Image of layers of an Android One smartphone
Has Apple turned itself into a forbidden fruit of sorts?
Here’s a very interesting article by Curt Prins on how Apple has lost the global smartphone war to Google.
While Apple’s retained its high-end focus with aspirational handsets that loyalists stop their world to buy, their primary US focus has almost hit the ceiling, enjoying a 42% market share of the 75% Americans who own a smartphone.
Google, on the other hand, worked with local chip makers and phone manufacturers in India to keep costs under control, and have built and priced the Android One not to cater to people upgrading their smartphone, but for those who currently don’t have one.
Apple is eventually going to have to bite the low-cost bullet. I (Shrutin) don’t own any of their products, but directly and indirectly, I have learnt a lot from the way they do business. I believe it will be impossible for Apple to address the low cost market with the existing brand (you wouldn’t want to dilute a premium brand with low-cost products, and then in the future try and regain that premium brand status as people move upward in their purchasing choices. Not to mention it’s too late to do so. But if Apple does plan to make a move, it would have to either create another brand (to address affordable products segments and geographies) or perhaps acquire appropriate companies and cater to different market segments and geographies appropriately with one or both company products.
Either way, for now the score remains – Apple Zero : Android One
Here’s the article by Curt Prins: link