In much of the rest of the world, people would be expected to pay 2-3 monthly salaries for an unsubsidized iPhone. Or they could pay 1/2 or 1/3rd for a decent Android phone and do the same things. Now do you understand the point of the article?
The answer to that is the GP's: "In much of the rest of the world". Australia is considered to be a rich, "Western" nation. Much of the rest of the world is poor, not rich. They do not have Apple stores or, in many cases, fast wired Internet connections. You've got to break out of your mind's box where thinking that Western countries dominate; in terms of population, they don't. At all.
> I think it makes sense to compare phones of similar capabilities.
What about in places where the iPhone isn't for sale, directly? What will you do then? If you would like an example, take Tanzania. They have wireless networks, but (to my knowledge) no iPhone.
The vast majority of the world cannot afford iPhones, but they are able to connect to wireless networks.
I never said, implied or referenced any sort of idea that Western countries dominate in terms of population. Thanks for clearing this up, though.
When I go shopping for a phone this year, I'll be comparing the iPhone5 with the latest dual-core 4+" 1280x760 Android monstrosity, then drop 600+ on either. When the newly minted middle class in those countries goes shopping for a phone this year, they'll look at a reasonable 3.5" 480x320 Android for $150-200, compare it with some aging Nokia dinosaur and make their pick. The iPhone is not going to be figuring into their thoughts very much.
I think I already did, thanks, and as far as I can tell, Android being at a particularly advantage overseas vs. iOS is neither the point of FW's post or the article he linked to. In fact, all he said is '. And many of these devices will be running Android, not iOS'. As far as I can tell, HN has seemed to turn this into "Android will be devastating iOS because people in Kiribati can't afford an iPhone!!". Okay, but that isn't what either article was asserting.
Anyway, IMO this is not an iOS-vs-Android issue. New markets are going to open up, Android will be there. iOS will still be a cash-cow. Win-win, everybody celebrate (except Microsoft)
Here's a list that shows the huge variation: http://en.wikipedia.org/wiki/List_of_Android_devices
I have a phone that's at the same price point as the iPhone (Samsung Galaxy S) but there are lots of phones at the other end of the price spectrum such as the HTC Magic, Dream or Tattoo or maybe the Motorola Quench or Backflip. All phones that are half the price or less than the iPhone/Galaxy S.
I get that the prices are very close right now. But since the can only be 1 or 2 models of iPhone out at any time and there can be thousands of Android phones, it is inevitable that Apple's iPhone will be more expensive than the cheaper Android models. Of course, the iPhone will probably be cheaper than high-end Android phones. It goes both ways. But since there is choice, Android will offer the cheaper option.
That only happens in the USA and Canada. Maybe that happens a bit in other countries, but really, not much. No more than 10% of the world buys phones like that. The USA is not a model for the rest of the world in the mobile space; they're quite backwards actually.
Android phones sell for $200 without a contract in most countries.