If they keep on "not caring" they actually WILL be in trouble.
Their margins are shrinking quickly and can't be offset by growth. That means their profits will shrink quite drastically. Correction. Not "will shrink". It has already begun.
Samsung is playing both the high-end and the high-volume game quite successfully. They just increased their profit by 42% while Apple's profit shrank by 18%.
I simply don't understand how they can keep their head in the sand for so long. They did it right with the iPod and the iPad Mini. Why are they clinging to an obviously failing strategy with the iPhone? It's more than obvious that people want larger screens and that the high-end market is saturated.
Tim Cook keeps saying that if they don't cannibalize their own products, someone else will, and that's exactly what's happing here. 2013 will be a terrible year for Apple because they should have seen this coming. They should have released a cheaper iPhone at least one year ago along with an additional iPhone 5 model with a substantially larger screen. They didn't and whatever they do now, it will be very late.
You can ignore the facts and live in your own bubble as long as you want. Won't change reality.
What? The iPhone has the only single chip LTE unit out there, meaning it uses half the power for wireless functions and the battery is fairly large with a screen that uses less power than most, most tests show longer web browsing and are about even in other tasks. Have you tried resetting the phone? iPhones are prone to battery draining glitches, mine had this problem.As shiny as the other side of the fence is (Android rather than iPhone) as someone who is back on an iPhone after 2 years with a Samsung i have to say apples AppStore policy is what brought me back, the fact that the apps are policed is more of a benefit than anything else
What i DON'T like about the iPhone is a far longer list, Poor Battery Life,
Poor Screen quality compared to the Super AMOLED screens on the Samsungs,
tiny screen size, price for what you get is appalling compared to competitors.
If they keep on "not caring" they actually WILL be in trouble.
Their margins are shrinking quickly and can't be offset by growth. That means their profits will shrink quite drastically. Correction. Not "will shrink". It has already begun.
Samsung is playing both the high-end and the high-volume game quite successfully. They just increased their profit by 42% while Apple's profit shrank by 18%.
I simply don't understand how they can keep their head in the sand for so long. They did it right with the iPod and the iPad Mini. Why are they clinging to an obviously failing strategy with the iPhone? It's more than obvious that people want larger screens and that the high-end market is saturated.
Tim Cook keeps saying that if they don't cannibalize their own products, someone else will, and that's exactly what's happing here. 2013 will be a terrible year for Apple because they should have seen this coming. They should have released a cheaper iPhone at least one year ago along with an additional iPhone 5 model with a substantially larger screen. They didn't and whatever they do now, it will be very late.
Yeah but where will Apple draw the line? Will they ever offer an $80 iPhone to sell in India or China?
I doubt it... so those sales will have to go to someone else.
Apple chooses not to enter the smartphone market at under $450... letting someone else take those low-end sales is not cannibalization.
All those phones in the "other" category are not stealing sales from Apple.
that magical Samsung warehouse with endless room for "shipped" phones must be getting bigger
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Here is Apple's biggest mistake. Overpricing their phones, not the new ones but old ones. If Apple dropped iPhone prices by $200 every year instead of $100 since iPhone 3GS Android may still have less than 50% global market share. Mr. Tim Cook no smartphone is good enough to loose only $100 per year. Imagine, iPhone 5 at $200, iPhone 4S at free on contract, and iPhone 4 at $250 off contract for prepaid. There would be no competition.
iOS 7 really needs to step up to the mark
Yap, gazillions of smartphones there. And for not selling them, every quarter they make more revenue
You can ignore the facts and live in your own bubble as long as you want. Won't change reality.
Here is Apple's biggest mistake. Overpricing their phones, not the new ones but old ones. If Apple dropped iPhone prices by $200 every year instead of $100 since iPhone 3GS Android may still have less than 50% global market share. Mr. Tim Cook no smartphone is good enough to loose only $100 per year. Imagine, iPhone 5 at $200, iPhone 4S at free on contract, and iPhone 4 at $250 off contract for prepaid. There would be no competition.
This proves "People wants bigger screen". Tim Cook failed.![]()
There are lots of cheap smartphones nowadays.
There are people buying for $600, for $500, $400, $300, $200, $150, $100, $80, $50, $20. The proportion of people buying at each price stays the same. What changes is that the same people buy smartphones now, not because they want a smartphone, but because today, the $200 or $150 or $100 phone is a smartphone, and next week the $80 phone will be one.
And because of that, Apple's market share in the artificial "smartphone" market shrinks, because even though Apple doesn't care that you don't buy an iPhone if you only had $100 to spend in the first place, all the $100 smartphones are reducing Apple's market share. Apple doesn't care.
There is no growth at the bottom. Every time some vendor sells a $100 smartphone, they have lost a buyer for a $100 feature phone. The only slightly meaningful number is the total phone market. A more meaningful number would be to count sales in dollars, not sales in units. If A sells a million phones for $600 each, and B sells six million phones for $100 each, they make the same revenue, yet one has six times more "market share".
Their margins would suffer even more. Market share doesn't mean anything when you can't make a profit, just ask HTC, LG, Sony, etc.
Here is Apple's biggest mistake. Overpricing their phones, not the new ones but old ones. If Apple dropped iPhone prices by $200 every year instead of $100 since iPhone 3GS Android may still have less than 50% global market share. Mr. Tim Cook no smartphone is good enough to loose only $100 per year. Imagine, iPhone 5 at $200, iPhone 4S at free on contract, and iPhone 4 at $250 off contract for prepaid. There would be no competition.
But Apple makes the most profits and that is what is most important to a consumer.![]()
Yes they sell them eventually, but more than probably later than the period evaluated in these market studies.
Since the smartphone business is constantly expanding, it makes it so that Samsung's "future sales" numbers look bigger compared to Apple's "current sales" numbers.
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Shouldn't that be "But Apple makes the most profits and that is what is most important to a Apple shareholder"?
To me as a consumer, seing that Apple have much higher profit margins on their phones makes me think they are overpricing their phones compared to the competition. But as long as we are stupid enough to pay this overprice, who can blame them?
I don't have an iPhone or even a feature phone. I have an old LG dumb phone and it is time to upgrade. The thing is I just can't justify $700 for an iPhone. (I buy my phones outright and go month to month. I will not sign a cell contract. Here in Canada at lest it's a fool's bargain.) Even $450 for an older model is more than I'm comfortable paying for but $300 would be something I could do. I really hope that Apple rolls out a low cost, plastic case / iPhone 4S guts model that falls in this price range. My three year old LG and iPod Touch are both on their last legs.
It does matter a lot what platform these first-time-cheap-smartphone-buyers get, since they will most likely get the same platform a couple years later when they upgrade to middle-price-range-smartphones and later high-price-range-smartphones.