Thread: Anssi Vanjoki says using Android is like pissing in your pants for warmth
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ctbeiser is offline ctbeiser
2010-09-22 , 01:27
Posts: 34 | Thanked: 34 times | Joined on Aug 2010
#73
Originally Posted by nilchak View Post
Yes ! But profit margins for PC sales are razor thin since it is a commoditized hardware nearly.

But profit margins from Smartphone sales are much higher - and I am sure each manufactirer (HTC, Moto Nokia) will try to protect the margins - and thats where the differentiation comes in. None of these players want the smartphone to become a commodity hardware running the same OS underneath, if they want to enjoy the profits - and its in Smartphones segment that the greatest profit margins are.
Sure, HTC, Motorola and Nokia are trying to protect the margins. But Sanyo? LG? Companies you've never heard of from China? No chance. And furthermore, if all smartphones run android, it WILL be commoditized hardware. Which leads to razor thin margins. In a sense, it almost already is. The Vibrant isn't that different from the Nexus or the Optimus 1 or the Droid X. It's just a couple of pieces of different hardware. As they expand their lineups, it'll get closer and closer. And that's not where Nokia wants to be.
 

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