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It’s worth highlighting that in the iOS ecosystem, Apple makes money on the hardware, apps, and in-app-purchases, with few exceptions. On Android, Google makes
by nxc18 7y ago
It’s worth highlighting that in the iOS ecosystem, Apple makes money on the hardware, apps, and in-app-purchases, with few exceptions.
On Android, Google makes money on the apps, and some in-app-purchases, but the OEM makes money on the device.
I think that, in addition to underlying architectural flaws, helps explain why OEMs are so disinterested in supporting phones for more than 1-2 years. LG only makes money when you upgrade, whereas Google and Apple make money every time you buy an app. It’s in LG’s interest to sell you a $300 phone every two years, whereas it may be in Apple’s interest to sell a $400 phone every 5 years and make up the difference on software and services, and hope enough people are enticed by the new shiny to upgrade more often.
- millstone 7y agoHardly any OEMs makes money on Android devices. https://www.counterpointresearch.com/apple-continues-lead-global-handset-industry-profit-share/ https://www.counterpointresearch.com/apple-continues-lead-gl...
- nl 7y agoThat's not what that report say. Apple takes most of the profit in the sector, but the other companies are profitable, at lower levels. Eg, even the low end Chinese manufactures: Chinese smartphone brands operate at low-profit margins, but better than in previous years, even though they are expanding outside China and also penetrating high-tier price bands.