The loss of market share I'm talking about is in the Apple's chosen premium sector.

3 stunned the industry, 3G changed it for ever, 3GS had no competitors. For now i4 has no close competitors, just now there are feasible alternatives.

Apple can see where this is going, and they will try to head it off.

No. Thats the share of all the profit made in the mobile phone manufacturing industry.

@Eejit Not sure why your saying no

http://mytechnews.info/b/2011/02/4-m...fit-share.html

4% of the global phone market, 51% of the entire market profit.

Not smartphone, not niche, the entire global phone market. Apple are keeping their phones premium and their profits high. If, as was indicated in the last couple of days, they decide to do a cheaper phone, it's likely that they'll reduce the cost of the unit, so still keeping their profit margins reasonably substantial.

Indeed 4% market share is tiny which was exactly the point I made. They don't care about market share. Both Apple and Android make huge profits from the supporting ecosystem.

Non sequitur. The fact that Apple's market share is only 4% doesn't mean that they don't care about keeping that 4%. Apple don't fear Android flooding the mass market, what they fear is good-looking, slick top-range Android handsets that the market perceives are clearly better than the iPhone.

So, you reckon that Apple wouldn't care if their 4% declines to 2% because of rival top-range smartphones? Think again. If that happens, Apple's huge profits are under threat, as their ecosystem profits depend on new users filling their phones up with iOs apps, rather than with Android apps and subscriptions.

As I explained above, Apple can see other premium handsets drawing level and even overtaking the iPhone in overall ability and getting better online reviews.

They will definitely take steps to protect their profits. I'm wondering which steps exactly, though.

That 4% is unlikely to increase or decrease due to the reasons orignally stated. Market share in the phone industry indicates little, it is, as already been indicated, the revenue that is important. If the market grows, Apples overall market share will decrease, yet conversly their profits would grow as some of the overall market growth would likely be theirs. As already stated as long as the ecosystem is working well market share remains unimportant.

Good point, but not correct overall. I wasn't talking about Apple's market share falling because the overall smartphone market increases. I clearly meant the 4% share falling because of top-end Android. W7 etc smartphones start gobbling it. Smaller or stalled user base -> will definitely affect app sales -> profits down.

If Apple's market share drops because iPhone loyalists start defecting to the LG Smart Chocolate X because it is a sexier phone, then Apple's vast profit cushion will not last forever.

It looks like a few experts agree with me.

Steve Jobs worrying about Android.

To be fair to the galaxy s 2, that screen is a thing of beauty. If only apple take note. Saying that though I will continue using iPhone as I prefer the music interface.

Scumble, thanks for the two links, very interesting reading.

Not for UK use but the BBC subscription Iplayer is meant to launch this year.
http://www.guardian.co.uk/media/2011...al-iplayer-app

At a minimum they have to make a profit so as to subsidise our TV license.
Considering user rights and all of the other fees involved the massive 30% income shortfall is going to cause more than a bit of consternation.

more good news in this morning

Google Android cements smartphone lead over Apple and Windows - Telegraph

Some of the comments on that page made me laugh. Some people are very misguided.

To really give the iPhone competition i think what we need is a new name manufacturer to come out with an amazing product (just like Apple did really).

OK so Samsung and HTC are the main players in Android at the moment, but i believe people will never accept either a Samsung or HTC as being better than Apple's iPhone, no matter how much effort they put into it. The brand images in people's heads will not allow it.

I'd say Android is 80% there with being capable of being better than iOS. Android is not the problem, it's the manufacturers.

The only brand who managed to re-invent themselves was Sony Ericsson. K700i/S700i/K750i era Sony Ericsson really were the Apple of their day. Having probably the biggest electronics company behind them probably helped having a huge pot of money! Of course now-a-days Sony Ericsson is thought of less than both Samsung and HTC and i don't think they'll be able to gain a good reputation ever again.

Completely disagree.

HTC came from a no name OEM company to making some of the best or if not the best phones on the market.

