“It really feels like 2013 was a down year for Apple as it reset itself to launch new product categories in the next five years or so. If ever there was a year for Apple’s rivals to leap past the company, it was 2013, and it didn’t happen. (Although, these things don’t happen over night. If Apple really screwed the pooch in 2013, we’ll probably realize it in 2016),” Jay Yarow writes for Business Insider by way of Yahoo Finance. “Another big difference for Apple as we enter 2014 is that it seems much more clear that the company really knows what it’s doing with the iPhone business , despite the various cries from the pundit class.”

“Ever since Android started making noise people have been warning Apple that the iPhone was in danger. There is, of course, no louder proponent of this notion than our own Henry Blodget,” Yarow writes. “For the last three years Blodget, and people like himself, have been pounding the table that Apple was about to get smoked by Google, just like it got smoked by Microsoft.”

MacDailyNews Take: Apple takes roughly half of all profit in the traditional “PC” market, yet they got “smoked” by Microsoft? Yeah, okay. Microsoft’s smoking something, but it certainly ain’t Apple.

“In November, Blodget wrote another post admonishing Apple, and it supporters, saying, ‘Come on, Apple Fans, it’s time to admit the company is blowing it,'” Yarow writes. “I think Blodget’s wrong, and it’s actually never been clearer that Apple’s decision to stay the course with its iPhone business has been the exact right decision… The iPhone generated $19.5 billion in revenue for Apple in the September quarter. It sold 33.8 million iPhones, which was ahead of expectations, and up 26% on a year-over-year basis. Now lets put that in context: Google’s total revenue for the quarter was $14.9 billion, a 12% jump year-over-year. (If you just look at Google’s ad business revenue was $12.5 billion, up 15% year-over-year); Microsoft’s total revenue was $18.5 billion, a 7% jump; Amazon’s total revenue was $17.09 billion, up 24%.”

“Apple’s iPhone business is bigger, and importantly, growing faster than Microsoft, Amazon, and Google, the three giants Apple is competing against in mobile,” Yarow writes. “Apple is the more lucrative platform for an app maker. (And there is no reason to think Android draws more ad dollars since IBM and Adobe both say there is significantly more commerce happening on iOS. Advertisers spend where the dollars are spent) …Market share doesn’t matter. This is year six of the App Store, and despite all the Android market share gains, developers still love iOS because people pay for, and use, iOS apps. The developers aren’t leaving… Carriers like iPhones because iPhone users spend money on data. As we enter 2014, things look bright for Apple and its iPhone business, despite the doomsayers of 2013.”

Much more in the full article here.

MacDailyNews Take: As we explained way back in November 2012:

Android is pushed to users who are, in general:

a) confused about why they should be choosing an iPhone over an inferior knockoff and therefore might be less prone to understand/explore their devices’ capabilities or trust their devices with credit card info for shopping; and/or
b) enticed with “Buy One Get One Free,” “Buy One, Get Two or More Free,” or similar ($100 Gift Cards with Purchase) offers.

Neither type of customer is the cream of the crop when it comes to successful engagement or coveted demographics; closer to the bottom of the barrel than the top, in fact. Android can be widespread and still demographically inferior precisely because of the way in which and to whom Android devices are marketed. Unending BOGO promos attract a seemingly unending stream of cheapskate freetards just as inane, pointless TV commercials about robots or blasting holes in concrete walls attract meatheads and dullards, not exactly the best demographics unless you’re peddling muscle building powders or grease monkey overalls.

Google made a crucial mistake: They gave away Android to “partners” who pushed and continue to push the product into the hands of the exact opposite type of user that Google needs for Android to truly thrive. Hence, Android is a backwater of second-rate, or worse, app versions that are only downloaded when free or ad-supported – but the Android user is notoriously cheap, so the ads don’t sell for much because they don’t work very well. You’d have guessed that Google would have understood this, but you’d have guessed wrong. Google built a platform that depends heavily on advertising support, but sold it to the very type of customer who’s the least likely to patronize ads.

iOS users are the ones who buy apps, so developers focus on iOS users. iOS users buy products, so accessory makers focus on iOS users. iOS users have money and the proven will to spend it, so vehicle makers focus on iOS users. Etcetera. Android can have the Hee Haw demographic. Apple doesn’t want it or need it; it’s far more trouble than it’s worth.

[Thanks to MacDailyNews Reader “Ellis D” for the heads up.]

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