as a mark of billionaire, Carl Icahn’s point of view has many followers. And his opinion about the iPhone is no doubt is right.
apple CEO cook recently released the much-anticipated open letter. So-called activist investors think, as the next wave of smartphone of apple, the current share price significantly undervalued. Icahn believes that apple is not only want to keep the existing iPhone users, and with iPhone6, 6 Plus secretly break the Android mobile phones – last defense line of large size screen.
“now, apple give consumers more mobile phone screen, is almost the same as the competitors’ products size… We expect that apple will get a bigger share of the market, “Icahn wrote. “Such as user ended their contract with the existing operators, they can in considerable price to choose a good product.”
we observed earlier this week, apple’s main rival samsung’s profit plummeted. It seems once again proven Icahn’s point of view. Today, a smart phone in the screen size, battery life, life almost don’t have too big difference, software has become a key difference between mobile phones. In the race for the software, apple has the advantages of the Android can never achieve. This advantage is not necessarily better than the Android, iOS system but said that apple is the only one at the same time control of the mobile phone software and hardware of the company.
iOS incomparable superiority
don’t make the mistake of believing that Ichan suggest apple use cash to buy back the way of market shares to reduce the market supply, increase share prices by the behavior of the pure is in order to seek personal gain. In fact, he in order to preemptive block of people who want to criticize him carry mouth, he has been in the letter to ensure apple’s shares will not be sold after the increase in the hands of 53 million apple shares. In fact, he said after the buy back shares, the advantage of the apple is enough to keep the stock on the repurchase price, won’t fall. The iPhone’s business model is one of the important advantage.
regardless of the change of apple’s shares, compared to apple’s competitors in terms of its business model’s advantage is obvious. In the aspect of personalization, perhaps Android mobile phone users have higher degrees of freedom, mobile phone manufacturers can also be configured more freely. But, apple tightly integrated software and hardware of the ecosystem, make the iPhone can update the same.
Icahn said: “apple to each user to provide for its latest software and service experience, and the Android can’t do that, because it’s very scattered version of the operating system.”
rival company operating system because of the mobile phone, not (directly) production and cannot give full play to its scale advantage. Worldwide using Android mobile phone maybe the number is much higher than the apple, but the user in such a wide variety of devices running Android, cause they can’t decide which to use the new features of system will be updated, or when to update. Google did not dare to guarantee their newly released a major update on every Android users of mobile phone, but apple can.
iOS is attracting Android users “defection”
because apple is able to provide such guarantee, so can more effectively attract Android users using iOS system.
say Apple again Pay. A few years ago, Google has released the NFC technology Google wallet, mobile phone chips can replace scan card for payment. Also has several then launched a few NFC pay phone. But they also don’t believe in traditional businesses will adopt this new payment technology. On the other hand, apple’s unilateral decision, released in 2014 on the new phone also join the NFC payment functions. More importantly, before release, they have to ensure that a large number of merchants to accept such a payment technology. With such a decisive factor in apple’s new iPhone conference, cook to clap breast said, “our products have a great new features, and you can really use it.”
because apple is to control the hardware and software of the mobile devices, so can we persevere, and frequent continuously innovation, improve the user experience. Not just through the iPhone new equipment to allow the user to keep things fresh. Also give Android users new appeal across system divide, apple’s arms.
stick to high-end, diversified attack
in recent quarters, apple shareholders continuously complain that the company failed to on the iPhone sales as its general innovation achievements. Today, consumers first contact to smart phones have been for many years, apple is like astronomical sales have gradually flatten out. When apple sell high-end equipment, such remarks flooding the market.
but if for apple, high-end market is already saturated, especially for other manufacturers. When samsung’s market share falling by rivals in the low-end market further, as a proportion of high-end profitable mobile phone sales in the marketing combination of relatively low. Actually this kind of view is questionable. Because it seems they are not necessarily really found the high-end market. Even if they really found, nor can the development of new users, but constantly for existing market share.
according to Icahn estimates that apple will be the winner. He wrote “we believe that apple will occupy the high-end market, while maintaining a high price and gross margin. The best way to prove that commercialization concept is like worship god, told the myth of apple. For apple, the most wonderful thing is all that he does not need to take the lead in using new technology to stand out from the crowd. Because it controls the entire mobile experience, some new features of the iPhone is not really never been used, but apple’s advantage is that it can pass these new functions to each user to use.