jbelkin

Apples to Apples: Will History Repeat Itself as Android Gains on the iPhone?

First, it's clear that market conditions are different - the easiest one you might understand is that unlike the days of yore where MS could buy up distribution - with the internet, no one can. You may not realize this market share does NOT equal margins or ROI. Apple makes $600-$700 PER iPHONE SALE including iTunes (with margins of 35-40%) - how much does GOOGLE make? ZERO. That's right. They are hoping to make money down the line with search and of course, stab WIN Mobile in the head and jump ahead of Yahoo ... but its two different strategies - Apple is more than willing to concede the "free" market share to Google - Google is free to take 100% of the $49 smartphone market while Apple much prefers the 70% market share (like the ipod) of the top of the $600 smartphone market (with subsidy). Bottom line, guy, it's a new century - you might want to understand a little more before committing it to the internet.