Android kicking Ass Taking Names

According to the latest report from Nielsen, more and more new smartphone owners choosing Android phones over others. Android has passed the iPhone and BlackBerry to become the popular operating system for people who bought a smartphone in the past six months. 32% is the percentage of the new smartphone owners that chose a phone with an Android operating system, while 25 percent chose the iPhone OS and 26 percent chose RIM’s Blackberry smartphones.

It’s pretty amazing to watch Apple make the same mistake all over again with their closed system mentality. How can Steve Jobs not seeing this? He’s a genius when it comes to building awesome consumer products but completely blind to the fact that being closed is a short term win and long term loss. Perfect example of that myspace vs Facebook. By the time myspace decided to pull their head out of their ass to become as open as Facebook, it was way too late.

While consumers may have a peaked interest in Android phone, Apple’s iPhone marketshare remained steady from Nielsen’s June findings. While Apple’s marketshare is still up by a significant amount (ten percentage points) over Android phones, it’s impressive that Android is surpassing the iPhone in terms of new interest and recent adoption.

Again, it looks to me that Apple’s creativity, usability expertise and marketing is on the bleeding edge but their “closed” business strategy is living in the 90’s. They will need to keep spitting out new products on their own (which they will likely do a great job of) while google benefits from everyone’s product and marketing teams, including newcomers who will challenge and could even beat Apple at it’s own game. In 3 years google will make more money from phones than apple does, the writing is on the wall.

I believe this is why Android will ultimately dominate the mobile market (and other electronics markets). Apple, RIM, HP and others choose to keep their OS proprietary, or don’t want to promote their OS to other manufacturers like Nokia with Meego.

All this means they will have small market share by default. Just like Apple chose to keep its MAC OS proprietary (and again with iOS), while Microsoft let every PC manufacturer use it.

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About Elias Shams
I have been a serial entrepreneur in telecom and social media space for past 12 years or so. I hold a M.S. degree in Telecommunication Engineering from the George Washington University and a B.S. degree in Electrical Engineering from the University of Maryland. I’ve lived and worked in many countries and cities including London England, Tehran Iran, Bonn Germany, Paris France, Alicante Spain, Delhi India, and my favorite of all Washington, DC of great US of A. Two of the greatest Washington, DC based companies I worked for and very proud of are Yurie Systems which was sold to Lucent in 1998 for $1.23 B and telezoo.com that I founded in 1999. I am currently the founder and awesomizer @ awesomize.me

9 Responses to Android kicking Ass Taking Names

  1. Duck! Fan Boys are coming!

  2. Mike Barnes says:

    Elias,

    I completely agree with you that Android will dominate in the next few years, though I won’t try to predict the next big thing after that. I have an Android phone and it’s brilliant (although far from perfect). One thing I think we need to avoid getting trapped into though is the market share buzz. If Apple keep a significant minority share of a total global smartphone market then they will still be highly profitable. The folks that buy into the closed system of Apple, and buy a Macbook and iPhone, maybe a desktop too, maybe an iPad as well… That set of people does not need to be anything like a market majority for Apple to be extremely rosey. Whereas in the Android fraternity there will be winners and losers all finding it hard to differentiate themselves and probably cutting margins as part of that aim.

    So all in all I’m sure that the future is not Apple, but the future will certainly contain Apple for as long as they continue to make a joined-up desk/portable/mobile offering that appeals to enough people.

    The company with the biggest issue is Nokia – having the significant majority of mobile phones out there is worth nothing to them as that is money which is already in their bank. When it comes to a joined up story, they are nowhere.

    • It really depends on what the intention is, no? Apple’s never been one to strive to just have the largest number of sales. They make more money per phone than anyone else, they don’t need to license their OS. Opening up to new Carriers is going to help sell more phones, perhaps by quite a lot

      Look at their history, I watched them license and then *stop* licensing MacOS. When you license, you have to make a lot of compromises when you have to take other people’s needs into consideration. It drives down the premium you make on hardware, etc…

      Also, and perhaps more importantly, it also dilutes your view on who the customer is.
      Is it the person buying your phone (say your Sister) or the person who’s licensing your product (say Dell)? IMO, that’s where Microsoft got into the weeds with their Windows Mobile 6-based handsets…

      Let competition set the stage, and see who comes up with the best answer. Everyone will do something well, and that helps point the way for the others on what to do next.

  3. Is Android going to be new Java ME ? Devices are more and more powerful, I belive that in next few years smarphones will dominate mobile market with Android on most of them.

  4. Smartphones are now the smart choice. Ease of access and functionality are the fabric of progression. Activity gets the attention and sparks the minds of most developers. The technology is as important as the talking.

    • Greg Wood says:

      Keep in mind that the android OS is on several different phones, that certainly helps. I would like my iPhone on Verizon, but I do NOT want Verizon to control the phone and start adding unwanted apps to the phone. I think that this may be a point of contention between steve and the big Verizon. My wifes phone (droid x) has apps on it that Verizon puts on it that she cannot remove. I do not believe that the problem with the iPhone is the “closed system” I believe that the problem with the iPhone is AT&T, get away from AT&T and get to a carrier that has actual coverage and you will have a phone that kicks ass and takes names. I live in an area with edge coverage from AT&T and the data rate is slow, call quality is lacking. I would like to live where there was 3G coverage, I think AT&T should step up the rate of network upgrade for the amount of money they are making. My $0.02

  5. FunkySantaClause says:

    “In 3 years google will make more money from phones than apple does, the writing is on the wall.

    I believe this is why Android will ultimately dominate the mobile market (and other electronics markets). Apple, RIM, HP and others choose to keep their OS proprietary, or don’t want to promote their OS to other manufacturers like Nokia with Meego.”

    Hmmm… but Nokia makes more profit than hole Android makers together, i´ll think that those Android makers will compete each one of them to death..!! And the winner is and will be Nokia with Sympian and MeeGo..=)

    • I prefer iphone+iOS to Android:
      – works nicer
      – looks nicer
      – generates more money for developers
      – less piracy
      – smaller cost of ownership for companies
      – can incorporate code written in C/C++ more easily

  6. I would love to see an open system succeed ( guess that’s more like a political orientation ), but Dejan has a very valid point there. Android developers are making less for their efforts compared to iPhone developers, strictly referring to professional developers and based on self experience. Platform fragmentation might be a good thing if those fragments were of sizable market value and size but that is not the case. Besides, the pace of upgrades on Android is too quick and all that might be good for media hype but is very very expensive and taxing to the developers who have to be on their toes all the time, even though they are not laughing their way to the bank.
    IMHO, Android with all it’s fancifulness and great PR, will need some radical changes if they want to continue in the race 2 years down the line.
    It will be interesting to hear other views.

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