Share on Facebook Share on Twitter Share on Reddit + - Chart of the Day: iPhone By Chris Becker in Linksat 8:55 am on August 2, 2011 | 46 comments As much as I hate pie charts, this one, a survey result from Business Insider is interesting for 3 reasons: First, why the rush for non-iPhone owners to get one, secondly, looks like iPhone is Pacman on the second chart, eating up the competition, but third, this explains why Apple (AAPL) sits on a ton of cash whilst its competitors struggle. To show you that American exceptionalism does not extend to other technologies, and also to paraphrase what is wrong with the US economy, have a look at this, but remember: mix your metaphors at your own risk. About Latest Posts Chris Becker Latest posts by Chris Becker (see all) Macro Afternoon - August 4, 2020 Macro Morning - August 4, 2020 Macro Afternoon - August 3, 2020 Share on Facebook Share on Twitter Share on Reddit + - YOU MAY ALSO BE INTERESTED INLinks 5 August 2020Global Macro / Markets / Investing: Due toLinks 4 August 2020Global Macro / Markets / Investing: Links 3 August 2020Macro & Markets US, China both lag badlyWeekend Reading 1-2 August 2020Global Macro / Markets / Investing: Coal Comments janet August 2, 2011 at 9:01 am Cool! Using a mobile on a bike…”Look ,ma, no hands! “…”Look, ma, No teeth..” The Prince August 2, 2011 at 9:05 am I’ve got cruise control on my bike Janet, but I usually leave the mobile (iPhone) in my jacket. or have it hooked up to the stereo for some tunes… ASX3K August 2, 2011 at 9:03 am I own a non-iPhone smart phone and will be migrating to Apple post-haste. Apple’s biggest competitive advantage is that they provide a complete service. Hardware and software that works together. The software developers of their competitors have to try and design their software to work on a variety of specs. Just look at the tablet market. A hodge podge of screen sizes and specs. Cameron Murray August 2, 2011 at 9:35 am I agree. That’s been one strength of Apple for a long time. Now with the advent of computing ‘ecosystems’ (apps, icloud etc), reliable AND STABLE integration is very important to the consumer. I would have thought that Google Android would have taken a bigger chunk of the intented next purchase chart, given it’s recent growth and very good integration into the Google ecosystem (and there are about 3 extremely good handsets running android). Apparently Apple has more cash than the US government right now. http://www.smh.com.au/technology/biz-tech/apple-has-more-cash-than-us-government-20110801-1i6x6.html indo August 2, 2011 at 9:41 am Is the editor confused between Market Cap and cash in bank? Microtrader August 2, 2011 at 9:46 am indo: No. Apple’s market cap is around $370billion. Cameron Murray August 2, 2011 at 9:47 am No. Market cap is $363 billion. $76 billion is Apple’s cash reserves, and $74 billion is how much the US has up its sleeve before it hits the debt ceiling. The Prince August 2, 2011 at 9:51 am Sounds like bit of a confusion between stocks and flows too! The US government will take in over $150bn in tax revenues this month. The shortfall for August payments (SS/Medicare/DOD etc) is what is required to be borrowed (another $100 billion). I’ve got a few more graphs showing the debt ceiling/gold/total debt going back to 1940 (and hence before the gold window closed), I might make this the COTD tomorrow. Cameron Murray August 2, 2011 at 10:02 am It is not a sound comparison really, but it does make a good headline. It’s news if it sells papers, not if it is accurate 😉 JC August 2, 2011 at 12:40 pm The HTC Desire HD is actually a great smart phone and it rivals the iPhone easily. I actually prefer it over the iphone. Precious Bodily Fluids August 2, 2011 at 9:05 am Another nail in RIMs coffin? Houses and HolesMEMBER August 2, 2011 at 9:14 am You gotta be tough to pull that off. AB August 2, 2011 at 9:30 am I own an iPhone and for me the “just works” factor far outweighs my normal preference for a free and open ecosystem. (For reference, I work in IT and specialise in open source technologies including Linux.) GG August 2, 2011 at 9:57 am It “just works” is right. And for MacBook, too. I very much hate being beholden to any company or any product, but Apple has already worn me down. The Lorax August 2, 2011 at 9:58 am Until the mid/late 90s personal computing was dominated by a proprietary operating system on which dozens of native applications were installed, namely, Microsoft Windows. The past decade has seen the gradual migration of these Windows applications to web applications, to a point where most users can get by with using one native application: the browser. This was undoubtedly a positive development because the web is open, owned by no-one, and accessible to everyone. Sadly, we are now rushing back to a situation where dozens of native applications are installed on a proprietary operating system, this time: Apple’s iOS. Not only that, Apple now completely controls the purchase and installation process through the AppStore. This was never the case with Windows, where consumers were free to purchase and install software from whoever they liked, without Microsoft censoring what can and cannot be installed, and without taking a commission. Long term, this is a disaster for IT and open standards, but like the Quarrification of the Australian economy, its a slow-motion tragedy that appears unstoppable. Apple is evil. Disclosure: I own various computing devices that run Windows, OSX, and iOS. I am not suggesting Microsoft or Google are not evil, but Apple is more evil, and their products are irresistibly seductive. A dangerous combination. Sidamo August 