Everyone knows the Golden Rule, right? Basically, it’s the ethic of reciprocity. A person should treat others as they would like others to treat them.
That’s all well and good but there’s a different Golden Rule that applies to Apple. How about this definition? “Those with the most gold get to make the rules.” Apple’s gold allows the company to obtain favorable deals on components, to get the latest and greatest for less.
That seems to fit Apple’s situation, but there’s another Golden Rule that also applies to Apple. I made this up: “Those without gold, want gold, too.”
Aspire To Own Gold
Apple has been raked over the proverbial coals by market analysts and technorati elite pundits because the great unwashed masses of people in developing lands don’t buy expensive iPhones.
Well, duh. No, instead, people in less developed countries are stuck with cheap Chinese smartphones that run Android and don’t even belong to Google Play.
Why? iPhones are expensive. Android smartphones are not.
The interesting thing about this obvious scenario is how the analysts and pundits miss the most obvious aspect.
People like gold. People want gold. That means they’re willing to sacrifice to obtain what amounts to a gold product like the iPhone. This is especially true as they become more prosperous.
It’s simple. People trade up, not down. Smartphone users in less developed countries will trade up from cheap plastic to the gold standard of smartphones as exemplified by Apple’s iPhone.
In other words, emerging markets are not all about cheap plastic smartphone knockoffs. For smartphone buyers as their prosperity grows, and it is and does, their desire for better quality products– the gold standard, if you will– also increases.
What’s the number one smartphone brand in emerging countries? Samsung. Other name brands, including Google, Microsoft and Apple are close behind, so there’s not a surprise there.
However, the real surprise benefits Apple. What’s the most coveted, most desired, most wanted mobile device brand in the developing world?
Patently Apple has a few nice charts from research which merely point out the obvious. Apple can dominate the industry because it has the most gold, but it also sets the standard for most coveted and most desired brand; yet another golden rule in Apple’s favor.