Apple makes money, but Android makes markets

Yahoo News ^ | February 5, 2015 | By Matt Asay

[Swordmaker]

Apple had a mind-blowingly amazing quarter. Good for them. But as much as we may want to cheer on the industry's most profitable vendor, the real focus should be on the user. Viewed through the lens of the end user, we should be hoping Google wins.

Apple builds software for the rich. Google? For the poor.

Thankfully, the mobile development ecosystem has demonstrated it can get by without Apple's fat margins.

Apple rich get richer

Apple is a luxury brand. While it caters to the lower-end of the "rich" demographic by offering last year's models at lower price points, Apple's primary focus has always been on delivering a premium experience to those that can afford premium price tags.

In doing so, Apple has followed (and fed) an interesting, if troubling, shift in household income.

As The Wall Street Journal's Christopher Mims highlights, "Apple's and Xiaomi's successes reflect the world's growing income inequality." Apple supplies phones to the rich, while Xiaomi caters to the comparatively poor. Phones priced in the middle range have seen a "hollowing out" of demand, with the world split into "a luxury market and everyone else."

Apple dominates the luxury market and profits handsomely thereby:

"[J]ust as a growing class of global rich is creating a demand for the highest-end phones -- made by Apple -- so, too, is a growing middle class creating demand for [mostly Android] phones made by Xiaomi and its ilk....

"Predictably, distribution of profits between these two markets mirrors the distribution of wealth between the buyers of these goods.".

. . .as happy as we may be that Apple makes a lot of money, we should be much more concerned with the Android market and its impact on the world

Blessed are the poor, for they shall inherit Android

[Sam Gamgee]

I agree. My main concern is that Apple manufactures in China. Samsung at least does it in Korea, HTC in Taiwan.

[Swordmaker]

You would have to ask Swordmaker how big that list is.

The Apple list is approaching 700 members. However, not all of those own iPhones. Some own Apple computers, but Android phones. A LOT of Windows users own iPhones. Not all iPhone or Mac users are on the Apple Ping list.

[Star Traveler]

Ping to Post #22 ... for an answer ...

[Star Traveler]

Thanks ...

[dayglored]

> At 68 years of age, it’s safe to say that I know a lot of people. Those of the liberal persuasion prefer iPhones. Those who don’t hate America or themselves seem to prefer Android.

Sir, congratulations on your 68 years. I'm only 63, but I daresay I know a lot of people too.

In my opinion and experience, your observations are not only faulty, they're simply nonsense. Further your implication that iPhone users hate America is grossly unwarranted, not just because it's incorrect, which could be chalked up to the limited sample you observed, but because it's insulting to those of us who love America, are not liberals, and simply prefer to buy high quality products and are willing to pony up the extra cash for them.

Have a good evening, Sir, but pray, no more of your proclamations such as those above. IMO they're not worthy of this forum.

[Ethan Clive Osgoode]

This guys antidotal statement is flawed.

Every muslim I see has an iphone. Especially the mullah types with the idiotic beards and dents in their foreheads. Only the best for the religion of piece. They buy them because they think iphones are magnets for white chicks.