Why Apple is the Top Smartphone Maker

Forbes ^ | 6/09/2012 @ 5:15PM | Larry Magid

[Swordmaker]

Nielson is out with some new statistics on the iPhone, pointing out that — as of March 2012 — about 1 in 3 smartphone owners globally are using iPhones. Earlier this year, Nielsen reported that smartphones account for half of all new mobile phone purchases in the U.S.

Nielson also said that Apple is also a top destination on the web, with 72 million unique US visitors to their site during April 2012 and “has been among the top 10 web brands overall.” Visitors to Apple’s website spent nearly 1 hour on average during the month.

The analytical firm also said that iPhone users download 50 apps on average and that Facebook is the most used app followed closely by Maps. A third of iPhone users downloaded a paid app in the past 30 days.

Over at Business Insider, Henry Blodget argues that Apple’s success is due to broader distribution (adding Sprint and other carriers), having lower priced models (including the 3GS), additional distribution partners such as Walmart, Amazon and Best Buy and the fact that iPhones cost about the same as competing products.

[papertyger]

because it just works...

[whitedog57]

Still like my Blackberry Bold 9900 better than my wife’s iPhone.

[Swordmaker]

Nielson Research says that 1 in 3 smartphones worldwide is an iPhone—PING!

From a well research comment on the article:

• 365 million iOS devices vs 300 million Android
• 84% of mobile gaming revenue captured by iOS (NewZoo)
• 90% of e-commerce revenue comes from iOS devices (Rich Relevance)
• 97.3% of business tablet activations are iPad (Good Technologies)
• 63% mobile web browser share iOS vs 19% Android (NetMarketshare)
• 69% of mobile web share is iOS vs 29% for Android (Chitika)
• 80% of cellular industry profits captured by iPhone (Morgan Keegan)
• iPhone developer revenue 400% of Android phone revenue (Distimo)
• IOS developer revenue 6x Android dev revenue (Distimo)
• New iOS app starts increased from 63% to 73% marketshare (Flurry)
• Developer mindshare: 89% iPhone, iPad at 88%, Android phones 78.6%, Android tablets 65.9% (Appcelerator)
• 78% of smartphones at AT&T, 76% at Sprint and 51% at Verizon are iPhones Q1 2012. These 3 carriers make up 80% of of smartphones sold in the USA
• vast majority of 3rd party hardware peripherals, accessories, media and content target iOS devices
  Etc etc.

  In contrast, like Symbian before it, all Android has to show is smartphone unit sales share and we all know what happened to Symbian.

  This is why Apple is on top.

Apple iPhone market penetration Ping!

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[Cringing Negativism Network]

So how about a market share index which matters:

What smartphones are made in China?

How come that is (never) mentioned, yet is most important of all?

[numberonepal]

How come that is (never) mentioned, yet is most important of all?

Because that's not what's most important. What's important is that Apple makes a superior product - plain and simple. I could give a whiz about where it's made.

[AlmaKing]

Are you talking about the Chinese slave labor used to make their products?

Chinese FoxConn Workers Riot at Apple Factory

http://www.newsy.com/videos/chinese-foxconn-workers-riot-at-apple-factory

Same shit is happening with my company here in the states which has factories in China also. Our local Chinese boss expects us to work and compete with slave labor.

[Okieshooter]

“Still like my Blackberry Bold 9900 better than my wife’s iPhone.”

I would suggest that others on both sides like what they are used to. Changeing to another platform requires a learning process that many don’t want to go through. Plus replacing all the apps they have aquired.

I will stick to my iPhone since it is the first smart phone I tried that was worth a damn.

[TomasUSMC]

Communist Chinese are making huge profits from your smart phone. It will come to bite you.....sooner than you think.

[TomasUSMC]

Communist Chinese are making huge profits from your smart phone. It will come to bite you.....sooner than you think.

[BipolarBob]

Does your company have the suicide nets also?

[Cringing Negativism Network]

Yup.

That’s the thing.

When the lowest wage in the world, is the largest country in the world, every other nation will go broke.