To say people will never see samsung or htc as good as apple is just sheer madness. The only ones to think that are people who are loyal to only apple and cant accept anything is better. Also as HTC phones are now more desirable than the iphone shows that's clearly not the case.

Sony Ericsson have deservedly given themselves that reputation by completely destroying any phone they make by ruining the Android experience or by ditching support for their phones months after release.

I cant agree with that. Well maybe the bit about Sony Ericsson. HTC are certainly up there with producing some of the best phone on the market. The new Galaxy S II, is simply awesome it doesnt look bad either. The desire, desire HD also very nice looking. There are plenty of people that think phones from HTC and Samsung are better than the iphone.

Android is a better OS imo. Is it more buggy than iOS? - maybe. Mainly because its not as closed as iOS, and has not been around as long.

I think the point dephanix02 was trying to make was that it's mainly iPhone and Apple users who hold the iPhone up in such high regard that they clearly refuse to believe that there are better spec'ed phones out there. This thread alone proved that fact before the mods cleaned it up.

Legal disclaimer: I'm not saying this is the case for all, or in fact the majority of iPhone owners. I'm just saying the ones who are most vocal about "other" phones being rubbish regardless of the spec are iPhone owners.

As for HTC and Android phones being more desirable right now than the iPhone; I think part of that reason is right now most people are holding off for the next iPhone so aren't picking up the iPhone 4 right now. Apple will take the top spot in 6 months time no doubt when the next version comes out.

the reason i jumped the iphone ship is simple. i got so very bored of seeing my device in so many other peoples hands. it really was very :yawn: it just wasn't original or exciting anymore - and i think many others agree with me - to see all those others doing the same finger touchy swipey actions on their screens again and again. :yawn:

whereas android for me, is totally fresh it will stay fresh aslong as there are numerous different handsets to choose from. it will stay fresh aslong as the open handset alliance continues.

Open Handset Alliance - Wikipedia, the free encyclopedia

ios = 1 handset released last year Apple (United Kingdom) - iPhone
android = 75+ handsets released last year All Android Phones of 2010

long may the open handset alliance continue

I can see your point of view and agree with it in fact. Also normally whenever using public transport you hear someone else's music even though they have headphones in, 99% of the time they are iPhone/iPod users. I despise Apple for shipping such awful headphones with their products that leak so much sound!

Any Joe public on the street when given a choice between a free iPhone 4 or a HTC Desire HD will in my opinion pick the iPhone 90% of the time, iPhones are desirable the only thing that lets them down is they are over priced, put the iPhone 4 down to free on £20-£25 per month contracts and the only people buying android will be the geeks.

That's why there's talk of the iPhone mini or iPhone nano.

I had the iphone4 and swapped it for a desire hd and im no geek. It just works better and with much less hassle. Oh and no itunes either

As for the joe public comment, well its only your opinion and as sales are showing isnt fact.

Dont see this happening to be honest.

My fiancée's sister has the Desire HD. I was really keen to try it and see what I thought. I'm pretty much tied into the iPhone system now (had an iPod before my iPhone, use iTunes a lot, like the iPhone experience) but I was interested to see what Android had to offer.

At first glance, I really liked it. I thought perhaps the screen was a bit too big and the phone a bit unwieldy, but I think I'd have got used to that. What I really liked was the customisable home page, widgets, notifications etc. The iPhone's screen, with its rows of icons, were starting to look a bit bland.

But then I started to use it, and the whole experience changed. It just seemed so dull, slow and unresponsive, even compared to my 3GS. The same apps took longer to load, there was a noticeable delay in scrolling through apps to access them, and for a brand new phone it just seemed ... well, slow and sluggish.

Granted, I only used it for about half an hour and I'm not claiming that I used its every function - far from it - but my first impressions weren't good. And it isn't as though I approached it thinking the iPhone would be better - I had actually expected to be quite jealous!!

All this proves, of course, is that different phones suit different people. The overall user experience can't really be measured empirically.

Android more profitable than iOS for app developer - Telegraph