2, 2011 at 10:43 am That’s arrant nonsense. Apart from email and browsing the web, normal people did not live in the browser. Even stuff like spreadsheet/word processing was passable at best in web-only mode. For everything else a user wanted to do with a computer they used native applications. The fact that they continue to do so is hardly a retrograde step. As for web standards, Apple’s on record as supporting these. All their major technologies are built on web standards: music is AAC, movies are MPEG (not strictly open, but a de facto standard with non-punitive terms), photos are whatever your camera produces, config files are XML, email is Unix etc. etc. Apple’s largely responsible for getting music studios to back down on onerous DRM terms (either directly, or as a response to the success of iTunes), they’ve broken the telecom companies’ stranglehold on your phone (remember the shite custom apps you’d get installed) and if you’re really going to complain about Apple regulating the apps allowed in the App Store, you have to concede that missing out on the root-kit-infected apps, porn apps and high level of completely crap apps on the Android Market is a bonus. Some of Apple’s business practices may be unsavoury, but claiming that they’re more evil than Google, and especially Microsoft, is just laughable. The Lorax August 2, 2011 at 12:07 pm An Apple Fanboy denies the walled garden. Have no doubt, when we look back on this period in ten years time, Microsoft’s business practices at the turn of the century will seem positively innocent compared with what Apple is doing today. Sidamo August 2, 2011 at 3:06 pm I’m no fanboy. Like you I own both OSX and Windows and have have used most of the major OSes of the last twenty years. I happen to prefer OSX, but I’ve no problem if others don’t. Each to their own. What I do take issue with is people who claim that Apple is evil and out to subvert the internet because the evidence points to the opposite. The ‘walled garden’ you reference only refers to loading apps onto iOS. Last I checked you can install whatever you want on OSX and you are not restricted to buying your movies/music only from the iTunes Store. Hardly some conspiratorial lock-in! Nor does Apple’s business model revolve round collecting information on everything about you so it can sell it to advertisers. As I said, I get that you may not like some of their business practices, but If you seriously believe that Apple’s behaviour is worse than Microsoft’s was you either missed a large part of the decade from ’95-’05 or have a very selective memory. AB August 2, 2011 at 4:44 pm Come on Lorax, calling someone a Fanboy just because they don’t that Apple is completely evil really is silly. Unlike Microsoft, Apple fully supports Internet technologies and if developers don’t like Apple’s store they are easily able to use HTML 5 to develop completely cross-platform applications. Microsoft has always been (and still is) very slow to deliver support for modern web technologies in an attempt to force developers to build native Windows applications. Tim August 2, 2011 at 9:16 pm I’m with The Loarax on this one. I quite like apple products but as a company apple is every bit as evil as microsoft, google or whoever else you want to name. I just switched from an iPhone to android and that is one of the reasons why. The Prince August 2, 2011 at 9:19 pm ITs why I have the “Imperial March” on my iPhone as the ringtone, to remind me that Steve Jobs lets me own it…. Geez and I thought gold was an emotive topic. 😀 Cyrus August 2, 2011 at 10:56 am I recently bought an Android tablet shipped from Hong Kong for $60. Ipads here in Aus go for over $500. I’ve also recently visited India where Android tablets/laptops are absolutely everywhere. It’s likely the combination of Android (which is Linux – a free OS) and ultra cheap hardware will overwhelm Apple in the future – if not in developed countries then definitely in the developing world. Zonog August 2, 2011 at 3:36 pm Hey Cyrus – mind me asking where you sourced your Android tablet for $60 from? (I know, Hong Kong…but…ebay / some other website? etc etc) indo August 2, 2011 at 9:39 am Apple wont survive beyond Steve Jobs jake gittes August 2, 2011 at 9:51 am Two notes on this having worked in IT for some years: 1. intention to buy is not very useful in reality though it used a lot to stag vendor stockprices and corrall the market into believing its all in one vendor; 2. Piper Jaffrey are a huge Apple advocates and like Commscore with Facebook their data and their reasoning must be taken with tons of salt; especially at this time of dotcom froth in the consumer tech market. Stavros August 2, 2011 at 10:08 am Bought my first iPhone over 3 years ago now and it was the best purchase of my life…it typifies everything that is great about human innovation and a free market. If only Apple, Google, eBay etc…had more power. The world would be safer and more prosperous place to live. I also like that these companies made their $ despite Government regualtion, not as a result of hand outs and industry assistance The Lorax August 2, 2011 at 10:11 am Stavros, The idea of Apple or Google having more power is frankly terrifying. Stavros August 2, 2011 at 11:52 am Why – what are you afraid of…that they will continue to innovate and improve our quality of life. If someone doesnt want to use google or apple, they are free to do so. What terries me is the census I am expected to fill out and the compulsary vote I am forced to make every election and the tax I am forced to hand over to idiotic Governments. I just dont get why people hate google and apple…they are so big and ‘powerful’ because they suceeded and have people what they wanted. Stavros August 2, 2011 at 11:53 am *gave indo August 2, 2011 at 12:04 pm Stavros ,I hope you dont come running to the government funded law and police when private corporations start stealing your private data Stavros August 3, 2011 at 9:44 am The only person that ‘steals’ my data Indo, is the Government…and they use to work out how best to tax me and monitor my moves. You guys that are scared of corporations crack me up…its so cliche. I bet you McDonalds too….despite the millions of people they help every day by providing affordable food and gainful employment arne August 2, 2011 at 10:57 am +1 Lorax the marketing of apple products is particularly seductive to the young – corporate paedophilia no less Pat August 2, 2011 at 11:22 am Ah the mobile business… I hear its a goldmine for lawyers http://www.guardian.co.uk/technology/2010/oct/04/microsoft-motorola-android-patent-lawsuit#zoomed-picture Adrian August 2, 2011 at 12:47 pm Patents and the associated legal action is massive and a lot more than is reported. Everyone is that graphic (it’s no where near complete BTW) are in some legal actions. Stavros August 3, 2011 at 9:45 am Patents are something that the Government enforce…with a pure free market, ideas would be free to take and develop without paying royalties and patent fees. The world would be so much more advanced without IP law…its a bloody joke! reusachtige August 2, 2011 at 11:55 am Speaking of iPhones, why can I no longer see the comments/responses section of this site? I used to be able to click on “Responses” within any blog article and the comments would expand and appear. Now nothing happens and I have to wait until I get onto a computer to read them. It’s a pain. I think others have mentioned this but I haven’t read an answer yet. gauntface August 2, 2011 at 12:27 pm It’s not just iPhone. This site is broken for android devices too. The button to turn the mobile view off is also broken. Adrian August 2, 2011 at 12:28 pm Most of the major handsets used the same modem hardware and software, and from October so will the iPhone5 and all the derivative products. Each of the handset manufacturers has it’s own user interface and Apps environment regardless of weather they run Linix/Android, or iOS (for Apple). Apple is a leader in User I/F and that is what sets them apart. Over time Android might take market share, but Apple iPhone is a complete product where Android is an add on. Cyrus August 2, 2011 at 1:15 pm Android conquers almost 50% of smartphone market August 2, 2011 – 11:52AM Google’s Android platform has taken almost 50 per cent of the global smartphone market, dominating in the Asia-Pacific region, research firm Canalys said. It was the number one platform in 35 of the 56 countries Canalys tracks, resulting in a market share of 48 per cent, the research firm said. By comparison, Apple, which shipped 20.3 million iPhones, is a distant second with a market share of 19 per cent but it overtook ailing Finnish handset maker Nokia as the world’s largest individual smartphone vendor. http://www.smh.com.au/digital-life/mobiles/android-conquers-almost-50-of-smartphone-market-20110802-1i92x.html Adrian August 2, 2011 at 1:40 pm That’s true, but , other than the Nokia statement, it does not show (iPhone vs Android Samsung), (iPhone vs Android HTC), etc. I don’t think it’s a good comparison. Samsung has a massive production facilities, as does LG, HTC, but I believe Apple is production constrained. AB August 2, 2011 at 5:00 pm Check out Apple’s profit share – http://tech.fortune.cnn.com/2010/09/21/pie-chart-apples-outrageous-share-of-the-mobile-industrys-profits/ “For example, he writes, Apple sold 17 million mobile handsets in the first half of 2010, compared with 400 million handsets sold by Nokia (NOK), Samsung and LG. Yet it pulled in 39% of the industry’s profit during that period, more than the 32% earned by the world’s three largest handset makers combined.” arescarti42 August 2, 2011 at 2:42 pm The readers of Business Insider don’t appear to be representative of the broader market for smart phones. Studies by Gartner show phenomenal growth in Android devices, going from 9.6% of market share in Q1 2010 to 36% in Q1 2011. For comparison, iOS (Apple) phones went from 15.3% to 16.8%. Google appears to be stealing market share from Microsoft, RIM (Blackberry) and Symbian (Nokia) rather than Apple at this stage. Cyrus August 2, 2011 at 3:27 pm Even Nokia are planning to dump Symbian and go to Linux/Android in the future. And now that smartphone growth is taking off in Asia expect some *very* cheap new Android smartphones to appear in Aus in the next few years. Yes, Apple products are nice – but are they really worth a 50% price premium over an Android with equivalent functionality? Dallas August 2, 2011 at 9:43 pm Nokia is adopting Windows Phone 7 as its smartphone OS. http://www.microsoft.com/presspass/press/2011/feb11/02-11partnership.mspx http://www.mondaynote.com/2011/06/05/transitions-the-nokia-way-vs-the-microsoft-way/ Adrian August 2, 2011 at 4:04 pm Gartner are a good source in Telecoms. Again in some regard this comes back to Apple’s ability to build production. It’s up against the combined production facilities of the Samsung’s etc. which is massive. The interesting issue in Android vs iPhone is the profit margin between the two. I don’t know what Apple’s plans are, but if they can build production, which is not easy, you’ll see a metric change. Adrian August 2, 2011 at 4:07 pm One more point it might be why Apple’s Foxconn is automating the production with more robots other then the build cost + BOM.