Can Android Erode iPhone's Profit Share?

[BoxerGT2.5]

Apple can continue to make money because they have a base who keeps buying up everything they offer at a premium price, even if what they own is only 12mos old, when they're told it's better, they go out and spend more money. I recently read a interview Woz gave and he made the same point. Apple isn't innovating right now, they're getting passed up in that department, which is the same mistake Apple made in the 90's. Just keep offering similar but evolving products their current users will buy yearly at a premium and live off that cash cow.

[nuckinfutz]

Originally Posted by BoxerGT2.5

Apple can continue to make money because they have a base who keeps buying up everything they offer at a premium price, even if what they own is only 12mos old, when they're told it's better, they go out and spend more money. I recently read a interview Woz gave and he made the same point. Apple isn't innovating right now, they're getting passed up in that department, which is the same mistake Apple made in the 90's. Just keep offering similar but evolving products their current users will buy yearly at a premium and live off that cash cow.

Woz hasn't been relevant in years. A billion in the bank and he's laughingstock whether he realizes it or not.

People continue to buy Apple products because:

They don't want to go back to the crap that was Windows complete with malware and virus.

They "tried" the Android thing and found it was a lot like that crappy Windows. Chatted with a guy that was after having his Android phone replaced twice finally was buying a 4S. He said the VZW rep tried to sell him yet another Android phone. smh

People are realizing that all that glitters is not gold. Their still lining up for iPhone 5 6 weeks later. Should tell you all you need to know.

[dalbir4444]

Originally Posted by nuckinfutz

Woz hasn't been relevant in years. A billion in the bank and he's laughingstock whether he realizes it or not.

People continue to buy Apple products because:

They don't want to go back to the crap that was Windows complete with malware and virus.

They "tried" the Android thing and found it was a lot like that crappy Windows. Chatted with a guy that was after having his Android phone replaced twice finally was buying a 4S. He said the VZW rep tried to sell him yet another Android phone. smh

People are realizing that all that glitters is not gold. Their still lining up for iPhone 5 6 weeks later. Should tell you all you need to know.

If Android phones and Windows machines were as bad as you say, then they wouldn't have such a high market share. Before you bring up the marketshare vs profit argument, realize that Samsung phones are very strong competitors to the iPhone. And please don't bring up the sales vs shipped argument.

Truth be told, you are the type of customer that any company would love to have. Discard the competition, no matter how good it is. Also, please stop spreading FUD.

[Switchback666]

You should state they lineup in the states

[BoxerGT2.5]

Originally Posted by nuckinfutz

Woz hasn't been relevant in years. A billion in the bank and he's laughingstock whether he realizes it or not.

People continue to buy Apple products because:

They don't want to go back to the crap that was Windows complete with malware and virus.

They "tried" the Android thing and found it was a lot like that crappy Windows. Chatted with a guy that was after having his Android phone replaced twice finally was buying a 4S. He said the VZW rep tried to sell him yet another Android phone. smh

People are realizing that all that glitters is not gold. Their still lining up for iPhone 5 6 weeks later. Should tell you all you need to know.

I'll value the word of a guy with more knowledge then you and I combined who's not biased. I would also argue there are plenty of iPhone users who have had their phones replaced numerous times just the same for various reasons.

But who is lining up for iPhone's? Current 4 and 4s users or new adopters? I would wager 90% of them are current iPhone users, hence the issue with market share.

[nuckinfutz]

Originally Posted by BoxerGT2.5

I'll value the word of a guy with more knowledge then you and I combined who's not biased. I would also argue there are plenty of iPhone users who have had their phones replaced numerous times just the same for various reasons.

But who is lining up for iPhone's? Current 4 and 4s users or new adopters? I would wager 90% of them are current iPhone users, hence the issue with market share.

You'd wager wrong and do good to think for yourself rather than accept the words of a man with TBI.

Seeing as how the iPhone 5 is the best launch ever for an iPhone I'm guessing they're pulling in new users and keeping a high retention rate.

[Switchback666]

Sure every new iphone is the best launch ever.....

[nuckinfutz]

Originally Posted by Switchback666

Sure every new iphone is the best launch ever.....

That would denote improving sales. Marketshare is misleading because Androids largest part of their market is in crappy phones being sold cheaply or given away. People act like Android's market is comprised of Galaxy S3 and Droid DNA class phones. Sorry that's not the case.

Even a 2 year old iPhone 4 is better than most of the Android junk being given away as "free" phones.

[Switchback666]

Im not interested in sales, android vs iphone etc for the rest of the day mate regarding the free phones where i am carriers only offer the "good" androids and nobody complaints, iphones around too but theres no line, midnight launch or hundreds looking for the phone.

Again the hype is mostly in the states regarding iphones, best apple product imo is the ipad and i can tell you they love that thing everywhere i know i love my ipad 2.

[dalbir4444]

Originally Posted by nuckinfutz

You'd wager wrong and do good to think for yourself rather than accept the words of a man with TBI.

Well said. Don't listen to this guy.

[ChazUK]

What do people have against "free" subsidised handsets?

Do you people really like paying more, or is it advantageous to use it as a quick jibe?

[michaeljohn]

Originally Posted by ChazUK

What do people have against "free" subsidised handsets?

