Title : Price Is Not The Issue -- Steve Jobs Had That Figured Out Decades Ago -- August 1, 2018
link : Price Is Not The Issue -- Steve Jobs Had That Figured Out Decades Ago -- August 1, 2018
Price Is Not The Issue -- Steve Jobs Had That Figured Out Decades Ago -- August 1, 2018
Wow, isn't this interesting? Watching television commercials and reading social media discussions it was my impression that Samsung was giving an Apple a run for its money with regard to smart phones. Everything I read and have read recently suggested that Samsung users were very, very happy with their phones. Now this, from The WSJ -- I never expected this: diverging fortunes: high prices propel Apple, sink Samsung.Wow. From the linked article:
iPhone has navigated slowing smartphone market with new features and exclusive operating system while Galaxy S9 has largely failed to impress consumers.
Apple Inc. and Samsung Electronics Co. entered the second decade of the smartphone era by betting on super-high prices for their flagship products.
One year in, that strategy has energized Apple but sapped Samsung’s sales.
The Silicon Valley company on Tuesday announced a third consecutive quarter of record iPhone revenue as strong demand for its $999 iPhone X helped lift the average iPhone selling price 20% to $724 for the three months ended in June.
Just a day earlier, Samsung announced its smartphone profits cratered, as fewer buyers were willing to shell out the nearly $1,000 that the South Korean company wanted for its flagship Galaxy S9 handset. On average its smartphones sold for about $220 in the most recent quarter.
Apple has navigated the slowing market by leaning on its premium brand, new features and exclusive operating system to command record prices—even with little unit growth.
But Samsung’s higher prices didn’t deliver, as flagship Galaxy S9 sales slipped and unimpressed consumers turned to less expensive devices from Android rivals.
Adding insult to injury, Apple appeared to gain market share from Samsung. During the second quarter, the iPhone’s share rose to 12.1% from 11.8% a year earlier and Samsung slipped to 20.9% from 22.9%.
Meanwhile, China’s Huawei Technologies Co. for the first time surpassed Apple as the world’s second-largest smartphone maker, with 15.8% of the second-quarter market.Much, much more at the link.
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