Apple's iPhone could be last standing in smartphone 'race to the bottom'

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  • Reply 41 of 49
    Two's a company and three's a crowd in the fight for mobile advertising revenue.



    Google and Microsoft will fight the hardware "race to the bottom", Apple will abstain.



    Google will win and Microsoft will lose.



    Google will have the most market share of the smart phone market where advertising counts, Apple will have the smaller, most hardware profitable share where quality and status counts.



    Apple to come out a winner and a loser basically.
  • Reply 42 of 49
    jfanningjfanning Posts: 3,398member
    Quote:
    Originally Posted by Alfiejr View Post


    and Nokia - look for MS to make a deal with Elop early next year for a new Nokia line running WP7.



    May I ask your thinking behind this comment? Is it just because Elop worked for MS? I would have though if Nokia was willing to swap to another OS it would have been Android not WM, and Nokia has been pretty public about not moving to Android.
  • Reply 43 of 49
    Quote:
    Originally Posted by bongo View Post


    "Race to the bottom"



    This phrase literally has no meaning, literally or metaphorically, when applied to smartphones.



    In terms of quality, consumer demand determines sales. Both advertising and quality play the biggest roles in determining demand. Android sales are topping 300k a month. Apple iOS devices in total are 275k/month. Android outsells iPads, iPhones, and iPod combined. Now it would be hard to argue that Apple doesn't possess the strongest brand image in the industry. So its clear consumers see higher quality in Android devices than they do in the iPhone line, as the Price is nearly the same: The top selling android devices are the galaxy S ($200-$300) the Droid X ($200), droid 2 ($150) compared to the $200-$300 iPhone 4 and $99 iPhone 3GS. Despite Apple's advantage in advertising, Android is beating them in sales.



    Facebook app activates don't equal sale, as most windows phones include facebook integration built in. But its clear consumers don't trust the windows brand when it comes to mobile computing. Windows is going for the enterprise, where RIM still is the only to provide certain features, but at a high cost.



    In terms of profit, sure Apple enjoys huge margins on all their products. But again Apple is a vertically oriented company. Naturally they're going to have high margins compared to just the software developer like Google. However manufacturers of phones like the Droid X and Galaxy S enjoy almost the same profit margins and markup as Apple does on the iPhone. Look at tear downs of parts and its clear that Android phones are marked up almost as high as iOS devices. That combined with the shear volume of sales and I'd say android manufactures are in a good business. The only difference is they have to keep innovating to stay relevant while Apple can release the same copied features.



    So if I were to predict a winner in the "race to the bottom" I would actually choose Apple, in market share, quality, and innovation. The only place they really win is mark up, so they'll always be able to make a good profit off a small niche. Naturally such a huge company like Apple (2nd most valuable in the world) will always win when compared to other competitors. Even so only a monopoly, or a socialistic country, would describe a competitive market as a "race to the bottom."



    I really hope you aren't serious. Firstly there's over 120 million iOS devices that have been sold. Secondly as long as iTunes and the iPod exist Apple will never be at the bottom. The only reason Android even took off in the US like it did is because of Verizon. Be honest Android was almost non existent when it was only available on T-Mobile. If it wasn't for Verizon's Droid Lineup Android would not have taken off, so what do you think will happen when the iPhone is Available on Verizon and other carriers in the US? Furthermore iOS is no slouch, they're constantly innovating and adding features to iOS. iOS has far better exchange support than Android and stronger enterprise features which makes it a better candidate for Business. Trust me iOS and the iPhone will be here for awhile and so will Android. WP7 and RIM I'm not so sure. But Android and iOS are here to stay.
  • Reply 44 of 49
    It reminds me of the old American car ads of the '70's...where they were continually touting them as "similar" to the German cars, Mercedes and BMW...including making little silver hood ornaments like Mercedes had back then....



    The Android and Windows 7 OS's and phones are poor copies of Apples iPhone...



    Look at what Apple has done to the netbooks sector with the iPad...they have even done more damage to their Tablet competitors.



