Yes, Android is kicking the iPhone's ass from here to Jericho. Ask any fandroid and they'll confirm it. What we really need is some sort of equivalency scale. For example how many cheap plastic, kludged, non-updated Android phones does it take to equal one single iPhone in quality and profits? The ratio has to be in the thousands to one. Kinda puts the "500,000 activations per day" in perspective doesn't it.
It doesn't matter how inexpensive or low-quality Android smartphones are. In Wall Street's eyes, Android is winning and will continue to win. Wall Street may be wrong, but that's still how they see it. Android devices got a later start than Apple's iPhone and blew right by the iPhone's sales numbers within a very short time. Wall Street lives by "The cheaper the product, the more you can sell." philosopy. I see it all the time that volume is always preferred over quality on Wall Street. Analysts were always saying, "Apple needs to lower iPhone prices in order to sell more smartphones." That's just how they think. They truly believe that cheap and choice will always lure more consumers than quality. It may be true.
It will probably impossible for the higher-quality iPhone to outsell six or seven major Android vendors to gain majority smartphone market share and that's what Wall Street sees. It won't matter for Apple since Apple is already making the majority of profits from the smartphone sector. If the iPhone ever got close to majority market share, their profit share would probably be up around 90%.
Wall Street is impressed with activation numbers. Who knows how many of those activated Android smartphones got returned or users were unhappy with. It doesn't matter. iOS is not being looked upon as the most dominant force when it comes to smartphone sales. Android OS is. That's likely why Apple is being devalued as a company. I don't believe Apple will be able to change Wall Street's attitude unless they started selling cheap, low quality smartphones which is not going to happen.
Android is winning. Handset makers and platforms are not the same thing. The iOS platform grew .8% and Android grew 4.6%. That doesn't mean Apple is going to go away, die or anything like that but focusing on a smaller number and ignoring the broader picture does no favors for Apple.
That probably USED to be the case -- the common logic -- in the desktop world.
But let's look at the iPhone resale numbers, the comparison of build quality (estimated $2 Billion to be spent in support and replacement on Android phones), and the gross profits (4% of all phones sold, 64% of profits).
The large number of cheap netbooks sold, is a loss leader for many companies without a future market share increase -- whomever is selling the CHEAPEST/GOOD ENOUGH netbook or smart phone is going to be a market share winner -- but that isn't going to translate into control of the market. It's likely more a sign of desperation as companies undercut each other.
Samsung might not "die" overnight, but I'm sure that a lot of the Android platform manufacturers are probably NOT going to be selling smart phones in 2 years.
>> Without REAL profits on the phone -- that means that subsidizing the phone comes from datamining and advertisements. The CUSTOMER for google is not the phone purchaser, but the advertiser.
Android phones are probably NOT going to have a great customer retention record. They are more likely going to be "cheap upfront" but nightmares of Phishing, broken phones, and compatibility as upgrading the phone, or having apps work on ALL phones on all platforms is an iffy proposition.
>> The OLD paradigm of the "do it yourself" Desktop Computer is not going to work in the Smart Phone realm -- and I predict that SIRI is going to be a serious nail in the coffin for any profits for Google.
Steve Jobs got pissed at yet another "wolf in sheep's clothing" from Google doing the same thing that Bill Gates did -- and he is going to get his revenge from beyond the grave.
Android is "winning" when someone wants a "smart phone" please and cannot afford the iPhone because they are trying to find the cheapest plan/phone -- that's MY MARKET actually.
I doubt that the "sales per phone" of applications on Android is anywhere near the iPhone. You have your calendar, your texting keyboard, and maybe download "Angry Birds" and a few novelties like that.
But the Android phone is the default -- not the preference. It's the Acer computer of the cell phone world.
Other than a few Uber Geeks on Slashdot -- I doubt anybody REALLY wanted an Android for Christmas, but the parents relented and got the best deal they could.
Android will be replaced by the next Android-like phone. Google will do OK in this, because the next "Android-like" phone will likely be from Samsung or another vendor. The Vendors however, won't get much out of this situation, as the have to compete with Apple and cannot get the same procurement.
Microsoft, Nokia, Blackberry - they are going to probably fade from existence in this market -- as they are not quite good enough as the Android on the lower tier. So A "win-phone" gets crowded out by Android Crap Phone 1, 2 or 3. It's a great strategy of Google's to not get into the hardware end as this 2nd rung Smart Phone market will be a bloodbath of feature and spec competition without any real profits to innovate.
And customizing Android to make a company stand out, is just another tech support nightmare that the Phone companies take on -- NOT Google.
>> But I doubt that Google will have any loyal customers or vendors out of this race to 2nd place.
Comments
Yes, Android is kicking the iPhone's ass from here to Jericho. Ask any fandroid and they'll confirm it. What we really need is some sort of equivalency scale. For example how many cheap plastic, kludged, non-updated Android phones does it take to equal one single iPhone in quality and profits? The ratio has to be in the thousands to one. Kinda puts the "500,000 activations per day" in perspective doesn't it.
