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0 pointslondons_explore7y ago0 comments

To be fair, after over a decade of trying, Apple still only has 15% market share.

If Microsoft had the other 85%, they'd be in a good position.

0 comments

Why should Apple care about the other 85% of the market if all the profit margin is in the 15% they have?

This is called market segmentation, it’s one of the hardest things to get right in a business, and I think Apple have done a pretty good job of it. Every decision in a business has an opportunity cost, you can’t make products that will meet the needs of everybody in a market, and you can’t try to sell products to everybody in a market. It’s hard because segmenting your market is essentially deciding that you don’t want to sell to some customers, but it’s more important to look at what each customer is worth rather than how many you can get in total.

DennisAleynikov7y ago

I guess apple is totally okay with being a minority of the market then since they're doubling down on proprietary sensors and apps that only work in their own ecosystem.

they can ignore the 85% if they want. The 85% of the market will ignore them back in turn.

debaserab27y ago

They "double-downed" on that decision ten years ago, and now they are the most profitable company in the world. I think it's safe to say whatever bet they made paid off handsomely.

samstave7y ago

If you look at the success of apple - they do one thing really really well; make products for people with money to spend. Apple doesnt care about anything other than customers who can afford to pay, and are willing to pay, for their products.

Apple makes good products, but they arent without frustrations or limitations, and you'd better accept these if you want what you do get from apple products.

You know that the engineering will be in the top ~90%, for example. What is the 10% or so that apple fails on WRT to engineering; accessories, flexibility/upgradability, vendor-lock-in on software. All of which simply lead you to spend more money on supporting having apple products.

Accessories: How much money have you spent on chargers, cables, headphones, cases, screen-protectors, screen repairs?

Flexibility/upgradability: Want more storage/ram? Buy the next model - no upgrades.

Software: Fewer OSS options for software/apps.

There are certain things I like about apple, and certain things I hate. But the primary thing I hate is that you cant do much without paying a premium...

DennisAleynikov7y ago

it's paid off handsomely and cut off apples prospects of expanding beyond the 15% market share they currently enjoy. sure owning 15% of the global smartphone market makes them money but androids 85% share ensures googles dominance in the sector unless apple lowers some of its hardware walls and turns them into bridges.

#buildbridgesnotwalls

1 more reply

mrep7y ago

It also spares them scrutiny from antitrust laws which I am sure they appreciate now with the recent Android fine.

IshKebab7y ago

Because eventually developers will stop bothering with iOS apps.

graeme7y ago

Thouh its about 45% in the US, and similar levels in OECD countries.

CamperBob27y ago

If Microsoft had the other 85%, they'd be in a good position.

People forget that they effectively do have most of that 85%. Every Android installation kicks back some money to Microsoft in the form of patent royalties.

scarface747y ago

None of the 85% of Android manufacturers are in a good position fighting over scraps and Google still pays Apple over $2 billion a year to be the default search engine on iOS.

Market share doesn’t lead to profit.

j / k navigate · click thread line to collapse

0 comments

lotsofpulp7y ago

Why should Apple care about the other 85% of the market if all the profit margin is in the 15% they have?

AmericanChopper7y ago

DennisAleynikov7y ago

I guess apple is totally okay with being a minority of the market then since they're doubling down on proprietary sensors and apps that only work in their own ecosystem.

they can ignore the 85% if they want. The 85% of the market will ignore them back in turn.

debaserab27y ago

They "double-downed" on that decision ten years ago, and now they are the most profitable company in the world. I think it's safe to say whatever bet they made paid off handsomely.

samstave7y ago

Apple makes good products, but they arent without frustrations or limitations, and you'd better accept these if you want what you do get from apple products.

Accessories: How much money have you spent on chargers, cables, headphones, cases, screen-protectors, screen repairs?

Flexibility/upgradability: Want more storage/ram? Buy the next model - no upgrades.

Software: Fewer OSS options for software/apps.

There are certain things I like about apple, and certain things I hate. But the primary thing I hate is that you cant do much without paying a premium...

DennisAleynikov7y ago

#buildbridgesnotwalls

1 more reply

mrep7y ago

It also spares them scrutiny from antitrust laws which I am sure they appreciate now with the recent Android fine.

IshKebab7y ago

Because eventually developers will stop bothering with iOS apps.

graeme7y ago

Thouh its about 45% in the US, and similar levels in OECD countries.

CamperBob27y ago

If Microsoft had the other 85%, they'd be in a good position.

People forget that they effectively do have most of that 85%. Every Android installation kicks back some money to Microsoft in the form of patent royalties.

scarface747y ago

None of the 85% of Android manufacturers are in a good position fighting over scraps and Google still pays Apple over $2 billion a year to be the default search engine on iOS.

Market share doesn’t lead to profit.

j / k navigate · click thread line to collapse