Apple’s iPhone and the minority majority

“Apple has the most valuable customers, not just to Apple, but to everyone else,” Ben Bajarin writes for Tech.pinions.

“Countless times we hear from global carriers that they prefer Apple’s customers. Apple brings them a lower risk customer with higher credit. Apple brings customers who spend more and thus have higher annual revenues per user. From discussions I have had with retailers looking to support Apple Pay, they make the point that it is iPhone customers they want in their stores,” Bajarin writes. “These customers spend more, plain and simple. We see the same reality in the app stores. Apple makes their developers more than 2x the revenue of the Google Play store — with less than half the user base. Amazon’s most profitable customers are on iPhones. Google’s most profitable customers are on iPhones. Carriers most profitable customers are on iPhones. Even Microsoft is learning their most profitable customers are on iPhones. I could rattle off statistic after statistic that highlights this reality. Apple’s customers are higher value customers and their growing installed base means they are amassing one of the largest, if not the largest, installed base of premium customers on the planet.”

Bajarin writes, “This observation has some striking implications on the market.”

Read more in the full article here.

MacDailyNews Take: Yup.

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 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.MacDailyNews, November 26, 2012

“All men are created equal.”

Well, not when it comes to users of smartphones and tablets…

The bottom line: Those who settle for Android devices are not equal to iOS users. The fact is that iOS users are worth significantly more than Android settlers to developers, advertisers, third-party accessory makers (speakers, cases, chargers, cables, etc.), vehicle makers, musicians, TV show producers, movie producers, book authors, carriers, retailers, podcasters… The list goes on and on.

The quality of the customer matters. A lot.

Facile “analyses” that look only at market (unit) share, equating one Android settler to one iOS user, make a fatal error by incorrectly equating users of each platform one-to-one.

When it comes to mobile operating systems, all users are simply not equal.SteveJack, MacDailyNews, November 15, 2014

Related articles:
Apple iOS users spend vastly more money and time online than Android users – December 30, 2014
iPhone users earn significantly more than those who settle for Android phones – October 8, 2014
Yet more proof that Android is for poor people – June 27, 2014
More proof that Android is for poor people – May 13, 2014
Apple’s iOS dominates in richer countries, Android in poorer regions – March 25, 2014
Why Apple’s iPhone keeps raking in the majority of mobile phone profits – March 19, 2014
Apple dominates with 60% share of mobile phone profits – March 18, 2014
Android has the most unit share, but Apple dominates profit share, making more money than all Android smartphone makers combined – November 15, 2013
Android users poorer, shorter, unhealthier, less educated, far less charitable than Apple iPhone users – November 13, 2013
IDC data shows two thirds of Android’s 81% smartphone share are cheap junk phones – November 13, 2013
Android phones 3 times more likely than Apple iPhones to have been bought at discount store – August 22, 2013
CIRP: Apple iPhone users are younger, richer, and better educated than those who settle for Samsung knockoff phones – August 19, 2013
Twitter heat map shows iPhone use by the affluent, Android by the poor – June 20, 2013
iPhone users smarter, richer than Android phone users – August 16, 2011
Yankee Group: Apple iPhone owners shop more, buy more, remain more loyal vs. other device users – July 20, 2010
Study: Apple iPhone users richer, younger, more productive than other so-called ‘smartphone’ users – June 12, 2009

10 Comments

  1. A typical Android phone is the modern-day “feature phone.” The owner mostly uses the built-in features for the life of the phone. Third-party apps can be installed, but the owner does want to deal with the confusion or hassle. The phone does not get a major OS upgrade. What you buy is what you get forever… a feature phone.

    An iPhone is a hand-held computer that happens to make phone calls.

    1. A good salesperson has no shame. You must have heard about all the bad stories about used car salesmen. They’ll sell people any old piece of crap just to make money. Having a conscience should be considered a weakness to any salesperson. I’m not saying every salesperson is dishonest but when a person has to earn a living or feed his or her family they may have to leave their sense of morality behind. Fortunately I’ve never been in that position to become a liar to make a living but I can’t say I’d never make that compromise to survive.

      1. That’s rather stereotypical and prejudicial of you. A stupid and short sited salesperson has no shame. An intelligent and successful salesperson knows that the best advertising (by far!) is word of mouth from not only satisfied but delighted customers, who also become repeat customers. Apple understands this completely, which is the main reason I’ve continued to be a customer and recommended their products to many (see how that works?)
        The ONLY good, long-term, successful salespeople are extremely honest, moral people who truly want to help their customers-it’s the ONLY way to ensure long term success.

  2. Except for major market share, I’d consider the Android platform far from ideal although not a total failure. Google’s dream of putting an Android smartphone in everyone’s pocket has created a platform too difficult to manage properly and I think it’s biting them in the ass. Everyone seems to be doing their own thing so Google has pretty much lost control.

    They claim Apple’s mobile platform is too rigid but it will certainly scale a lot better as Apple manages to keep control over the OS as the numbers increase and that certainly makes a better overall experience for the majority of users. Kind of like Mr. Spock and his ideals of sacrificing the few for the good of the many.

    What’s even worse for Google now is the claim that mobile ads don’t generate the number of clicks desktop ads do, so Google looks to be fighting a losing battle on both the desktop and mobile platforms. It’s already been claimed that Firefox not using Google as the default search engine has hurt Google’s search engine market share. If Apple decides to drop Google as the default search engine, that will be a major blow to Google’s growth and revenue. Android will not be Google’s savior as Wall Street believed it would be. Apple owns all the profits and lord help Google if Apple ever built or acquired its own search engine.

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