Apple can continue to do what they have been doing in the name of making money, but once a person goes to Android it is hard to get them back onto a smaller phone. I know it happens both ways, but right now big is what people want. It doesn't matter if it's right or wrong for you or I. The 4" iPhone has and will serve some people well as long as the person wants a smaller phone. The reality is that not everyone does. iPhone isn't giving their customers any choice in the matter so people are going else were. The numbers would not be so huge if that wasn't the case. My wife has been going on about getting an iPhone. We went to the store and I showed her 3 Android phones then I walked over to the iPhone 5. I didn't say anything. She looked at it and said "what's this"? I said the iPhone 5. She said, "wow! it's so tiny". I said ya. She walked away and said, you can pick out the best phone for me. I don't think I can type on a phone that small.
The reality is that there is a definite buzz going on right now with people opting to not choose Apple for a lot of reasons. Whether it be price, small size, boring OS, or all the bad legal crap. 2 years ago this was not the case and Android had very little to offer over an iPhone, but now there is serious competition. For the record those stats of Apple having 70% were from 2011. A year has made a huge difference. I bet we are definitely getting closer to the 50% market now. When was the last time you heard Apple going on about how many iPhone 5's they've sold? The went off about the first 5 days then nothing.
I agree about the status thing, but it's a reality. We love talking about the newest thing we've purchased. It'd no different that a woman flaunting her Coach purse etc. Jewelry and fashion are part of status and electronics are no different.
I believe that the 80% market does care. They are spending a lot of money of money are going to look at a number of options which are again, size, value etc. When the sales person says "ya the SGS3 is a great phone and it's bigger and cheaper, many of the people will buy it. 2 years ago that wasn't the case.
Again - 3.5" was fine with many. The 4" didn't get any wider so typing will be the same. If they could type on a 3.5" iPhone, they could easily type on a 4" iPhone.
I'm going by the profit numbers, not the marketshare numbers. If Apple is making money, hand over fist, yet has
less marketshare, well then marketshare doesn't really matter (or doesn't matter that much). In terms of profit, it's 70/20/10 (Apple/Samsung/Everyone Else), that's being generous. It was probably 75/15/10.
Switching comes down to ecosystem investment too. Former iOS users who spent a lot on apps might think twice about switching. Hardware ecosystem is less important this time around since the iPhone 5 gets a new shape and new dock connector. I'm not doubting that there is competition right now, but I believe Apple will be just fine with their position this year and next. Again, people here seem to be exaggerating Apple's demise. I think we're still a few years off from that.
I'm sorry but I really don't see the iPhone as a status symbol anymore. It's a relatively obtainable product now.
Unless you're getting the Galaxy S III from an indirect with different pricing, or on sale, it really isn't "cheaper" than getting an iPhone. Regular, on-contract, pricing is pretty much the same. If people keep thinking that the iPhone is expensive, people will keep thinking that Android is "cheap".