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Re:The Cheap Phones Quietly Winning the U.S by coldcode on Friday September 04, 2015 @09:24AM (#10170200)
Except of course for Apple with 44% of the market in the US, which is increasing, and somewhere around 90% of the profit. Winning in Android is a race to the bottom where only the cheap survive, exactly what happened to Dell and its competitors in the PC market. And someday Google will decide it needs to actually make money from Android and that world will fork into Google Android Phone and the seven dwarf versions.
Re:The Cheap Phones Quietly Winning the U.S by sremani on Friday September 04, 2015 @10:09AM (#10170502)
Once the upgrade fatigue hits and people are no longer subsidized for their cell phones, putting down $600+ or putting down $60 for serviceable phone would become a no brainer. These phones have to become good enough and they are already getting there.
Re:The Cheap Phones Quietly Winning the U.S by graeme on Friday September 04, 2015 @10:27AM (#10170659)
How true is this for that 44% currently using iphones?

Iphones stay good enough for at least 2-3 years, if you're not picky. $600/3 = $200. $17 per month, 0.56 cents per day.

It's not nothing. But it is nothing compared to what the iphone class spends on, say, coffee. There is the one-off hit from paying the $600 all at once, but credit cards reduce that pain somewhat.

Meanwhile, you're using the phone every day. If you have the money, you probably want a phone you really like, not one that is just good enough.

Don't get me wrong, I think these new "good enough" phones are going to capture a large part of the market. I just am not sure it will be the iphone part. Past a certain income level, $540 savings for years of daily annoyance isn't really a compelling saving.

Re:The Cheap Phones Quietly Winning the U.S by IkmoIkmo on Friday September 04, 2015 @10:49AM (#10170813)
Agreed, that's kind of how I value my rMBP, or equivalent windows laptops around $1500. I'll use it for 4 years, sell it for 25% the price (this is sadly where windows loses some value that's often not justified, resell market for Apple is great, resell market for top (not crappy but top) windows hardware seems to really undervalue the remaining quality).

Got my MBP for about €1400, aim to sell it for at least about €400 a few years down the road. That leaves a cost of about 20 euros per month.

Then I look at the fact that as an independent developer I'm earning a few thousand a month and this device basically like 90% of my office.

It means a device that costs $100 or $1000 or even $5000 doesn't really make a huge difference. It's like a writer's pencil costs $1 or $10 or $100, when it's a tiny percentage of his costs and a gigantic percentage of his usage.

That having been said, whether a purchase is justified in and of its own ignores the fact whether it's justified vs other purchases. After all, spending money supremely is a game of opportunity cost. And here spending an additional $500 starts to break down, and now we'd have to weigh the marginal benefit. Does a MBP vs a MBA for say a web developer who has a career in SEO, or say CSS, add much? Often the answer would be no, and compared to say $500 on a year at the gym, a romantic weekend, charity, is hard to defend. And with cheap phones hitting the essentials more and more (messaging, calls, basic snapshots, directions, quick info, a game of poker, dating etc), I'm already personally getting disinterested with new iterations of phones. The latest giants' 6 versions (samsung, apple) did nothing for me in terms of purchasing desire, despite thinking they're awesome devices.

Re:The Cheap Phones Quietly Winning the U.S by JTon on Friday September 04, 2015 @11:35AM (#10171116)
> Past a certain income level, $540 savings for years of daily annoyance isn't really a compelling saving.

I think the whole point of this discussion is we've reached a tipping point where the "low end" phones aren't annoying anymore. For many users, they're perfectly acceptable

Re:The Cheap Phones Quietly Winning the U.S by graeme on Friday September 04, 2015 @04:45PM (#10172781)
Just a clarification: I meant annoying compared to what you know is possible.

I've had an iphone 4 until recently. I used a moto e while traveling. I now have an iphone six.

The moto e was great! It could do anything I want to do, and was very cheap. Meets all my needs.

But....using the iphone six is simply a smoother experience on a number of factors. So while the cheaper phone meets my needs, the more expensive version is ultimately worth it, given the considerations I outlined in the original post.

For a bunch of people who i. use their phones a lot, and ii. aren't THAT price sensitive, this will play out. Could apply to higher end android phones too.

I run a business, so that increases the use of having a smooth operating phone. I manage some work stuff using it.

Re:The Cheap Phones Quietly Winning the U.S by steven777400 on Friday September 04, 2015 @12:50PM (#10171553)
The interesting part of these trends is for people like me who aren't in the "iPhone class". It used to be my options for a phone I could justify paying for were: garbage, or garbage. Now I can actually have a usable phone that can do the things I want it do without "daily annoyance" (and I sure do know what daily annoyance from a phone is!).

Yes, it's not magically perfect. A coworker made fun of me because I have to dial in to a talking computer to listen to voice mail, for example. But how often do most people get a voice mail anyways? I can text, pictures, email, web and use basic apps, which is all I really need or want to do on such a small screen anyways.

So I'm very excited and happy with the improvements in the low-end phone line.

Re:The Cheap Phones Quietly Winning the U.S by graeme on Friday September 04, 2015 @04:46PM (#10172788)
>So I'm very excited and happy with the improvements in the low-end phone line.

Oh definitely. It's incredible the amount of fairly smooth functionality you can get for $100 now. If I HAD to use a moto G, say, I'd still be pretty content.

Re:The Cheap Phones Quietly Winning the U.S by norea-armozel on Friday September 04, 2015 @11:34AM (#10171101)
I have to agree. I owned a One Touch Idol 3 for a couple months and found it wasn't what I wanted. It was serviceable but it just didn't seem to be something that felt good to use when I did use it. Build quality is the only reason why I switched over to the iPhone (I think the software is horrible).
Re:The Cheap Phones Quietly Winning the U.S by cauthon on Friday September 04, 2015 @12:48PM (#10171537)
I'm still running an iPhone 4, it's slow but works fine. Five years old.
Re:The Cheap Phones Quietly Winning the U.S by bobajeff on Friday September 04, 2015 @09:59AM (#10170426)
I don't think Google will ever try to make money directly off of licensing Android or selling phones. It's far more likely they'll continue to leverage it to bring users to their services.

I think the point where Google and consumers are misaligned would be their preference of Chrome OS over Android. Still, I don't see them throwing away their market power in a play to move users to Chrome OS. They'll just keep mixing them both together until there is no difference.

Re:The Cheap Phones Quietly Winning the U.S by cuicuocua on Friday September 04, 2015 @11:38AM (#10171129)
I can't picture a day Google decides make money directly out of Android. It gets them tons of users to their services which gets them tons of money. And all companies building Android phones are doing the selling hard part instead of Google. Far more likely is an ever greater interaction between Android, online services and chrome OS until they all mix undistinguished or one takes over the others.
Re:The Cheap Phones Quietly Winning the U.S by bryanlarsen on Friday September 04, 2015 @12:19PM (#10171389)
Google already makes money from Android. The base OS is free, but they charge for the application, store and play services bundle, IIRC.
Re:The Cheap Phones Quietly Winning the U.S by michaelbuckbee on Friday September 04, 2015 @12:18PM (#10171376)
Don't need they make money from app sales?
Re:The Cheap Phones Quietly Winning the U.S by ksk on Friday September 04, 2015 @11:11AM (#10170959)
Where have you seen the profit numbers for low cost phones?
Re:The Cheap Phones Quietly Winning the U.S by tdkl on Friday September 04, 2015 @11:38AM (#10171130)
They're measured in cents for flagship phones, so ...