Apple says Amazon Kindle Fire will further fragment Android

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  • Reply 81 of 129
    Quote:
    Originally Posted by zindako View Post


    There are plenty of $99.00 smart phones out there running android, but people are lining up in the millions around the world for an iPhone 4S. Say what you want about price, quality will always trump that.



    Wrong:



    http://www.bgr.com/2011/04/07/androi...y-end-of-2012/



    Android is crushing the market because you can buy it on cheap phones.
  • Reply 82 of 129
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by bloggerblog View Post


    It's exactly what happened with the Mac since its launch in the mid 80's



    As for Apple making more money than Microsoft, um, no. Apple is the largest tech company according to market cap; however, Microsoft makes a butt load more money than Apple - NPR Article -



    1) There is nothing similar about Apple's position in the smartphone market today and Apple's position in the 'PC' market in the 80s.



    2) You pulled up an article from May 26, 2010 when Apple jumped ahead of MS in market cap. Yeah, that came before Apple made more revenue than MS, which was before Apple made more profit than MS, but both of those things happened in the 1.5 years since that article was released.



    3) Apple did so well in the last quarters that they even beat MS for the fiscal year's profits: Apple's $25.922 billion v. MS's $ 23.15 billion. It's even more extreme when you look at Apple's $108.249 billion in revenue v. MS's $69.94 billion, which is a factor of MS's profit margins being much, much higher than Apple's due to the nature of a HW v. SW company, respectively.
  • Reply 83 of 129
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by Hellacool View Post


    Wrong:



    http://www.bgr.com/2011/04/07/androi...y-end-of-2012/



    1) It's a prediction, not a fact, that was given more than a 1.5 year lead time. A lot can change in that time frame. Just look at the 2006 to 2008.



    2) You're stipulating that 50% is had from all 99% devices, which is also not implied in the article nor a fact.



    3) Apple is a smartphone vendor. They have a premium product yet they still outsell any other vendor's brand in unit sales and make the most profit of any handset maker in the world. Samsung sold more units of all their brands in the last quarter with the iPhone 4 going over a year old, but you'd be remiss to think that will happen again this quarter.
  • Reply 84 of 129
    Quote:
    Originally Posted by solipsism View Post


    1) it's a prediction, not a fact.



    2) You're stipulating that 50% is had from all 99% devices, which is also not implied in the article nor a fact.



    3) Apple is a smartphone vendor. They have a premium product yet they still outsell any other vendor's brand in unit sales and make the most profit of any handset maker in the world. Samsung sold more units of all their brands in the last quarter with the iPhone 4 going over a year old, but you'd be remiss to think that will happen again this quarter.





    If you scroll further down you will see the numbers for 2010 and 2011, Android is ahead in all. My point is that cheap sells which is evident by these numbers. I never said they were better I am simply saying that quality does not TRUMP cheap when it comes to over all figures. If you want further proof, look at MAC, the hardware is top notch, it only holds 9% of the market. The other 91% is occupied by cheap windows based PCs that people flock too by the millions everyday. Everyone of those individuals that buy the cheap PC could have been a MAC purchaser but decided for one reason or another they wanted less expensive.
  • Reply 85 of 129
    Quote:
    Originally Posted by solipsism View Post


    1) There is nothing similar about Apple's position in the smartphone market today and Apple's position in the 'PC' market in the 80s.



    2) You pulled up an article from May 26, 2010 when Apple jumped ahead of MS in market cap. Yeah, that came before Apple made more revenue than MS, which was before Apple made more profit than MS, but both of those things happened in the 1.5 years since that article was released.



    I might agree with #2 but I find that there are many similarities between the Mac and Windows market as with iPad and the Tablet market in that, when Microsoft made Windows available to all manufacturers, those manufacturers marketed the hell out of it and "won." Apple is a one does all business, which is not a bad thing I actually think it's great, but will ultimately sell less than all those manufacturers combined.



    Apple will always be the trendsetter, the leader that many will follow because it already has that reputation.
  • Reply 86 of 129
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by Hellacool View Post


    ...Android is ahead in all.



    They aren't, only in the number of devices that being sold with Android OS installed, but it's not really a good comparison since 1) both Android and iOS have a healthy enough base to make such a comparison pointless in any real world terms, 2) and Apple is only one vendor. If Apple licensed their OSes then it would be fair, so why not compare a vendor to vendor. You cold at least say Samsung sold more units than Apple last quarter.



    Quote:

    If you want further proof, look at MAC, the hardware is top notch, it only holds 9% of the market. The other 91% is occupied by cheap windows based PCs.



    1) I'll never understand the capitalization of Mac to MAC.



