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Agreed! And, I'm disappointed at where he didn't go, namely he didn't mention that during Jobs' exile, Apple's strategy was to make more and more money off fewe
by raganwald 16y ago
Agreed! And, I'm disappointed at where he didn't go, namely he didn't mention that during Jobs' exile, Apple's strategy was to make more and more money off fewer and fewer customers, by selling weak products at high prices.
Jobs has brought back an emphasis on building strong products and expanding their market share, in part by relentlessly driving prices down even when anyone with a spreadsheet can see that they could capture more revenue today by keeping prices high and selling fewer units.
The OP really didn't address the fact that while Android will be ubiquitous, hardware manufacturers will not get a free pass to compete with Apple on price as PC manufacturers did during the exile.
Also, the author missed the biggest point of comparison: Mac market share is still insignificant. But Apple's share of the profit is reputed to be larger than the top three PC manufacturers combined.
Will this play out again in the handset business?
- GHFigs 16y agohardware manufacturers will not get a free pass to compete with Apple on price as PC manufacturers did during the exile Good point. It reminds me of one of the things Jobs said about 7" tablets not being able to to meet the larger iPad on price. It sounded daft at the time, as the screen is surely the most expensive component, but then here comes the 5" Dell Streak at $550 and the 7" Galaxy Tab at $400 with contract.
- ZeroGravitas 16y agoA 3.5 inch iPhone 4 with 8GB costs less than a 10 inch iPad with 16GB and no 3G or GPS. This says something, though I'm not exactly sure what, but at the very least it suggests that big screen = big price is too simplistic.
- protomyth 16y agoTechnically only with subsidy: $499 (iPhone 3GS 8GB), $599 (iPhone 4 16GB), or $699 (iPhone 4 32GB). Still not sure if that means as much as it should.
- ZeroGravitas 16y agoIn the UK, the iPhone is only £10 cheaper. Probably they set the prices to meet the US magical prices that end in 99 but translate for foreign markets before rounding. I meant to put the actual (small) difference in my original post, but forgot to back and edit it, so it actually seems like I'm arguing the opposite of what I intended.