Apple would never have a monopoly on smart phones even if Google had not come along. Most people either can't or won't spend the amount that Apple charges for phones. The cheapest iPhone is $100 more expensive than the average price of the Android.
If anything, Microsoft would have won over OEMs and been where Android is.
True, but now I have to wonder how much MSFT would be charging Google for the privilege?
Or maybe a different company, like if Amazon didn't fail with Fire Phone. Perhaps that entity could have been more forgiving since they're not as aggressive with the same set of productivity services. But in general Google has lost that moat for the rest of the mobile era. At best they can hope for is a partnership.
Actually, imagine now homegrown Alternate-Android competitor that was based in China. Google would be cut from that too.
The other OEMs weren't going to just stand still and RIM never licensed their OS. Someone would have offered a platform for the other OEMs or maybe J2ME would have evolved. But Ms was the only company that had any experience with building a platform or the developer relations.
Apple already has a second tier, and it's constantly ignored in all the discussions about how much more Apple devices cost than alternatives. The second tier is the resale market.
When I sold my 3-yr old iPhone, which cost around $700 new, I got well over $200 for it. The net cost was under $500. Android phones might be cheaper, but you can't really sell them when you're done with them because there's always newer Android phones that are also inexpensive.
The same effect happens with Apple's desktops and laptops...by not offering a bargain basement tier, they foster a thriving resale market that's reliable enough that you can factor it into the price when buying a new device. Apple is essentially charging for both the primary sale and the secondary sale up front. Once you account for that, a lot of the difference in price between them and their competition goes away.
Yes they are "second tier" phones. The world is buying 2nd tier phones and even the average selling price for Samsung phones is around $182 (http://www.businessinsider.com/apple-and-samsung-sell-phones...). In the grand scheme of things, an insignificant number of people are buying high end Android phones.
In the 40 years that Apple has been in business, it's never gone after the low end market. The Apple // series was always more expensive than its contemporaries, as was the Mac and now the iPhone. There was a brief time that Apple had the lowest cost media players but that was because they cornered the market on the hard drives that they were using and then the flash market.
But why would they? They already capture 80%+ of the profit in the global cell phone market.
I understand that. My point being that, at least for "mobile distraction device", Apple does in fact have a tiered, price-discriminating (in the economic sense) set of products.
There's also the used-device market, as noted by another reader. I'd considered making that point as well, though uncharacteristically for me I decided to focus on a single thread.