No one else is reporting this story, not even other Mac rumor sites, so I'm wondering how reliable the source is.
 

 

Exactly. The total units sold is way too small to make the story believable. 

 

Or how about exactly what stores were they. how many sell which items. 

 

They surveyed 2400 stores, if only the 100 Apple Stores and Apple resellers sell the iPads and none of the other 2300 do then you would expect the iPad to sell less because it's just not around for folks to buy. Humans, regardless of race, tend to be 'i want now' types, particularly during the holidays when its a gift and they don't want to risk it not shipping at the right time to be there when they need it to be there. 

 

add in returns to this and the numbers might not be telling the story they seem to be telling

 

Sure it does. Because money is the game. Mindshare, marketshare etc only matter as tools to get to the money. 

 

As for Apple Fans and what they should worry about, many of them will be thrilled by this notion that some cheap ass whatever is more popular. They want to go back to the days of Apple being special and exclusive. They dont want grannies with cataracts having iPhones. They don't want things like iMovie letting everyone edit movies. Down to the Mac Mini etc. Apple should dump everything but the Mac Pro and the retina laptops and raise prices so the 'losers' can't afford Apple stuff and it can go back to the glory days of when having something Apple was like having a Black AmEx. 

 

The same reason every site will report this and will report that Apple CEO Tim Cook farted today

 

Page Hits. Page hits gets them ad money from those annoying banners (often for the competition) and that's the name of their game. All things Apple even if its a lame and thin connection get the most page hits so everyone tosses Apple out there as much as they can. 

 

This is a blog,not a newspaper so truth and such doesn't matter. Just page hits

Truth on a rumor site. Good one. Ha ha.

 

Gotta love news media 2013 

 

Anything and everything o make good companies look bad is a story.

Well, the only problem with that is that they could decide that anybody who reads info allegedly leaked from the supply chain and then trades Apple stock is guilty of insider trading, which would mean a lot of us would have to stop reading this website if we don't want to go to jail.

Might be mistaken, but I thought Nexus came out before Mini...

Especially in windy places where you aren't downwind.

The only story I can find on the WSJ site about this topic is over two years old. Has a more recent story been published?

 

http://online.wsj.com/article/SB10001424052748703730304575633173086330184.html?mod=googlenews_wsj#articleTabs%3Darticle

 

Just a slight correction here, Samsung spends almost $10 billion a year on advertising. And upwards of $20 billion for "marketing", which includes advertising, sales incentives (commissions), and specials deals (Buy One, Get One).

Edited by mjtomlin - 1/17/13 at 8:02am

 

Granted, they were Samsung's executive team…

 

That includes all their divisions.   CPUs, memory chips (they are the largest maker in the world), phones, laptops, printers, flat screen TVs, LCD and AMOLED displays for all kinds of devices, you name it.    Any engineer knows how much suppliers like that spend on trade shows, sample parts, sales reps, etc.

 

If you check advertising journals, their actual spending on smartphones alone is far smaller than the total of all those other businesses, and has been less than Apple's spending, at least in the US.

 

It does not include Buy One, Get One.  That is done by the carriers.   They use it to capture longterm users, since it's not really One Free.  It's two at half price, and they BOTH require a new two year contract.   The phone maker gets paid normally.

Edited by KDarling - 1/17/13 at 8:03am

 

The only *new* Android phones I see are Samsungs and I see a lot of them. But I also see plenty of iPhone 5s at airports, malls, and other places. I think Samsung is eating more so into other Android manufacturer's than Apple itself. One proof being Apple's marketshare is still GROWING according to most reports albeit at a slower rate than before.

I have to believe that the iPad is the dominant tablet in Japan, especially now with the iPad mini that was just released. A survey of electronics stores in the US would probably show every brand outselling Apple brands, because how many people go to electronic stores to purchase apple products bigger than an iPod?

 

It's allowed by the manufacturers.

 

 

Nice post, but there's one fundamental difference between the PC market in the early-mid 90's and the mobile computing market today; PC sales primarily where to the enterprise, not consumers. It's much easier to lock corporations into huge volume licensing, then it is to lock an individual into a single device. Macs became a niche because of IBM, not Microsoft; IT departments went from IBM (DOS) to IBM-compatible (Windows). Macs didn't fit anywhere in there, they had to carve out a place for themselves in other industries. Windows dominance then grew as interest shifted from the workplace to the home.

 

The problem for Android is that is not a successful platform. It is a successful OS, but without a viable, cohesive platform built on top that OS, there's nothing keeping people from switching to something else, something better, or something cheaper. The massive market share numbers of Android only mean one thing, Android is used by more OEMs. That's it. There's no other advantages. OEMs have very little invested in the OS - they take all the work Google has done, tweak it for their hardware and whichever carrier it's headed for. If they remove any of Google's services, they cannot call it Android.

 

Today Apple is in a position they've never been in before; they have a user base that's several hundred million strong and they have a platform that is not only extremely cohesive, but also has a thriving ecosystem with many multi-billion dollar markets built around it. Android on the other hand, is basically just a semi-open source operating system used by hardware OEMs that don't know anything about software development or don't want the cost. These OEMs have to remain somewhat nimble, they have to be able to move to another OS if that's where the market heads someday.

