Apple’s iPhone 6: The final straw for Android makers eaten alive by the Google data parasite?

“Today’s long overdue update to Apple’s iPhone line – which had been moribund for years – look set to squeeze some rival manufacturers to death. New iPhones at last means that Android, Google’s smartphone middleware, will soon look attractive only for budget vendors selling into fast-growing emerging markets,” Andrew Orlowski writes for The Register. “The problem, in a nutshell, is this. Why should you continue to make something at all if you lose money doing so? The answer some big names will shortly come to is: ‘Sorry, we can’t – we’re bailing out.’ Because it’s all about margins.”

MacDailyNews Take: Every single iPhone release has set the all-time smartphone sales record. Every. Single. One. Before you misuse it next time, look up “moribund,” Andy.

“Sony, which makes beautiful gadgets, this week forecast a $1.2bn loss from its all-Android smartphone business,” Orlowski writes. “Yes, Samsung makes money from Android – the only manufacturer to consistently do so – but at a huge cost. Samsung buys its success with $14bn a year marketing budget, allowing it to put out saturation advertising, pay sales staff to push its products at retail, and hype indifferent offerings in emerging markets. But as with Sony, the Android business is threatening to hurt the rest of the group. Android remains viable for Samsung, which made a $6.1bn (£3.6bn) profit from smartphones, and that’s enough to cover the marketing. But the trend is ominous: marketing goes up and profits come down – and eventually, at some point, the two lines converge.”

“Today Google loses billions on Android – the justification being that if it’s to be the dominant consumer data processing company, it must put its data collection software everywhere it can. However, Google is also dumping losses it would make as a manufacturer onto third parties, and this isn’t a sustainable business plan in the long run,” Orlowski writes. “What Google might have to do is the unthinkable – and give something back.”

Much more in the full article here.

MacDailyNews Take: The more pain the profferers and peddlers of stolen products receive, the better.

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

Related articles:
Steve Jobs: ‘I’m going to destroy Android, because it’s a stolen product; I’m willing to go thermonuclear war on this’ – October 20, 2011

Apple posts new how-to guide: Switching from Android phone to iPhone – September 16, 2014

iPhone 6, iPhone 6 Plus tested at Disneyland: ‘So badass’ – September 17, 2014
Re/code reviews Apple’s 64-bit iPhone 6 Plus: ‘A statement phone,’ not a ‘plastic toy’ – September 17, 2014
Megapixels mean nothing: Apple iPhone 6 trounces Samsung Galaxy S5 in camera shootout – September 17, 2014
The Telegraph reviews Apple’s 64-bit iPhone 6 Plus: ‘It’s peerless’ – September 17, 2014
TechCrunch reviews Apple’s 64-bit iPhone 6: ‘The best smartphone available’ – September 17, 2014
USA Today’s Baig reviews Apple’s 64-bit iPhone 6/Plus: ‘Smartphone stars’ – September 17, 2014
Walt Mossberg reviews Apple’s 64-bit iPhone 6: ‘The best smartphone on the market’ – September 16, 2014
The Wall Street Journal reviews Apple’s 64-bit iPhone 6: ‘The best smartphone you can buy’ – September 16, 2014
Macworld reviews 64-bit iPhone 6 and iPhone 6 Plus: Bigger is better (in the right hands) – September 16, 2014

27 Comments

      1. Sadly, awful-ignorant-unprofessional journalism is literally everywhere, like an infection of stupidity. The Register has made it into a long boring joke, evident in every single headline they write.

        I put up with The Register’s cockney noise making because they are, oddly, one of the most complete websites covering technology on the Internet. There are some good writers there, despite the bad editorial attitude. Dan Goodin, who is possibly the best writer over at Ars Technica, used to work at The Register.

        I’ll skip my usual lecturing about our being in an age of relentless propaganda, aka lying. A lot of unprofessional journalists take this devotion to deceit as an excuse to be lazy in their research and renditions of factual information. Say bullshit and you might even be rewarded. Disinformation, misinformation, what’s the difference…? That kind of crap.

        1. A professional journalist is someone who MAKES MONEY AT JOURNALISM. Some low life types will do anything to MAKE MONEY and call it journalism. We have all seen them on the web writing ‘click bait’ and some call those people ‘hit whores’.

