Google's Android Phones Challenge Apple iPhone For Smartphone Market Share
At a media forum on Thursday July 8, 2010 at the Allen & Co's Sun Valley conference, Google executives Larry Page and Sergey Brin informed Journalists that Steve Jobs was re-writing Android's history to align with Apple's interests. They argued that contrary to Steve Jobs claims Google had been working on Android long prior to the iPhone was launched in 2007.
According to Mr. Page: "We had been working on Android for a especially long time, with the notion of generating phones that are internet enabled and have very good browsers and all that mainly because that did not exist in the market location. I believe that the characterization of us as entering after the iPhone was introduced is not truly reasonable. " Google co-founder Larry Page opined that that Mr. Jobs claim that Google went into the telephone business enterprise in order to challenge Apple iPhone was false.
However, a review of smartphone history will show that Google acquired Android in 2005 and began generating phone prototypes soon afterward. Informed sources say the model of the Android phones that Mr. Jobs saw at that time looked more like the Blackberry. This suggests that Google's initial notion might possibly not have been to make phones that look like the iPhone.
Now the question most industry watchers are asking is if Google had been operating on an Android powered telephone why they did wait until September 2008 a year just after the iPhone was launched to introduce the G1 phone? In addition, the facts recommend that it was due to the fact of tensions more than Google's entry into the phone company that might possibly contributed to the exit of Mr. Eric Schmidt from the Apple board. Analysts believe that Google could have been operating on an android powered telephone ahead of the iPhone was introduced but the iPhone seemed to have offered them greater insights as to how to perfect their personal smartphone. This is specially correct given the resemblance of the Nexus one to the iPhone.
A further confirmation of Google's motive for launching the Android phones could be gleaned from comments they made at the Google I/O conference held last May perhaps. At the event, Google explained that they introduced Android to shoppers so that Apple would not acquire enormous influence that could develop into draconian.
In addition, the facts appear to recommend that Google went into the telephone business enterprise following the realization that future of computing would be in portable devices like phones and tablet computers. As a result, they went into the telephone enterprise with the aim of dominating internet search on that platform just like they had performed on the desktop. This notion is supported by Eric Schmidt, CEO of Google in published comments he made in an interview with the UK Guardian newspaper on June 25th 2010. In that interview Mr. Schmidt recommended that he wants Android to be the Windows of Mobile.
Also in that same interview Mr. Schmidt created important comments about Microsoft Windows and said: "You have to ask how on earth Windows Telephone - which will have a paid-for licence - is ever going to attract any handset makers, but it must be loudest for developers considering whether or not the shrinking, forwards-incompatible pool of Windows Mobile phones is actually worth bothering with".
In contrast, Apple appears to have gone into the phone business as a re-positioning approach and with a goal to make substantial income from the sale of the smart phone hardware itself. Also with the advent of the wise phones, Apple realized that there was a tremendous potential in the region of mobile Marketing. This was why they sought to acquire Admob. Whilst Apple was negotiating to invest in Admob which is a mobile Marketing enterprise Google speedily stepped in and acquired Admob. As a result Apple went ahead to acquire Quatro wireless which is Admob's greatest competitor. In reaction to Google's acquisition of Admob Apple has re-written the guidelines of its mobile Advertising platform named the iAd for that reason shutting out Admob, which had been acquired by Google.
As the smart telephone war rages on Bloomberg, news reports that Apple has sold much more than 50 million iPhones given that its introduction. According to Apple CEO, Steve Jobs the newest version, iPhone 4 has sold alot more than three million units due to the fact its June 24, 2010 debut. Analysts believe iPhones account for practically 35 percent of Apples $42. 9 billion income. Also, the iPhone has more than 200, 000 applications with over five billion downloads till date.
The rapid growth of applications on Apple's ecosystem could be traced to the initial incentive the enterprise provided to developers. For example at the starting, in order to encourage Applications that will run on the iPhone, Apple produced an indirect investment by virtue of a $100 million venture-capital fund set up by Kleiner Perkins Caufield & Byers. At present Apple has paid over one particular billion dollars to developers considering that inception.