Edited by mjtomlin - 1/17/13 at 9:04am

I would love to see the link on this sale that you are quoting. 

Yes, I know you put a smiley at the end so you are being facetious but maybe your joke should have been "Buy 2 Nexus 7s for the cost of 1 iPad mini".  ;-)

 

I know it does. Their mobile division happens to be their largest division as well. So I'm going to guess that a majority of their marketing costs are from that division, especially since it happens to be a consumer oriented product line.

 

I can't really buy component marketing as being all that much, including trade shows and reps. This is a captive audience, a finite group of people. Set up a booth at a conference, throw in some reps, and hand out a few pamphlets, maybe even a few component samples. That costs what? The same as a single 30 second commercial during prime-time and that would be for that single air-time alone. How much does it cost to make the commercial? 

 

When you have to market to consumers, it costs much more to blanket everyday life with ads and whatever to get attention.

 

 

 

 

http://www.asymco.com/2012/11/29/the-cost-of-selling-galaxies/

 

Sure.   In any business, BOGO usually results in extra sales, whether it's food or phones.

 

Remember Christmas 2011, when Best Buy had BOGO deals on the iPhone 4, not once, but twice?

 

Of course, BOGO pales in comparison to offers for free phones... including iPhones... on contract.   Such deals basically work out to be GOGO.  (Get One Free, Get One Free)

What if Rolls-Royce cars required their own special blend of gasoline? With that low number of sales, they would never be able to gas up their cars.

That's the situation that the iPhone could end up in if it continues to lose market share.

Philip's post did mention one significant piece of history in the PC vs Mac situation from the 90s: That was the perception that Office was indispensable. Today with mobile computing becoming so ubiquitous email and texting are the new norm for enterprise communications. I, for example, rarely receive any Word documents except for resumes from job seekers. For heavy duty business documents like spreadsheets, the desktop still prevails but often the presentation ends up in an email or PPT slide which still fits the mobile computing model. All devices are equal when it comes to business communication, but Android fans are still trying to discount the halo effect Apple enjoys. Well made products are easy to recognize. If they work seamlessly together all the better. The Nexus 7 to me just feels cheap. It may work fine and is less expensive but given the time to upgrade, the Nexus is worth zip where as the iPad retains much of its original value. To me you only need one good device from each category, phone, tablet, notebook and desktop. For my money, I'm all Apple.

Yes, I've noticed it too. AppleInsider basically reformats content from other sites, often with comically bad grammar and spelling errors. I mean, forget about asking them to elucidate on a topic: they seem to sound bite and rehash old conflicts in order to maximize traffic and forum trolling. It isn't a trend I support.

http://paralleldivergence.com/2007/02/17/olpc-the-revolution-begins/

Please.

There are hundreds of millions of iOS devices put there. And hundreds of millions (500 last I heard) of iTunes accounts.

There's no way developers are leaving iOS. Even when Apple sales level off (and they will at some point) there will always be a huge installed base of customers. And those customers are still buying Apps, music and accessories for their devices.

The headline would read:
"Apple shares plummet as analysts express concern that CEO Tim Cook's health is declining". They'd then go into stories about excessive gas being one of the symptoms of colon cancer. Shortly after that, they'd start the "Apple CEOs prone to cancer. No one else is likely to take the job" crap.


Not even close to being true. If you read something in a public forum, you are not guilty of insider trading. The people who publish the information could be guilty of publishing trade secrets under some circumstances and if the person who releases the information is trading in AAPL, they could be guilty of insider trading. But people who read the article can use it to trade to their heart's content.

That's absurd.

Your analogy is ridiculous. Apple iPhones use the same electricity as everyone else. They use the same mobile networks. Just how is low market share supposed to hurt them?

Not really, iPhone apps can run on the iPad and touch. So if I want market share, u gotta compare OSs.

 

When sales growth levels off, you mean. Right? 

Nice post!

As said time and time again, go look at any publicly published web statistics, the iOS devices are used 2 to 3 times as often as android devices. So where are all these Android devices?

- Replacing dumbphones
- Replacing single-purpose devices (eg photo frames, ebook readers, portable dvd players, GPS units, compact point and shoot cameras)
- If they're not being used on the web, chances are they're not being used for apps.

If you already have stuff purchased on iTunes, you're not going to dump it all to switch to the lack-of-software on Google Play. This problem can be laid directly at developers feet. Apps, music, movies, despite basically the same underlying hardware, aren't available on both device ecosystems.

It doesn't matter how many Android or iOS devices are sold, except to bean counters at Wall Street. The long term viability of iOS or Android depends on developer support, and so far it's falling entirely along developers political lines, not financial ones. The Apple ecosystem is less piracy ridden than Android, so that attracts the music and movie content and developers. The Apps work on ALL current devices, build once, works on all of them, even iPhone apps on iPads. That lack of fragmentation attracts developers.

Overall, using the iOS devices are the choice of people who want to make money from their content, while the Android devices are the choice of people who don't want to or can't make money from their content (eg the ad-reveneue model) the end game is different for both types of developers, and nobody really cares at all who has more market share. All that matters is how many devices are actually being used, which seems like most Android devices are not being used at all, despite shipping numbers.

