The disappointment amongst analysts is palpable. Dreams of low cost iphones for the masses were kicked away when Apple introduced their two new iphones at the same price points as the old ones. Clearly Apple is playing a different game than what most others are anticipating as the market runs to 5BU. The market has split into the land of free Android hardware and software (80% of the market) and that of the 20% profitable niche that has led Microsoft to buy Nokia in order to save the “burning platform
.” The truth is every platform is on fire as the big ecosystem players try to profitably leap frog to where the dollars are. Tim Cook has never explicitly said so, but his goal is not to offer cheap iphones to the masses, rather it is to conquer the Corporate Wintel Empire in as short a period of time as possible. The refreshed iphones will support his efforts, however it is possible that A7 powered iPADs will be a more significant contributor.
Microsoft’s acquisition of Nokia’s phone business is an affirmation that in the end software must reside on a physical device