Apple's achievement has spurred other players in the smartphone marketplace like HP, LG, RIM, Google, Palm, Nokia, and Microsoft to develop mobile shops exactly where buyers with mobile platforms can spend and download applications.
Just like Apple, Google has been, achieving achievement with its Android powered smartphones as sales have continued to rise substantially. A confirmation of Android's growth could be gleaned from the positive comments made by Google's Senior VP of Item Management, Jonathan Rosenberg in July 2010. According to Mr. Rosenberg there are 160, 000 Android-based devices becoming activated daily. He stated that Android search grew by 300 percent in the initial half of 2010, with powerful growth expected to continue in the second half.
Mr. Rosenberg added that general income jumped by 24 percent year-on-year and profit increased by 19 percent, as well. Informed reports show that as at Could 2010, there were 50, 000 Android Apps but at present they are more than 70, 000 and by the finish of the year they must reach 100, 000. In addition, Google has tried to encourage developers of applications for the Android operating program through a contest. Also according to data made attainable by Andro Lib, Android users have downloaded much more than one particular billion application till date.
Interestingly, yet another measure of the accomplishment of Google Android phone could be observed from positive figures posted by HTC the Taiwanese smartphone manufacturer in the second quarter of 2010. The provider in July 2010 announced that its net earnings rose by 33 percent for the second quarter, and total revenue was 58 percent a lot more than last years figures. According to the Wall Street Journal for the second quarter of 2010, HTC made a profit of $268 million.
The rise in the profit of HTC is a reflection of the success of Google mainly because analysts believe that it is Android phones that are driving the company's growth. The wide acceptance HTC's Google Android powered phones like Evo 4G, the Droid Amazing, the Google Nexus One particular, and T-Mobile-My Touch 3 are helping to position HTC as a top smartphone manufacturer.
A pointer to the rapid growth of Google's Android could be discerned from the fact that Comscore reported on July 8 2010 that Google's Android platform grew by 44 percent from February to May perhaps. According Comscore in the 3 three-month time frame from December to February, Android had a mean market share of about 9 percent of smartphone's in the United States. Having said that, in the following three-month time frame, from March to Can, Android marketplace share grew to about 13 percent.
Remarkably inspite of the increase in Android's market place share Comscore report showed that as at July, 2010 that RIM was number a single with 41. 7 percent share of U. S. smartphone subscribers, followed by Apple with 24.four percent share. Microsoft was 3rd with a 13.2 percent share Google's Android was 4th with 13 percent and Palm was 5th with four.8 percent marketplace share. Marketplace analysts say a review of the totality of the Market place will tend to recommend that Android is growing at a rate that will see it outpace all its competitors.
The Google -Apple face off in the wise telephone marketplace is turning out to be like Apple -Microsoft war of the 80's and 90's. In the Apple-Microsoft war of the 90's Microsoft gained competitive benefit over Apple considering when Microsoft was forming partnerships with Pc vendors, Apple kept its operating technique closed for use in only its personal personal computer systems. In that kind of arrangement Microsoft Windows soared in market share while Apple stagnated.
In the present case Google's Android platform is growing rapidly considering it is free of charge so a number of handset manufacturers are showing a preference for it. Also and is available on many-carriers like AT&T, Sprint, Verizon and T-Mobile. Then again, the Apple iPhone Os runs only on a single device -the Apple iPhone and on a single carrier ATT. Specialists think if this trend continues it that might possibly lead to slow growth for the iPhone in future.
Business sources say, it might only be fair to make comparisons among Apple iPhone and other smartphones operating on Android on an individual basis to ascertain how nicely each and every one stacks up against the iPhone. Authorities think that collectively the smartphones operating on Android might at some point have additional market place share than the Apple iPhone smartphone which is a single device, but individually none of the Android phones would likely outsell the iPhone which is regarded as the fastest selling smart phone in history.
A pointer to what the future of the smartphone industry will look like is contained in recent report published by IDC, a Market intelligence business. According to IDC's analysis by 2013 Symbian will be number one particular mobile OS worldwide, even though Android will be the No. 2. IDC predicts that Android might likely accomplish the fastest growth of any mobile operating technique ever.
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