Carl Icahn is right: iPhone users will never drop Apple

“A billionaire tycoon with a taste for publicity hardly needs more support, but the inescapable truth is Carl Icahn is right about the iPhone,” Marcus Wohlsen writes for Wired. “Not only will Apple continue holding on to current iPhone users, Icahn argues, but the company has with the iPhone 6 and 6 Plus undermined the last good reason to stick with hardware running Android: larger screen size.”

“The validity of Icahn’s argument hinges on a development we observed earlier this week as Apple’s chief rival, Samsung, warned of a steep dip in profits. As major differences between phones—screen size, battery life, durability— continue to narrow, software becomes the key distinction setting one handset apart from another,” Wohlsen writes. “And in the software game, Apple has a competitive advantage Android can never cop… Apple is the only company to have both software and hardware totally under its control.”

“The tight integration of Apple’s software and hardware make the iPhone the only mobile platform on which innovation is universally consistent,” Wohlsen writes. “And because Apple can offer that assurance, it has much greater leverage in attempting to lure Android users to cross the great divide to iOS than the other way around. Take Apple Pay… With one decisive stroke, Apple was able to say, ‘Here’s a significant new feature that every new phone will have and that you can actually use.'”

Read more in the full article here.

MacDailyNews Take: Yup.

An iPhone with a larger screen option will hurt Samsung immeasurably more than myriad, unending traipses through the legal morass.MacDailyNews, May 2, 2014

Related articles:
Apple getting last laugh as Samsung earnings implode – October 7, 2014
Samsung poised for ‘ugly’ quarter as demand for Apple’s bigger iPhone 6/Plus skyrockets – October 6, 2014
Serial copycat Samsung takes South Korea’s stock market down with it – October 3, 2014
Survey: 27% of consumers ditching Samsung phones for Apple iPhone 6/Plus – September 23, 2014
Apple’s 64-bit iPhone 6/Plus fueling mass upgrades from Android – September 18, 2014

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

Reviewers fall all over themselves to praise Apple’s 64-bit iPhone 6/Plus – September 17, 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

16 Comments

  1. I like Icahn’s comments that Apple valued more etc.

    That said I must give an illustration of Carl Icahn from his past history:

    Think of a Company as a COW
    Long term investors want to milk it, get cream, butter , cheese for years.

    When Icahn sees a cow he wants to have a BBQ…

    1. I disagree. I’ve come to see a different side of Icahn over the last year. To use your example, it’s more like when Icahn sees a cow, he wants to fatten it up over time and only eventually sell it off at some point, in the distant future, when the time is right. That’s not unlike my investment in interest in Apple since I don’t intend to hold it forever. To clarify, building value is both good for Icahn and generally pretty good for other shareholders.

      Apple certainly isn’t perfect or infallible, and there’s plenty about their performance – both long-term and short-term – to critique. There’s a lot more good than bad, but we should keep things in perspective. Apple isn’t above reproach, and most of what Icahn is saying and doing is spot-on this time around.

  2. It isn’t just controlling hardware and software, nor even the sticky ecosystem. It’s all that and incredible design that removes the tech and covers it with a gift wrapped in sensory delight. All the same idiots who said the iPhone would be no big thing, then the same for the iPad, are chiming in with the same stupid opinion of the Apple Watch, an easy buy at multiple price points. It also is three new huge markets, which isn’t watches, it’s finance, fashion and health.

  3. The idiots are always insisting how iPhones are no better than Android smartphones but they don’t realize that most Android smartphones aren’t flagship smartphones and that they can be built by companies who have rather low quality standards. Consumers having to rely on carriers to update those smartphones are really getting shafted. It’s to the carrier’s advantage not to update older smartphones but to get consumers to buy new ones.

  4. He’s right. I have an all Apple ecosystem with Macs, Apple TV, iPad and iPhone. Drop an android on that and it’ll bounce right off.

    Notice how when any Apple anything is reviewed, how it integrates into the ecosystem never, ever comes up.

  5. Um, BS. I know two people who moved from Apple to Android phones and claim that Android is “far better” and “way ahead”. That is their perception after using both products. I am not making this up and these are intelligent and technically knowledgeable people (before someone here undoubtedly labels them as imbeciles).
    No matter how true the claims above may be, it is NOT the impression of real users who have made the switch and compared for themselves.
    Me – I am sticking with iPhone.

    1. You say they’re ‘technically knowledgeable’ people; there’s your clue, such people like to poke and prod around under the hood, as it were, which iOS won’t let them do, so they go to Android to satisfy their obsession with tinkering, and claim its ‘better’, and ‘superior’.
      It’s neither, really, it just lets little boys mess around with their toys and claim to be techno-wizards, with their superior control over arcane knowledge.
      Everyone else couldn’t give a shit.

  6. Don’t forget about the hardware design as an advantage. An iPhone just feels like a solid, well crafted item. Scamscum phones feel like cheap plastic that may crumble in your hands at any moment. Also, have you ever seen a Scamscum phone that doesn’t have a cracked screen?

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.