Linked by Thom Holwerda on Tue 14th Aug 2012 22:17 UTC
PDAs, Cellphones, Wireless You wouldn't believe it, but something actually, truly interesting came out of the Apple vs. Samsung lawsuit yesterday. Apple had conducted a survey to find out why, exactly, consumers opted to go with Android instead of the iPhone. The results are fascinating - not only do they seem to invalidate Apple's claims, they provide an unusual insight into consumer behaviour. The gist? People choose Android not because it's an iPhone copy - they choose it because of Android's unique characteristics.
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RE[3]: Comment by Tony Swash
by mkone on Fri 17th Aug 2012 18:23 UTC in reply to "RE[2]: Comment by Tony Swash"
mkone
Member since:
2006-03-14

Again you are trying to compare the PC market to the new mobile device market, they are very different.


They are not as different as you think. Apple can, and will differentiate themselves. If the smartphone market grows to 1bn devices per annum, and Apple can capture 15% of that market, they will be more than content. Apple have shown that you do not need a monopoly to be profitable. Apple still makes less than 10% of all mobile phone, and if they can increase their overall share of the mobile phone market as the dumbphone market disappears, they will be able to make incredibly good profits.

Right now, they are growing their "PC" market share, growing their tablet business, growing their smartphone business, growing profits. They are doing exactly what they need to do.

The smartphone market will end up like the PC market. A dozen or so manufacturers making Android phone, and competing on price (by necessity). Margins for that business will drop.

Apple will use the same components and compete for the higher niche end of the market where the profits are.

Reply Parent Score: 1

RE[4]: Comment by Tony Swash
by zima on Tue 21st Aug 2012 23:36 in reply to "RE[3]: Comment by Tony Swash"
zima Member since:
2005-07-06

Apple have shown that you do not need a monopoly to be profitable.

Did they show that? Their return was really more about the music shop (where they have sort of a monopoly position) than their traditional product lines - and iOS devices are also more blood relatives of iPods.

Reply Parent Score: 2