4 ms·

too small a market? The US still has a staggering share of world GDP, and the per-capita GDP (remember, PPP doesn't matter from Apple's perspective) is much h

by lsc 8y ago

too small a market? The US still has a staggering share of world GDP, and the per-capita GDP (remember, PPP doesn't matter from Apple's perspective) is much higher in the USA. I mean, the per-captita GDP in China is under $10K/yr. Not a lot of those people are gonna spend a grand on a phone. I think this is one of those situations where you count dollars rather than heads. My understanding is that the "next billion users" push that all the big companies are doing is a bit like putting macs in schools. It is a long-term plan 'cause yes, the developing world is poor right now. maybe those people who are poor now won't be poor in the future, and if they know how to use your ecosystem, that's great for you. It certainly seems like a good idea, but I don't think it's where you make your money today. I really think if you were serious about that plan, you'd come out with a giant low-end phone; You remember the thinkpad W series? something like that. big and clunky and cheap. Apple needs an iphone 5c level cheap plastic reskin of last year's big phone for that.

bonaldi 8y ago
It's the problem of subsitutes that matters in the US: what do rich people who want a small premium iPhone do when they can't get one? They likely don't go to Android, there isn't a small phone worth a damn there. They probably buy an iPhone, right? Likely an XS, since that's the smallest of the new phones. Apple isn't losing anything on them. The market you're really talking about them capturing with a small premium phone is "rich people who have multiple devices and want a small phone and when they can't get one they buy an Android phone or make do with an SE". I'd wager that's small in most terms, certainly in Apple terms -- whether you're talking dollars or heads. But what do the top-end Chinese consumers do when Apple doesn't have a phone that appeals to them? They buy one of the other flagships that run WeChat, and Apple loses them. That's big in Apple terms, missed-expectations-warning big.

by lsc 8y ago

bonaldi 8y ago

It's the problem of subsitutes that matters in the US: what do rich people who want a small premium iPhone do when they can't get one? They likely don't go to Android, there isn't a small phone worth a damn there. They probably buy an iPhone, right? Likely an XS, since that's the smallest of the new phones. Apple isn't losing anything on them. The market you're really talking about them capturing with a small premium phone is "rich people who have multiple devices and want a small phone and when they can't get one they buy an Android phone or make do with an SE". I'd wager that's small in most terms, certainly in Apple terms -- whether you're talking dollars or heads. But what do the top-end Chinese consumers do when Apple doesn't have a phone that appeals to them? They buy one of the other flagships that run WeChat, and Apple loses them. That's big in Apple terms, missed-expectations-warning big.