Just add this to the obit for The Death of Apples Control of the Mobile Space.
They have literally given the space to Google / Android.
Sure, its all big profits now..... but there are tough times ahead.
Not sure if you're trolling for reactions or not, but I'm going to assume you're serious.
It's inevitable that Android will overtake (if it hasn't already) the iPhone in terms of unit sales because the wider variety of hardware, lower prices and buy-one-get-one-free offers hit more at the lowest common denominator. That's not to be insulting to Android owners. It doesn't say anything bad about people who intentionally choose Android. It's just a fact we're seeing emerge as the smart phone market evolves.
But the reality of the matter is that a platform must do two things to remain a long-term success: 1) retain its user base; 2) make a profit.
As for the first point, we've seen numerous consumer surveys over the last 6 months that have shown that about a 1/3 of Android users are dissatisfied with the platform and somewhere in the neighborhood of 30% of its users are planning to switch to the iPhone. By contrast, those same surveys show roughly 5-7% of iPhone users planning to switch to Android. (And those surveys were conducted prior to the Verizon iPhone so who knows how that will shake things up, but I'm guessing it won't be in favor of Android.)
As for the second point, I'm still not clear on how companies in the Android sphere are turning a consistent profit off the platform. Even the big players like Verizon have hinted that they're not too thrilled Android's performance (and as I've said before, if Android were really killing on Verizon, why would they have pursued the iPhone so enthusiastically?) I know Google is making money (presumably) but the hardware makers and the telecoms? We know developers are having a harder time making a profit on Android than on iOS. I just don't see where the money is in Android.
I don't think they are worried that much.
Two problems with that.
Gross profit is not net profit. How much is HTC actually making off each unit sold?
It's also a great examples of a
post-hoc fallacy. You assume one thing is the result of the other. Do you have evidence that HTC's increase in gross profits is because of the Nexus One (a phone that had notoriously poor sales) or any Anroid phone for that matter? Seems unlikely such a spike would be the result of any one single product.