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 background to align with Apple's interests. They argued that contrary to Steve Jobs claims Google had been operating on Android extended prior to the iPhone was launched in 2007.
According to Mr. Page: "We had been working on Android for a rather extended time, with the notion of generating phones that are internet enabled and have very good browsers and all that simply because that did not exist in the market place spot. I feel that the characterization of us as entering right after the iPhone was introduced is not really affordable. " 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.
On the other hand, a review of smartphone history will show that Google acquired Android in 2005 and began producing telephone prototypes soon afterward. Informed sources say the model of the Android phones that Mr. Jobs saw at that time looked additional like the Blackberry. This suggests that Google's initial concept may possibly not have been to make phones that appear like the iPhone.
Now the question most business watchers are asking is if Google had been operating on an Android powered phone why they did wait till September 2008 a year following the iPhone was launched to introduce the G1 telephone? In addition, the facts recommend that it was for the reason that of tensions more than Google's entry into the phone small business that may contributed to the exit of Mr. Eric Schmidt from the Apple board. Analysts think that Google could have been working on an android powered phone just before the iPhone was introduced but the iPhone seemed to have given them far better insights as to how to best their personal smartphone. This is specifically correct offered the resemblance of the Nexus one particular 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 well. At the occasion, Google explained that they introduced Android to customers so that Apple would not acquire enormous influence that could become draconian.
In addition, the details appear to suggest that Google went into the phone small business following the realization that future of computing would be in transportable devices like phones and tablet computers. As a result, they went into the telephone business with the objective of dominating net 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 produced in an interview with the UK Guardian newspaper on June 25th 2010. In that interview Mr. Schmidt suggested that he wants Android to be the Windows of Mobile.
Also in that very same interview Mr. Schmidt created vital comments about Microsoft Windows and mentioned: "You have to ask how on earth Windows Phone - which will have a paid-for licence - is ever going to attract any handset makers, but it should be loudest for developers considering no matter if the shrinking, forwards-incompatible pool of Windows Mobile phones is really worth bothering with".
In contrast, Apple appears to have gone into the telephone business enterprise as a re-positioning strategy and with a objective to make large income from the sale of the sensible phone hardware itself. Also with the advent of the sensible phones, Apple realized that there was a massive possible in the area of mobile Advertising. This was why they sought to acquire Admob. While Apple was negotiating to invest in Admob which is a mobile Advertising provider Google fast stepped in and acquired Admob. As a result Apple went ahead to acquire Quatro wireless which is Admob's most significant competitor. In reaction to Google's acquisition of Admob Apple has re-written the guidelines of its mobile Marketing platform referred to as the iAd consequently shutting out Admob, which had been acquired by Google.
As the wise telephone war rages on Bloomberg, news reports that Apple has sold significantly more than 50 million iPhones since its introduction. According to Apple CEO, Steve Jobs the newest version, iPhone four has sold a lot more than three million units given that its June 24, 2010 debut. Analysts think iPhones account for practically 35 percent of Apples $42. 9 billion income. Also, the iPhone has over 200, 000 applications with more than five billion downloads till date.
The rapid growth of applications on Apple's ecosystem could be traced to the initial incentive the company supplied to developers. For example at the starting, in order to encourage Applications that will run on the iPhone, Apple made an indirect investment by virtue of a $100 million venture-capital fund set up by Kleiner Perkins Caufield & Byers. At this time Apple has paid over one particular billion dollars to developers considering that inception.
Apple's good results has spurred other players in the smartphone industry like HP, LG, RIM, Google, Palm, Nokia, and Microsoft to develop mobile shops exactly where prospects with mobile platforms can pay and download applications.
Just like Apple, Google has been, achieving success with its Android powered smartphones as sales have continued to rise dramatically. A confirmation of Android's growth could be gleaned from the positive comments created by Google's Senior VP of Product Management, Jonathan Rosenberg in July 2010. According to Mr. Rosenberg there are 160, 000 Android-based devices becoming activated each day. He stated that Android search grew by 300 percent in the to begin with half of 2010, with strong growth expected to continue in the second half.
Mr. Rosenberg added that overall income jumped by 24 percent year-on-year and profit improved by 19 percent, as properly. Informed reports show that as at Might 2010, there were 50, 000 Android Apps but now they are over 70, 000 and by the end of the year they ought to reach 100, 000. In addition, Google has tried to encourage developers of applications for the Android operating system via a contest. Also according to information produced readily available by Andro Lib, Android users have downloaded far more than one billion application till date.
Interestingly, yet another measure of the good results of Google Android telephone could be noticed 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 income rose by 33 percent for the second quarter, and total revenue was 58 percent alot more than final years figures. According to the Wall Street Journal for the second quarter of 2010, HTC created a profit of $268 million.
The rise in the profit of HTC is a reflection of the success of Google given that 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 Incredible, 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. According Comscore in the three three-month time frame from December to February, Android had a mean industry share of about 9 percent of smartphone's in the United States. Yet, in the following three-month time frame, from March to Might, Android market share grew to about 13 percent.
Remarkably inspite of the improve in Android's market place share Comscore report showed that as at July, 2010 that RIM was quantity 1 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. Industry analysts say a evaluation of the totality of the Marketplace will tend to suggest that Android is growing at a rate that will see it outpace all its competitors.
The Google -Apple face off in the intelligent phone 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 advantage over Apple simply because even though Microsoft was forming partnerships with Computer vendors, Apple kept its operating system closed for use in only its own computer systems. In that sort of arrangement Microsoft Windows soared in marketplace share although Apple stagnated.
In the present case Google's Android platform is developing quickly considering that it is zero cost so several handset manufacturers are showing a preference for it. Also and is out there on a number of-carriers like AT&T, Sprint, Verizon and T-Mobile. Having said that, the Apple iPhone Os runs only on a single device -the Apple iPhone and on a single carrier ATT. Professionals believe if this trend continues it that could possibly lead to slow growth for the iPhone in future.
Sector sources say, it can only be fair to make comparisons among Apple iPhone and other smartphones running on Android on an individual basis to identify how nicely each one particular stacks up against the iPhone. Authorities believe that collectively the smartphones running on Android may well ultimately have alot more marketplace 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 wise telephone in history.
A pointer to what the future of the smartphone market will appear like is contained in latest report published by IDC, a Market place intelligence firm. According to IDC's analysis by 2013 Symbian will be number 1 mobile OS globally, whereas Android will be the No. 2. IDC predicts that Android may perhaps probably accomplish the fastest growth of any mobile operating method ever.
0 comments:
Post a Comment