“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 $US47,000 annually. In India it’s just $US3,560, according to the World Bank. One of these groups is “poor” by comparison.
Look at this chart (below) of smartphone market share broken down by price. Nearly 60% of Android phones sold cost less than $US200. Android’s core market barely bothers with the $US200-$400 midrange, and only about 20% of sales are in the premium $US400-plus area:
Apple, with its iOS mobile operating system, by contrast, sells the vast majority of its devices — more than 80% — in the $US400-plus range. The company barely bothers with the midrange, and sells zero phones under $US200.
Android phone makers could price their wares in the $US200-$400 range — but they don’t. They sell most phones for $US200 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 $US200 phone can afford a $US400 but choose the cheaper one anyway.
Nevertheless, it is also true that anyone who buys an Apple phone at $US400-plus can also afford a $US200 handset but chooses not to. Meanwhile, anyone who can only afford a $US200 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 per cent 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 $US200.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.