    It's just unreal to me that companies can create crappy products and through slick marketing sell crappy cars like in the '70's and now crappy smart phones and tablets.



    I mean is there anyone out there that thinks the tablets introduced a few years ago were any good or all those netbooks sold in the last couple of years were any good?



    Race to the bottom is spot on!



    Best
  • Reply 45 of 49
    alfiejralfiejr Posts: 1,524member
    Quote:
    Originally Posted by jfanning View Post


    May I ask your thinking behind this comment? Is it just because Elop worked for MS? I would have though if Nokia was willing to swap to another OS it would have been Android not WM, and Nokia has been pretty public about not moving to Android.



    yes, it would be humiliating for Nokia to adopt Android now after that, i can't see it happening. but Nokia never said anything about MS/Windows. Symbian is dying before our eyes - and Elop has no personal career need to hang on to it any longer. whereas he could cut a great deal with Ballmer in seconds - they both need each other desperately. this could put them both back in the game.



    remember, Nokia still sells a massive number of featurephones globally, dominating that huge market. WP7 would be a nice cheap upgrade for those product lines with its social and media emphasis instead of apps (where it may never catch up to iOS/Android).



    heck, you can make a good case MS and Nokia should merge.



    you can also make a good case Facebook should buy RIM.
  • Reply 46 of 49
    Even if Google and Microsoft fight each other to the extent that margins on the phones are non existant, they will still be making money.



    If you control the os then you control where people buy apps and music. In the Enterprise market WP7 also has good integration with SharePoint, so that's another MS sale. SharePoint needs SharePoint developers which need MS development tools and MS servers and an MS os. If your os is MS then your also going to use office. Now all this is bought you get discounts on exchange so you might as well buy that to.



    MS make money by doing everything, even if the phone doesn't make money there still getting you hooked to there products. Hence there profit is still double what Apples is! Google are trying to go a similar root with there stuff, while Apple just killed there server.
  • Reply 47 of 49
    [QUOTE=GmanMac;1766718]
    Quote:

    Amazing game changer by the innovators at apple.

    http://news.cnet.com/8301-13506_3-20...17.html/QUOTE]



    Sounds like Apple just got the patent, so I'd say innovators indeed.



    Yeah, but I'm sure there are a lot more patents out there they didn't get.



    http://en.wikipedia.org/wiki/Autostereoscopic
  • Reply 48 of 49
    jfanningjfanning Posts: 3,398member
    Quote:
    Originally Posted by Alfiejr View Post


    yes, it would be humiliating for Nokia to adopt Android now after that, i can't see it happening. but Nokia never said anything about MS/Windows. Symbian is dying before our eyes - and Elop has no personal career need to hang on to it any longer. whereas he could cut a great deal with Ballmer in seconds - they both need each other desperately. this could put them both back in the game.



    remember, Nokia still sells a massive number of featurephones globally, dominating that huge market. WP7 would be a nice cheap upgrade for those product lines with its social and media emphasis instead of apps (where it may never catch up to iOS/Android).



    heck, you can make a good case MS and Nokia should merge.



    you can also make a good case Facebook should buy RIM.



    I still don't understand you thoughts behind Nokia using WM7, you haven't said any reason why they would. They currently have access to various OS choices that cost them $0 for licencing, are you trying to suggest they start using one they have to pay for? And one that is no more advanced than what they have now, and one that doesn't sell as well as the one they have now?



    I think you are placing too much emphasis on Elops previous position, using your same logic, why isn't MS a flash house now?
  • Reply 49 of 49
    asdasdasdasd Posts: 5,685member
    Quote:
    Originally Posted by ahmlco View Post


    As in PCs, Apple will have the minority share in terms of units... but as the "last man standing" profit-wise, they will rake in the majority of the revenues.



    Android phones are the "commodity PCs" of the market place. Carriers will give them away, and manufacturers will fight over who gets the most nickels and dimes.





    Its amazing how many Apple fans both expect the minority position and want it.
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