Ford: “Let me charge what I want for the parts…” Applies to Smartphones

Henry Ford is supposed to have claimed he would give away cars for $0 if he could charge what he wanted for parts. Well, the smartphone is the new car.“Taiwan-based handset component makers indicated that they have received increasing orders for accessories used in smartphones and/or tablets from overseas designers and/or trading firms, with Bluetooth keyboards, Bluetooth speakers, NFC (near field communication) devices and wireless power charging devices taking the largest portion.”
SeeTaiwan makers see booming orders for smartphone tablet accessories

The commentators here, blinded by the light of Wintel, who have been claiming small cheap computers are a “race to the bottom”, just an accessory to a legacy PC and unprofitable are plainly wrong. Smartphones are the new car or PC to many and people will pay for accessories. I’ve seen around here everything from cases and screen-protectors to external storage and apparently Bluetooth keyboards are popular. Margins have been tight with smartphones but manufacturers can make that up with accessories and services. Who needs an expensive, large, noisy, hot and fragile legacy PC Stuff_We_Can_Throw_Out_smallwhen one can have a sleek sexy smartphone and have it all?

Further, smartphones are still growing rapidly in shipments/sales. IDC reports China had 117% per annum growth for Q1… If the smartphone is the new PC it’s taking over a lot faster than the legacy PC did. Small cheap computers rock.

About Robert Pogson

I am a retired teacher in Canada. I taught in the subject areas where I have worked for almost forty years: maths, physics, chemistry and computers. I love hunting, fishing, picking berries and mushrooms, too.
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5 Responses to Ford: “Let me charge what I want for the parts…” Applies to Smartphones

  1. oiaohm says:

    bw
    –If new cars were free, then one would just get a new one each time that it needed some expensive spare part. I’m sure everyone would catch on to that quickly.–

    Ford had thought of that one. It was one free car per USA Citizen every so many years. Ford in that also invented the support contract in the form of SLA. Service Level Agreement.

    bw why was ford looking at doing something so far extrema.

    http://www.fee.org/the_freeman/detail/how-henry-ford-zapped-a-licensing-monopoly

    The historic equal to the Mpeg LA group. Percent of every car built pay to them for licensing. No percentage off spare parts or servicing.

    Incorrectly issued patents have been causing trouble for a long time. So FOSS and Ford have something in common.

    Yes just like Ford. FOSS was first.

    bw my existing PC are time is numbered. With power going up 20 percent in price in this country I am going to have to look to more arm and other design parts for my desktops. Yes it will be possible to recover the cost of new arm hardware in a few years due to power saving.

  2. bw wrote, “Have you thrown away all your legacy PCs and taken up using that cast off cell phone that you spoke of previously?”

    Nope. When I compute while mobile, I use an Android/Linux smartphone. I forgot to use it the other day to measure the speed of my new tractor but I can still do that. The little woman creates more “content” these days using her smartphone than her desktop PC because she uses the camera heavily. She could probably dock the smartphone to a large monitor feasibly except possibly for the number of windows she like to leave open… Unfortunately her smartphone is BlackBerry and the UI is a thing from Hell for me because it is so different from Android/Linux and not “intuitive” for me or her. She’s always asking me how to do something on her smartphone. That rarely happened with Android/Linux.

  3. Maou Sadao wrote, “Now it’s suddenly a new thing again, just because your favorite Linux-based smartphone OS is involved?”

    It’s new for */Linux because */Linux used to be about fans and DIY but now whole vertical industries with salesmen are involved, the only real deficiency there has been in FLOSS for decades until just a few years ago.

    He/she also wrote, “Only two companies make good money with Android smartphones: one is Samsung, the other is — Microsoft.”

    M$ makes almost nothing on Android. It doesn’t make a line-item in their SEC filings.

    Indeed, a major mention of Android involves litigation v Motorola:
    ” *In the transferred cases, Motorola asserts 15 patents are infringed by many Microsoft products including Windows Mobile 6.5 and Windows Phone 7, Windows Marketplace, Silverlight, Windows Vista and Windows 7, Exchange Server 2003 and later, Exchange ActiveSync, Windows Live Messenger, Lync Server 2010, Outlook 2010, Office 365, SQL Server, Internet Explorer 9, Xbox, and Kinect.

    *In the Motorola action originally filed in California, Motorola asserts that Microsoft violated antitrust laws in connection with Microsoft’s assertion of patents against Motorola that Microsoft has agreed to license to certain qualifying entities on RAND terms and conditions.
    *In counterclaims in the patent actions brought by Motorola, Microsoft asserts 14 patents are infringed by Motorola Android devices and certain Motorola digital video recorders.”

    I doubt M$’s revenue from agreements with Android/Linux device makers covers the cost of that litigation and M$ may well lose a lot.

  4. Maou Sadao says:

    Another dumb-as-heck Mr. Pogson claim. I can vividly remember that 3rd party accessories already were very important when Nintendo’s game consoles entered the market. There are whole companies doing nothing else than creating accessories for game consoles and/or handhelds. Now it’s suddenly a new thing again, just because your favorite Linux-based smartphone OS is involved?

    And smartphones (smartphones! not accessories) are a race to the bottom, a fact you thankfully acknowledge here. Only two companies make good money with Android smartphones: one is Samsung, the other is — Microsoft.

  5. bw says:

    “Henry Ford is supposed to have claimed he would give away cars for $0 if he could charge what he wanted for parts”

    I seem to remember him saying that you could have any color as long as it was black, but no conversation about spare parts. Are you sure it was old Henry who said that? It seems to have a lot of holes in it as a business model. If new cars were free, then one would just get a new one each time that it needed some expensive spare part. I’m sure everyone would catch on to that quickly.

    Have you thrown away all your legacy PCs and taken up using that cast off cell phone that you spoke of previously? Or are you still using one or more desktops? If anything that would severely cut down on the number of computers that you might want to connect and would put you well onto the safe side of the famous 20 station limit imposed by the harsh and abusive EULA for Windows client OS.

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