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Indeed.
Apple have dilemma: become a mass product company, and began diversifying their product lineup, severely restricting their profit margins and then compensate with volume, or become a Bang & Olufsen style company, selling only to a premium market.
I doubt that Apple will sunk to near bankruptcy like they did in 90's, but based on their current refusal to adapt their business model, they will become increasingly niche.
No offense here dude, but the *reality* is that Apple just reported revenue growth of 26% the last quarter, up to $9 billion. Samsung reported $6 billion. It looks like a reasonably comparison except for the fact that Samsung has 6 times the employees of Apple and has a margin below 5%.
Also ...
Apple is the largest tech company by revenue.
Apple is the largest company by market cap.
Apple has the highest margin of any tech company.
Apple has the highest customer service rating of any tech company.
None of this is really subjective so you can't blame it on 'sheep'.
That's not to say Android, Google and Samsung are not doing well. They are. Android is by far the most popular smart phone OS and that's not going to change anytime soon.
So there is lots to be happy about for both Android and iOS fans. Can't we all just get along?
Doubtful.
We can't get along BECAUSE Apple is doing fine right now despite the existence of Android. It really doesn't need to assert BS patents against others in order to compete...
And if it does then it surely doesn't deserve to compete.
Edited 2012-07-28 19:30 UTC
Apple obviously doesn't want coexistence with Android. Remember Steve Jobs' quote about how he want to go "thermonuclear" on Android and "right this wrong"? The multitude of law suits around the world are the direct result of this view of a "stolen" product.
I am all for a competitive marketplace with different platforms to choose from. Most people are, I guess.
I don't understand why the financials of the company are relevant in terms of smartphone platform. As a developer I just care that the platform itself will survive, and that there are a number of potential users of my app.
Hp has always done well, but I'm not porting my app to webos, nor to windows phone 7.
Samsung has subsidiaries involved in high fashion clothing, banking, hotels, insurance, steelmaking, automobiles, agriculture, chemicals and biotechnology. It is one of the most diversified large corporations in the world.
Also ...
Apple is the largest tech company by revenue.
Apple is the largest company by market cap.
Apple has the highest margin of any tech company.
Apple has the highest customer service rating of any tech company.
None of this is really subjective so you can't blame it on 'sheep'.
But this was his point. Apple are gouging the customer.
Other than the last point, none of these things are particularly positive in my mind and at least one makes me very uncomfortable (margins.)
It's like boasting to friends that you just bought a house where the builder made four times the profit off you ... Like it's a good thing? Really?
Is the shine starting to wear off Apple? I've heard some recent comments from friends buying phones where they went into a store wanting to buy an iPhone, only to walk out with an Android.
"Full throttle back into the niche."
Indeed.
Great post. But, keep in mind, that Apple essentially backfills the low- and mid-points of the market with older models. Which allows it to cover a wider range than simply the high-end. Now, of course, a lot of people would rather opt for a less expensive Android phone than a one- or two-year old iPhone model; but it's part of the dynamic, nonetheless.





Member since:
2006-12-15
Argument after argument about why Apple is doing just fine against Android and isn't in any trouble has been dismissed by reality.
1) When Android picked up some pace, there was this 'shipped vs. sold' BS.
2) Then it all didn't matter because the metrics failed to include the iPod touch and the iPad, which gave them iSheep the warm feeling of platform dominance for a short period.
3) Then the argument was that, of course (!) all the Android phones of different manufacturers combined with their gazillion models outsell the iPhone, but Apple still sells the highest volume of any company.
4) Oh and they complained how Apple is not on every carrier, totally ignoring that this was Apple's self made trap.
5) Apple's slower sales growth compared to Android was even excused by limits in the supply chain and manufacturing process. Again, self-inflicted.
6) Then it was App count (more = better).
7) Then it was and still is profits.
8) Then it was App exclusiveness.
9) Now it is App quality.
I am really getting tired of it. The next arguments to crack down are:
A) A single phone model of a competitor will outsell the best selling iPhone model.
B) App count of Play Store will top App Store.
C) App quality and exclusiveness of Apps will soon be equal or are there already.
But there is one thing that may be true a bit longer: Apple is the most profitable smartphone maker. If you've read Gruber and collegues lately, squeezing every cent out of your customers is now the coolest thing. Absurdly high margins are now THE benchmark. And those poor minds don't even realize that this is exactly what leads to the market share losses of the iPhone that we currently observe. Full throttle back into the niche.
Apple needs to go for market share now! Otherwise, they will become a relatively irrelevant also-ran with a tons of money, that won't help. They are already hit by their static release cycle, the fact that carriers recommend Android phones over iPhones because that gives them higher margins and their self-inflicted restriction in resulution/screen size of their devices, that makes it extremely difficult to introduce more models and diversity of their smartphone lineup.