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76.25.70.1
In Reply to: RE: Only a Matter of Time.... posted by Dynobot on July 07, 2012 at 03:55:16
The market for low cost, high volume, low profit margin, throw-away devices will continue to grow, and we'll all be drowning in an ocean of commodity smartphones and tablets.
Most of these require big rebates as purchasing incentives. There has never been an iPhone or iPad rebate because people are willing to pay a premium for a premium product (and for a product that is still be useful three or four years later).
Apple is about providing a premium product and a premium user experience. Apple's iOS ecosystem is incredibly robust with the App Store. They certainly have the most important thing right which is the content.
The Android market place for Apps is growing but it too is fragmented. Where do you go for your Apps? Which version do you get for which brand/model of device you own? Is it compatible with the outdated Android OS on the device you just bought last month? Is your month old Android device upgradable to the latest Android OS? Where do you get it? Is it truly the Open Source Android or a Proprietary version from your device vendor?
It's not all about how fast a voice app runs on an Android device vs Siri on the iPhone. It's about the whole user experience across the board as a whole which is where Apple certainly dominates.
But I think MS, to their credit, is the one that might be the game changer if they play their cards right. Metro is very different, not a copy cat of iOS or any other existing UI. I believe MS is the under dog contender while Android remains a cluster f%$k !! Just my 2-cents worth of course.
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They really aren't cheap, throw away devices . It just appears that way because the carriers subsidize the cost and the consumer pays over the length of the contract.
Most people don't buy phones with rebates. The carriers subsidize the cost of the phones and that includes iPhones. The new 4S is $199 with a two year contract,,, it is $649 without one. ATT will give you an iPhone 3GS for a dollar with a 2 year contract but you'll pay $375 without one. I doubt people would be willing to pay that high a premium and they wouldn't sell near as many if subsidies didn't exist.
With subsidies the iPhone is actually cheaper up front than some of the newer Droids and the pricing is very close to the other phones with similar capabilities so the idea that people will pay a premium for Apple doesn't hold up with phones. Computers and tablets maybe, phones no.
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This should be disallowed on anti-trust grounds. The wireless carriers have a monopoly that is based on the limited spectrum. They should not be allowed to extend this monopoly to computing devices, which is what all of these phones are.
This isn't as quite as bad as land-line telephony pre Carterphone, but nearly so.
Tony Lauck
"Diversity is the law of nature; no two entities in this universe are uniform." - P.R. Sarkar
...as further incentive, many of the new smartphones are rebated by the manufacturers. Not so with Apple iDevices.
Of course the carriers subsidize the cost of iPhones - if they want to offer the popular device that their customers demand - but Apple doesn't have to play the profit eating rebate game. ;-)
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OK, technically correct, Apple maintains their profit, but the point I was trying to make is that apparently consumers are not willing to pay much if any premium for Apple phones. If they were then they wouldn't have to be subsidized so heavily.
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Well, I get your point too. But another counter point coming your way.
Apple has a lot of leverage with the carriers since the demand for iPhone is so great. As a carrier, you either pay the steep subsidy or you get no iPhone. The carriers are looking for alternatives as the huge subsidies paid to Apple are just criminal in their view.
On the other hand, do you not carry the iPhone and lose potential customers? I was THIS CLOSE to dropping Verizon, and they finally came to their senses and carried the iPhone. Verizon now benefits from my data usage on their network. Had Verizon not picked up the iPhone, I was ready to jump ship to AT&T after being a nearly decade long Verizon customer.
Apple appears to hold all the cards right now but things may change over time.
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I did not know they stacked rebates on top of the subsidies. My phone is supplied by my employer so I don't pay a whole lot of attention to the pricing.
In any case you are dead on that Apple is controlling their own destiny at this point. It will be interesting to see if they can maintain their control and continue to generate huge profits in the face of stiffer competition.
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Yes, some manufacturers offer consumer rebates on top of the subsidy to keep the prices low.
My employer pays for our unlimited data usage and air time but we pay out of pocket upfront for the smartphone. It works out pretty good because the iPhone (like other smartphones) can also act as a wifi hotspot so I end up using that capability occasionally during travel if there's no free wifi around.
Yes, Apple has a big advantage right but that also makes them prime target for several competitors. It will be harder for them to maintain their position and further growth.... but they still have some tricks up their sleeves and untapped global growth opportunities.
Is this a "can't win for losing" situation for both sides?
Bill
Judge declared Samsung tablets ‘not as cool’ as iPad, so they don’t infringe.
Now that's funny!
The Android market place for Apps is growing but it too is fragmented. Where do you go for your Apps? Which version do you get for which brand/model of device you own? Is it compatible with the outdated Android OS on the device you just bought last month? Is your month old Android device upgradable to the latest Android OS? Where do you get it? Is it truly the Open Source Android or a Proprietary version from your device vendor?
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I'm going to try out the Nexus 7 from Google and should be able to answer some of those questions in the near future.
I do agree that Android like its Linux cousin is fragmented. That is the nature of Open Source it seems.
From what I have been reading Android is Google's baby.
Dynobots Audio
Music is the Bridge between Heaven and Earth - 音楽は天国と地球のかけ橋
I think Android is technically sound but it has been mismanaged by Google. I also believe Google is working hard to improve things. It is definitely the OS of choice for techies and tinkerers (much like all the flavors of Linux), but is it good for the average consumer too? Probably. I view it kind of like the PC and Mac market. They can coexist.
But as I mentioned earlier, I believe MS is the underdog contender. They need something to create excitement and relight the spark that has been missing for them for so long. If they can set themselves apart with Windows Phone and Metro, along with grow and manage the developer and App ecosystem, they have a chance to dominate. While there's nothing technically wrong with Android, the business model makes no sense and it has been poorly managed.
While MS has a huge presence, they have been ho-hum boring for users and investors. They need their own 'iPhone moment' to create excitement around the brand.
Apple Shares & Growth vs MS Chart - past 5 years
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