Every one. No limit...

[null and void]

That's not a fair comparison.

People like the iPhone...

[House Atreides]

It’s all individual choice and preference of course. I had used Blackberries for a number of years and made the switch to the Apple iPhone(4) last year. I’m VERY happy with the iPhone & the switch.

One thing to consider longer term—RIM (the producer of Blackberries) is tottering on the edge of bankruptcy while Apple’s profits continue to increase. Apple is in the financial position needed to invest hugely in the research needed to constantly improve its products while RIM needs to instead worry about how to meet day-to-day bills.

[stuck_in_new_orleans]

I view a iPhone like drudge report and google. Both excel at being very easy and user friendly. As compared to yahoo and Android, that think people want a million options and choices and make it frustrating to use. Just my opinion though.

[AlmaKing]

The company laid off 4 people last week. More cuts are coming due exactly to Chinese labor competition.

Are you being cute? Send your message to those 4 people, who are Americans by the way.

We’ve been told those positions won’t be refilled here. They will be filled in China.

[ctdonath2]

For most, abstract political issues are trumped by out-of-pocket price and daily usability. “Made in USA” matters little if the product is expensive and crappy.

[MrEdd]

I have never seen a superior smarphone made by iPple.
If you did not just make that up, or pull it out of your @$$, post a link to a site selling them on this thread.

Minimum tech stats for a phone that is even barely acceptable include screen size no less than five inches, user replacable battery, and removable storage.

All I have ever seen from iPple is hype. Unlike HTC and Samsung. Hell, even Dell put out a good phone and its not even one of their focus product categories.

Put up or shut up.

[Swordmaker]

Are you talking about the Chinese slave labor used to make their products?

Uh, no. Apple requires their workers to be paid three times what other workers are paid and did you read the articles? In more accurate reports about the riots the truth came out:

"The clash broke out at a male dormitory for Foxconn workers in Kaoxinxi district in northwest Chengdu. When two security guards called out to stop a thief, some employees with grudges against the security officers took the chance to hinder them and forced them away.—The China Times

The riot occurred because of a police action, not because of working conditions. It was further reported in other news sources that this plant was not even one that made parts for Apple products.

Gee. Alma, facts can be uncomfortable things.

In the report that "affirmed the long hours," the workers complained when the "long hours" were cut to please the international investigators! The workers found that they no longer were able to make as much money in overtime pay, which was one of the reasons they had gone to work at the factories in the first place!

It may be true for your company, which does not require the same thing that Apple does. Apple has Apple paid staff members at the factories to assure that their requirements ARE being complied with. None of the other contractees have that practice from what is being reported. Apple is the only one that monitors what its contract manufacturers do to assure compliance with their requirements.

When open hiring is announced at the FoxConn plants that make Apple products, hundreds of applicants apply for each opening. Slaves do not volunteer to work at slave labor. The reports of "slave labor" conditions were retracted when it turned out they came from a "reporter," Mike Daisey, who has admitted he made up much of his monologue "The Agony and Ecstacy of Steve Jobs" as entertainment. His "report," which was excerpted on NPR, gave rise to the flurry of bad press about slave labor in the FoxConn factories was retracted by NPR:

"RETRACTING "MR. DAISEY AND THE APPLE FACTORY" 03.16.2012

I have difficult news. We've learned that Mike Daisey's story about Apple in China - which we broadcast in January - contained significant fabrications. We're retracting the story because we can’t vouch for its truth. This is not a story we commissioned. It was an excerpt of Mike Daisey's acclaimed one-man show "The Agony and the Ecstasy of Steve Jobs," in which he talks about visiting a factory in China that makes iPhones and other Apple products.

The China correspondent for the public radio show Marketplace tracked down the interpreter that Daisey hired when he visited Shenzhen China. The interpreter disputed much of what Daisey has been saying on stage and on our show. On this week's episode of This American Life, we will devote the entire hour to detailing the errors in "Mr. Daisey Goes to the Apple Factory."

