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charlesarthur

49 karma · joined March 2, 2012

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charlesarthur··on Premium Android hits the wall
Some argue that Android is itself "a competitor that runs the same OS" - look how many UI/UX features are common to both.

"I'd also question whether every device sold by Samsung and the other "premium" Android developers you mention, could be considered "premium"."

Of course, they aren't. But one can deduce what has happened to sales of the high-end models from those manufacturers by comparing previous handset totals, and ASP (average selling price). Samsung has said that the S6 + S6 Edge sold about as many as last year's S5, which itself was a disappointment in sales compared to 2013's S4. ASPs have fallen (by my calculations from $350 in Q2 2014 to $317 in Q2 2015 for Samsung; from $331 to $319 for Sony; from $237 to $235 for LG [not much of a fall]; HTC from $388 to $237. Motorola/Lenovo isn't exactly comparable because it spans a takeover period.

(One can calculate the numbers from publicly available figures, but I can't point you to a specific place for them - I just looked them up.)

If ASPs are falling, then generally you can infer that fewer top-end phones are being sold. You can easily think up scenarios where that's not the case, but all the indicators are down: fewer phones, lower ASPs, lower revenues.

"Certainly there's a lot of Samsung devices that are aimed further downmarket than some of those from Xiaomi or Huawei (and vice versa)."

But that's always been the case, even before Xiaomi or Huawei were contenders. However before them, there were few choices for premium features as you can get cheaper from Xiaomi and Huawei and OnePlus and so on.

"And even within a single manufacturer, you've not presented any evidence to suggest that people haven't shifted from non-premium Samsung to premium Samsung."

I think you mean that the other way round? (From premium to non-premium.) I haven't presented that evidence because it's impossible to extract from the available data. You'd need a giant consumer panel, like that run by Kantar ComTech, to see those shifts. But we can say with clarity that the companies that used to define "premium Android" are selling fewer phones at the premium end - which is told through lower ASPs, revenues, handset sales and profits.

"(You could argue that would inevitably lead to higher profits, but I'm not sure that high profit is synonymous with "premium", so if that's the assumption then it's worth spelling out)."

Yes, it is generally my assumption - one I think is accepted more generally than just in smartphones - that premium products attract higher gross margins. Other things being equal, that should feed through to higher operating profits.

charlesarthur··on Premium Android hits the wall
I can't tell if you're being ironic (I suspect you are), but the figure needs to be seen against the market context: in 2Q 2014, total smartphone shipments were 301.4m devices [1]; in 2Q 2015, they were 337.2m [2]. That's an 11.6% growth. Apple's shipments grew 34.9% [2]. So why did none of those "premium" Android OEMs see an increase in sales, yet Apple, with much pricier devices and fewer models, did? This is the key question.

(Disclosure: I'm the author of the linked post at the top.)

[1] http://www.idc.com/getdoc.jsp?containerId=prUS25037214 [2] http://www.idc.com/getdoc.jsp?containerId=prUS25804315

charlesarthur··on The adblocking revolution is months away
"iOS market share has declined tremendously since 2010, from approximately 80% to approximately 20%."

Not so. IDC data: iPhones shipped in 2010: 47.45m. Total smartphones shipped worldwide in 2010: 303.9m. iPhone share: 15.6%.

iPhones shipped in 2014: 192.6m. Total smartphones: 1.295bn. iPhone share: 14.8%.

As a percentage of all mobile phones (including featurephones), iPhone shipments have risen steadily from about 3.3% (average across 2010) to 11.8% (average first two quarters of 2015).

I don't know where you got your numbers from, but they don't match any I recognise. (Equally, if you're using "market share" to mean "install base" - don't. They're not congruent.)

charlesarthur··on The adblocking revolution is months away
"There was discussion in reddit about an article about Moto on how its going to change the way mobiles are purchased. One of the top commented reply was about people not willing to buy $400+ mobiles."

Motorola is not going to change the way the vast majority of mobiles are purchased in the US, which is through carriers. No matter how many comments an article might have had on Reddit. Emerging markets (specifically: India) might have lots of people buying phones online, but the US has a long-established system which is extremely resistant to disruption. According to ComScore [1] in May 2015 Apple+Samsung had over 72% of the installed base of smartphones in the US. No reason for that to change in any hurry.

