Well, Google is setting pretty clear expectations on the phone price by announcing it already. Might be hard to charge more unless you move off of the reference design much.
Obviously there will be more expensive Android phones. S6's are not going to be $100. But it will interesting to see how an S6 is different than the reference design.
Google is not setting the price. The manufacturers are. What Google is doing is spec'ing the phone parts and identifying vendors enabling the smaller manufacturers to pool their resources to get economies of scale and everyone wins.
If Google is really trying to squeeze Apple's hardware business, then Apple should build its own search engine or acquire DuckDuckGo and put the squeeze on Google's search engine business. It really appears as though Google is definitely trying to step all over Apple's toes by enticing mobile hardware manufacturers to undercut Apple's mobile hardware business. It really wouldn't cost Apple all that much to have a search engine and optionally enable it on all of Apple's mobile devices in one quick push. I think that would really take a bite out of Google's search engine business in a very short time. DuckDuckGo is a pretty decent search engine that gives good results. Apple could probably carry out this tactic faster than Google can get Android One up and running. It just seems like a no-brainer for Apple to do to weaken Google's hold on mobile devices. If Android One is really a threat to Apple then I hate to see Apple sit back and do nothing about it.
Android One still doesn't get around the fact that many security updates are at the lowest levels of the operating system, and Android One (or Google Play Services) can't fix those. They still require an old-fashioned OS update, which would have to go through the OEM's and carriers.
Of course it helps fix it. Google will be handling the software updates directly, bypassing manufacturers and carriers as it does with its Nexus program. That's one of the perks. I'm guessing you didn't read about it before commenting?
This is nothing new from Apple's perspective. We already have the Moto E that's a stock Android Kitkat phone, with a 4.5" screen, dual core processor, and crappy camera, that's available for below $120. I don't think $20 lesser is going to be earth shatteringly different against a player like Apple.
This all happened before. PC's have gotten commoditized into sub $300 levels, even if you don't consider net books. While Apple steadfastly maintains its quality, price and market share.
The only difference, and advantage, for Apple, in mobile space - is that the hardware is typically an insignificant part of the overall cost of ownership. Secondly, phones are typically changed a lot faster than PCs, so resale values play an important part in Total Cost of Ownership.
Apple is also now taking in so much money, they are in a way going beyond commoditization - the best headphones in the world are now accessible "at cost", the best sapphire glass is now accessible "at cost". Same for Liquid Metal, same for battery technology, same for manufacturing processes. Apple owns almost everything that goes into the phone all the way down.
Apple is maintaining its margins, despite selling significantly better hardware each year because of this - they are actually becoming more efficient each year - it is just not visible, because each year there are expensive technologies like Retina Displays, Touch ID, etc that get added, and still margins stay the same!
Pretty soon, Apple will be having so much money, they can do this at a level that is simply not possible for anyone else to compete with - including Samsung. And the hardware improvements that add huge costs to the phone will start becoming rarer.
I expect that right around when Android gets its act together and comes up with a credible alternative to Apple - a decent phone that lasts 2 years, at a low price, Apple will be in a position to lower its prices significantly, without lowering its profit margins.
If Android One can be sold for $100, Apple can easily sell a high quality equivalent at $150, where it still makes 40% margins. Which would a customer rather buy - a junk phone for $100, or a fabulous phone that unlocks a safe ecosystem that is used by all the people who matter?
In fact, by the time Android gets its act together, I believe we will see a few malware disasters on Android that completely destroy all confidence that anyone has on that platform.
I am a futurist, and I cannot foresee any scenario where Android comes out ahead of Apple in a useful sense.
There's a reason why Tim Cook is the CEO and not someone like Jon Ive. The game at Apple today is to keep innovating as they always have been - but more importantly to sort out the logistics to such a level that they can lower the costs of their products without compromising on quality or margins.
While the world sees Tim Cook, they see a CEO who hasn't launched any innovative new products. But that's because they really don't understand what's happening behind the scenes. Today Apple is so far ahead in the innovation game, they can afford to slow down there - its 9 months, and we still don't have a 64-bit competitor to the A7! Not one decent phone with a good Usable biometric ID! Apple is spending these last few years optimizing its logistics. They are taking the most expensive parts of the phone, and investing billions of dollars to get these at prices that are below commodity levels.
Just take a look at the components which Apple has acquired or has prepaid in billions for: displays, flash memory, sapphire glass, liquid metal, battery chemistry, machining devices, manufacturing processes, LTE technology (via Rockstar), In house CPU design with huge payments being made to TSMC to help them get their act together on fabrication.
