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MostlyStabletoday at 7:20 PM2 repliesview on HN

I'm honestly curious about the "market keeps rejecting it" part. Yes, they sold far fewer units than the other models....but did they really not make money? I have made variations on this comment many many times. I completely buy that the opinions about phone form factor and features expressed on HN/reddit/online, and my own idiosyncratic preferences probably even more so, represent somewhat of a niche, and that your median phone consumer isn't interested in what we/I want. But the phone market seems like it's so large that it should be able to support a lot of niches! A tenth of a percent of the total market (~1,300 million in 2023 according to [0], 0.1% of which would be 1.3 million phones) should be totally viable as a business! I get that, maybe for Apple there is opportunity cost. Having more product lines adds overhead, and if the profit margin on those extra product lines isn't enough higher than the main lines to justify that overhead, they kill it. But why doesn't some smaller company (so yes, this mostly applies to Android) try to steal that fractional market share? I simply don't understand why it doesn't work to the point that now, when the market is so much larger than it was in the past, we have so much less hardware diversity.

[0] https://www.statista.com/statistics/263437/global-smartphone...


Replies

yunwaltoday at 7:25 PM

> should be able to support a lot of niches

Apple's whole thing is that they don't do niches. Support a select few versions of select few products very very well is the whole MO

show 2 replies
ericmaytoday at 7:25 PM

> but did they really not make money?

I'm sure they made money. But that's not the right question to ask, in my opinion. The right question is did they make as much or more than their internal rate of return (IRR)? Perhaps the smaller iPhones (I had one) do not so they cut the product line. Or maybe they over-purchased some components and figured they could make a phone or two out of them.