Mary Meeker has released the 2016 Internet Trends Report, in which two charts well illustrate the history of the battle between Apple iPhone and Google Android in the smartphone market from 2007 to 2015. Before the two giants got involved, the smartphone industry had just emerged, but Apple had a slightly higher position than Google and won more users. However, the market's heat is not static, and the growth trend of smartphone sales has reached a turning point at a certain point. Since there are no new competitors that can shake the position of the two giants, iPhone and Android, the market structure has become stable. With a broader view, we can see that Apple's iPhone strategy has been maintained from the beginning to now - the company's mobile phone prices have been strong (close to US$700), and new products released every year are attracting more users with new features. In contrast, the price of Android phones is not controlled by one company, and price competition is quite brutal. Since 2011, the price of devices has fallen year by year, and the current average price of Android phones is about one-third of that of iPhones. The two charts above cut out "irrelevant content" such as various model segments, screen sizes, and model colors, and only reflect the macro trends. The plot of Economics 101 is: the market is very sensitive to price, low prices always dominate the market, but it is still a long way from providing the best products. Android has been catching up with iOS for many years, and price cuts are always accompanied by market share growth. Of course, Apple may not want to learn the tricks of its Android competitors, because in recent years, the high-priced iPhone has grabbed most of the profits in the smartphone market. |
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