Almost 70% of what does into a phone today is accessible to Apple at a price below the most commoditized price possible - because they either own the technology, or because they have paid the money to help partners set up manufacturing plants to make these things.
You're referring to banking malware delivered via "phishing". All the mobile OS's are just as open to that, iOS included.
Incorrect.
On Facebook they call that "Vaguebooking." It refers to posting nebulous, incomplete statements in an effort to get people to respond. It's considered a social disorder.
When I see single-word, contrary posts like that in response to remarks that are obviously true it just makes me think the responder's reading comprehension is poor. If that's not the case and you actually have a reason for your contradiction, you should probably explain it. Otherwise you run the risk of being dismissed as lazy or crazy.
Apple doesn't have a low cost play for iPhones. The iPhone 5c is currently a $550 phone, and will probably be a $450 phone by fall of 2014. Even the iPhone 4S will be on the order of $300 to $400 by then. That's mid-range at best.
So, Android One is not a play at Apple. Rather, it's maybe a response to AOSP vendors, which can be super low cost, that don't have Google Play services installed.
iPhone 5C is $100 cheaper with 8 gb model in other markets, so it is $450, and likely $350 later this year, simply however want this $100 android that is good for trash can games or a $350 one that is the quality of a $600 android
If Google is really trying to squeeze Apple's hardware business, then Apple should build its own search engine or acquire DuckDuckGo and put the squeeze on Google's search engine business. It really appears as though Google is definitely trying to step all over Apple's toes by enticing mobile hardware manufacturers to undercut Apple's mobile hardware business. It really wouldn't cost Apple all that much to have a search engine and optionally enable it on all of Apple's mobile devices in one quick push. I think that would really take a bite out of Google's search engine business in a very short time. DuckDuckGo is a pretty decent search engine that gives good results. Apple could probably carry out this tactic faster than Google can get Android One up and running. It just seems like a no-brainer for Apple to do to weaken Google's hold on mobile devices. If Android One is really a threat to Apple then I hate to see Apple sit back and do nothing about it.
Why on earth would they want to do that? They're not into the business of trying to hurt any competitor, they are in the business of creating a better product than the competition. And while there is room for improvement of Google Search I don't think Apple has the know-how of creating a search engine. Every time they want something but is an area of expertise they do not posses they partner up instead of creating something themselves. Look at the first iPhone, many partners for data, yet they designed and built the apps in-house (weather, maps, stock et cetera).
As for DuckDuckGo, they are including that option in iOS8/OSX10.10. Funny that, three times the number 10 in one single OS. Oh well.
I love all this concern-trolling and hang-wringing over Android "squeezing" Apple in a market it never entered in the first place. Apple is not making $100 phones, and never will. And that's perfectly fine.
These phones will get OS updates directly from Google. No carrier involvement. Just like Apple does and Google does with the Nexus and Google Experience phones do. This is a great thing.
Agreed, I've owned more then a few Android products and the Nexus series have been the only devices in which I was completely satisfied. Sure the likes of HTC and Sony make better featured or even looking phones but the overall package is always missing something or their are so many damn features packed into the thing that it actually takes away from the experience. The Nexus 5 ticks all of the right boxes, performance, quality display, mid-sized, decent build quality, guaranteed updates directly from Google for 5 years and most importantly it is extremely affordable. The same thing goes with Nexus 7 and Nexus 10. The best part, because the prices are so affordable you don't have to lock your self into a 2yr contract to pay it off.
1) Haven't budget manufacturers in emerging markets been jumping on the free Android for years now which is why their activation numbers are so high? Is Android One an even cheaper option or just the same cheap option that will allow these budget devices to be slightly more useful to help bring up that 1:4 revenue gap against iOS-based users.
2) The article says the iPhone 4S costs $450 before subsidies. I had thought $450 was the US price and that in India, for a variety of reasons it was closer to $600 USD.
1) Haven't budget manufacturers in emerging markets been jumping on the free Android for years now which is why their activation numbers are so high? Is Android One an even cheaper option or just the same cheap option that will allow these budget devices to be slightly more useful to help bring up that 1:4 revenue gap against iOS-based users.
I think the idea is to set a minimum spec for Android phones. Google is giving manufacturers a low-cost design with all of the R&D work done for them. It won't make economic sense for manufacturers to come up with their own design, even if it has lower specs.
It's exactly what Android has needed since the beginning.
I think the idea is to set a minimum spec for Android phones. Google is giving manufacturers a low-cost design with all of the R&D work done for them. It won't make economic sense for manufacturers to come up with their own design, even if it has lower specs.
It's exactly what Android has needed since the beginning.
