Quote:
Originally Posted by RockdaMan
I'd like a serious explanation of what Apple has to be scared of. Android may indeed eventually sell more tablets, but they will never rip away the part of the market that Apple currently has. Android phones have sold like gangbusters, but Android phones have not yet caused any erosion in the core market that Apple is selling iPhones to. Apple iPhone sales increased in the last quarter. Until Google causes some erosion, I don't think Apple will worry.
So, once again, I just don't understand what Apple has to be scared of. Someone, please, explain it to me.  |
Apple will soon be reduced from being a market leader in tablets to about the market share they have in PCs. Their sales growth will be severely stunted once the serious competition comes out in full force. And thus they will make a lot less money and they will fall behind the curve on function and features, just as they have on phones. Instead of being the only game in town, the Ipad will once again only be for their fanbase, technophobes, and fashionistas.
Simply put, Apple will make a lot less money -- and it will be a lot more difficult for them. One big problem is that Apple offers no choices -- it is also their big strength but it limits their wider appeal, one size just doesn't fit all. So I think Apple will quite soon reach the market share ceiling in their existing product lines. They have been riding a wave, but going forward times will get tough. Google is coming at them from all sides, GoogleTV, the Chrome laptops, and new functionalities that Apple just can't offer.
Sure, Google doesn't make any money on Android directly, but Apple will get swamped. And Apple has a lot more at stake here. Did Android cause any erosion in Iphone sales? Yes and no. Sure, sales are still going up, but where would the Iphone be today if not for Android? You can't seriously argue that Iphone sales wouldn't be much much higher without Android. Remember, even Blackberry unit sales are up -- but market share is sinking. And Android sales are increasing at a much faster rate than Iphone's.
Besides, it is not just Android. For tablets there will be WebOS and Windows tablets will get their act together, too. For phones Microsoft is tough, too. They will make WM 7 work, no matter what it takes.
Apple is a well run company and as great as things seem at this very moment, you can see the dark clouds of extremely strong competitive threats ahead. Therefore they must be worried, a freight train is coming right at them.