Google VS. Apple
Google’s been on a tear lately with its Android operating system. It has become the most popular phone operating system, commanding 40% of the smart phone market, and still expanding at an incredible rate. It’s hard to imagine that the adorable little green android’s humble beginnings on the bulky, sluggish, and unpromising T-Mobile G1. From there came a torrential downpour of phones, each better than the last until finally we had a true iPhone competitor with the HTC Incredible (Verizon’s rendition of the first Google Nexus phone). From then on it has been a chase, every year Apple would announce a new phone that would blow all the current Android phones out of the water and the enclave of Android would continue to push back until a clear competitor would arise and the cycle continues. But, while this trend is what makes Android profitable, it is also a huge crutch moving forward. Android is the bestselling OS by far but three major aspects of its growth keep it far behind Apple’s throne:
- In all its growth, the Android OS has managed to completely avoid Apple’s market share. Apple has been growing steadily and untouched since the first iPhone came out. Every year they break records (4 million in the first weekend this year) and every year they mint more and more income. Android has actually planted itself in the lush soil left behind by decaying giants Nokia, Windows Mobile, and BlackBerry.
- Android also isn’t that profitable once you break it down. Google actually makes little or no money on the operating system itself, it just gives it away and profits on the tail end with the search engine, baked in services and (mainly) Android Market… That’s how it’s supposed to work at least. In reality the Android Appstore isn’t even as profitable as Blackberry App World even though it commands more than twice the market share. The companies are also not touching Apple’s numbers individually.
- And the biggest reason, like it or not, is that they’re just not Apple. Before you light your torches, let me explain myself. An Apple product just has an air of prestige and class that no Android phone has matched to date. Even six months after the iPhone 4 was announced, it was still outselling the latest and greatest of the Androids even with their dual-core, LTE, massive screen and all that. No Android has ever been a heavy hitter after more than three months of shelf life.
And I shouldn’t forget to mention Apple’s earnings on the iPhone. No phone comes close to having the same market dominance as the iPhone. In fact, carriers pay top dollar just to have the iPhone in their line up just because it brings that many customers. Sprint’s deal to get the iPhone on their shelves is losing them money and they won’t start making returns on profit until 2015! That just shows you how strong a presence the iPhone has. Add to that the amount of capital Apple has to put towards R&D for new devices and their complete control of hardware and software and it doesn’t look like they’re being dethroned any time soon.