The same holds true in business. Companies that prosper over the years are like gold miners– they know where the gold lies and work diligently to mine the most profitable veins. When you think about it, that’s exactly what Apple does with the iPhone and iPad. In the battle with Android devices, it’s rich vs. poor.
The Haves And Have Nots
For those who subscribe to religion espoused by the church of marketshare, Apple is doomed because the great unwashed masses of humanity use Android smartphones and tablets.
Yet, since the iPhone was launched in 2007, Apple has sucked up about 60-percent of the entire industry’s profits, more recently at over 85-percent, leaving the rest to Samsung, and nothing to other manufacturers.
That disparity in profits has created a gap of monumental proportions between the haves and the have nots.
Apple prefers to sell their products to those who have the money to spend on a premium brand with premium features and a well cultivated ecosystem.
It’s simple math, no?
Samsung works diligently to mislead potential customers in to thinking that the Galaxy line of smartphones and tablets are as elite and carry the same cachet as Apple’s brand, and, to a degree that strategy has worked. Samsung’s smartphone and tablet business is profitable.
Everyone else? Not so much.
There is yet another side to this rich vs. poor analogy. On one side are the customers; some with the means to buy Apple or Samsung products, though they cost more. And on the other side, those who simply cannot afford to buy premium branded smartphones and tablets.
Human beings aspire. Many, but not all, of course, who own and drive inexpensive cars long for the day when they can afford an automobile of more stature (with more features and a higher price tag). Automobiles, at a basic level, do exactly the same thing, regardless of the price tag. You drive from point A to point B.
Smartphones and tablets, at a basic level, do almost the same thing, regardless of the price tag. The difference is in the overall quality and usability; plastic cases vs. sculpted aluminum; cheap screens vs. Retina-level displays; low quality free apps vs. an ecosystem abundantly rich with useful applications.
Apple is engaged in the premium end of the long running saga of humanity; the rich vs. the poor. Where does that leave Google’s Android and the many manufacturers of Android smartphones and tablets? Catering to the poor; or, rather, those who either cannot afford the premium brands (yet), or who cannot justify the difference in price.
This perspective of rich vs. poor is born out with data, too. DotMobi displayed an interesting chart of usage between iOS and Android in dozens of countries. In poor countries, Android rules. In richer countries, iOS rules.