Long Term Strategies vs. Short Term Market Share

Android users are not as active and engaged with online activities as iOS users are. And when companies from start-ups to established players decide which platforms to target with their apps, their web services, and their marketing campaigns, they’re going to go where the eyeballs are. If you follow where the money should be going, it should be focused on Apple.

Which creates a virtuous circle of engagement. People develop their tools for iOS because iOS users are more engaged and easier to monetise.

There is definitely a difference between Android and iOS users.  This brings up interesting points when talking about different business strategies.  When having products, engagement and return loyalty are things that create a sustainable business.  Samsung is selling a plethora of products and in volume, however if the customers are not engaging in the platform and are purchasing items through the Google Play store, Samsung has nothing to hold onto customers when their contracts come up.

This is similar to what we saw with the PC industry.  Because the platform was owned by Microsoft and all the programs and files could easily be switched from machine to machine, the manufacturers had nothing to compete with.  So when there is no differentiation, businesses compete on price and volume.  When that happens everyone loses except the consumer.  However, the consumers gain is only short lived because the products they are buying are becoming cheaper and cheaper and over time they last a lot shorter than the products they purchased before.  

I believe this is what we will see pan out in the cell phone space outside of the US.  Also, you have already seen this in the tablet space.  Because no one can compete with the iPad on a product and experience level, the market has already taken a nose-dive in pricing to gain market share.  The problem with this is the experience delivered to the customer.  These companies are taking a short term gain and will be losing these customers when they are ready to buy again because their experience is subpar.  

This will be fun to watch.  Hopefully we will see much more innovation in the years to come, instead of just relying on Android as a competing platform and everyone racing to the bottom on price.