They are garbage Android phones. If you will notice, the vast majority of people who have tried Android and had nothing but problems are people who buy the cheap or free Android phones that suck. The only great Android phones are the flagship devices. The Galaxy S3/Note, the HTC One X/S, Motorola Droid Razr HD...the other 70 or so android phones are for the most part garbage.

[ChazUK]

Originally Posted by michaeljohn

They are garbage Android phones. If you will notice, the vast majority of people who have tried Android and had nothing but problems are people who buy the cheap or free Android phones that suck. The only great Android phones are the flagship devices. The Galaxy S3/Note, the HTC One X/S, Motorola Droid Razr HD...the other 70 or so android phones are for the most part garbage.

Tell me more about the microwaves Michael.

[dalbir4444]

Originally Posted by michaeljohn

They are garbage Android phones. If you will notice, the vast majority of people who have tried Android and had nothing but problems are people who buy the cheap or free Android phones that suck. The only great Android phones are the flagship devices. The Galaxy S3/Note, the HTC One X/S, Motorola Droid Razr HD...the other 70 or so android phones are for the most part garbage.

Does that include you?

[ChazUK]

Originally Posted by dalbir4444

Does that include you?

No. He bought the good ones that suck.

[michaeljohn]

Originally Posted by dalbir4444

Does that include you?

Not really. I have owned the HTC Hero, HTC Evo and Evo 3D, HTC Sensation, Samsung Nexus S 4G, Motorola Razr Maxx, Samsung Galaxy Note and the Galaxy S3. All pretty good phones other than the Nexus S.

[ChazUK]

Originally Posted by michaeljohn

Not really. I have owned the HTC Hero, HTC Evo and Evo 3D, HTC Sensation, Samsung Nexus S 4G, Motorola Razr Maxx, Samsung Galaxy Note and the Galaxy S3. All pretty good phones other than the Nexus S.

Last time I promise, are you going to back up your appliances claim?

I'm off to sleep now so hopefully I'll have a surprise waiting for me when I get up.

Good night all!

[paolo-]

Not sure what you mean by market share and profit share. It seems a bit confusing...

Look back 5 years, smartphones were blackberries, treo etc. The iPhone came along and it people actually wanted it so it took over the market. But you need to remember that they dominated the smart phone market, not the whole mobile phone market. Now, 5 years later, you practically can't get mobile phone that's not classified as a "smartphone".

Bottom line, practically all of the mobile industry is now classified in this smartphone braket so their market share lowers. But Apple's market share isn't the whole smartphone market, they only care about the high-end stuff. They'll sell you one of their old iPhone model but that's not really their gig. They only care about the high end stuff because that's where the money's at.

They get the customers that don't mind the higher profit margin but expect innovation, they get the customers that will actually spend money in the App store, they get the customers that change their phone every two years and it's much easier to market the best. Lastly, the competition is done over desirability and innovation rather than on how cheap they can ship.

So if you look at what Apple sets out to do, sell expensive phones, their winning. Other than lately the Nexus 4 (which I have doubts about the profits it generates to LG and Google), I don't see much competitors with traction.

I think the competition in both the mobile and computer market is way off. In the mobile market all I see are ugly plastic phones with ugly not useable UI. In the computer market, most of what were seeing are copycat product stuck on Windows.

ps: I'm switching from an iPhone to a Nexus 4.

[dalbir4444]

Originally Posted by paolo-

Not sure what you mean by market share and profit share. It seems a bit confusing...

Look back 5 years, smartphones were blackberries, treo etc. The iPhone came along and it people actually wanted it so it took over the market. But you need to remember that they dominated the smart phone market, not the whole mobile phone market. Now, 5 years later, you practically can't get mobile phone that's not classified as a "smartphone".

Bottom line, practically all of the mobile industry is now classified in this smartphone braket so their market share lowers. But Apple's market share isn't the whole smartphone market, they only care about the high-end stuff. They'll sell you one of their old iPhone model but that's not really their gig. They only care about the high end stuff because that's where the money's at.

They get the customers that don't mind the higher profit margin but expect innovation, they get the customers that will actually spend money in the App store, they get the customers that change their phone every two years and it's much easier to market the best. Lastly, the competition is done over desirability and innovation rather than on how cheap they can ship.

So if you look at what Apple sets out to do, sell expensive phones, their winning. Other than lately the Nexus 4 (which I have doubts about the profits it generates to LG and Google), I don't see much competitors with traction.

I think the competition in both the mobile and computer market is way off. In the mobile market all I see are ugly plastic phones with ugly not useable UI. In the computer market, most of what were seeing are copycat product stuck on Windows.

ps: I'm switching from an iPhone to a Nexus 4.

Samsung is a strong competitor to Apple in the mobile industry.

[matttye]

Originally Posted by nuckinfutz

Same could be said for lowend PC ..they sell in huge numbers but Apple's profits are continuing to rise along with increased sales. Apple not going to play in cheap phone arena. $450 outright is about as low as they're going to go. Plus Microsoft and Apple are going to extract as many licensing fees as they can from "free" Android.

Android has been like a virus, it's market share has increased at an astounding rate. I doubt it'll be long before it starts eating into Apples sales. Why? Because you get more for less.

Look at the price of the Nexus4; a phone that can give the iPhone 5 a run for its money for half the price.

Personally I prefer iOS to Android, but many consumers will just see that they get better specs for less money and buy android devices.