As vast and sophisticated as the mobile tech industry may have become, in the end it still relies on some very basic ways for making money. You can either sell hardware, like Apple’s doing, or sell ads, which account for roughly the same proportion of Google’s regular income. Netflix and Amazon’s Kindle store have found success as cross-platform services, but spending on mobile software is unlikely to ever match that of the old days when we paid for Windows, Office, and Photoshop on the desktop. It’s easier to sell things that a person can touch and interact with physically. This is why HTC is diversifying into selling weird cameras, why LG and Samsung keep churning out new smartwatches in search of a perfect formula, and why everyone at CES earlier this month had a wearable of some kind to show off. And in spite of their lamentations about tough competition, HTC, LG, and Lenovo are all generating profits from their smartphone operations, and Samsung’s recent sales decline hasn’t been enough to put the Korean company on the wrong side of the ledger. None of these manufacturers have a profit driver of the caliber of the iPhone, but they’re running sustainable businesses even while relying almost wholly on Google’s Android software.
Just to illustrate: Apple has sold one billion iOS devices to date, and last year alone, one billion Android smartphones have been shipped (so this excludes tablets). These numbers – Apple’s profits, Android devices shipped in just a year – are insane.
I don’t find those numbers to be insane at all. Mobile communications & computing devices offer huge convenience. What I do find insane is how many people use things like Facebook and Twitter on a regular basis. It’s also insane to me that people are so addicted to social media that when driving they’re willing to take their eyes off the road to read/post updates. It’s insane that texting-while-driving now kills more people a year than drunk drivers. People have literally walked off piers and fell into the ocean because they couldn’t be bothered to pay attention to anything other than the newest picture of someones lunch.
That there’s billions of cellphones? Not amazing in the least. How idiotic people become while using them, now that’s insane.