What is Apple’s secret sauce? What makes that company tick? How do they manage to hold people spell bound and keep chopping the money?
Android dominates the market share, there are more phones in people’s pockets running Google’s Android OS compared to Apple’s iOS, yet Apple is the one making ALL the profits in that sector.
Google is doing fine, they can go on giving Android OS to phone makers for free, you see Google’s strategy is not really to make money from Android. Their strategy is to be omnipresent.
Android’s infiltration favors Google perfectly; since Google’s strategy is to be always there when you need to find information. The big losers are the handset makers; the Samsungs, LGs, Tecnos and the 1 million other chinko Android device makers.
Amazon’s new phone, the Fire Phone is performing so badly that they announced they would start giving it away for $1.
I believe there are tons of things we could learn from the whole drama but one of the most important lessons is to follow the money! How can we make real money from our efforts??
Businesses need to focus on creating real value and charging for it! Apple’s critics always claim that Apple’s devices are overpriced, but I do not think their customers are complaining. Apple sets a premium price for their hard work and the strategy is working very well for them.
Like Apple, maybe we should start targeting the top 20% of the market with premium priced products and services, rather than targeting the whole lot. Work hard to make something truly awesome and then charge for it.
Another lesson would be to pick your partners carefully. I am not convinced that Google and Samsung for example have the same interests in the mobile space.
Samsung needs to keep making impressive devices and actually make money from them, Google does not. Google has an advertising business that brings in a great chunk of their cash, they do not need to make a penny from Android; why would you partner with such a company? The goals of partners have to be in alignment.
What else can we learn from this “mobile war”?
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Watching The World
