The battle between Android and iOS has been a fierce one. At first, it may appear that Android is doing well when compared to iOS. 81 percent of smartphones shipped in the third quarter of 2013 ran Android operating systems, an improvement of 74.9% in the past year. In contrast, iOS’ market share actually fell 1.5%.
This is a result of difference in prices. While the average price for a smartphone running Android was $268, the average price for an iPhone was $635; nearly a $400 difference.
Ramon Llamas, an IDC Research Manager stated, “If you go to emerging markets, it’s a price game… Devices like [Apple’s iPhone] and the new Blackberry – they’re very cost prohibitive.”
However, in terms of profitability, Apple is still doing well. An analogy that was used in the article that I read states that Apple is like Porsche while Samsung is like Volkswagen. While they have a dramatic difference in quantity sold, the price difference makes up for it. Apple’s specific audience and the brand position that they hold continue to provide them with loyal customers. Apple’s point of difference being providing higher quality phones and a stronger brand name, compared to Android manufacturers.
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