The mobile platform wars are in full swing. Android and Apple dominate the landscape. Network Effects: How Google & Apple Dominate Mobile article tells that a report from VisionMobile says that there will be no clear winner in the battle for supremacy over the mobile market. Android controls the numbers, Apple controls the profits and everybody else is fighting for scraps and third place in the ecosystem. The article has good figures that describe the mobile markets.
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Tomi Engdahl says:
According to ABI Research Android tablets catching up quickly ahead of the iPad. In the third quarter iPad market share declined to 55 percent (was 69 percent earlier). This is Apple’s lowest market share since the iPad was introduced in 2010.
Android’s share of tablets has already risen to 44 percent.
All Things D estimates that if the trend continues, in the next year, Android tablets will have bigger marker share than iPad.
The same thing happened to Apple in mobile phones.
Other platforms than iPad and Android have only 1 percent market share on tablet market.
Source: http://www.tietoviikko.fi/kaikki_uutiset/hyvasti+ipadhegemonia/a860052?s=r&wtm=tietoviikko/-29112012&
Tomi Engdahl says:
Google vs. Samsung
http://www.asymco.com/2012/11/14/google-vs-samsung/
Samsung’s recent success in mobile phones has been spectacular. It overtook Nokia for the top spot in overall unit sales.
It went from having almost no smartphone sales to selling over 50 million units per quarter in a matter of two years.
It now accounts for nearly 40% of all industry profits.
A key decision which made this success possible was to shift its portfolio to smartphones and to offer a large variety of such phones.
In Q1 2010 only 3% of the phones Samsung sold were smartphones. In the latest quarter the ratio was 54%.
All this plus an overall growth in volumes from 64 million to over 100 million per quarter has meant that the company is raking in enormous profits. Not only did it overtake Nokia, the market share leader for 14 years, but is making more profits than Nokia ever did.
So much profit in fact that it has overtaken Google’s decisively.
The reason I point this out is that Samsung’s success is dependent on having ridden on the back of Android.
Meanwhile, indications are that “mobile” is causing a contraction in Google’s margins.
If nothing else, Android has created a very interesting industry.
The cost of selling Galaxies
http://www.asymco.com/2012/11/29/the-cost-of-selling-galaxies/
So one of the more remarkable aspects of Samsung’s success has been their willingness to increase promotional spending. Considering that their other divisions don’t require as much “marketing expense” (semiconductors, LCD certainly, and TVs and Appliances to a lesser degree due to a smaller sales growth) we can imagine that the vast majority of this promotional spending has been in support of their mobile brands, Galaxy in particular.
In fact, we can obtain advertising spend data from annual reports.
It might be surprising to note that Samsung spends considerably more than Apple and Microsoft. But it also spends more than Coca Cola, a company whose primary cost of sales is advertising.
However, advertising is not the only form of promotional spending. Samsung also pays commissions and “sales promotion“.
Tomi Engdahl says:
Apple vetting operators on LTE network performance
http://www.telecoms.com/54319/apple-vetting-operators-on-lte-network-performance/
Apple is not allowing mobile operators to offer the iPhone 5 as an LTE device unless they pass the Californian vendor’s own, independent tests for LTE network performance, Swisscom has confirmed.
It proved, he said, “who is running the industry”, adding: “Apple have put themselves in the driving seat; it’s really changing the game.”
Tomi Engdahl says:
Children increasingly named after Apple products
http://www.theregister.co.uk/2012/12/03/parents_name_children_after_apple_products/
Not only are the kids desperately keen to get Apple products, their parents are also naming them after Apple products – we learn from the latest yearly analysis of baby names.
For boys, the name Mac jumped 12 percent. And parents sure like the sound of Siri
Tomi Engdahl says:
Slideshow: Google’s Nexus 7 Tablet Teardown
http://www.designnews.com/author.asp?section_id=1386&doc_id=247017&cid=NL_Newsletters+-+DN+Daily
Amazon shook the consumer electronics market last year when it introduced the first sub-$200 tablet, the Kindle Fire. Many were skeptical of the online vendor’s foray into electronics, but some saw it as a stroke of genius. By leveraging its vast library of online titles, Amazon set itself up to compete on content with the industry leader, Apple.
