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Old 12-11-2012, 08:14 AM   #1064
Join Date: Jul 2006
Location: Scottsdale, AZ
Posts: 5,037

Originally Posted by DRII View Post
One reason all that spending occurs over iOS is because Iphone users have to pay for many things that are free on Android or built into that operating system.
Eh, I don't entirely agree with this. There isn't much that's built into the Android OS that you can pay to get on iOS. In most cases like Widgets, it's just not available on iOS (a downside to Apple, imo). If you're talking about apps, then I see what you're saying, but free Android apps are almost always ad supported. Angry Birds for instance is $0.99 on iOS, but it's ad free. If you want the ad free version on Android, I believe it's $2.99. I bought some apps on Android, but I've bought more on iOS. The quality is so much better that to me it's worth the 99 cents.

Originally Posted by DRII View Post
And I don't buy that the market segments are largely different; its just that Android competes on multiple levels and tiers (with multiple manufacturers) while Apple is pretty much only premium; hence the premium Apple users pay... Same with the PC market. Apple has always demanded a premium and avoided the discount model. They almost went out of business doing so, but now find themselves in an enviable position; won't last forever (just ask Microsoft or IBM)...

However, Samsung certainly competes directly with Apple and are approaching similar profit margins and with a much broader portfolio of products.

But don't get me wrong; I'm glad an American company can and does dominate in a given sector. However, monopolies are not good...
I agree about the American company part, and I agree about Samsung. Interestingly, Samsung has adopted Apple's model, and it's made them successful. They don't heavily discount their products until they are nearing the end of their life cycle, and they charge a premium for their phones.

It's interesting to me about the PC market, since Apple is now more than competitively priced against Windows machines. I just bought a 13" MacBook Air, and it was $1,100, which is in the middle of the ultrabook price points, but the MBA is one of the top performers in that category. Crazy to think that just 5-7 years ago, a run of the mill Apple computer was 2X the price of a PC (or even more), and now prices have normalized, even as Apples PC market share has grown.
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