Originally Posted by pedromartins
Correct me if I'm wrong and please forgive my ignorance before boooooing me away.
So, in the US, where price isn't a factor (flagships cost more or less the same with a contract), the country where all of Apple's services are targeted, the country with more than 300 Apple Stores, the country that has the iPhone since 07, Android is ahead. Most people specifically chose Android. Why?
I shortened your post to focus on question you posed above, even though I think you asked it rhetorically.
Apple has made a conscious decision to not let their products become commodity products, even if the overall market became a commodity market. Most companies cannot avoid the lure of large base of customers who cannot afford, or cannot appreciate, the value of certain prestige product. For example, I cannot enjoy the value of a Rollex watch while I absolutely enjoy the value of Apple products.
During the height of the iPod dominance there were always a lot of less expensive products. However Apple won the bulk of the market AND the minds of the consumer. They did this by (1) producing a highly designed product, and (2) advertising the hell out of it. This is somewhat the strategy Samsung is employing presently. However, the Samsung product is (1) a shade less well designed, has a far inferior ecosystem, and lacks the security of the Apple alternative. Samsung does balance this out with (2) spending a ton on advertising; ten to fourteen times as much money as Apple.
Because Apple does not just sell hardware and software, but the WHOLE user experience, any increase in advertising needs to be balanced with higher hardware production and an corresponding increase in the ecosystem: server farms, customer service, brick & mortar stores — all the while refreshing the user experience and adding to differenching their product.
If a company increases their advertising without improving the ability to delight the customer, then they risk becoming a commodity product, or cannot fulfill the orders their advertising created, and losing the caché of a delighting company/product. Either way, they lose.
Apple is sticking to their battle plan which is "slow and steady" win the game. Apple has not been distracted by trying to gain market share at the cost of losing their prestige label.