Building value takes time

In the Business Insider article "It's Pretty Clear That Apple Is Winning The War With Samsung", Jay Yarow writes

While there are people pushing Apple to lower prices on the iPhone, it seems like Apple is doing the exact right thing by keeping it's phones priced at a premium. It has expensive, new high-end phones that generate healthy sales and profits. They also establish Apple as a premium phone maker.

Yarow misses the point. Apple has developed value with its iOS operating system, hardware components like the A* chip line and Touch ID, and their seamless integration. These create value that people are willing to pay for so Apple can charge premium prices.

Building unique and strong value takes time and lots of effort. As an example, Google has invested a great deal in its mapping service, and Apple learned how hard it was to duplicate that value when it chose to roll out its own Apple Maps.

As I wrote in "Samsung is screwed", I don't think any Android handset maker can expect to have healthy margins on their phones. And I can't imagine a new operating system like Tizen being able to duplicate the development efforts and ecosystems that Apple and Google have created over many years of intense efforts.

Apple can make premium phones and profit on them because of the years of investments they have made.