Daisey lied to me and to This American Life producer Brian Reed during the fact checking we did on the story, before it was broadcast. That doesn't excuse the fact that we never should've put this on the air. In the end, this was our mistake.

We're horrified to have let something like this onto public radio. Many dedicated reporters and editors - our friends and colleagues - have worked for years to build the reputation for accuracy and integrity that the journalism on public radio enjoys. It's trusted by so many people for good reason. Our program adheres to the same journalistic standards as the other national shows, and in this case, we did not live up to those standards.

Even the reports of horrific suicides at the FoxConn factories do not hold up... except as FUD and hype when it is compared to the national figures for the same age group demographic for all of China... and it turns out that it is one quarter of the percentage of the national rate! 75% fewer people in the employ of FoxConn commit suicide than do the general population. It only made headlines because FoxConn makes products for Apple... and it suited Apple's competition to publicize those suicides, despite the fact those SAME plants made their own products!

[Gator113]

Do you think that Apple will ever make Siri available for Mac OS X ? I am in love with Siri and I think she loves me too.

[Swordmaker]

Do you think that Apple will ever make Siri available for Mac OS X ? I am in love with Siri and I think she loves me too.

I think it is inevitable. Maybe this week.

[Okieshooter]

“Do you think that Apple will ever make Siri available for Mac OS X ? I am in love with Siri and I think she loves me too.”

Have you asked her for a date?

[Cringing Negativism Network]

“Made in China” matters little once it becomes expensive.

Apple needs to start a move (away) from China.

Now.

[Woodsman27]

Because they just plain work. I switched from Android to iPhone recently and have loved how smooth everything is on the iPhone. I don’t have crashes anymore and most things are very straight forward and intuitive.

[Ainast]

I have an iPhone but I am really wanting something better. I don’t like restrictions.

I should be able to do as I please on my own phone.

[Mr. Blonde]

So the Dell Streak and Samsung Galaxy Note are the only acceptable phones?

[papertyger]

I should be able to do as I please on my own phone.

Trust me: little tiny boobies aren't worth the trade off. ;o)

[Gator113]

Actually, I have. LOL

[Gator113]

I sure hope that you’re not pulling my leg.

If is comes as an upgrade to the iMac that I already have, I’ll but it in a heartbeat.

If I have to buy a new system to get it... I’ll do without. I already own too many computers. ;>)

[dayglored]

Hi Swordmaker,

Apple will continue to lead the market, occasionally with a big splash but mostly by quietly producing and selling products that are, most of the time, demonstrably higher quality, more innovative, better executed, etc. than the competition's. The competition often makes good products too, of course. But Apple seems to maintain their "leg up" regardless. Isn't that what companies are supposed to try to achieve in the marketplace?

The days where Apple-haters could argue that only deluded Apple fanboys bought Apple products are long, long gone. Either that or a very large percentage of the world's population has become Apple fanboys. Meanwhile...

"...iPhones cost about the same as competing products..."

Oh, no, say it isn't so!! That was the last of the Apple-haters' arguments against getting an iPhone! I guess that they'll have to fall back on the discredited lies about Chinese working conditions. Oh, wait... I see from this thread that indeed they are... It's such a shame that the haters are so unhappy with their ability to purchase whichever product they desire, in a free marketplace, and must instead trash one or another of them instead. It's a shame they are such discontented people.

When I go to buy something, I generally assess the available products and purchase the one that suits my needs best. While I may sing the praises of what I choose, I honestly can't understand the motivation to trash those I don't choose, unless I have sufficient personal experience with them to warrant the trashing.

DISCLAIMER: I don't have a dog in this fight:

I don't have an iPhone, nor any other "smartphone". I have an LG VX5500 "stupidphone" (so-called "feature phone"), which suits me just fine. I doubt I will purchase or use a smartphone any time soon, since my stupidphone does exactly what I want in a phone, no less, no more, flawlessly.

[Ainast]

lol,

I just hate how it locks me out of certain things when I drive.

