90% of the app users are using iOS. Android hasn’t quite simple arrived. Mark Sigal tells the real story on why Apple earns the money and the other earns the market share. It should be mandotory reading in marketing! The extract is from this excellent post from O’Reilly Radar – Insight, analysis, and research about emerging by Mark Sigal. I site from the middle of the article:
The folly of conventional wisdom
Therein, lies the problem with conventional wisdom. Namely, that it’s conventional. It doesn’t think outside the box in terms of strategic imperatives, like building differentiation, growing margins or defensibility.
That explains why the top three mobile handset unit sales ‘leaders’ (Nokia, Samsung, LG) are outselling Apple in raw units an astounding 23.5 to 1, yet for all of that effort,combined they are garnering only 82 percent of Apple’s profit level.
Is it surprising, then, that the reward for achieving such distinguished leadership was for the CEOs at two of those companies (i.e., Nokia and LG) to get fired?
Let me net it out for you: Customers buy outcomes, they don’t buy attributes, and they certainly don’t pay a premium for it. Whether you love or hate Apple, recognize that they are an exemplar of this truth.