Thursday, October 4, 2012

iPhone 5 vs. GS3 - Economics

That's funny...the kid from Appleton who lives in the Big Apple and buys everything Apple makes doesn't want the "Apple Fanboy" label. But apparently I'm now an "Apple Hater", since I don't like the iPhone 5. Let's clarify - I own 2 Macs and an iPad, and love them both. I'm actually writing this blog on a Mac. I also own a Kindle (old school version), a Kindle Fire, and an Galaxy S3. I tried the iPhone 5 with the full intention of using it as my phone for the next 1-2 years. I just didn't like it. I believe in choice. I believe in exercising the option to use the best product on the market regardless of brand. In the current market, that's not the iPhone 5. Maybe I'll feel differently on the iPhone 6. I reserve that right. I'm not on any manufacturer's side. 

In reading the response defending the iPhone, it was striking how little of it had to do with the phone. Most of the arguments made were around iPhone + iPad + Mac + Apple TV. So the argument basically goes "Lock yourself in to end to end Apple, and things will be easier". As I said in my previous post, if you value simplicity, iPhone is the way to go. If you value performance, UI, and choice, then go Android. So I agree with that post. But let's dive a little deeper on the cost of simplicity. 


Cost

What does that Apple end-to-end experience cost? To look at cost, I thought it fair to look at middle of the road options (not the cheapest, nor the most expensive). I also thought it fair to look at unlocked cell phone prices. I know the prices get discounted when you sign a contract but you're still in essence paying that cost as part of your phone bill:

32GB iPhone 5 = $749
32GB iPad, Wifi only = $599
Apple TV = $99
Macbook Pro, 13" = $1499
Total = $2946 + Tax

32GB Galaxy S3 = $649
16GB Nexus 7 Tablet = $249 or 32GB Kindle Fire HD = $299
Google TV = Can get TV with this built in or add Logitech Revue for $99
Dell Laptop, 13" = $750
Total = $1797 + Tax (Assuming you chose Kindle Fire HD)

To be clear, I'm not directly advocating any of the specific products listed above outside of the Galaxy phones, as that's all this post is about. My point is if you want that Apple end-to-end simplicity, you're going to pay over $1100 extra for it (closer to $1300 with tax). And that's not one time. That's every 2-3 years, or however so often you refresh your technology. 

You can certainly do what I do which is to use Apple products for some things, Samsung and Amazon for others. And that's the point, you can choose. 

Choice also matters when it comes to content. The cost discussion doesn't end once you buy your products. Want to purchase songs and share them amongst your devices? "Gangam Style" will cost you $1.29 in iTunes or $.99 in Amazon. 30 cents may not seem like much, but paying 30% more for the same music will add up over time. Want to watch some West Wing Season 1? $30 in iTunes, or $20 in Amazon Instant Video, or free if you subscribe to Amazon prime. Again, exact same TV show, just 50% more even if you don't have Prime. 

Let's not forget about accessories. If you're upgrading to the iPhone 5, you can no longer use any of your power chargers since Apple switched the interface to a new, non-standard "Lighning" 8-pin interface from the previous 30-pin. So you can purchase 30-pin to Lightning adapters for $29 each. Want one that's 2 feet in length? That's $39. You can probably get by on 1, since those never get lost. USB to Lightning cables = $19. Since the Android phones all use standard micro USB interfaces, you can get those cables from any number of sources for about $2. And if you're upgrading from any other non-Apple product, you can most likely use what you already have. 

So yes, a lot of Apple's capabilities across devices may be a little simpler than the Android approach. The key word is "may", we'll dive into those details on the next post. But it's going to cost you a lot of money to achieve that simplicity. If you've got a lot of extra money lying around that you don't really need then by all means go Apple, lock yourself in, and hope that they don't have screw-ups in the future like they're currently having with Maps. Maybe they'll try to force users to use an Apple search engine (iSearch?), or create their own restaurant review site, or reservation system, or social networking platform. Without Steve Jobs steering the ship, anything is possible. All I know is replacing 4 devices is a lot harder than replacing 1. 


On Battery, Contacts and Screen Size

"I find the iPhone screen size to be just fine". If you're paying for the most expensive cell phone on the market, should you have to settle for "good enough" on screen size? The difference here is equivalent to the difference between a 40" TV and a 48" TV. That's a big deal, especially since you are reading, watching videos and interacting with a number of applications on that screen. 


"Battery life on my iPhone seems to be ok." Again, not something you should have to settle on. Another key point here is that if you're not happy with your battery life, with an Android phone you can replace it. You can upgrade to an extended life battery that will give you much more juice. Not an option with the iPhone. This may not be a big deal when you first get the phone, but after a year of use most batteries lose a lot of their power. With an iPhone you are stuck. 

Next up I'll address the points made around simplicity of iCloud, iPhoto, etc. But that will be another lengthy post and I wanted to separate out the economics discussion to keep things simple. 




2 comments:

  1. Love the discussion- having had experience on both ecosystems, I've been meaning to respond so I though I'd chime in on a couple things.

    Foremost, I think the Apple "it just works" argument starts and stops with the abomination known as iTunes. It has never just "worked". I Would pay to watch these "grandmothers" and "kids" that love pushing just one button put files/media that--god forbid--Apple hasnt vetted on their Apple devices. I understand the DRM implications, but either way Apple hasnt gotten it right (or if they have I havent stuck around long enough to find out). Sure you can get it to work but it doesn't "just work". I'm a plug-and-play, drag-and-drop kind of guy, and my Android lets me be that.

    Overall, I would say the biggest Android deficiency is, as Vinay mentioned, the podcasts. I havent seen a good solution. But again since I can actually go to websites and save/play files, there are workarounds. EVERYTHING else has workarounds not afforded by Apple. For example, yes, my battery life sucks--so does Apple's. But in my "16 year old girl" use cases--traveling, at a wedding during NFL sundays--I can swap out batteries (3 batteries plus a charger for $15 on ebay) like nothing.

    The arguments for all these OTT services like Facetime/iMessage just hold no weight IMO--really they are just devices to get you to buy more Apple products. You guys both mention Skype, which is admittedly more of a niche product, but what about gChat? Who doesnt have a gmail account? What can Facetime do that it cant? Well technically, nothing, but Apple will make sure it cant compete on equal footing on iOS devices. Which is fine, just reminds me of AOL back in the day. How did that turn out?

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  2. Apple has more product than any other company that does "just work". The market proves this. It's not perfect across every product and technology, but compared to any other company, they win in this department.

    Apples services that work well in their ecosystem, the stuff you call OTT, is made because people want it. It will eventually become a standard or hopefully will, but you can't fault them for making it work well in their ecosystem.

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