    2) Apple was taking 1/3 of the world's 'PC' profits a few years back. I can't imagine that has down anything but go up since then.
  • Reply 87 of 129
    riderrider Posts: 31member
    Quote:
    Originally Posted by boodies View Post


    as a new ipad 2 owner and android owner i must say..



    grow up kids... they are both great devices. In practicality Fragmentation doesn't really mean shit to me. My 2 yo galaxy S can still play all the games and apps.



    And the more I use the ipad, I am beginning to realize what this "walled garden" everyone is talking about. I can't even rearrange my icons my way... REALLY? WTF. That's just one of many issues in android, I can solve easily.



    At this point, it's Windows for PC Android for Phones and Ipads for a tablet.



    You know that you can rearrange the iocns by holding them down for 5 secs ?
  • Reply 88 of 129
    This article doesn't make any sense.



    This is a great addition to the tablet line up. It's going to be good for the industry because of the competitive pricing.



    Amazon already has a very large portion of the ebook sales, and this will be a natural transition from their other devices.



    I don't see what this has to do with fragmentation at all though. The nook color didn't "fragment" the platform. Apple just attacks people for not having the same business model, and it seems everyone goes back to the fragmentation point.



    Pre-orders for the Kindle Fire were through the roof. In the first 5 days pre-orders were available, 250,000 Kindle Fires were sold. That's 2k per hour. I wouldn't be surprised at all to see this outsell the ipad2
  • Reply 89 of 129
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by bloggerblog View Post


    I might agree with #2 but I find that there are many similarities between the Mac and Windows market as with iPad and the Tablet market in that, when Microsoft made Windows available to all manufacturers, those manufacturers marketed the hell out of it and "won." Apple is a one does all business, which is not a bad thing I actually think it's great, but will ultimately sell less than all those manufacturers combined.



    Apple will always be the trendsetter, the leader that many will follow because it already has that reputation.



    There were highly profitable PC vendors back then. Today there aren't very many profitable ? and I mean technically ? vendors who use Android OS. Pretty much all of them jumped on it because they were drowning. Now they have an unraveling life raft just like the PC vendors have had for the past decade as they race to the bottom except this time it's happened much, much faster due to the savviness of Apple in the market and differences in core business structures between MS and Google.



    Remember MS sells their OS and so has a vested interest in propping their vendors as much as possible. Google just doesn't care and has yet to see a direct dime from the project.
  • Reply 90 of 129
    Quote:
    Originally Posted by solipsism View Post


    They aren't, only in the number of devices that being sold with Android OS installed, but it's not really a good comparison since 1) both Android and iOS have a healthy enough base to make such a comparison pointless in any real world terms, 2) and Apple is only one vendor. If Apple licensed their OSes then it would be fair, so why not compare a vendor to vendor. You cold at least say Samsung sold more units than Apple last quarter.





    1) I'll never understand the capitalization of Mac to MAC.



    2) Apple was taking 1/3 of the world's 'PC' profits a few years back. I can't imagine that has down anything but go up since then.



    Everyone is simply missing the point, cheap sells. It is really as simple as that. The fire is cheap and will work well for what it is and will probably sell very well. Everyone of those sells may have been a potential iPad sale, therefore it is a threat, solely on the fact that it is cheap and will more than likely sell well.
  • Reply 91 of 129
    pendergastpendergast Posts: 1,358member
    Quote:
    Originally Posted by DrDoppio View Post


    Thanks to both of you. I know what trump means. I somehow got the impression that it was used in the sense that quality is the decisive factor for people when deciding what to buy. Meaning that nobody ever buys anything else but the best quality product.



    I would assume that quality, together with price, determine buyers behavior. I may be wrong.



    The value proposition determines buyer behavior, but it's subjective.



    Some people will find that an underpowered tablet is a great value because of the price, while others will find the iPad to be a better value despite the price.
  • Reply 92 of 129
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by Hellacool View Post


    Everyone is simply missing the point, cheap sells. It is really as simple as that.



    You missed the point with your original comment. We all know that it's a pyramid where cheap items in the same market will outsell more expensive items in a unit-to-unit comparison. That's not new, it's also not the business most companies want to be in.
  • Reply 93 of 129
    Quote:
    Originally Posted by solipsism View Post


    There were highly profitable PC vendors back then. Today there aren't very many profitable ? and I mean technically ? vendors who use Android OS. Pretty much all of them jumped on it because they were drowning. Now they have an unraveling life raft just like the PC vendors have had for the past decade as they race to the bottom except this time it's happened much, much faster due to the savviness of Apple in the market and differences in core business structures between MS and Google.



    Remember MS sells their OS and so has a vested interest in propping their vendors as much as possible. Google just doesn't care and has yet to see a direct dime from the project.



    Obviously every business model has been profitable in their own way. Microsoft sells the windows license for each device, and Google makes money via advetising revenue. Both companies have been extremely successful.



