17 posts tagged Market
Great piece. In a few words. Android users are given phones to replace their old feature phone but keep using them as feature phone. To Apple, these users aren’t worth to get so they don’t feel the need to go low end with their product lines.
Great comment from The Loop on Apple’s strategy. Many so called analysts just think of Apple as just another company which obviously is not the case. These analysts had three recent examples demonstrating how Apple operates: the iPod, the iPhone and the iPad. These products entered an existing market. Apple entered them because they thought they could change the game which they did. The tricky part is when Apple is in the market that is maturing, what should be done next? This is where the so-called analysts enter with their “make low priced versions gadgets to keep market share” theory. This is not how Apple operates.
People are actually switching to the iPhone. Don’t believe the
hype numbers about market share of Android. They don’t tell the whole story.
There is and less to take away from others in the market share. Only 7% left to others. A real duopoly. The next few months and years will be a battle between Apple’s iOS and Google’s Android…. Samsung.
This means that the financial value of a cheaper iPhone cannot be considered in isolation. A large part of its purpose is to defend sales of the high-end model.
Brilliant analysis of the low-end iPhone “raison d’être”.
Market saturation at the high end is the culprit for the apparent lack of interest for the iPhone 5 (only 50% of all iPhone sales). Older iPhones take the rest of the sales. I suspect Apple to be working to replace the iPhone 4 and iPhone 4S with higher spec devices that are more appealing and much cheaper to build. They will greatly improve Apple’s margins too.
I think iOS 7 new colors coupled with new and colored low end iPhones will be a hit this fall.
John Kirk for Techpinions: >Not only do the high priests of market share have it wrong, they have it exactly backwards. The company with the lower market share and the higher profits has all of the leverage. The goal is to INCREASE, not decrease, the ratio of profits to market share. Increasing market share at the cost of profits is a recipe for disaster, not a formula for success. >Apple may or may not do well in the future but right now, and contrary to popular belief, they are winning the smartphone wars and winning them handily. John’s analysis is correct, in my opinion, with regard to Android device manufacturers. However, he is missing the point of Android. In fact, he doesn’t mention Google even once (other than in a quote from ReadWrite). You need to consider all of the players before you can declare a winner of the game. Google created Android as a defensive measure. It needed to be sure that a single company, such as Apple, did not gain control of the entire mobile market. If that were to happen, the possibility of Google’s services being shut out of the market loomed. Clearly, Google’s doomsday scenario never happened and likely never will. In this way, Android has won, and has performed better than Google ever imagined. Android is a huge win for Google. It’s true that most Android device makers have little to no profit. But it’s Android’s large market share that is the winner for Google. The more Android devices being used, the more Google services with Google ads are being used. People often forget that Google and Apple are playing the same game with different goals in mind. Apple strives to maximize profitability in hardware sales. Google, on the other hand, is striving for maximum market share, providing the most users for its services. This is a rare, if not unique, war where both Apple and Google can win, and that seems to be very confusing to people.
In order to succeed, Google as to sell as many device it can so it can continue gathering data about its users. For Apple to succeed, they must build the best products they can and put them in as many hand it can at the best profit it can. Two different goals. Two different stories.
So people keep buying older and cheaper iPhone models and some think it is a bad thing for Apple’s bottom line. Let’s hope these guys aren’t the same who ask Apple to do a cheaper iPhone. Remember, the iPhone 4 is currently selling for 0$ on contract.
I explain the market share of Androïd by the systematic dumping of Androïd devices by mobile operators. How? They give (literally) smartphones to people who just don’t care about apps and mobile surfing. Many of them just want to place calls or send text messages. This explain why Androïd users seem to be less engaged, why profits aren’t there and why the vast majority of developers just go iOS first.