Interesting on many levels. First off, I think it's important to recognize that Apple's iPhone shipments are projected to grow at a healthy level. It's not as though the iPhone is dead. Far from it. But the fact is that iPhone is more expensive than most, and Apple commands a healthy premium. Meanwhile, other smartphones from Samsung (whether it is because they ripped off Apple or not) and others have gotten a lot cooler. And I think the iPhone, as a status symbol, is not what it once was. I have friends with Android phones and in a way I'm kind of envious.
Everybody in the smart phone business knows that market share (units) and profit are two completely different things. You can buy market share, you can't buy profit. Last time I looked, Apple and Samsung had 103% of the profits (so the rest of the firms combined had only losses). Why should Apple be interested in more market share, if more market share means less profit? So nobody is eating Apple's lunch, as nobody eats Apple's profit (as the Apple's shipments are still on the rise).
WielTukhut: I disagree. With all due respect the great 10-year run Apple had through last year, the company's market value has fallen by 38 percent due to its recent lack of innovation and slowly descending market share. Simly put: there are better, cheaper phones on the market. While Apple continues to collect a nice margin on gear sold to well-heeled fans, it is heading in the wrong direction as others are nibbling around the edges of its lunch, prepared to gobble.
The only company that has any hope to stand through the coming commoditization of smartphones is Apple.. Sure it will have lower market share.... But so is the case with the pc market. and look what happened. The major share of profits in pc industry is collected by Apple. Dell, HP, Lenovo gets a few leftovers. Rest of them work for free.
eewiz: make not mistake....Apple's fat profit margin on its phones are the very reason why it is losing market share. At some tipping point, it becomes uneconomic to make them, and the trend away from high-priced phones seems to be accelerating. By then, the iWatch or another amazing gizmo had better be ready to wow the masses because Apple's future will hang in the balance.
Wondering: Does it make sense that Apple is spending billions on a new corporate headquarters right now? Is it fiddling while Rome begins to smolder?
January 2016 Cartoon Caption ContestBob's punishment for missing his deadline was to be tied to his chair tantalizingly close to a disconnected cable, with one hand superglued to his desk and another to his chin, while the pages from his wall calendar were slowly torn away.122 comments