Observation: don't use the number of comments on articles on Reddit as a metric of anything except the number of comments on articles on Reddit.

[1] http://www.comscore.com/Insights/Market-Rankings/comScore-Re...

charlesarthur··on The adblocking revolution is months away
"Flash(and upcoming AIR) was at the time a true contender for becoming the cross platform desktop/native type application interface. Once Apple banned Flash, companies moved away from the platform and it withered."

Simply not true. Flash continued to be made available for Android, and Adobe boasted of the number of installs it would have (200m by the end of 2011, it claimed [1]). Apple had, and has, a small share of the mobile and desktop market. But nobody could get Flash to work well on mobile. That is why it died.

[1] http://www.theguardian.com/technology/blog/2011/feb/14/mobil... (disclosure: by me. I was there.)

charlesarthur··on The adblocking revolution is months away
"Apple pushing ahead with this will just make Google desperately push Android as hard as they can."

What does that mean, exactly?

"they might be more willing to see Android devices put into consumers' hands at break-even (or even loss-making) prices"

That already happens. Samsung's profits and phone shipments are substantially down, LG made 1.5cents operating profit per phone in Q2, Sony made a loss, HTC made a loss; and those are the premium handset makers, most of them part of conglomerates. All selling Android.

"Apple will either see market share decline or need to sacrifice part of their margins to maintain share."

This is a common refrain since about 2010. Hasn't happened so far.

charlesarthur··on Apple Reports Record Third Quarter Results
"Greater China sales fell by 21% from $16.8 billion to $13.2 billion"

That's reading sequential quarters, which pretty much nobody in finance (who wants to be taken seriously) does, because it overlooks seasonal factors. The year-on-year figure (which serious financial people do use) is up over 100% from $5.9bn. The stock market maybe is concerned that China is too important and that if its stock market is plunging, so will sales of Apple stuff.

charlesarthur··on Dropdowns Should Be the UI of Last Resort
What's happened is that they've gone to "sites with smaller viewports and less precise input methods because they don't have a mouse and keyboard attached". And in case it had also passed you by, mobile is the predominant method of browsing for a huge number of sites all over the world.

Consider Google, which says that mobile search outnumbers desktop in 10 major countries. Do you hear Larry Page moaning about how people are using the "wrong" method to access the site? Nope. Instead, Google rejigged its algorithm to favour "mobile-friendly" sites. So let's see, that ranges you, preferring desktop, against Google, monitoring the direction of travel. Think I'd bet with the latter.

You can bemoan the way that mobile input has to adapt. Or you can revel in the way that smart UX designers figure the best way to adapt, as outlined in the original post. I know which I prefer.

charlesarthur··on Pointing Fingers in Apple Pay Fraud
"I'm pretty sure it takes a little bit longer than swiping my card."

It probably does, but swiping your card is about as insecure as a transaction can be. (Thieves love it though - they break into POS systems and there are tons of mag stripe details.)

However, as time goes by you'll have to enter a PIN (as we do in the UK) which is a bit slower - perhaps slower than Apple Pay.

charlesarthur··on Pointing Fingers in Apple Pay Fraud
No, name it. Why should known bad players go unnamed? They're the ones which will ramp up the cost of doing business because they get defrauded, and you can bet it's not coming off their yacht bills.
charlesarthur··on Amazon has sold no more than 35,000 Fire phones, data suggests
If you know a better way to get sales figures relating to Amazon products, please let me know.
charlesarthur··on Amazon has sold no more than 35,000 Fire phones, data suggests
I wrote the original piece above - would love to hear all about your experience. Email easy to find.
charlesarthur··on An open challenge to PandoDaily
"I didn't read all the disclosure documents on my mortgage, but I bought the house anyway."

You should have read them. All those people who got stung by Adjustable Rate Mortgages? Didn't read the terms either.

Now imagine that an app has terms that are a bit like Adjustable Rate Mortgages.

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