Please, please - could people stop making this analogy?
Cars are not phones, and will never be. American lower class or Chinese middle class are not going to shell out $70k for a new toy every two years. Cars are not going to be made with 60% margins. You cannot wear a car in your pocket to show it off to your relatives or business partners.
Apple's business model, in short - is selling mediocre hardware for premium prices, and mask it with excellent software. Optimizing software to make it 10x better, faster, using less battery - fairly common. For any activity that interfaces with the physical world - forget it - we're tapped out, making 2-5% improvements per year. No amount of refinement will make a $20k econobox sellable for $60k
(also, ironically, LG dropped out of phone business)
>You cannot wear a car in your pocket to show it off to your relatives or business partners.
There's a few striking errors in your post, and this one is the most glaring - in that it's very visual, and also very wrong.
Consider the photo of the Tesla (Model 3) key fob [1]: it's a small car that one does, in fact, wear in one's pocket to show it off to one's relatives or business partners.
Similar with the Tesla App [2] - it shows a desirable car on your phone's screen for the very same reason; the rest is nice extras.
Cars are not phones, and will never be. American lower class or Chinese middle class are not going to shell out $70k for a new toy every two years. Cars are not going to be made with 60% margins. You cannot wear a car in your pocket to show it off to your relatives or business partners.
Apple's business model, in short - is selling mediocre hardware for premium prices, and mask it with excellent software. Optimizing software to make it 10x better, faster, using less battery - fairly common. For any activity that interfaces with the physical world - forget it - we're tapped out, making 2-5% improvements per year. No amount of refinement will make a $20k econobox sellable for $60k
(also, ironically, LG dropped out of phone business)