4 ms·

I disagree with most of the article, but the one point I'll make regard his comments about the iPhone being for rich people/countries. First, I have to assume

by runjake 15y ago

I disagree with most of the article, but the one point I'll make regard his comments about the iPhone being for rich people/countries. First, I have to assume he's talking about contract prices, because the cheapest Android devices are a little under $250 off-contract, which is cost-prohibitive for "non-rich"countries. So, how is this valid, when I can get an iPhone 3GS for free (on contract) and an iPhone 4 for $99? This is on close price parity with Android devices -- from the free/cheap prepaid LG Optimus Android devices to the Galaxy Nexus. Edit: If you're going to downvote this into oblivion, at least do me the favor of explaining where my thinking is incorrect?

webwright 15y ago
You can get an iPhone "free" because your monthly mobile bill is $60-$100/month. Apple is still selling the 3GS for a pretty penny to your mobile provider, who is effectively renting it to you for a tidy profit. Do you think there are similarly "free" iPhones in Africa? China? Apple is pretty famous for it's appetite for big profit margins (~42% gross margins). It's competing with an operation system that requires no licensing cost (other than Microsoft's patent tax) and hardware manufacturers who are used to razor thin profit margins. Android is competing effectively in the "rich country" smartphone market. But it's positively massacring Apple in the rest of the world. Of course, all the while, Apple will take the lion's share of the profit. It remains to be seen if it's short-sighted to let Android run away with the market-share prize.
- GFischer 15y ago
  There probably are "free" iPhones in China, with similar contracts - but cell phones in the developed world tend to be prepaid, not contracts (78% worldwide) www.trustvesta.com/press/prepaid_telcel_2010_EN.aspx. I know there are "free" iPhones here in Uruguay, but very few can afford the contracts.
dannyr 15y ago
You disagree based on your knowledge of the US market? How about the rest of the world? Sorry but this is a US-centric world view. The US cellphone market is very different from the rest of the world. The author is not assuming contract prices. You are. In developing countries, at least 80% of cellphone users are prepaid. In Africa, you can get an Android phone for $80, without contract. And as time passes, they will get cheaper. http://www.extremetech.com/mobile/93176-cheap-android-phone-leads-the-app-charge-in-africa http://www.extremetech.com/mobile/93176-cheap-android-phone-...
- runjake 15y ago
  This is a great response. Thanks for the info and link.
  - fpgeek 15y ago
    Meanwhile in the US, it seems you can now get a no-contract Android for $59.99: http://www.bestbuy.com/site/MetroPCS+-+Huawei+M835+No-Contract+Mobile+Phone+-+Black/2947111.p?id=1218365974161&skuId=2947111 http://www.bestbuy.com/site/MetroPCS+-+Huawei+M835+No-Contra...
yxhuvud 15y ago
Uh. Do you realize there are cheap Android models that are never sold in the western world? You could probably find an Android phone for a tenth of the prize you state if you go to a sufficiently poor area. You probably wouldn't want to buy it though, since the quality will be pretty subpar.

by runjake 15y ago

webwright 15y ago

You can get an iPhone "free" because your monthly mobile bill is $60-$100/month. Apple is still selling the 3GS for a pretty penny to your mobile provider, who is effectively renting it to you for a tidy profit. Do you think there are similarly "free" iPhones in Africa? China? Apple is pretty famous for it's appetite for big profit margins (~42% gross margins). It's competing with an operation system that requires no licensing cost (other than Microsoft's patent tax) and hardware manufacturers who are used to razor thin profit margins. Android is competing effectively in the "rich country" smartphone market. But it's positively massacring Apple in the rest of the world. Of course, all the while, Apple will take the lion's share of the profit. It remains to be seen if it's short-sighted to let Android run away with the market-share prize.

GFischer 15y ago
There probably are "free" iPhones in China, with similar contracts - but cell phones in the developed world tend to be prepaid, not contracts (78% worldwide) www.trustvesta.com/press/prepaid_telcel_2010_EN.aspx. I know there are "free" iPhones here in Uruguay, but very few can afford the contracts.

dannyr 15y ago

You disagree based on your knowledge of the US market? How about the rest of the world? Sorry but this is a US-centric world view. The US cellphone market is very different from the rest of the world. The author is not assuming contract prices. You are. In developing countries, at least 80% of cellphone users are prepaid. In Africa, you can get an Android phone for $80, without contract. And as time passes, they will get cheaper. http://www.extremetech.com/mobile/93176-cheap-android-phone-leads-the-app-charge-in-africa http://www.extremetech.com/mobile/93176-cheap-android-phone-...

runjake 15y ago
This is a great response. Thanks for the info and link.
- fpgeek 15y ago
  Meanwhile in the US, it seems you can now get a no-contract Android for $59.99: http://www.bestbuy.com/site/MetroPCS+-+Huawei+M835+No-Contract+Mobile+Phone+-+Black/2947111.p?id=1218365974161&skuId=2947111 http://www.bestbuy.com/site/MetroPCS+-+Huawei+M835+No-Contra...

yxhuvud 15y ago

Uh. Do you realize there are cheap Android models that are never sold in the western world? You could probably find an Android phone for a tenth of the prize you state if you go to a sufficiently poor area. You probably wouldn't want to buy it though, since the quality will be pretty subpar.