Ensquared the #1 authority on cell phone insurance, Droid insurance and iPhone insurance brings you simply astounding statistics reflecting the most lopsided market event you will probably find anywhere this century, in any business you choose to analyze. It is this. Only ONE of the around THIRTY THREE cell phone suppliers 3% in numerical weighting to be exact, accounting for a relatively small 4% of physical devices shipped to customers universally in 2010, captured HALF thats 50% - of the cell phone $/Euro/every other currency TOTAL PROFITS earned on Earth in 2010. Put another way, 97% of suppliers in the cell phone business selling a non-extraordinary, expected 96% of total devices world-wide in 2010 shared the rest of the Total Profits between them the other 50%. Of course this relative dwarf of unit sales with super-human profit power is none other than Apple with its iPhone, reducing the collective sales cell phone juggernaut made up of Samsung, LG, Motorola, RIM, HTC and Nokia and all others in this business to an insignificant collective wimp in bottom line terms
See below the two pie charts just issued by asymco.com: the top one shows relative Unit Sales and the bottom one relative share of bottom line profits from unit sales
Source: Asymco
How will the Apple competitors deal with this seismic dilemma? Can they in fact become players again? Can they ever get control of an industry where one entity is telling the whole mob all the rest how to design their devices, what to put in them, how to use them and what they should look like. Not likely that this will happen anytime soon as the juggernaut is literally reeling; where each supplier in that juggernaut is trying its best to survive by cannibalizing the other profit-poor cousins on what can be analogized as the cell phone Titanic, in treacherous seas, trying to navigate ice bergs, while a single passenger and captain (Apple) sails smoothly on its relatively small streamlined yacht in smooth waters.
Question is this: how does this impact the phone insurance business? Well one thing that sticks is that proportionately more iPhone owners insure their devices than any other much higher than 4%; closer to the 50%, although this really has no correlation to a profitability breakdown. Explanation as we see it: They value them more; fear losing them more; having them stolen or damaged more. Ensquared phone insurance covers of course any unit from iPhones to Droids to standard cells - irrespective of device and certainly not by profit considerations. However, strangely our business shows that iPhone users covet their devices immeasurably more than any other brand. The degree of phone insurance attached to iPhones in the overall market is proportionally far greater than the 4% of total sales they represent, thus bearing this out. Profitability and valuing ownership are way out of proportion very interesting statistics.
See below the two pie charts just issued by asymco.com: the top one shows relative Unit Sales and the bottom one relative share of bottom line profits from unit sales
Source: Asymco
How will the Apple competitors deal with this seismic dilemma? Can they in fact become players again? Can they ever get control of an industry where one entity is telling the whole mob all the rest how to design their devices, what to put in them, how to use them and what they should look like. Not likely that this will happen anytime soon as the juggernaut is literally reeling; where each supplier in that juggernaut is trying its best to survive by cannibalizing the other profit-poor cousins on what can be analogized as the cell phone Titanic, in treacherous seas, trying to navigate ice bergs, while a single passenger and captain (Apple) sails smoothly on its relatively small streamlined yacht in smooth waters.
Question is this: how does this impact the phone insurance business? Well one thing that sticks is that proportionately more iPhone owners insure their devices than any other much higher than 4%; closer to the 50%, although this really has no correlation to a profitability breakdown. Explanation as we see it: They value them more; fear losing them more; having them stolen or damaged more. Ensquared phone insurance covers of course any unit from iPhones to Droids to standard cells - irrespective of device and certainly not by profit considerations. However, strangely our business shows that iPhone users covet their devices immeasurably more than any other brand. The degree of phone insurance attached to iPhones in the overall market is proportionally far greater than the 4% of total sales they represent, thus bearing this out. Profitability and valuing ownership are way out of proportion very interesting statistics.
