Cell Phone Ecosystems and Market Share

Android and iOS have been struggling over market share in the smart phone market over the past several years. However, at this point, it seems like Android has won, with over 80 percent of phones being shipped being of the Android ecosystem. Yet, when it comes to actual profits, Apple is still very far ahead of Android and Google in terms of profit. This comes from the very simple reason that many Android phones are designed to be very cheap with relatively small profit margins, while a lot of the rest comes from one company, Samsung. So while Google has a large percentage of the market share in the industry with Android, it is actually making a relatively small proportion of the profit. This also applies to app purchases, where Google has almost caught up to the iTunes store and iOS purchases, but makes smaller profits due to less willingness from consumers to purchase paid apps from them. I honestly believe that until Google’s proprietary Nexus devices achieve a greater proportion of Android sales than most other devices like Samsung, a large amount of the profits in the industry will be going towards Apple and Samsung, not Android and Google.

Leave a Reply

Your email address will not be published. Required fields are marked *