Who Is The Dominant Player Behind Apples Back Door?

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Who is the dominant player behind Apple's back door?

Apple is slowly losing the global war to Google. A few key points in the article at the end of this answer. The iPhone 6’s markets are saturated; the Android One’s markets are not. In Apple’s primary market—the US, it controls 42% of smartphone sales. That’s a problem because the US is saturated with smartphones--roughly 75% of Americans own one. Most developed economies have similar ownership levels. Instead of adapting to price sensitivities within emerging markets, Apple’s iPhone 6 starts at $649 (without contract) and tops out at $949. That's an impossible purchase when the average household income in India is just US$7,700. While Apple's CEO Tim Cook might claim that China is now its biggest market, the company gave up 30% of its market share in the last year to local competitors Huawei and Xiaomi. (This happened despite blistering iPhone sales.) In Mexico, its share dropped by 50% in the last 12 months. In fact, Apple has lost ground in almost all major economies in that same time period. Apple has lost its global mojo. Google’s Android One launched in India this week for just $105, and carrier subsidies will drive that price down into the $60s. Amazon India's massive inventory sold out in a matter of hours. Google understands what works in Mountain View might not in Mumbai or Manila. The iPhone 6 is sourced globally; the Android One is sourced locally. Apple’s hardware is often second-to-none in its quality and build. A vendor's success is nearly guaranteed when Apple selects them. This pattern also happens within two other companies. General Motors and Ford. It doesn't take a logistics expert to tell you how global sourcing drives up costs and production times. (Maybe that’s why the iPhone 6 is delayed for release in China.) Page on linkedin.com

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In 2013, Apple released more than 12% of all smartphones in the world. The number is down today. Google releases about 50% of the Android-based smartphones in the world, and over 70% of Android devices sold in China, Taiwan, and the Netherlands are not on Google’s ecosystem. Sources include IDC and Gartner.com. A few questions to consider are 1) Is it worth it if the iPhone 6 can be sold for 649 with a contract and a 99 carrier subsidy? 2) Is it worth it (depending on you’retention criteria) to buy an Android One device from the Google Store? 3) What devices are actually competitive with the iPhone 6? 1) Is it worth it if the iPhone 6 can be sold for 649 with a contract and a 99 carrier subsidy? If you don't care about the cost of ownership, you're perfectly fine to pay 649 for this phone. However, it's still going to.

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