“Turns out that iPhone addiction is much harder to kick than previously thought and is now driving Apple’s growth in an increasingly maturing smartphone market,” Yuichiro Kanematsu and Kotaro Hosokawa report for Nikkei. “Over the past five years, the average price of smartphones running on Google’s Android operating system has halved to around $200. This means smaller profits for Apple’s competitors, who are now focusing more on undercutting one another than on pursuing innovation. One unintended consequence has been that consumers are attaching less value to their smartphones, putting even more pressure on prices.”

“During the recent year-end holiday season, the iPhone 7 became a hit,” Kanematsu and Hosokawa report. “In the three months through December, Apple sold 78.29 million units around the world, up 5% from a year before and a quarterly sales record… Apple’s renewed vigor is also visible in its share price, which has gained about 30% during the past four months. ”

iPhone 7 Plus

Apple’s flagship iPhone 7 Plus in Jet Black, the world’s most advanced pocket computer

“The upcoming iPhone, to be launched this fall, will come in three configurations — two with liquid crystal displays and one with a 5.8-inch organic light-emitting diode display,” Kanematsu and Hosokawa report. “By adding more large-screen options to the lineup to meet growing demand for BIG, Apple intends to raise the average iPhone price, which has already gone up by about 10% in the past three years to nearly $700.”

Read more in the full article here.

MacDailyNews Take: Market dynamics are starving Android which races headlong to the bottom which Apple vacuums up all of the market’s profits.

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