          If you think journalism these days, is about balanced and truthful reporting of facts, then you are sadly mistaken. It is about sensationalizing a topic so that you can get PAID! Some say that the truth is multifaceted and these ‘reporters’ are just portraying one of those facets. If they can get paid for it, then ergo, they are professional because they make money in their profession.

          These writers do not strive for excellence in their profession but instead, appeal to the baser natures of mankind and are really purveyors of gossip and backbiting. Alas, the world is stuck with them but we all can help them aspire to greatness if we don’t click their material or especially, don’t click their advertisers.

          1. A professional journalist is someone who MAKES MONEY AT JOURNALISM

            I’ve heard this argument before. But there are professional standards within any craft, guild, profession. Joe Blow can call himself ‘professional’ because someone gives him money. But he may well be poor in terms of professional standards. Call him a paid apprentice or a hack. He’s not up to professional quality.

            This is semantics. I’m not going to swim through that mess.As usual, I also get really tired of people NOT reading what I wrote then going off on some tirade that has nothing to do with my points. Such is the case with:

            If you think journalism these days, is about balanced and truthful reporting of facts, then you are sadly mistaken.

            My reply is: Well DUH! I entirely agree what your point of view. The quality of what you want to call ‘professional’ journalism these days is typically bad. I prefer to call these hacks ‘unprofessional’ as pertains to the quality of their work. That’s how I express my frustration.

  1. Yes, considering the modern smartphone was *invented* by Apple only about 7 years ago, I would say that ‘forever’ is a bit of a stretch (unless one is under the age of 25, time passes differently for the kids 😉

  2. I really should read the article, but “long overdue” and “moribund” mean I don’t want to give a click.

    So anyone who fell for it please explain how $6B in profits covers a $14B marketing budget, or is this just yet another challenge for this journalist?

    1. It’s a good article once you ignor the ‘moribund’ partial sentence.

      That’s his point, if Samsung etc spend more on marketing than they generate in revenues then they’ll make a loss like Sony, LG, etc with their Android phones.

      1. I was trying to reason that out, too, but the definition of profit is that it comes after paying the marketing expense! So I just figured I had nothing more to learn from this author. I may follow “I CAN HAZ” though and read the rest of it.

  3. We are SO entering a new era against the forces of Google evil. Next couple of years are going to be really interesting as Apple keeps cleaning Google’s clock and undermines their data mine. If rumors are true and Apple Search shows up at 2015 WWDC Google pain should continue apace. 2015 might well be the year of the “Thermonuclear” result.

    1. Steve Job’s predictions of how Apple’s smug competitors will be destroyed have a way of coming true. First Dell (Bull’s eye threat), now Google (Thermonuclear war). There was no threat to Microsoft, but Apple is responsible for making MS irrelevant anyway.

  4. Google doesn’t care about the phone manufacturers. They only care about getting as many people connected to them as possible. For example, they are marketing their cheap Android One phones in India for around $100. This effort is going to completely undercut their hardware “partners”.

    This is good for Apple. First, it expands the mobile market and second it cuts the legs off some of Apple’s hardware competitors. These Android hardware companies will either go out of business or continue to cut corners and produce poor quality products with horrible support. As a result, Android customers will convert to Apple in ever increasing numbers. There are reports today that claim over a third of the people waiting in line to purchase an iPhone were previous Android users. This is a huge number because I’m assuming the typicall person standing in line on launch day are hardcore Apple fans. To me, this proves that many in the Android camp are VERY eager/enthusiastic to switch. So, what began as a trickle of Android users comming to Apple in 2011 and 2012 (their first or second smartphones purchased in 2009-2010) is becoming a raging torrent in 2014 and beyond. If Apple continues their reputation for innovation, quality built products and impeccable service there could easily be double the amount of Apple fans within three years.

  5. “There are reports today that claim over a third of the people waiting in line to purchase an iPhone were previous Android users”

    You mean those actors in the Samsung TV commercials?

  6. The iPhone 6 would be a fantastic phone if I was able to activate it. I had it for more than 24 hours and I have no resolution as to when I will be able to use it. Apparently when the phone was scanned and assigned to me, something was entered incorrectly. I was able to activate the sim card with ATT but I can’t get past the verification screen to start using it. Have spend hours on the phone with both ATT and Apple to find out that the issue it within Apple’s system. Very disappointed to say the least.

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