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Often I see people claiming how Apple is loosing because Android is the leader of mobile operating systems and 84.7% of all smartphones are Android powered. Now, whenever someone says that, I always correct them that Apple isn't losing, it's not playing. The only way to win the ultra-low-end smartphone game is not to play. The race to the bottom is never ending, and mobile manufacturers are making cheaper and cheaper phones (now at 35$ for a "smartphone").
Apple, instead of making ultra-cheap iPhones that ruin iOS and can't possible run even 5% of the games in the App Store without freezing and rebooting, simply choose not to play. They aren't making a cheap iPhone, and if they ever do, it'll be the only iPhone (the price of technology will go down so much you will be able to make a really fast phone for little money).
Fandroids all over the world are not defending their Galaxy S5, but a Galaxy Y that's barely $100.
You can see evidence of this in many articles. In an IDC analysis, Android's average selling price is about USD300, while iOS' is USD650 or more. Another thing is that Android devices (especially tablets) are getting shipped but not getting used. Most of the mobile devices on the Internet are iOS, as an analysis by Net Applications Inc. shows. Most of Android tablets are low quality and aren't getting used as well.
Another issue is that there's no way to measure the number of Android devices sold. Apple reports devices sold and devices shipped, while Samsung and similar manufacturers report only devices shipped. Many of them end up getting returned to the manufacturer or simply sit in the inventory until they're sold at a really low price to people not interested in a smart phone, so Google doesn't get any money from web search and manufacturers are loosing money.
In a leaked Samsung memo, you can see that the only shipment increase is of cheap "mass-market" devices, not high-end profit machines. This is likely the case for all mobile manufacturers, even of other operating systems.
This is not mentioning that Android is literally the worst mobile operating system. The architecture is horrible, they're using Java which is a known CPU hog, Android is also inefficient with RAM and the Garbage Collection is bad. Applications are full of advertisements, and most are bad knock-offs of iOS exclusive apps. App sales are also low, since most people using Android don't spend any money in the Play store. Even on high-end devices, Android will often force-close built-in apps and the phone and UI will slow down and require the phone to be reset.
Also another issue is that iPhone isn't available in many countries. In my own country, buying an iPhone is illegal and has become increasingly difficult as Apple is implementing better SIM lock mechanisms. Meanwhile you can buy Samsung devices everywhere except on the North and South pole.
Another stupid thing is that Samsung is claiming that their phones have a much better battery life than iPhone. Which is true, (the chart above is outdated), but that's only the case if you turn on power saving features and lower screen brightness.
So, to end this long post, Apple isn't losing, it's not playing.
This post was last updated on September 13th, 2014.