clear ROI, then you should get out of the stock.”

So both is possible, strong beliefs and success. It can be summarized as follows:

Everything needs some custom artwork. Top designed products increase desirability and desirability always goes along with profitability.

Thanks for dropping by.

From Bad to Worse

22 09 2017

Apple’s app FILES not worth to use it

Add third-party apps to let FILES access my cloud providers? What a strange idea. I can’t define access to cloud storages or computers by entering my credentials. Also not supported is WebDAV.


In 1995, Microsoft first released „NewShell“ which replaced the Windows 3 file manager with Windows Explorer. Believe me, this early version of Windows Explorer was better than Apple’s app FILES in 2017.

I use the apps Documents, File Browser, and File Explorer and they all do their job much better than Apple’s embryonic FILES app. Again I see a totally unfinished product.

Although file management was always a problem in iOS because it generates a crazy amount of redundant files when using the ‚Open in‘ command, nothing changed with iOS 11. Do we have to wait another decade?

I still can’t access files in the DOCUMENTS directory of other apps or, as an alternative, in a publicly available directory.

File management in FILES is driving me crazy. Lots of missing features and lots of bugs. Have a look at my image. No chance to remove this folder which caused an error during the creation process.

Apple tells us about its iOS file system

Every app is an island.

During installation of a new app, the installer code creates a home directory for the app, places the app in that directory ( /AppName .app) and creates several other key directories. These directories constitute *the app’s primary view of the file system and represents the universe for that app*. It contains everything the app can access directly. The problem is that there is no directory which could be shared with other apps.

More about
a secure but not user-friendly file system

Every app is an iLand

Apple Support: Files

Thanks for 💧ping by.

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