    The Android business model allows for each company like Samsung and HTC to develop their own software layer on top of Android to tailor it to their needs, while still having it be compatible with the same Android ecosystem.
  • Reply 94 of 129
    Quote:
    Originally Posted by bloggerblog View Post


    I might agree with #2 but I find that there are many similarities between the Mac and Windows market as with iPad and the Tablet market in that, when Microsoft made Windows available to all manufacturers, those manufacturers marketed the hell out of it and "won." Apple is a one does all business, which is not a bad thing I actually think it's great, but will ultimately sell less than all those manufacturers combined.



    What similarities? That Apple is releasing a premium product in the iPad and that Amazon is releasing the Kindle Fire (in all likelihood at a loss) at a lower price? That alone does not even begin to replicate the circumstances between Mac and Windows of yesteryear. In fact, almost every key circumstance aside from price is different. One vital example which bears no resemblance to this parroted comparison is developer support.



    That, and the Kindle Fire is not a good foundation for the growth of Android.
  • Reply 95 of 129
    Quote:
    Originally Posted by solipsism View Post


    Remember MS sells their OS and so has a vested interest in propping their vendors as much as possible. Google just doesn't care and has yet to see a direct dime from the project.



    I'm not sure that Google even cares to make any money off of Android directly. I always thought they were in it for the Google searches from the phones. On a related note: When Microsoft partnered with Motorola to put Bing on their Android phones, I bet that made Google mad. In fact, it will be interesting to see what happens with that agreement now that Google is buying Motorola.
  • Reply 96 of 129
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by MaroonMushroom View Post


    Google makes money via advetising revenue.



    Google makes money via advertising revenue is a fact, but yur argument is a fallacy because you've failed to show where Google makes a profit on Android's advertising revenue via apps and the browser. They've never released it and in the last quarterly they barely even mention this wonderful, profitable, all powerful OS. Why would they do that, ya' think?
  • Reply 97 of 129
    Quote:
    Originally Posted by Xian Zhu Xuande View Post


    That, and the Kindle Fire is not a good foundation for the growth of Android.



    What? It's just a standalone device by Amazon, nothing more.



    They obviously don't care that they're selling at a loss, because you're paying for content from Amazon.
  • Reply 98 of 129
    Quote:
    Originally Posted by solipsism View Post


    You missed the point with your original comment. We all know that it's a pyramid where cheap items in the same market will outsell more expensive items in a unit-to-unit comparison. That's not new, it's also not the business most companies want to be in.



    But because Apple currently has a large portion of the tablet market a unit to unit comparison is very important. The iPad has the market because they are all there was. A few have tried to get a foot hold but have not fared well. Now here comes Amazon with a inexpensive, well supported device. If it can get a foot hold in the market it will put a nice dent in iPad sales. My comments about "cheap sells" is in reference to comments that quality will always trump cheap when it comes to sales and that simply is not true:



    Ford - Ferrari

    PC - MAC



    ect....
  • Reply 99 of 129
    Quote:
    Originally Posted by Hellacool View Post


    Everyone is simply missing the point, cheap sells. It is really as simple as that. The fire is cheap and will work well for what it is and will probably sell very well. Everyone of those sells may have been a potential iPad sale, therefore it is a threat, solely on the fact that it is cheap and will more than likely sell well.



    Cheap does indeed sell. The Fire will indeed eat away at some iPad sales. But cheap is not sufficient to disrupt an established market. Cheap must come along with the necessary bells and whistles to make the disruption viable, and the Fire does not fit the bill. Additionally, Amazon's business model for the Fire will be based on recuperating loss (or generating profit) on a device which does not account for this at the time of sale. This will translate into innovation shortfalls. Some people have eloquently expressed a few of the problems the Fire faces in disrupting the iPad. All I could find was one good article by Horace Deidu.
  • Reply 100 of 129
    Quote:
    Originally Posted by Xian Zhu Xuande View Post


    Cheap does indeed sell. The Fire will indeed eat away at some iPad sales. But cheap is not sufficient to disrupt an established market. Cheap must come along with the necessary bells and whistles to make the disruption viable, and the Fire does not fit the bill. Additionally, Amazon's business model for the Fire will be based on recuperating loss (or generating profit) on a device which does not account for this at the time of sale. This will translate into innovation shortfalls. Some people have eloquently expressed a few of the problems the Fire faces in disrupting the iPad. All I could find was one good article by Horace Deidu.



    The point is so far missed here I am not even sure where to start. 1 - Any sale that goes to the Fire that could have gone to the iPad is a disruption to the iPad. 2 - Amazon is not trying to make money on this device, they are making money on content, period. Same with the Kindle. They know this and am pretty sure are accounting for it. 3 - If Amazon succeeds anywhere near the level it does with Kindle it will chizzle a nice little hole in iPads market share. Once that nut is cracked, others will follow further chizziling away at iPad sales. All of this is a major threat to Apple and they know it.
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