Re: It's not just Apple
> There are two paths for smartphone peddlers these days.
@AC, not sure I agree with that dichotomy. I would agree that Apple can't really go #1 without cannibalizing their #2s (what a fortunate pun). We see this in other product categories too, where a carmaker uses different marques to sell something made from the same parts bin at substantially different prices.
But I see it as a scale rather than two camps. You just need profit per unit * units sold > $X
In the #2 world, profit per unit is just absurd. When I last replaced my phone (firmly from one of the vendors of #1s), it wasn't because I wanted the cheapest possible thing. I wanted a Nexus price/feature compromise, not a Pixel price/feature compromise. If the midrange isn't selling it's because they're not wanting to take any bullet points off their flagships feature list, so the midrange then can't pull from the Chinese. You can't ask for another 200 quid if all you get for it is an extra 2MP on the camera.