Since Google released the Android mobile operating system, observers have carefully watched to see when they would overtake Apple in mobile market share. It seems as if every month a report would come out showing how Google was quickly catching up with Apple and that it was only a matter of time until Apple fell behind in market share. The way it was reported, you would think market share was the only measure of success in the mobile OS industry.
In recent months, Apple has come under ever harsher criticism for restricting its devices to one carrier instead of opening them to all carriers as Google has done. Analysts predict at every product announcement event that “today will be the day Apple opens up the device on Verizon and other carriers”, but they are then surprised when Apple does not make the change.
However, when you look at the Apple’s track record for the past 30 years, people really shouldn’t be surprised by the strategy Apple is following. Apple likes to strictly control its products and partners. Every wireless carrier in the world would carry Apple devices if they could, thus giving power in that relationship to Apple. If there is a disagreement, Apple can always move to another carrier. If they opened it to everyone, they would lose their control over their partners. The last thing Apple wants to do is lose control over the relationship and its products.
Additionally, it is only recently that Apple became a mainstream brand – for decades, it was a product for professionals and the elite. They have never gone after huge market share, but rather for superior products and groundbreaking design. People pay more for Apple products in general because Apple (through Steve Jobs) gives them exactly what they need and not every possible feature available (as Microsoft does), creating a more clean and flawless experience.
Rather than wonder why Apple is losing the battle against Google, we should look deeper at what Apple is really doing and notice they are competing on a far different strategy than Google (and Microsoft). It is no accident that they have seen more growth over the past years and have a higher market value than both companies. Apple is looking out the windows laughing at the critics, because they know by the time everyone figures out their strategy, it will be too late to stop them.
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ReplyDeleteInteresting perspective, Nate.
ReplyDeleteSince when is Apple selling iOS instead of a user experience that, BTW, has yet to be duplicated on any other platform currently on the market? Apple's ability to monitor and maintain that high quality experience is part of what makes their products so desirable.
However, I have no doubt that we will see the resurgence of the iPhone, measured now by the prevalence of the iOS, as it makes its way onto the Verizon network in the coming year.
I disagree. I believe that Apple's strict control over partners and products will cause it to fall out of favor again. Maintaining a competitive advantage in innovation is difficult for one company to maintain. Apple will always produce a quality product. However the openness of the Android platform will allow them to sift through the ideas of the masses and extract the gems.
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