I can’t write apps for it in java without jailbreaking. I’m fine with using ObjectiveC however, I don’t want to purchase a mac or jump through hoops to code the apps.

It feels like its Apples way or the highway and I’ve never been one for authority.

I guess I should switch to android but I’m sure I’d have complaints about it as well. I really just want a phone that’s just like a PC, viruses and all. I’m not afraid of managing my own device.

[Swordmaker]

I sure hope that you’re not pulling my leg.

I have no insider knowledge. I do know that Apple will not release it until it's ready. Whether that is this coming week or seven years from now only time will tell.

[ctdonath2]

“Apple needs to start a move (away) from China.”

The USA needs to start a move away from regulations so oppressive that manufacturing is more feasable in China.

When China serves capitalism better than the USA, something is very wrong.

[MrEdd]

They are high end phones.

iPhones are not reslly high end phones.
They have good resolution on their screens, but many of their specs are sub par...which is why I responded with some of the specs I consider nonnegotiables. iPple falls so short they aren’t even on the field.

They have gon the low specs but reliable route, and they make a ton of money doing it.

[PreciousLiberty]

“They have good resolution on their screens, but many of their specs are sub par...which is why I responded with some of the specs I consider nonnegotiables. iPple falls so short they aren’t even on the field.”

Delusional much?

Apple apparently feels that the iPhone is about the right form factor for a phone, and clearly a whole lot of customers agree. If you need more screen real estate, buy an iPad, laptop or whatever. The other features you require are non-issues for the vast majority of users, and there are excellent workarounds for the “lack of removable battery” issue.

It’s rumored that the next-gen iPhone will have a longer screen, but the narrow dimension won’t change resolution.

At any rate, clearly Apple is hitting the sweet spot compared with the other manufacturers. There’s just no denying it. Its superior software and app availability is just the icing on the cake.

[MrEdd]

Not even slightly delusional.
And... When I point out that iPple’s removable storage specs and replacable battery specs are in fact such utter crap as to not have those important functions on their phones at all... iPple cultists get all huffy and insist that iPhones are still high end even with their very third world specs in very important area.

That, is delusional.

Go ahead, post how good iPples removable storage really is. Then talk about how easy it is to swap out their batteries and how much one of a given rating costs.

I posted criticism of iPhones in specific areas.
You personally did not and can not show those criticisms to be wrong in any way whatsoever.

You are a pretty typical iPple cultist (as opposed to those who like their stuff but do not try to claim the products are things they are not).

[ReignOfError]

Minimum tech stats for a phone that is even barely acceptable include screen size no less than five inches, user replacable battery, and removable storage.

Minimum stats for a phone that is even barely accessible include a twelve megapixel camera, a speaker capable of producing at least 90 decibels, an Esperanto keyboard, and it has to be available in orange.

Hey, it's no more arbitrary than your list.

[Mr. Blonde]

And I said, you are implying that there are only two phones (that I’m aware of at least) can be considered high end. They are the only two to meet your standards. I don’t really think either of those make for a high end phone anyway as they are features but that doesn’t mean the specs are better. A 5+ inch screen can still be crappy. Removable battery and expandable memory aren’t really better or worse in and of themselves.

It seems that Android manufacturers are making a move away from your other two features as well. Neither of the two flagship Android phones out meet your screen size requirement and the One X fails on all 3 fronts. The latest Nexus device fails on screen size and removable storage.

In any case, I don’t think you can extrapolate the requirement of any of those to the public at large. I don’t have small phones, but my GNex is the absolute max I can effectively handle one handed and with so much action at the top left of the screen that is pretty important. I still think the 4.3 inch size is about ideal. I’ve never come close to the 32GB I have of storage either. I’m using about 9GB right now. That includes some sizeable Spotify playlists downloaded.

Really, specs alone are a poor judge. Using a smartphone is a total experience question. Spec porn doesn’t alone improve the experience. My phone is now old news, but I can’t see exchanging it for anything else on the market. Definitely not for a bigger screen or expandable memory.

