Linked by Thom Holwerda on Tue 19th Jan 2010 23:31 UTC, submitted by jebb
Apple Now this is material that piques my interest more than anything: insights from one of the bigger names in the industry. Jean-Louis Gassee debunks the "Apple-must-license-its-software-or-die" myth by looking back upon the past - and if you don't know who JLG is, then please take that dunce hat and stand in the corner for three hours, contemplating your existence. Note: OSNews has a bug with using diacritic marks on the front page, so JLG's name is misspelled. It is correctly spelled in the article body.
Thread beginning with comment 405127
To read all comments associated with this story, please click here.
Also a matter of cost
by CaptainN- on Wed 20th Jan 2010 15:34 UTC
CaptainN-
Member since:
2005-07-07

In the consumer market price matters - right now a Droid and an iPhone cost exactly the same, with the same service contract terms. IMHO that'll be the deciding factor. If Apple keeps their products pristine, and falls behind in software - and keeps their prices where they are now, while the Android prices fall, more features are added (even if they are not as slick or sexy as the iPhone) - that'll definitely work in Androids favor (in terms of market share).

So far, Apple has kept up, but when cheaper Android phones that are sexy enough start showing up en mas they'll start losing ground - a Droid Eris, with Adroid 2.1 and a GPU could be that phone.

Ultimately, Apple has been a company about profit margins and not about market share, but the app store does change that equation a little bit. The piece to watch will be this - will they forgo some of their margin to maintain the dominance in the market? If they do that, then market share has become their more important concern (and licensing their OS makes more sense), to continue to make money in their app store - if they don't, then they are content to make their margins on the hardware, and the app store is simply gravy.

I bet they keep their margins.

Edited 2010-01-20 15:35 UTC

Reply Score: 2