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Coffee Time: Market Share vs Profit

Followers of my blog probably know that this blog is photo heavy. I get many compliments for posting them but I wanted to expand into posting my thoughts and observations on design and the industry. Of course, they will be complimented with graphics and photos.

I'll be calling these Coffee Time

I'll post on a frequent basis. Most of them will be short (hence the name). This week, I wanted to share my thoughts on market share of iOS.

 

These numbers have been creating quite a buzz recently. Most people that readers have probably seen this already. The issue is that Android is dominating in terms of Android and people are having questions about how successful iOS really is.

 

 

What many people have failed to associate is that Apple dominates in terms of revenue. Look at these graphs by Oppenheimer. I've always categorized Android users into two key segments; nerds and budget buyers. The sad thing is that nerds are the minority. Most people are looking for the cheapest smartphone to purchase - and Android offers many of these choices. This is most likely the reason Android ships so many devices yet makes little margin. Also keep in mind that these graphs include Windows Phones too. There are many ways you can interpret these statistics. The key facts:

 

- Yes, in terms of a pure number of shipped products, Android rules all.

- If you look at the amount of money being made, Apple dominates.

- Android has many manufacturers using their OS, iOS devices are only made by Apple.

 

 

This is how I like to illustrate this whole scenario. Above is Apple's product line. Lean and simple.

 

These are the phones Samsung currently sells in the US. You be the judge. Samsung is only one of the many manufacturers selling Android phones and has this complex of a product lineup. And yes, there are non-Android phones in the mix but it shows how many phones other companies make only to make a fraction of what Apple does. 

 

I truly feel that a simple, focused and powerful product line is what's not only better for the company but also consumers. Seriously, if you had to buy a Samsung phone, which would you buy?