Linked by Thom Holwerda on Wed 27th Jul 2011 22:09 UTC
Legal Two different graphs. Both happen to be published at Ars Technica, with one of them coming from a different source. Seemingly completely unrelated, but when you ponder the waterfall of recent lawsuit-related news, these two graphs suddenly tell all there is to tell. These two innocent little graphs illustrate why Apple is attacking Android so ferociously.
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rhavyn
Member since:
2005-07-06

Apple increased their share of the profits in the mobile industry from 57% last quarter to 66.3% this quarter. Only two vendors that sell Android devices are even profitable (HTC and Samsung). I understand, Thom, that you are very impressed with Androids growth (at least in the smartphone category). But how, exactly, do you see that growth continuing when all the money in the industry is being siphoned away by Apple? You understand that if it's unprofitable to make Android handsets it doesn't matter how well they sell, no one is going to, right? Additionally, you understand that if the iPhone 5 is released and Apple takes home 70% of the mobile profits in Q4, it doesn't matter if Apple only increases their market share by 1 or 2%, right?

No matter how many times people make the comparison, the mobile wars look nothing like the Mac/PC wars of the 80s. During that time Apple consistently did worse, quarter over quarter and Microsoft was massively profitable. But with mobile platforms, from a profit perspective, Android looks a lot more like Apple in the Mac/PC wars and Apple looks like Microsoft. Companies are going to need to figure out how to make money with Android, and fast, or companies like Motorola are going to start looking at Android the way Logitech is looking at GoogleTV.

Or, an alternative perspective, Android looks a lot like the business model of many internet companies in 1999. We'll give it away from free and make up for it in volume.

Now, go ahead and mod me to oblivion again since I'm now bowing to the alter of Google.

Reply Parent Score: 2

Thom_Holwerda Member since:
2005-06-29

So, now it's about profits, just because Apple is doing very well in that area at the moment? Funny, back when Apple was doing well in market share, it was all about market share - but now that Android is doing miles better at market share, it's suddenly no longer important? Do you see how hypocritical that is?

Since Samsung sells its phones in the same price category as Apple does, and since Samsung also creates all the hardware in-house (more so than Apple, even), and the cost of Android is quite low for Samsung (lower than Apple, since they have the expenses of developing iOS), what's going to happen when Samsung's meteoric market share growth inevitably leads to Samsung reaping larger and larger profit shares?

Will you guys move on to the next thing Apple will still be the best at by then? I don't know, probably the amount of outstanding aggressive lawsuits will define a company's penis size?

Edited 2011-07-29 18:08 UTC

Reply Parent Score: 1

MOS6510 Member since:
2011-05-12

It is funny though that the company that imitated the iPhone to the highest degree is doing best.

Reply Parent Score: 1

Joy_Division_Lives! Member since:
2011-07-29

So, now it's about profits, just because Apple is doing very well in that area at the moment? Funny, back when Apple was doing well in market share, it was all about market share - but now that Android is doing miles better at market share, it's suddenly no longer important? Do you see how hypocritical that is?


I find it just as hypocritical, or rather disingenuous, to make a comparison between the popularity of IOS and Android by smartphone marketshare only when the combined presence of IOS across all its devices (iPads and iPods included) is greater than Android. (59% bigger, if memory serves me). So...let's make a more appropriate comparison, between smartphone manufacturers. There, Apple is kicking everyone's butt...soundly. And (as noted by Asymco.com), Apple's share of the smartphone profits is at a whopping 66%! The Apple App store outstrips the Android Marketplace and other Android stores by a 25 to 1 margin (in terms of app downloads). It is taking 6 manufactures and roughly 48 different Android smartphone models to beat the iPhone...ONE PHONE that's already 1.5 years old.

You talk about others moving the goalposts when it's clear that marketshare doesn't mean very much if you are not making the lionshare of money. And...considering there have been reports of Android smartphone returns above 30%, I really don't see why you and the other Android fans are crowing so much.

Edited 2011-07-29 19:38 UTC

Reply Parent Score: 1

rhavyn Member since:
2005-07-06

So, now it's about profits, just because Apple is doing very well in that area at the moment? Funny, back when Apple was doing well in market share, it was all about market share - but now that Android is doing miles better at market share, it's suddenly no longer important? Do you see how hypocritical that is?

Since Samsung sells its phones in the same price category as Apple does, and since Samsung also creates all the hardware in-house (more so than Apple, even), and the cost of Android is quite low for Samsung (lower than Apple, since they have the expenses of developing iOS), what's going to happen when Samsung's meteoric market share growth inevitably leads to Samsung reaping larger and larger profit shares?

Will you guys move on to the next thing Apple will still be the best at by then? I don't know, probably the amount of outstanding aggressive lawsuits will define a company's penis size?


That is an awesome straw man. But if you look, I pretty consistently talk about revenue and profit because that's what matters, not market share. I lived through the internet bubble and burst and know exactly what market share means at the end of the day without profit.

But, sure, let's assume you're correct. Samsung brings in 15% of profits in the cell phone industry. If Samsung is the only other company selling Android hardware, how long do you think they last against Apple?

Reply Parent Score: 2