Despite having a small share of the total market, the iPhone is really the big winner in the smartphone wars.
With only 10% global market share, many analysts have claimed that Apple is on the decline. Nothing could be further from the truth. Here’s why:
- The iPhone pulls in 60-70% of the total industry profit.
Despite having a low market share of only 10% of the smartphone market, nearly all of the profits go to Apple. Android is largely commoditized, with many different manufacturers competing head to head mainly on price.
- Most desired phone in developing country
With rising incomes in places like China and India, the demand for the iPhone will continue to grow. It’s the most desirable phone in the world according to consumer opinion polls.
- Corporate clients prefer it
The iPhone has supplanted the Blackberry as the corporate phone. Many companies prefer it due to its uniform interface, strong security, and Apple’s great warranty policy.
- Security is hard to beat
The iPhone is more secure than Android owing to the security philosophy of its apps. Essentially each app is in its own container with very little interaction with the rest of the phone. Jailbreaking circumvents this, but is easily detectable by IT admins. Android phones are a nightmare to manage since users (myself included) tend to root them.
- 80/20 rule
Android phones have more features than the iPhone. But how many features does a user actually need? Most people want to browse the web, send texts, make phone calls, and listen to music. The iPhone does all 3 perfectly. Android phones can do this too, but not as well.
Clearly the days of Apple are still bright and with the recent changes announced in the last WWDC the iPhone is going to remain a dominant player in the smartphone market for the foreseeable future. The prediction that Apple would decline after the death of Steve Jobs has thus far proven to be false.
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