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Monday, February 21, 2011

Google Versus Apple: Why Google Is Winning

300,000 Android activations per day; this number was recently tweeted by a Google executive and is generally accepted as a reliable source. While this figure does not correspond one-to-one to the number of Android platforms sold per day, just a few months ago that number of devices was “only” 200,000 per day. Considering the rate of growth, the 300,000 figure is certainly realistic now. That equals at least 10 million Android activations per month.
Not only is Android one of the most successful OS roll outs in history, but the increase of its growth rate is even more astounding. Google is the master of the Internet and now, the company is positioned to take the throne as “master of the mobile OS ecosystem.” Apple Inc., arguably the first in the spotlight with a hit smartphone, the iPhone, is currently losing to Google. More than that, the company is losing to Google just like it lost the desktop market to the WinTel monster before-WinTel is the “code name” for the Windows/Intel takeover of desktop PCs. Failure to properly estimate opponents’ abilities to respond. The company seems to act as if it controls itsr own private market and is the only monopoly in town.
The Apple Mac Decline
The first big hit for Apple in recent memory was the MacBook Air. It was OK as a laptop, but wizard at looking good and being easy to carry. Fashion has value, and Apple knows fashion. Nevertheless, most laptops are not Macs. Last year, Apple penetration in the hardware world dropped from 7.4 percent to 6.4 percent, and it is likely that it will never get back those percentage points ever again.
Apple is known for its devotion to an exclusivity and elitist tone to its marketing which emerged from its only real success in the past the educational and art market. The competition is focusing on the whole market. Another recent study shows that Apple has 90 percent of the over $1,000 desktop computer market. The truth is clear, Apple is up-market, and the money is down-market. So how is Google managing this massive victory? Simple, using the “free” word.” Android is free, just as Google Maps, Gmail, and most everything else that Google does is. Rare is the consumer that has paid Google Inc. for anything.
A Simple Statement of Truth
Those who ignore the past are doomed to repeat it. In the past, Apple fell so far from corporate grace that only a $150 million cash infusion from Mr. Microsoft, Bill Gates himself, saved the company from the history books-and from bankruptcy. The reason for this was the cloister nature of the company and its product line. Apple is the only maker of Apple computers. Any company that wants to can make a Windows based PC.
For years, Bill Gates and Microsoft walloped Apple by focusing on the Windows OS and leaving the hardware to others; does this sound similar? Apple’s Mac OS X is closed, and so is the market for its software products. The Apple App story started out with higher inventory than any other app store did because it was the only one that could offer apps for Apple products. Now, the Apple App Store is slipping into second place because of the flood tide of Android developers and products-most free of charge.
Ironically, Apple rejected three Google Apps for inclusion in its App store and most iPhone and iPad users search the Internet with Google from their Apple devices. With the success of the iPhone, Apple had an opportunity to change its ways. The company chose to do what has always not worked for it, and the future belongs to Google and Android because of it.
By focusing on the widest market distribution, Google ensured that most all smartphone hardware manufactured now and in the future will run Android. It did this by giving away the Android OS free of charge and at that price who can afford to shop elsewhere? Apple will fade from history in the same way that it has faded from history in the past. However “all the best people” will still be seen in Starbucks with an iPad for a little while longer.
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Bob T. Wilson is the technology writer at velocity guide, a site dedicated to keeping its readers informed of the constant advances in mobile computing technology and Internet Service.

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