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Oh, I'm sure they'd love to hold 100% of every market. The point of my comment is they don't need to do this to be considered a big "winner". Unlike e.g. Dell w
by archgrove 16y ago
Oh, I'm sure they'd love to hold 100% of every market. The point of my comment is they don't need to do this to be considered a big "winner". Unlike e.g. Dell which only makes money on huge amounts of shipments due to low margins, Apple can ship comparatively few units and make large profits.
They must know that their dominance in the smartphone area was always a temporary thing - they were never going to persuade the entire world to buy one of two iPhone models available at any time. Their lack of any attempt to create an entire iPhone ecosystem to cater for the spread of users (i.e. the "free, just about adequate phone" that dominates most peoples choice) shows this. This is entirely separate to their iPod strategy, which scales from those with only a handful of dollars (the shuffle), all the way up to the "Smartphone without a radio" iPod Touch. In the phone space, they seem to have chosen the same battle as their computing space - the high end, high margin, "people willing to pay for the experience" market share which contains vast profits. If no serious competitor had appeared (as, bizarrely, happened in the MP3 space), then they might have eventually released an iPhone Nano etc. But given that other players are now in that space, they've just surrendered it, rather than fight a battle they can't win. Were they to open up iOS or release a spate of iPhones covering enough of the usage/price spectrum to compete, they'd lose a large amount of the Apple "experience", damage their premium brand, and risk losing the entire game.
Their battle is to maintain enough market share to ensure development for iOS, and to ensure that Android devices end up being (mostly) the choice for mass market, race to the bottom, cheap at any cost devices. If Android starts to seriously infringe on their premium space, then they should be worried and can be considered to be losing. Until then, as far as I can see, they're winning the battle they're fighting.