• Lawdog
    +4

    The article calls it a testimony to how well they sell, but it looks like more of a testimony to how gullible their customers are. 18% market share and 93% profits shows their making their phones cheaper and selling them for more than any of their competitors.

    • GingerBreadMan
      +4

      I'm sure that most of the tech-savvy population knows how overpriced Apple anything is. They build everything for pennies on the dollar and then sell it at high prices because of their name. People will never wake up to their tactics because they are all fan boys of Apple.

      • charredbysin
        +4

        Having run the gambit of smartphones (Windows Phone, WebOS (RIP), Android, and iOS), I honestly have to say that iOS has been the most fluid and polished of all the operating systems. WebOS is a close second in my mind, but it severally lacked decent hardware, development community, and marketing to support it long term.

        Yes, Apple makes hoards and hoards of money on their phones, but they also make a well designed product that people enjoy using. People are paying for the reliability and consistency of iOS and it's updates as much as they're paying for the Brand.

        iOS adoption rate vs Android adoption rate

        • MrY
          +4

          I agree, the ease of use on iOS is miles ahead of android

      • Amulet
        +1

        At the heart of this exceptional profit share is Apple's ability to retain customers, which has little to do with fanboyism. Satisfied customers are repeat customers: they will keep upgrading to newer models and buying additional Apple products. If the products were simply cheap stuff that's somehow sold way above its actual value, people would switch to Android in droves.

        Personally I'm an Apple user because I appreciate their attention to detail in every area of the products, and their design sensibilities align with mine (particularly in the functional sense). I also have an Android phone that I can use for free (company provided) but I still prefer to use my own money to purchase iPhones. That kind of loyalty is not based on brand alone.

      • Nidhoggur
        +1

        You know, a lot of people don't care about paying $200 more for a device they use every day. People who buy apple know how pricey the products are, it's not like they're all ignorant. Android is pervasive and heavily advertised. I just don't think that's the main story-line behind Apple's profit margin on their devices.

        What's remarkable is the power that Apple has over carriers in regards to how heavily they subsidize Apple products. It's been that way ever since they played hardball with the carriers when the original iPhone released. They never relinquished that power and they suck tons of profit from giant telecoms who gave in to their pricing.