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What's beating Apple (in terms of market share) is that they aggressively protect their control and massive margins. If you buy an iPhone, a ton of dollars fin
by webwright 16y ago
What's beating Apple (in terms of market share) is that they aggressively protect their control and massive margins.
If you buy an iPhone, a ton of dollars find their way into Apple's pockets and a comparatively smaller pile of dollars make it to carriers, handset makers, and even companies like Pandora/Kindle as Apple moves to own ANY subscription that originates on their phone.
If you buy an Android phone, a lot more companies get a taste of the revenue pie... Basically incentivizing carriers, handset makers, and companies like Pandora and Amazon (Kindle) to spend their marketing and R&D dollars pushing Android.
This is what happened with Apple v. Windows. Apple's product brilliance + marketing dollars simply couldn't match the market power of Microsoft + all of the hardware & software companies that wanted a piece of the action.
The new fight is more interesting-- Apple has a much bigger head start in the market, ownership of the new tablet market, and near-domination in the music vertical with iTunes. But Apple is setting themselves up to be tangling with the combined (and increasingly aligned) market might of carriers, MSFT, Google, Amazon, music labels, and more. Helluva battle coming.