Ever since Apple Inc. developed and released the first iPhone in June of 2007, the California-based technology giant has been at the cutting edge of advances in smartphone technology. If Apple isn’t actually driving the vehicle of change and creativity in the industry, the fear that they’ll come out with something bigger and better drives others to try and innovate as quickly and effectively as Apple. That Apple remained at the top of the industry for as long as it did was no small feat. While competing Android devices were available in several models from various manufacturers (Samsung, HTC, LG), the iPhone is the only Apple iOS powered smartphone available. As of the end of 2012, Android had finally established itself firmly in the driver seat in the industry by capturing 75% of the mobile market compared to a dwindling 20% for Apple’s iOS.
Diversity alone was not the entire reason behind Apple’s fall from the top. The iPhone isn’t exactly priced competitively, in part because Apple knows that hardcore iPhone fans will come back again and again for new generations of the device. Each new generation iPhone is priced at $199 with a two-year contract on various carriers and stays at that lofty price until a new generation comes out.
Android devices on the other hand generally cost between $0 and $99 with a new contract and deals are frequently offered to get top models for half their starting price, particularly around the holidays. These aren’t subpar devices either. Many of them match or exceed the hardware specifications and performance of each iPhone.