Welcome to the A16Z podcast. I am Michael Copeland and we are here with Benedict

Devons to talk about not surprisingly mobile. Apple just announced a massive

record-breaking earnings. What did you pull out of that report and how does we've

discussed new questions in mobile I want to get to that but how does this sort of

further the evidence that we are entering into a new phase? So what happened? Well, mobile is bigger

than PCs, a lot bigger than PCs. And Apple has basically sealed the top end of the market.

So there was a period two and three years ago where we might have been arguing,

well, is Android going to crush Apple at the high end?

Just as we were arguing, you know, what's going to happen with messaging,

and you know what's going to happen with HTML5 versus apps.

And all of those questions are kind of done now,

at least for the next

couple of years until everything changes again, again. And so Apple sold getting on for 15%

of all the phones sold on Earth in the last quarter in the December quarter. That was how many

millions? 75 million units. And then Android probably sold the next 50% of all the phones sold on Earth, and the

remainder is converting very, very past to very, very cheap Android.

And so Apple's going to have the top 15%, 10 to 15% of all the mobile phone users on

Earth and Android will have most of the rest.

But in the USA, that translates to Apple having half the users, and in

Japan, more than half the users, and in emerging developed markets, probably a third, but

at least half of the value. And so you have these two ecosystems where Apple's got the best, the customers

who spend most, and Android's got some of the customers you spend most and everybody else,

...