In all likelihood, this is part of series of mobile competition is not the same kind of album that one part, because this time we do not need the pros and cons of each system to explain. In the first part, we have noted, and the pieces, this time we have organized the pieces together and see how it all fits. We explained the first point, we wanted to do, which means that there was no “best” mobile operating system, there is only what is best for you. This time we are prone to this extension, because in the glow of a crown of king of the hill, we forget that all the players pushing each other on this hill. As we said in Part 1: Quality is everywhere in the nature of competition.
The name of the game
To start from this, we need something we have tried to explain in the past have to repeat: while the mobile space is a competition, not everyone plays the game itself. This is a very important distinction to make, because we often like to remind them that the number ultimate indicator of performance, and therefore the ultimate indicator of the “wins”. Unfortunately it is difficult to name a winner, if companies do not play the same numbers. So who plays what?
Mobile Competition Part 2: The circle of competition
Apple has to play in revenues, not market share. Apple is a hardware company is unique because it maintains tight control over his material with a closed software platform. This is why Apple is the best way to make money on margin, because there is a much safer long-term strategy for a market share that is very picky target (just ask to RIM.) Path for Apple’s success to its unique marketing / media buzz, its outstanding design and exceptional content store will be built. Apple has been happy to tout its market share as a sign of dominance, if it was for the marketing campaign, but the market share has never been the game for Apple, and so if one market share has fallen, the advertising changed direction to its business content. The first version of the iPhone, it was clear that Apple is already pressure on market share. If Apple wanted to market share, it would be the iPhone to all air carriers already published. Instead, Apple has the false scarcity created by its exclusive agreements with different carriers. This false scarcity driven demand with the help of marketing and media hype around the device, so Apple iPhone unprecedented subsidy margins on hardware makers to achieve. And of course those which lead to huge margins of profits and gains. In the second quarter of 2011 accounted for only 5.6% of Apple’s iPhone is the worldwide mobile devices (not just smartphones, but all phones), but accounted for 66% of the profits from the first 8 mobile manufacturer, the closest to the was only 15% for Samsung. It is the power of Apple’s margins, which plays the game from Apple, is not the market share. That has always been a game of Apple, and probably always will be.
On the other hand, Google and Microsoft are two software companies, and the kind of profit as a software company by market share. Of course, even if both play for market share, they are still not playing the same game, because Google has a head start in race 3 years of modern smartphone (for Windows Mobile has a not-), and Microsoft is still catching up, both in functionality and visibility of the OS market. Additionally, Google has not calculate fees for the use of Android. Google makes money through the Android Market (the devices are not required to use), and advertisements, both in and around the app browser. Google wants Android to any device, because the vast majority of these devices, the standard Google search, which means that all the research lead for Google ads means to keep. The problem that Google faces, as we have explained that more and more of a library of content is a necessity to push a mobile platform, especially in expanding into the print side of things. For this reason, we have seen, Google pushes into the room through television deals with Google TV content provider, and another offer for Hulu and video library. Although Android is building its market share leader in this time understands how Google market share can be fickle, and must develop its product range.
Microsoft does not charge any license fee, and if it can be relatively low (about 8-15 dollars per phone), it takes up to a certain income. For example, in the first quarter of 2011, HTC has sold about 800,000 units WP7, which he means to make a minimum of 1 million mobile phones. That alone makes the production of $ 8 to $ 15 million in royalties to Microsoft, regardless of whether the sales of HTC. It’s not a huge sum for a company like Microsoft, but some income as Microsoft slowly forms the basis WP7 more aggressively compete for market share. The real impetus is likely with Microsoft Windows 8, has come to the same kernel on traditional PCs and mobile version of the rumor, allowing for cross-platform applications and integration. Windows 8 is supposed to allow a new technology, it would in a number of cores in processors, which should start to develop the devices much faster iteration.
To complete the field of competition, we have several manufacturers that choose the best platforms to replicate their needs and create the possibility of building platforms in a bid to the models used by Apple or Microsoft. But whatever they do, now is the mobile OS space is a two-horse race between Apple and Google. This can certainly change and probably will, but it will be a relatively gradual change. However, the mobile world, not only software but hardware as well, and in that respect individual companies in the group of competitors.