The Kindle Fire was an instant hit
The first Google-branded handset, the Google Nexus One, was manufactured by HTC and was the first to be sold directly by Google to consumers.
Google finally introduced its first branded tablet, the Nexus 7, at its I/O conference June 27 with a price tag of $199, meaning it will compete directly with the Kindle Fire. The Android OS, particularly Honeycomb, had long been used by iPad competitors. The Nexus 7 tablet also included the latest version of Android, 4.1, or Jelly Bean.
Tomi Engdahl says:
Android Rules Smartphones, But Which Version?
http://mobile.slashdot.org/story/12/12/04/2125239/android-rules-smartphones-but-which-version
‘Gingerbread,’ or Android versions 2.3 through 2.3.7, dominates with 50.8 percent of the Android pie.
‘Ice Cream Sandwich,’ or versions 4.0.3 through 4.0.4, is second with 27.5 percent, with the latest ‘Jelly Bean’ build at 6.7 percent.
As demonstrated by that graph on the Android Developers Website, there are a lot of devices running a lot of different versions of Android out there in the ecosystem, all with different capabilities.
Tomi Engdahl says:
Apple Hires Hacker Who Helped Save Windows From Security Hell
http://www.wired.com/wiredenterprise/2012/12/apple-hires-hacker/
Apple has hired a noted computer security researcher who helped Microsoft lock down its Windows operating system.
Kristin Paget — formerly known as Chris Paget — now works on Apple’s security team. Just over five years ago, she was part of a small team of elite hackers brought in by Microsoft to lock down Windows Vista.
Criminals have long preferred to focus their attacks on Microsoft’s operating system — still the world’s most popular — but lately, there have been signs that they’re eying Apple’s Mac OS X too. And Apple, slowly, has been trying to make inroads into the security community. This summer, an Apple engineer spoke at the Black Hat security conference for the first time.
Tomi Engdahl says:
Boffin: Android’s on-board malware scanner utterly FAILS
App blocker detects just 15% of malware
http://www.theregister.co.uk/2012/12/10/android_malware_scanner_fails/
Google has added new anti-malware capabilities to Android 4.2 “Jelly Bean,” but relying on them to block malicious apps might not be a good idea, says a computer science boffin from North Carolina State University.
The latest Android – currently only found on a select group of handsets – includes an on-device “application verification service” that claims to be able to alert users of potentially harmful apps and block their installation, irrespective of where they came from.
Associate professor Xuxian Jiang wanted to know how well the new feature fared against known Android malware, and to that end he pitted it against a collection of samples obtained by the university’s Android Malware Genome Project.
The results? Not so good. Of the 1,260 samples tested, Android’s on-device malware checker only managed to spot 193 of them, for a paltry detection rate of just 15.3 per cent.
Why such a poor showing for Google’s product? According to Jiang, Jelly Bean’s app verification service relies on relatively few data points to decide whether or not to block a given app install.
“Specifically, our study indicates that the app verification service mainly uses an app’s SHA1 value and the package name to determine whether it is dangerous or potentially dangerous,” he writes. “This mechanism is fragile and can be easily bypassed. It is already known that attackers can change with ease the checksums of existing malware (e.g., by repackaging or mutating it).”
Tomi Engdahl says:
Your Money: The “Apple Tax” – America’s costly obsession
http://www.reuters.com/article/2012/12/10/us-apple-tech-tax-idUSBRE8B911120121210
Americans are shelling out big bucks annually to outfit the entire household with Apple products. And they are spending hundreds – if not thousands of dollars – more each year for the unexpected Apple “taxes” — add-ons that lock them into the Apple system: iTunes downloads for music, movies and games, along with subscriptions and accessories.
