Still Don't Believe Android Is For The Poor? This Chart Proves It
"Poor" is a relative term here, and some people don't like hearing it. See the comments under this story, for instance.
We're talking about "the poor" in a macroeconomic sense. Per capita income in the U.S. is about $47,000 annually. In India it's just $3,560, according to the World Bank. One of these groups is "poor" by comparison.
Yesterday, market research group IDC published some data that makes this case far more cogently than we've been able to so far.
Look at this chart (below) of smartphone market share broken down by price. Nearly 60% of Android phones sold cost less than $200. Android's core market barely bothers with the $200-$400 midrange, and only about 20% of sales are in the premium $400-plus area:
IDC
Apple, with its iOS mobile operating system, by contrast, sells the vast majority of its devices - more than 80% - in the $400-plus range. The company barely bothers with the midrange, and sells zero phones under $200.
Android phone makers could price their wares in the $200-$400 range - but they don't. They sell most phones for $200 or less. That strongly suggests that Android makers know there is a huge chunk of the market that is price-sensitive on phones.
Price isn't an exact proxy for consumer income of course. Some people who buy a $200 phone can afford a $400 but choose the cheaper one anyway.
Nevertheless, it is also true that anyone who buys an Apple phone at $400-plus can also afford a $200 handset but chooses not to. Meanwhile, anyone who can only afford a $200 phone cannot, by definition, buy an Apple phone.
Those people are "Android people," whether they like it or not.
Don't assume this is just a few poor people skewing Android's numbers, by the way. Eighty-five percent of all smartphones sold are Android phones. Android is good proxy for all of humanity, in other words, and humanity mostly wants a smartphone for under $200.
- I quit McKinsey after 1.5 years. I was making over $200k but my mental health was shattered.
- Some Tesla factory workers realized they were laid off when security scanned their badges and sent them back on shuttles, sources say
- I tutor the children of some of Dubai's richest people. One of them paid me $3,000 to do his homework.
- Why are so many elite coaches moving to Western countries?
- Global GDP to face a 19% decline by 2050 due to climate change, study projects
- 5 things to keep in mind before taking a personal loan
- Markets face heavy fluctuations; settle lower taking downtrend to 4th day
- Move over Bollywood, audio shows are starting to enter the coveted ‘100 Crores Club’