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Apple makes $500m per quarter from Ipad covers

Manufacturers shouldn't focus on hardware, says analyst
Tue May 29 2012, 11:10

MAKER OF SHINY TOYS Apple makes $500m (£319m) each quarter from its Ipad covers, as the company moves away from focusing on hardware.

That's according to Richard Kramer, managing director of Arete Research. Speaking at the Open Mobile Summit in London, Kramer said, "Apple is one of the first manufacturers to move its focus away from mobile hardware, as seen with the Ipad Smart Cover."

"The majority of Ipad users own one of these flexible accessories, which brings Apple in a $500m fortune each quarter," he added.

Kramer went on to say that this shift from look-a-like "black slab" hardware will help companies like LG, Sony and Motorola, which all saw a decline in revenues last year, to establish themselves within the mobile market.

"There's a huge problem with differentiation for mobile device vendors, and it's a growing concern", he said. "To us smartphones may all look different, but to the average consumer they all look like 'fat black slabs'. The end of this 'black slab' trend looks set to [happen] in 2013."

Kramer warned that if device makers choose to ignore this, companies' sales shortfalls are destined to get worse throughout the next year. µ

 

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