Then there are the replacement costs for lost or broken equipment. For a family with multiple children, each with their own technological needs, the total annual bill can get downright ugly
“Oh my God, do I have to total it all up?” asks Martorana, 40. “It’s so depressing. I’d say we spent at least $5,000 on all that stuff, including $700 in the past year alone. I totally have a weakness. I fell in love, and that was it.”
Tomi Engdahl says:
Worldwide Smart Connected Device Market, Led by Samsung and Apple, Grew 27.1% in the Third Quarter, According to IDC
http://www.idc.com/getdoc.jsp?containerId=prUS23849612#.UMigzHemoil
FRAMINGHAM, Mass., December 10, 2012 – The worldwide smart connected device market – a collective view of PCs, tablets, and smartphones – grew 27.1% year-over-year in the third quarter of 2012 (3Q12) reaching a record 303.6 million shipments valued at $140.4 billion dollars. Expectations for the holiday season quarter are that shipments will continue to reach record levels rising 19.2% over 3Q12 and 26.5% over the same quarter a year ago. According to the International Data Corporation (IDC) Worldwide Quarterly Smart Connected Device Tracker, 4Q12 shipments are expected to reach 362.0 million units with a market value of $169.2 billion dollars.
“The battle between Samsung and Apple at the top of the smart connected device space is stronger than ever,”
Looking forward, IDC expects the worldwide smart connected device space will continue to surge well past the strong holiday quarter and predicts shipments to surpass 2.1 billion units in 2016 with a market value of $796.7 billion worldwide. IDC’s research clearly shows this to be a multi-device era
Tomi Engdahl says:
Fortune Exclusive: Larry Page on Google
http://tech.fortune.cnn.com/2012/12/11/larry-page/
I don’t know if this is unique at this time in this industry, but there are companies that are clearly competing with each other [Google, Apple (AAPL) and Amazon], with completely different business models.
I actually view that as a shame when you think about it that way. All the big technology companies are big because they did something great. I’d like to see more cooperation on the user side. The Internet was made in universities and it was designed to interoperate. And as we’ve commercialized it, we’ve added more of an island-like approach to it, which I think is a somewhat a shame for users.
So Apple obviously is a huge distribution partner for some of your services. How is the relationship?
What I was trying to say was I think it would be nice if everybody would get along better and the users didn’t suffer as a result of other people’s activities. I try to model that. We try pretty hard to make our products be available as widely as we can. That’s our philosophy. I think sometimes we’re allowed to do that. Sometimes we’re not.
Tomi Engdahl says:
Google Makes SDK Available For Its Native iOS Maps App So That Developers Can Bypass Apple’s
http://techcrunch.com/2012/12/12/google-makes-sdk-available-for-its-native-ios-maps-app-so-that-developers-can-bypass-apples/
Tomi Engdahl says:
Google Chairman Says Android Winning Mobile War With Apple: Tech
http://www.bloomberg.com/news/2012-12-12/google-chairman-says-android-winning-mobile-war-with-apple-tech.html
Google Inc. (GOOG)’s Android is extending its lead over Apple Inc. (AAPL) in the mobile-software market at a rate that compares with Microsoft Corp. (MSFT)’s expansion in desktop software in the 1990s, Google Chairman Eric Schmidt said.
Booming demand for Android-based smartphones is helping Google add share at the expense of other software providers, Schmidt said yesterday in an interview at Bloomberg’s headquarters in New York. Android snared 72 percent of the market in the third quarter, while Apple had 14 percent, according to Gartner Inc. Customers are activating more than 1.3 million Android devices a day, Schmidt said.
“This is a huge platform change; this is of the scale of 20 years ago — Microsoft versus Apple,” he said. “We’re winning that war pretty clearly now.”
Schmidt’s remarks reflect Google’s growing confidence in its ability to attract users and advertisers as more customers rely on handheld devices and shun traditional computers. By giving away Android, Google cedes revenue to hardware partners, such as Samsung Electronics Co. Schmidt is willing to make that sacrifice because it drives demand for ads and other Internet- based services that benefit Google over time.