It doesn't matter how inexpensive or low-quality Android smartphones are. In Wall Street's eyes, Android is winning and will continue to win. Wall Street may be wrong, but that's still how they see it. Android devices got a later start than Apple's iPhone and blew right by the iPhone's sales numbers within a very short time. Wall Street lives by "The cheaper the product, the more you can sell." philosopy. I see it all the time that volume is always preferred over quality on Wall Street. Analysts were always saying, "Apple needs to lower iPhone prices in order to sell more smartphones." That's just how they think. They truly believe that cheap and choice will always lure more consumers than quality. It may be true.
It will probably impossible for the higher-quality iPhone to outsell six or seven major Android vendors to gain majority smartphone market share and that's what Wall Street sees. It won't matter for Apple since Apple is already making the majority of profits from the smartphone sector. If the iPhone ever got close to majority market share, their profit share would probably be up around 90%.
Wall Street is impressed with activation numbers. Who knows how many of those activated Android smartphones got returned or users were unhappy with. It doesn't matter. iOS is not being looked upon as the most dominant force when it comes to smartphone sales. Android OS is. That's likely why Apple is being devalued as a company. I don't believe Apple will be able to change Wall Street's attitude unless they started selling cheap, low quality smartphones which is not going to happen.
In Wall Street's eyes,
Wall Street may be wrong, but that's still how they see it.
Wall Street lives by
volume is always preferred over quality on Wall Street.
Analysts were always saying,
That's just how they think.
They truly believe that
that's what Wall Street sees.
Wall Street is impressed with
iOS is not being looked upon
change Wall Street's attitude
Apple stock is doing quite well, thanks. So ISTM that "Wall Street" doesn't "see... say... [or] believe" much of any of this stuff.
Just saying.
Wait, I thought Android was winning.
Depends on the metric of the day, surely.
Android is winning. Handset makers and platforms are not the same thing. The iOS platform grew .8% and Android grew 4.6%. That doesn't mean Apple is going to go away, die or anything like that but focusing on a smaller number and ignoring the broader picture does no favors for Apple.
That probably USED to be the case -- the common logic -- in the desktop world.
But let's look at the iPhone resale numbers, the comparison of build quality (estimated $2 Billion to be spent in support and replacement on Android phones), and the gross profits (4% of all phones sold, 64% of profits).
The large number of cheap netbooks sold, is a loss leader for many companies without a future market share increase -- whomever is selling the CHEAPEST/GOOD ENOUGH netbook or smart phone is going to be a market share winner -- but that isn't going to translate into control of the market. It's likely more a sign of desperation as companies undercut each other.
Samsung might not "die" overnight, but I'm sure that a lot of the Android platform manufacturers are probably NOT going to be selling smart phones in 2 years.
>> Without REAL profits on the phone -- that means that subsidizing the phone comes from datamining and advertisements. The CUSTOMER for google is not the phone purchaser, but the advertiser.
Android phones are probably NOT going to have a great customer retention record. They are more likely going to be "cheap upfront" but nightmares of Phishing, broken phones, and compatibility as upgrading the phone, or having apps work on ALL phones on all platforms is an iffy proposition.
>> The OLD paradigm of the "do it yourself" Desktop Computer is not going to work in the Smart Phone realm -- and I predict that SIRI is going to be a serious nail in the coffin for any profits for Google.
Steve Jobs got pissed at yet another "wolf in sheep's clothing" from Google doing the same thing that Bill Gates did -- and he is going to get his revenge from beyond the grave.
Depends on the metric of the day, surely.
Android is "winning" when someone wants a "smart phone" please and cannot afford the iPhone because they are trying to find the cheapest plan/phone -- that's MY MARKET actually.
I doubt that the "sales per phone" of applications on Android is anywhere near the iPhone. You have your calendar, your texting keyboard, and maybe download "Angry Birds" and a few novelties like that.
But the Android phone is the default -- not the preference. It's the Acer computer of the cell phone world.
Other than a few Uber Geeks on Slashdot -- I doubt anybody REALLY wanted an Android for Christmas, but the parents relented and got the best deal they could.
Android will be replaced by the next Android-like phone. Google will do OK in this, because the next "Android-like" phone will likely be from Samsung or another vendor. The Vendors however, won't get much out of this situation, as the have to compete with Apple and cannot get the same procurement.
Microsoft, Nokia, Blackberry - they are going to probably fade from existence in this market -- as they are not quite good enough as the Android on the lower tier. So A "win-phone" gets crowded out by Android Crap Phone 1, 2 or 3. It's a great strategy of Google's to not get into the hardware end as this 2nd rung Smart Phone market will be a bloodbath of feature and spec competition without any real profits to innovate.
And customizing Android to make a company stand out, is just another tech support nightmare that the Phone companies take on -- NOT Google.
>> But I doubt that Google will have any loyal customers or vendors out of this race to 2nd place.