“Despite the growing number of tablets using Google’s Android operating system due to hit retail in 2014, Apple is poised to dominate where it matters most to investors: usage and profits,” Chris Ciaccia reports for TheStreet.
“Research firm Canalys predicts that in 2014 almost half of all PC shipments will be tablets, a total projected to reach 285 million,” Ciaccia reports. “The total PC market grew 18% year-over-year in the third-quarter, a figure that includes tablets. Tablets accounted for 40% of the volume last quarter, so it’s clear the trend for the market is growing, and fast.”
“While Apple will continue to lose market share due simply to the nature of Android being free combined with original equipment manaufacturers (OEMs) also using the software, Apple will keep the lion’s share of the profits,” Ciaccia reports. “‘Apple’s decline in PC market share is unavoidable when considering its business model. Samsung narrowly took the lead in EMEA this quarter and Apple will lose its position to competitors in more markets in the future,’ said Canalys Senior Analyst Tim Coulling in a press release. ‘However, Apple is one of the few companies making money from the tablet boom. Premium products attract high value consumers; for Apple, remaining highly profitable and driving revenue from its entire ecosystem is of greater importance than market share statistics.'”
Read more in the full article here.
MacDailyNews Take: As we explained exactly one year ago:
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.
Not all consumers are created equal. There are valuable customers, and then there is everybody else. Sticker prices are remarkably adroit at separating the wheat from the chaff. Apple collects the valuable consumers and leaves the leftover chaff for their “rivals.”
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