For the sake of Android users I hope it works but so far all of Google's efforts for unification of the platform have ranged from failures to bandaids.
To clarify: the malware is available for download withinthird party app marketplaces - places like Amazon's Appstore or Cydia. The Android One program looks to be pushing Google-controlled devices into emerging markets, which will reduce the importance of those third-party app stores.
Like Samsung's App stores?
First thing their shitty Apps do when nagging you to update them is ask you to change permissions to allow other sources.
Things like the crappy fitness apps on the S5.
Thus breaking all Google's pathetic efforts.
Updating installed apps is a way to bypass Google security don't forget Android is "open" for hackers to exploit.
That is absolutely not true, I won't defend third party Android phone manufactures but phones that carry the Nexus name are extremely secure. iOS is just as vulnerable to phishing attacks as Android is, in fact my Apple .me is the only account that I have ever had that was hacked, not just mine but my mother's as well, though the two were probably linked.
You shouldn't have logged into .me on an Android phone.
Comments
Well, Google is setting pretty clear expectations on the phone price by announcing it already. Might be hard to charge more unless you move off of the reference design much.
Obviously there will be more expensive Android phones. S6's are not going to be $100. But it will interesting to see how an S6 is different than the reference design.
Google is not setting the price. The manufacturers are. What Google is doing is spec'ing the phone parts and identifying vendors enabling the smaller manufacturers to pool their resources to get economies of scale and everyone wins.
You're referring to banking malware delivered via "phishing". All the mobile OS's are just as open to that, iOS included.
The plural of OS is OSes. It's not possessive nor a contraction, so no apostrophe.
Do you have links to cases of iOS malware on non-jailbroken devices installed via phishing attacks? I'd like to read more about them.
Thanks for pointing it out. I should be much more careful with punctuation.
If Google is really trying to squeeze Apple's hardware business, then Apple should build its own search engine or acquire DuckDuckGo and put the squeeze on Google's search engine business. It really appears as though Google is definitely trying to step all over Apple's toes by enticing mobile hardware manufacturers to undercut Apple's mobile hardware business. It really wouldn't cost Apple all that much to have a search engine and optionally enable it on all of Apple's mobile devices in one quick push. I think that would really take a bite out of Google's search engine business in a very short time. DuckDuckGo is a pretty decent search engine that gives good results. Apple could probably carry out this tactic faster than Google can get Android One up and running. It just seems like a no-brainer for Apple to do to weaken Google's hold on mobile devices. If Android One is really a threat to Apple then I hate to see Apple sit back and do nothing about it.
Of course it helps fix it. Google will be handling the software updates directly, bypassing manufacturers and carriers as it does with its Nexus program. That's one of the perks. I'm guessing you didn't read about it before commenting?
This all happened before. PC's have gotten commoditized into sub $300 levels, even if you don't consider net books. While Apple steadfastly maintains its quality, price and market share.
The only difference, and advantage, for Apple, in mobile space - is that the hardware is typically an insignificant part of the overall cost of ownership. Secondly, phones are typically changed a lot faster than PCs, so resale values play an important part in Total Cost of Ownership.
Apple is also now taking in so much money, they are in a way going beyond commoditization - the best headphones in the world are now accessible "at cost", the best sapphire glass is now accessible "at cost". Same for Liquid Metal, same for battery technology, same for manufacturing processes. Apple owns almost everything that goes into the phone all the way down.
Apple is maintaining its margins, despite selling significantly better hardware each year because of this - they are actually becoming more efficient each year - it is just not visible, because each year there are expensive technologies like Retina Displays, Touch ID, etc that get added, and still margins stay the same!
Pretty soon, Apple will be having so much money, they can do this at a level that is simply not possible for anyone else to compete with - including Samsung. And the hardware improvements that add huge costs to the phone will start becoming rarer.
I expect that right around when Android gets its act together and comes up with a credible alternative to Apple - a decent phone that lasts 2 years, at a low price, Apple will be in a position to lower its prices significantly, without lowering its profit margins.
If Android One can be sold for $100, Apple can easily sell a high quality equivalent at $150, where it still makes 40% margins. Which would a customer rather buy - a junk phone for $100, or a fabulous phone that unlocks a safe ecosystem that is used by all the people who matter?
In fact, by the time Android gets its act together, I believe we will see a few malware disasters on Android that completely destroy all confidence that anyone has on that platform.
I am a futurist, and I cannot foresee any scenario where Android comes out ahead of Apple in a useful sense.
There's a reason why Tim Cook is the CEO and not someone like Jon Ive. The game at Apple today is to keep innovating as they always have been - but more importantly to sort out the logistics to such a level that they can lower the costs of their products without compromising on quality or margins.