“The core strategy is to make a bigger pie,” he said. “We will end up with a not perfectly controlled and not perfectly managed bigger pie by virtue of open systems.”
Tomi Engdahl says:
Apple intoxication fall flat in China: The iPhone 5 is lined up just two people
Earlier this year, China experienced Apple intoxication seems to be gone. Today at eight in the morning, local time, Beijing has opened its doors to trade in front of the Apple iPhone 5 smartphone had arrived in queue for two people.
Analysts are of the opinion that Apple’s current strategy may be to bite the Chinese market.
“I believe that expensive smartphones, Apple has already satisfied the needs of consumers. Those who want to buy an Apple product, already has one. However, they do not have a big enough need to buy the iPhone 5 th, as it lacks innovation, “says research firm Gartner Sandy Shen.
Source: http://www.tietoviikko.fi/kaikki_uutiset/applehuuma+lassahti+iphone+5ta+jonotti+vain+kaksi+ihmista/a864336?s=r&wtm=tietoviikko/-14122012&
Tomi Engdahl says:
Why Google Just Made iPhone King: Ads
http://www.wired.com/business/2012/12/why-google-loves-ios/
By releasing new versions of Google Maps and Gmail for iOS this month, Google helped make the iPhone the best mobile phone on the planet. Why is Google, the owner of Android and Motorola, helping its ostensible rival?
The answer boils down to advertising. Google’s smartphone operating system, Android, has always been incidental to Google’s ad business, the source of virtually all the company’s profits, and Google’s Motorola handset division is, for now, a similar sideshow.
Google doesn’t particularly care what operating system you use to view its ads or engage with its sites; it just wants to pull you in. Google pumps money into Android mainly to ensure that companies like Apple and Microsoft can’t push its properties off of smartphones.
“Google doesn’t make money off of Android which is open source; they make money when people use Google services,”
Understanding Google’s strategy is especially important now that a wide range of companies, including not only Apple and Google but also Facebook and Twitter, are carefully calibrating how they ship and host software.
Tomi Engdahl says:
Punters rate Apple, Samsung more highly than ever
http://www.theregister.co.uk/2012/12/13/consumers_rate_samsung_and_apple_says_brand_survey/
Are we all becoming fanboys? If you broaden the term beyond those who favour Apple products to encompass folk keen on Samsung kit, the answer appears to be yes.
At least that’s what data from Strategy Analytics, a market watcher, suggests.
“These survey findings suggest that the 12-month outlook for both Samsung and Apple remains rosy,”
Tomi Engdahl says:
Slideshow: Samsung Galaxy S3 Teardown
http://www.designnews.com/author.asp?section_id=1386&doc_id=245906&cid=NL_Newsletters+-+DN+Daily
No more than three years ago, Samsung was considered a minor player in the handset industry, lagging in sales and stature behind companies such as Nokia and Motorola.
When Apple entered the fray with the introduction of the iPhone, eventually taking over as the leader in smartphone sales, many industry insiders felt that Samsung would never be able to make up the ground to be considered influential to the market.
Samsung itself understood the uphill climb that it was facing. Instead of waving the white flag and exiting the market, Samsung chose to jettison its approach to design and immediately ceased being complacent with its R&D model.
Tomi Engdahl says:
iPad Mini set to eclipse Retina iPad
http://news.cnet.com/8301-13579_3-57559159-37/ipad-mini-set-to-eclipse-retina-ipad/
The iPad Mini appears to be on its way to eclipsing the Retina iPad, according to NPD DisplaySearch.
Apple had originally expected to sell 6 million iPad Minis in 2012. But that’s turning out to be a laughably low forecast, according to DisplaySearch analyst David Hsieh.
Now, Apple is asking display panel makers to “ship more than 12 million” iPad Mini displays in the fourth quarter, Hsieh said in a research note.
“It seems people especially like the size…[it's] lighter, slimmer and easier to carry.”
And that’s despite having a relatively low-resolution non-Retina display and older silicon than the iPad 4. So, it appears that price, starting at $329, and the chic, lightweight design are driving demand.
