Sta Hungry Stay Foolish

Stay Hungry. Stay Foolish.

A blog by Leon Oudejans

Urban legend: Apple’s market dominance

The European Commission and others are complaining about Apple’s market dominance (eg, WSJ). They must be joking. Google (eg, Android) has a c.70% market share for smartphone software, while Apple has only c.25%. Samsung is the dominant hardware supplier using Android software (eg. Statista).

People buy Apple products despite its higher prices. Apple’s closed ecosystem is probably a main reason why consumers accept Apple’s higher prices. A closed system decreases the risk of malicious software a.k.a. malware. Forcing Apple to be like Google’s Android, would be like putting the cart before the horse.

Apple provides a choice based on different priorities. Punishing Apple for offering customers a different choice does not make any logical sense. Forcing Apple to be like Google’s Android may even remove its raison d’être. Latter would be another example of the infinity of human stupidity (eg, Carlo Cipolla).

I’m not using Apple’s mobile wallet system for contactless payments (eg, WSJ). That is my conscious decision which would also apply to any other smartphone brand. I just dislike sharing my banking transaction details with any other party. Please also see my 2016 blog on Data ownership and PSD2.

I suppose Apple will eventually win if only following the thin argumentation used. Nevertheless, I’m eager to take a side because the issue of Apple’s market dominance is an urban legend. To paraphrase a quote by Ricky Gervais: “Just because you’re repeating your story, doesn’t mean you’re right.”

Several decades ago, Microsoft rescued Apple from bankruptcy by investing in it and in the return of its former CEO, Steve Jobs (eg, Quora). There was clear self-interest because governments feared Microsoft’s market dominance. Microsoft needed a market competitor. Similarly, Google’s Android needs Apple.

This Apple Pay issue is just one of the moves within a much bigger chess game:

Chinese Politics seems determined to crush the power of its Big Tech sector, even at the expense of its economy. I suspect that Western pragmatism will eventually win from its ideology.

U Can’t Touch This (1990) by MC Hammer
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[Chorus]
I told you homeboy (You can’t touch this)
Yeah, that’s how we livin’ and ya know (You can’t touch this)
Look in my eyes, man (You can’t touch this)

Note: all markings (bolditalicunderlining) by LO unless in quotes or stated otherwise.

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