iPhone & Android Comparison Aurel Jamilov 28.01.2011 Agenda • • • • • Introduction Business Comparison Software Comparison App Store: User & Developer Summary 2 Introduction: Mobile vs Desktop Source: www.greenorange.com 3 Business Comparison: Some facts from Internet Google Apple Motto Don’t be evil Think Different Key to success Algorithms Elegance Work ethic 20% of employees' time for pet projects 120% of employees' time for Steve's projects The employees who matter Engineers Designers How decisions get made Data, data, data Because Steve says so Car of choice Prius Mercedes SL55 Big challenge Can they make money on anything but search? Does anyone but Jobs have vision? 4 Business Comparison: Market Capitalization In 6 years, Apple’s market capitalization outweighed both the new and old tech champions 5 Bloomberg.com Business Comparison: Supply Chain Overview Figure 1: Supply Chain Overview Source: Communications of ACM 6 Business Comparison: Android vs iOS • 5 Nov 2007:Android announced • Oct 2008 First Android running smartphone • 1st 1 mln devices sold within 70 days • 14 OEM currently ship the Android based devices • 9th of Jan 2007 iPhone announced • 29 June 2007 market introduction of iPhone • First 1 mln devices sold within 74 days • Manufactured by Apple only 7 Business Comparison: Google Android Originally Search Engine/ Online Ad Business • Economies of Scale • Broad Handset Manufacturer Base • Supported by variety of Mobile Operators • New Platform for mobile ads • New business opportunities in HW segment 8 Business Comparison: Google Android Source: Jason Chen, 2008 9 Business Comparison: Apple iOS Originally in HW & SW Business • Premium Brand with high margin • Strong product ecosystem • Halo effect • Economies of Scale • Controls the seamless integration of hardware and software • Less bargaining power from supplier/ODM/buyer side • Faster response to market needs Strong Ecosystem fosters Apple’s “Digital Hub” Strategy through Halo Effect 10 Business Comparison: Apple iOS iTunes’ goal is to lock the consumer in Source: Apple Annual Reports 2009 11 Source: Gizmodo.com Business Comparison: VRIO Model Resources and Competencies Value Rarity Imitability Organization Brand Both Apple Apple Apple Hardware Apple Apple Apple Apple Software Equal Apple Equal Apple iPhone named based smartphone device by Engadget, Gizmodo, Consumer Reports, ZDNet, Walt Mossberg of Financial Times etc. 13 Sotware Comparison: Specifications Source: PCWorld.com 14 Software Comparison: Market Share Overview Source: Nielsen Company 15 Software Comparison: OS Traffic worldwide May 2010 Smartphones generate 46% of mobile media traffic in May 2010, up from 22% in May 2008 Source: www.greenorange.com 16 App Store Comparison • 1-2 bln downloads • More than 100K Apps • Jailbroken • More than 10 bln downloads • More than 250K Apps • Jailbroken 17 App Store Comparison Android and iPhone users spend 79-80 minutes/day using apps Source: www.open-source.com 18 App Store Comparison iPhone users and Android users spend similarly Source: www.open-source.com 19 App Store Comparison iPhone OS average purchase price higher than Android Source: www.open-source.com 20 App Store Comparison Source: www.open-source.com 21 App Store Comparison Source: www.open-source.com 22 App Store Comparison Source: www.open-source.com 23 App Store Comparison Source: www.open-source.com 24 Summary • Mobile on track to eclipse desktop in the year 2015, 1 out of 3 of phone owners using mobile media. • Globally mobile internet use has grown 43% over the last year • Android and iPhone users spend 79-80 min/day using apps • Over the past year (from May 2009) the number of Android devices has grown 29% Enjoy the great products from both sides! 25 Bibliography • • Burrows, Peter, „Apple VS Google.“ BusinessWeek, 1/25/2010, Issue Nr.416 Linden G,Kraemer K, Dedrick J, ” Who Captures Value in a Global Innovation Network? The Case of Apple’s iPod” Communications of the ACM, March 2009, vol. 52, no. 3. • • http://www.apple.com/pr/library/2011/01/18results.html http://www.comscore.com/Press_Events/Press_Releases/2011/1/comScore_Reports_November _2010_U.S._Mobile_Subscriber_Market_Share • • • www.millennialmedia.com/research http://bits.blogs.nytimes.com/2011/01/21/will-apple-put-the-iPhone-on-other-carriers/ http://www.pcworld.com/zoom?id=208491&page=1&zoomIdx=1http://www.reuters.com/article /idUSTRE6AS0XB20101129 • http://touchreviews.net/apple-ios-android-web-share/ 26 Thank you!