“In 2013, it is likely that Apple will adjust its product portfolio to meet the strong demand for the iPad Mini. We believe that Apple is targeting total iPad shipments of 100 million in 2013, half accounted for by the iPad Mini,” Hsieh wrote.
Tomi Engdahl says:
Judge denies Apple request to ban Samsung phones
http://www.usatoday.com/story/tech/2012/12/17/apple-loses-samsung-phone-ban/1776777/
A federal judge late Monday dealt Apple a major blow in its landmark battle with Samsung, denying the company’s request to ban U.S. sales of smartphones from the South Korean electronics giant.
“Apple’s evidence does not establish that any of Apple’s three design patents covers a particular feature that actually drives consumer demand,” Judge Koh wrote in the order.
“The Court further found that though there was some evidence of loss of market share, Apple had not established that Samsung’s infringement of Apple’s design patents caused that loss,” the judge wrote.
Tomi Engdahl says:
Android is failing by succeeding in China
http://www.extremetech.com/mobile/143585-android-is-failing-by-succeeding-in-china
By all accounts Google is riding high on the success of Android. More than three-quarters of all new phones shipped are running Google’s mobile operating system, and that gives Mountain View access to a ton of user data, and avenues to promote its services. However, Google’s business decisions over the last few years could be coming back to bite Android as China becomes the world’s largest mobile market. Even though Android is big in China, its benefit to Google is minimal.
Google’s Chinese Android problem is multifaceted, but most of the concerns stem from the search giant’s avoidance of mainland China.
If Android had been a force in mobile computing at the time, Google might have reconsidered. Dropping out of China doesn’t mean Android won’t continue to find its way into the hands of Chinese consumers — it just means Google won’t be involved. Plenty of companies are taking Android, which is open source, and modifying it to suit the Chinese market, sans Google.
Companies like Xiaomi have gone so far as to completely fork Android, building variants for use in China. As much as we get annoyed with OEM skins that change the experience and cause us grief, it’s nothing compared to what happens to Android in China.
You could make the argument that Android is open, and Google should have seen this coming, but I doubt the company expected an entire nation to take the Google out of Android.
Indeed, the overwhelming majority of Chinese Android handsets have not a hint of Google on them. Even search services are swapped out for Baidu, which powers search on 80% of Android handsets in the country.
In a darker twist, Google’s absence from the Chinese mobile market has resulted in dozens of replacement app and content stores appearing online to service Android users.
Tomi Engdahl says:
Tony Fadell on the unique nature of Apple’s design process
http://www.networkworld.com/community/blog/tony-fadell-unique-nature-apples-design-process
Often referred to as the godfather of the iPod, Tony Fadell recently explained why Apple’s design process sets it apart from the pack.
Fadell explained that a key and yet often overlooked difference between Apple and other tech companies is that Apple ships 99% of the products that pass certain internal milestones. By way of contrast, during Fadell’s tenure at Philips – where he was charged with overseeing the company’s audio strategy – the iPod guru noted that Philips would axe 9 projects out of 10, even if a particular product was about to ship.
Nine times out of ten, or 99 times out of 100, they would kill the project, either at the beginning, the middle or right before the product was supposed to be shipped.
That can’t be good for morale and certainly lends itself towards creating a corporate culture where employees feel as if their work doesn’t really matter all that much.
“When you’re in a culture that has a point of view, and drives to launch everything it does, you know you’re on the hook and you better bring your best game every time,” Fadell explained.
Tomi Engdahl says:
Who Supplies Apple? (It’s Not Just China): An Interactive Map
http://www.chinafile.com/who-supplies-apple-it-s-not-just-china-interactive-map
Who’s Winning, iOS or Android? « Tomi Engdahl’s ePanorama blog says:
[...] Winning, iOS or Android? Apple’s iOS and Google’s Android clearly dominate the smart phone market. But who’s winning the mobile platform wars, Apple’s iOS or Google’s Android? It’s one of [...]
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