Thursday, January 26, 2012

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 operating on Android long ahead of the iPhone was launched in 2007.

According to Mr. Page: "We had been operating on Android for a rather long time, with the notion of producing phones that are world-wide-web enabled and have good browsers and all that mainly because that did not exist in the marketplace location. I feel that the characterization of us as entering just after the iPhone was introduced is not certainly reasonable. " Google co-founder Larry Page opined that that Mr. Jobs claim that Google went into the phone organization in order to challenge Apple iPhone was false.

Even so, a evaluation of smartphone history will show that Google acquired Android in 2005 and began generating telephone prototypes soon afterward. Informed sources say the model of the Android phones that Mr. Jobs saw at that time looked a great deal more like the Blackberry. This suggests that Google's initial idea might possibly not have been to make phones that look like the iPhone.
Now the question most sector watchers are asking is if Google had been operating on an Android powered phone why they did wait until September 2008 a year after the iPhone was launched to introduce the G1 telephone? In addition, the facts recommend that it was because of tensions over Google's entry into the telephone home business that may possibly contributed to the exit of Mr. Eric Schmidt from the Apple board. Analysts think that Google may possibly have been working on an android powered phone just before the iPhone was introduced but the iPhone seemed to have given them superior insights as to how to wonderful their personal smartphone. This is specially correct given the resemblance of the Nexus a single to the iPhone.

A additional confirmation of Google's motive for launching the Android phones could be gleaned from comments they produced at the Google I/O conference held final May. At the occasion, Google explained that they introduced Android to shoppers so that Apple would not acquire huge influence that could develop into draconian.

In addition, the details seem to recommend that Google went into the phone 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 business 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 produced 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 should be loudest for developers thinking about no matter if the shrinking, forwards-incompatible pool of Windows Mobile phones is genuinely worth bothering with".

In contrast, Apple appears to have gone into the phone business as a re-positioning technique and with a objective to make substantial income from the sale of the intelligent telephone hardware itself. Also with the advent of the smart phones, Apple realized that there was a big prospective in the area of mobile Advertising. This was why they sought to acquire Admob. When Apple was negotiating to buy Admob which is a mobile Advertising business Google quickly 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 rules of its mobile Marketing platform called the iAd as a result shutting out Admob, which had been acquired by Google.

As the intelligent phone war rages on Bloomberg, news reports that Apple has sold alot more than 50 million iPhones since its introduction. According to Apple CEO, Steve Jobs the most up-to-date version, iPhone 4 has sold far more than 3 million units due to the fact its June 24, 2010 debut. Analysts think iPhones account for nearly 35 percent of Apples $42. 9 billion revenue. Also, the iPhone has more than 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 provider provided to developers. For instance at the starting, in order to encourage Applications that will run on the iPhone, Apple created an indirect investment by virtue of a $100 million venture-capital fund set up by Kleiner Perkins Caufield & Byers. Currently Apple has paid over one billion dollars to developers due to the fact inception.

Apple's accomplishment has spurred other players in the smartphone market like HP, LG, RIM, Google, Palm, Nokia, and Microsoft to create mobile stores where shoppers with mobile platforms can pay and download applications.

Just like Apple, Google has been, achieving good results 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 Product Management, Jonathan Rosenberg in July 2010. According to Mr. Rosenberg there are 160, 000 Android-based devices becoming activated every day. He stated that Android search grew by 300 percent in the 1st half of 2010, with strong growth expected to continue in the second half.

Mr. Rosenberg added that overall revenue jumped by 24 percent year-on-year and profit improved by 19 percent, as well. Informed reports show that as at Could 2010, there had been 50, 000 Android Apps but at this time they are over 70, 000 and by the finish of the year they should 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 created available by Andro Lib, Android users have downloaded alot more than one billion application till date.

Interestingly, an additional 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 corporation in July 2010 announced that its net income rose by 33 percent for the second quarter, and total income was 58 percent 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 achievement of Google for the reason 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 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 reality that Comscore reported on July 8 2010 that Google's Android platform grew by 44 percent from February to Could possibly. According Comscore in the 3 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. Even so, in the following three-month time frame, from March to May very well, Android market place share grew to about 13 percent.

Remarkably inspite of the increase in Android's market 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.two percent share Google's Android was 4th with 13 percent and Palm was 5th with 4.8 percent market place share. Marketplace analysts say a evaluation of the totality of the Market place will tend to suggest that Android is developing at a rate that will see it outpace all its competitors.

The Google -Apple face off in the smart telephone market 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 more than Apple since although Microsoft was forming partnerships with Pc vendors, Apple kept its operating program closed for use in only its personal computer systems. In that kind of arrangement Microsoft Windows soared in marketplace share although Apple stagnated.

In the present case Google's Android platform is increasing rapidly due to the fact it is cost-free so a lot of handset producers are showing a preference for it. Also and is on the market on various-carriers like AT&T, Sprint, Verizon and T-Mobile. But, the Apple iPhone Os runs only on a single device -the Apple iPhone and on 1 carrier ATT. Experts think if this trend continues it that may perhaps lead to slow growth for the iPhone in future.

Business sources say, it may perhaps only be fair to make comparisons between Apple iPhone and other smartphones running on Android on an individual basis to decide how well every one stacks up against the iPhone. Experts think that collectively the smartphones running on Android could possibly at some point have extra marketplace share than the Apple iPhone smartphone which is a single device, but individually none of the Android phones would most likely outsell the iPhone which is regarded as the fastest selling smart phone in history.

A pointer to what the future of the smartphone marketplace will appear like is contained in latest report published by IDC, a Market place intelligence company. According to IDC's evaluation by 2013 Symbian will be number a single mobile OS worldwide, although Android will be the No. 2. IDC predicts that Android may perhaps most likely realize the fastest growth of any mobile operating program ever.

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