SI: Sony Ericsson Mobile Communications Looking to Mirror Apple Profit Model

[Christopher]

Hiroaki Kobayashi, marketing director of Sony Ericsson Mobile Communications AB is looking to generate revenue by mirroring Apple’s profit model.

Hiroaki Kobayashi recently spoke at the 2010 Android Bazaar and Conference in Tokyo. Of the many things he discussed, was the Apple business model and how their profit ratio is at times as high as 23%. The reasoning for this is that Apple focuses their model on three core areas of revenue:the market for applications software, the iPhone itself, and third party accessories.

Apple Source of Income

He mentioned further that it is well known in the applications market, that developers are required to pay 30% of sales amounts to Apple as a commission. An example of this is the spaced repetition system application Anki. The developer charges $24.99 for the application, however Apple gives him $17.50 in revenue.

Kobayashi-san also pointed out something interesting surrounding the iPhone itself:

Considering that the iPhone is sold at US$199, mobile service providers are bearing a burden of about US$400

The third party application arena