iPhone Success Driven By Angry Android Users

Ewan Spence, 10/30/2015, Forbes.

The impact of mobile technology and online media for Forbes.  The article makes the point that as the smart phone markets in the West continue to become saturated, Apple does not have to look as far away as BRIC for its revenue stream because there is a huge source of new revenue right here.  He identifies this new revenue stream as coming from angry Android users.  Angry Android users will be looking for an alternative, as Android struggles with issues of poor security, slow updates and carrier interference. According to this article, Apple’s intentions were clear with its first Android application, the move to iOS application, which helped move personal data, address books and even the camera roll of images. Google play reports between one million and five million downloads of the app.  Apple’s second Android application is a management app for the Beats Pill bluetooth speaker. He claims that in this way Apple is slowly luring the new market dollars down the road to its platform. It’s a big win because these angry users carry more weight than users interested in the prepay market.  The angry Android users have the funds to buy more expensive phones (iPhone’s pricing is in the high-end/luxury column) and are likely to add dollars to the pot by spending on third-party applications.  Ewan says that further evidence that Apple continues its subtle invitation to Android users is in its release of Apple Music onto Google’s platform later this year. Ewan says that this release will open the ears of Android users and start them on their path to Apple with the inclusion of an iCloue account for synchronizing and backup.  According to the writer, Tim Cook, speaking on a recent earnings conference call, suggested that 30% of iPhone buyers are coming from the Android.  If Apple reported 48 million sales of iPhone that would suggest that more than 14 million sales of iPhones to Android users who have decided to abandon Google’s platform. Apple gains a larger user base and captures profit from the Android ecosystem, leaving less for manufacturers and third-party application developers.

Questions: (1) Do you agree or disagree with the writer that Apple will find its next revenue stream through these angry android users? (2) Do you agree or not  that Apple is slowly making its iOS platform appealing for these users and will succeed in luring them away from the Android ecosystem and into its own?  (3) Do you agree or not that Apple is skimming the cream from Android and leaving less profitable users behind for Android.

Link: http://www.forbes.com/sites/ewanspence/2015/10/30/apple-android-user-turnover/

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