Monday, August 12, 2013

The Incredible Shrinking iPhone

Although you would not know it, Apple is fast sliding towards a state where it will have the same market share of smartphones market that it has for PCs. That is not good, if you are Apple.

While it's commonly reported that Apple is the top smartphone manufacturer that does not really shine any light on how enormous or competitive the market really is.

Apple makes just 13.2 percent of the smartphones on the market - and that number is shrinking. Last quarter it was 16.6 percent. Samsung has a larger market share than Apple, and the rest of the market is largely carved up by other Android devices.

Google's Android OS has increased its global market share to 79.3 percent in the second quarter from 69.1 percent at the same time last year.

BlackBerry dropped to 2.9 percent from 4.9 percent in 2012. It has fallen behind Microsoft, which is now at number three in OS share. For the records the order is Android, Apple, Windows and Blackberry.

The reason Apple has been doing so well is that that its phones are so much more expensive than Android phones. Therefore there is a higher profit margin. Excluding subsidies from phone companies, the average iPhone cost $710 in 2012 - roughly $300 more than the average smartphone.That is a little outrageous if you ask me.

I believe that if the iPhone6 is not an "out of the park" product Windows Phones with their unique design and style will continue to eat into the smartphone market inviting more people to ironically, "think different" and move past Apple's old iPhone product.

Only time will tell, but don't give up on Windows Phone just yet. The Windows phone should really be given a chance. It is by far the most unique and best cross business / consumer phone on the market today.

1 comment:

  1. The phone isn't the decision. People with a heavy investment in music and apps aren't switching platforms without a great reason.

    And no one will jump from Apple to Microsoft.

    ReplyDelete