[ReignOfError]

The bottom line is that Mr. Edd’s list of minimal specs to be considered “high-end” is nothing more or less than his personal preferences, probably hand-picked to exclude the iPhone, dressed up as if they were an objective standard. His “standards” have nothing to do with how effectively a phone performs any task, let alone with what users consider important when voting with their dollars.

He lists a removable battery as a must, but nothing about the life of that battery; screen size, but not screen resolution, brightness or saturation; removable storage, but nothing about built-in storage or access speeds; nothing at all about processor, RAM, sound quality, voice call quality, network speed, availability of apps, OS stability, or any of dozens of things far more important to the experience and usability of a device.

[numberonepal]

I test sites on many different devices for my job. I have 6 different devices from iPhones to Windows phones so we can cover as many browsers as possible. For all around stability, ease if use, case quality, and performance it’s the iPhone that’s best.

[MrEdd]

I never said it was hard to use or wasn’t reliable.
i pointed out that it lacks many basic features, listed a couple of those features, and pointed out that it is not a high end phone.

[Hodar]

Apple needs to start a move (away) from China.

Why does Apple need to do something, that no other smartphone maker does? Maybe you haven't been keeping up on current events for the past 20 years, but did you know that practically every chip in mass production is made in Asia? Did you know that Foxconn also makes products for: Acer Inc. (Taiwan)[37]
Amazon.com (United States)[7]
Apple Inc. (United States)[38]
Cisco (United States)[39]
Dell (United States)[40]
Hewlett-Packard (United States)[41]
Intel (United States)[42]
Microsoft (United States)[9]
Motorola Mobility (United States)[40]
Nintendo (Japan)[43]
Nokia (Finland)[38]
Samsung Electronics (South Korea)[44]
Sony (Japan)[8]
Toshiba (Japan) [45]
Vizio (United States)[46]

Apple is only 1 of their many customers - and Apple is a BIG company. Also, thanks to the EPA and Govermental regulations - Apple CAN NOT make their products in the USA. Steve Jobs is on record of saying that he would like to use American labor, however thanks to over-regulation by the US Goverment - he cannot make products here. The chemicals and some of the polishing processes are "illegal" here. That's why you see other companies simply building their products in China, including Blackberry

[roadcat]

Apple is only 1 of their many customers - and Apple is a BIG company. Also, thanks to the EPA and Govermental regulations - Apple CAN NOT make their products in the USA. Steve Jobs is on record of saying that he would like to use American labor, however thanks to over-regulation by the US Goverment - he cannot make products here.

Very well stated, and needs to be repeated often! The EPA is the bad guy as to why manufacturers build outside the U.S.A. Used to be a lot of surfboards were made in California, but the EPA chased them out to Australia and other countries. Same for Apple products, which used to be produced in Fremont California - EPA bears much of the blame.

[itsahoot]

Apple is doomed I tell you!

[Swordmaker]

Not even slightly delusional.
And... When I point out that iPple’s removable storage specs and replacable battery specs are in fact such utter crap as to not have those important functions on their phones at all... iPple cultists get all huffy and insist that iPhones are still high end even with their very third world specs in very important area.

Uh, yes, you are. What do I need removable storage for? I have full access to the web in the cloud to all the storage I need, full access to my Macs at home and at my office with terabytes of storage, and any photos or videos I take are available on my other devices!

One of the reasons Android phones are not considered for Enterprise use is because they have removable storage... Which makes it extremely easy to steal proprietary data off the phone!

As for replaceable batteries, my ex-wife is using my original first generation iPhone with its original battery... And it still has 80% of its original charge capacity left, five years later! So why do we need a replaceable battery that would add cost, complexity, and bulk to the phone?

If a user wants to swap batteries on an iPhone, Amazon sells a battery, and a tool kit with instructions, shipping included, for $6.92. Sears has them for $7.45. Other suppliers are as low as $4... But you gotta pay shipping.

And you are a typical anti-Apple troll who is ignorant of the capabilities and facts who spouts what he's only heard and doesn't really know.