Someone please figure out where all these "millions" of Android devices are, I'd sure like to know.

YAWN.

These short term sales figures are absolutely useless, especially in a place like Japan where they pretty much will buy anything new to the market.

I have yet to see an Android device break the 40% retention rate while Apple has nearly a 90% retention rate. What this means is these Android users jump from 1 brand to the other desperately in search of an Android that actually works like an iPhone. Eventually they get fed up with Android & break down buying an iPhone. We see it a lot where I work, people who absolutely refuse to get an iPhone coming in with their Androids all the time frustrated at various quirks it keeps having. It never fails, after about 6 months to a year they come in all excited because they finally broke down & got an iPhone, then we rarely see them ever again.

Bells & whistles draw people in but in the end all anyone really wants is for their stuff to just work. If Android can't get to at least a 60-70% retention rate it's doomed to sort of fumble along on hype until the next revolutionary non-iOS alternative comes along & then it's syonara. Look at Microsoft, they've been fumbling the PhoneOS ball for years. As big as they are they have an insurmountable uphill battle because they tarnished their name in the mobile market by pushing out crap software for years.

I'm not saying Android will go the way of BlackBerry but in the long run it isn't likely to overcome the iPhone until it can get away from Google's everything is beta mentality.

I'd put my house on their figures being total BS. Yet another unknown 'analyst' firm that claims to have done an Apple sales estimate from a 'survey'...

A survey that, as always, cannot include Apple's sales through it's online store and it's own stores. And cannot include the single biggest sales channel for the Nexus 7 either - the Google Play online store! Apple sell only a small percentage of their non-iPhone gear via the sort of traditional retailers these guys can survey, most are sold in Apple stores and Apple online, so any figures that don't include these channels are totally useless when it comes to estimating total sales.

There are tons of Android phones manufactured by "other" all across the globe... cheap phones that are basically used as feature phones. I'm guessing those people are not spending a lot of money on apps either.

And who knows if those phones even have access to the Google Play Store. Most Chinese Android phones do NOT... I'm not sure about the rest of the planet.

I'd also like to know how many credit cards Google Play has stored. Apple has always touted the number of iTunes accounts and credit cards... seems like that was a dark horse all along.

I feel like Android's market share is somewhat of a false trophy. Yeah... it's a big number... but what does it actually mean to developers, accessory makers... or even Google?

Android has 75% smartphone market share across the globe... compared to Apple's 15%.

But developers and accessory makers still prefer iOS. That speaks volumes about the strength of the platform.

What percentage of the total sales does Apple do in the "electronic stores", compared to their own Stores or the Premium Stores? At least in Italy, iPads are non-existent in electronic stores, and the mini did not reach Premium Stores if not in demo numbers.

If the research is only based on those sales, I would say that Apple did a lot better than the Nexus. But this is the kind of news that will be read by many as: "Apple is doomed! doomed!"

All Android has to do is double that to get the developers to jump ship. Once they have 150% of the market they'll be sitting pretty¡

 

Yes, $0 profit for ASUS or Google means good for the consumers!

I can't read the entire thread right now, but in case no one mentioned it, here's the Best Discussion Ever on Apple-centric pathological "journalism" and bloggorhea(TM), via Gruber:

http://eliainsider.com/2013/01/16/apples-churning-gut/

Be sure to read the comments, especially you Apple haters.

 

 

I think I can help.  Today's tech reporting is awful.

 

Most reporters were quoting a Chitika ad impressions report that said, "the overall Web traffic distribution between iOS and Android. iOS’s share has hovered around 65%, while Android largely has stayed around 35%,"

 

However, as usual, nobody bothered to actually read that report.  They just put up typical clickbait headlines like, "IOS USERS BROWSE WEB TWICE AS MUCH AS ANDROID USERS".    Then everybody and their brother came up with explanations for what was considered very puzzling news.

 

Okay, now besides the obvious irony that anyone would brag that iOS users saw twice as many ads (that's what the report is about, after all) as Android users, they also failed to read the fine print.

 

Ready?  Here it is:  "While third-party and our own observations have pegged smartphone Web traffic share as a near-tie, Apple has a decided advantage in the tablet market, where its iPad is unquestionably the hottest seller in the sector.  This advantage is the largest contributing factor to Apple’s lead over Android."

 

--

 

 

 

Edited by KDarling - 1/17/13 at 3:52pm

That explains the web browsing side of things... thank you. But what's the deal with app purchases?

"On a typical day in November 2012, the revenues in the Apple App Store exceeded $15M USD, while in Google Play the revenues are just below $3.5M USD in 20 of the largest countries in both app stores."

Is that due to the iPad as well?

Also take into consideration that Android has a ridiculous advantage in smartphone market share... 75% to Apple's 15%

Shouldn't that sway app revenue in Android's favor?

Or do Android smartphone users simply not purchase apps as much as iPhone users?

EDIT: I think there are over 600,000,000 Android phones out in the world.

.
Edited by Michael Scrip - 1/17/13 at 4:26pm