While the world sees Tim Cook, they see a CEO who hasn't launched any innovative new products. But that's because they really don't understand what's happening behind the scenes. Today Apple is so far ahead in the innovation game, they can afford to slow down there - its 9 months, and we still don't have a 64-bit competitor to the A7! Not one decent phone with a good Usable biometric ID! Apple is spending these last few years optimizing its logistics. They are taking the most expensive parts of the phone, and investing billions of dollars to get these at prices that are below commodity levels.
Just take a look at the components which Apple has acquired or has prepaid in billions for: displays, flash memory, sapphire glass, liquid metal, battery chemistry, machining devices, manufacturing processes, LTE technology (via Rockstar), In house CPU design with huge payments being made to TSMC to help them get their act together on fabrication.
Almost 70% of what does into a phone today is accessible to Apple at a price below the most commoditized price possible - because they either own the technology, or because they have paid the money to help partners set up manufacturing plants to make these things.
You're referring to banking malware delivered via "phishing". All the mobile OS's are just as open to that, iOS included.
Incorrect.
On Facebook they call that "Vaguebooking." It refers to posting nebulous, incomplete statements in an effort to get people to respond. It's considered a social disorder.
When I see single-word, contrary posts like that in response to remarks that are obviously true it just makes me think the responder's reading comprehension is poor. If that's not the case and you actually have a reason for your contradiction, you should probably explain it. Otherwise you run the risk of being dismissed as lazy or crazy.
Why on earth would they want to do that? They're not into the business of trying to hurt any competitor, they are in the business of creating a better product than the competition. And while there is room for improvement of Google Search I don't think Apple has the know-how of creating a search engine. Every time they want something but is an area of expertise they do not posses they partner up instead of creating something themselves. Look at the first iPhone, many partners for data, yet they designed and built the apps in-house (weather, maps, stock et cetera).
As for DuckDuckGo, they are including that option in iOS8/OSX10.10. Funny that, three times the number 10 in one single OS. Oh well.
I love all this concern-trolling and hang-wringing over Android "squeezing" Apple in a market it never entered in the first place. Apple is not making $100 phones, and never will. And that's perfectly fine.
These phones will get OS updates directly from Google. No carrier involvement. Just like Apple does and Google does with the Nexus and Google Experience phones do. This is a great thing.
Agreed, I've owned more then a few Android products and the Nexus series have been the only devices in which I was completely satisfied. Sure the likes of HTC and Sony make better featured or even looking phones but the overall package is always missing something or their are so many damn features packed into the thing that it actually takes away from the experience. The Nexus 5 ticks all of the right boxes, performance, quality display, mid-sized, decent build quality, guaranteed updates directly from Google for 5 years and most importantly it is extremely affordable. The same thing goes with Nexus 7 and Nexus 10. The best part, because the prices are so affordable you don't have to lock your self into a 2yr contract to pay it off.
2) The article says the iPhone 4S costs $450 before subsidies. I had thought $450 was the US price and that in India, for a variety of reasons it was closer to $600 USD.
1) Haven't budget manufacturers in emerging markets been jumping on the free Android for years now which is why their activation numbers are so high? Is Android One an even cheaper option or just the same cheap option that will allow these budget devices to be slightly more useful to help bring up that 1:4 revenue gap against iOS-based users.
I think the idea is to set a minimum spec for Android phones. Google is giving manufacturers a low-cost design with all of the R&D work done for them. It won't make economic sense for manufacturers to come up with their own design, even if it has lower specs.
It's exactly what Android has needed since the beginning.
For the sake of Android users I hope it works but so far all of Google's efforts for unification of the platform have ranged from failures to bandaids.
Can you link some of those reports?
Why?
Doesn't Google search work as well as their ads?
To clarify: the malware is available for download within third party app marketplaces - places like Amazon's Appstore or Cydia. The Android One program looks to be pushing Google-controlled devices into emerging markets, which will reduce the importance of those third-party app stores.
Like Samsung's App stores?
First thing their shitty Apps do when nagging you to update them is ask you to change permissions to allow other sources.
Things like the crappy fitness apps on the S5.
Thus breaking all Google's pathetic efforts.
Updating installed apps is a way to bypass Google security don't forget Android is "open" for hackers to exploit.
That is absolutely not true, I won't defend third party Android phone manufactures but phones that carry the Nexus name are extremely secure. iOS is just as vulnerable to phishing attacks as Android is, in fact my Apple .me is the only account that I have ever had that was hacked, not just mine but my mother's as well, though the two were probably linked.
You shouldn't have logged into .me on an Android phone.
Google Android isn't open.