The most money / profit strategy / justification did not work for many historically: WordPerfect, Lotus, Novell, BlackBerry, Gateway, Dell, HP, Kodak, Polaroid, Sears, Blockbuster, Barnes and Noble, IBM, Microsoft, etc. they justify ignoring competitors because of profit till it is too late to reverse. And all of those companies were warned by industry watchers and trajectory of their market share down, and competitors heading up. Collapses and Avalanches are called that for a reason sometimes highly profitable companies who fail to react go from obscene profits to weak profit/ROI and losses in a few quarters and years.
Profits can change every year. The 50% of industry profits you quote from App Store and content sales is I suspect made up but whatever it is 80%+ is better. You also forget that more market share translates into more App Store and content (movies, TV, Music) profit which can easily subsidize low end phones or even make high end phones cheaper to drive customers to App Store where they will funnel profits back in. Such an obscene amount of it that is NOT ever going to be made from the 58% and growing Android crowd. Android is likely given it's trajectory to reach a "tipping point" read Malcolm Gladwell's book of same name to get a sense for how bad that can be. Unless they enter the Android space to sell content like iTunes entered the Windows space that 58% and growing market will NEVER BE THEIRS unless they compel many poorer people to buy iPhones instead of Androids with low end units and win enough hearts and minds and market share from that that Androiders want to upgrade to iPhones low and high end, instead of the next Android. Maybe even share app store profits with carriers to bias them towards wanting all iPhones to outsell Androids. And trying instead by entering it by opening and Android iTunes seems like a bad idea and unlikely to succeed since unlike MS who ignored the iTunes threat, Google is facing it head on and has been for awhile so Apple is not entering a vacuum like they were on PC. And Google would fight back hard.
On Tue, Jun 25, 2013 at 2:46 PM, Kris Murray <krismurray@gmail.com> wrote:
The goal isn't to sell the most phones. Nor to have the most marketshare. The goal to make the most money and apple commands well over half the profits of the ENTIRE industry. Being vertically integrated will continue to help apple maintain that level of INSANE profitability even with a niche market only.Samsung. Sell 10 billion phones at $1 profit eachApple. Sell 1 billion iPhones at $100 profit each.Who wins? Apple made 10x as much money by selling 100x less phones. Apple wins. And even though I made up the numbers it's the gist of what is happening.~KLM\\ "If people are not laughing at your goals, your goals are too small..." ~Azim Premji //[this conversation was happening under [iPad] More RumorMill thread...]
I am for it, because poor people and carriers that want to offer their
customers iOS and apps at price many people can afford need this
product.
Yes I know it could not have gorilla glass,
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