Google’s primary source of profit is search-related advertising while Apple’s is consumer hardware. And Google’s five-front assault on Apple’s profit model takes advantage of that difference.
Here are five of Apple’s fronts and how Google is attacking them:
Apple lags and has lost share in high end smartphones where 426 million units were sold during the first three months of the year. Gartner reported that in the first quarter of 2013, Apple’s global share of the high-end mobile phone market declined from 22.5% in the 2012 period to 18.2%.
Apple is number two to Samsung — which supports Google’s Android operating system. Samsung’s market share increased from 27.6% to 30.8% in the first quarter of 2013.
Android has already taken the tablet market lead from Apple. IDC expects Android to control 60% of the tablet market by the end of June 2013.
It wasn’t always so gloomy for Apple’s iPad. After all in the second quarter of 2012, the iPad commanded over 60% of the tablet market — but that figure has dropped ”to around 40% in each of the third and fourth quarters of 2012 and the first quarter of 2013,” reports Venturebeat.
And Android has been gulping iPad’s market share. Venturebeat notes that between the first quarter of 2012 and the first quarter of 2013, Apple swapped the lead with Android — in 2012 Apple outsold Android by 11.8 million to 8 million; while in that same period in 2013, Android trumped the iPad by 27.8 million to 19.5 million.
Moreover, IDC expects skies to darken for the iPad. In the second quarter of 2013, IDC believes that Apple will ship fewer than 19.5 million units because Apple is not launching what CEO, Tim Cook, called its “amazing” new hardware until “fall 2013 and throughout 2014.” Thus IDC expects Apple to ship between 17 million and 18 million iPads — leaving Android tablets with 60% of the market in Q2 2013.
When it comes to competing with Android smartphones and tablets, Apple can either cut price and slash its profits or hold its prices and win fewer new customers. Cook has yet to prove that Apple can innovate its way out of that profit-growth dilemma.
3. Apple Maps
Under a year after Apple removed Google Maps from the iPhone, Google introduced a new version that is simpler and can be customized to each user.
By sharing what Google knows about each individual from other services, Google can customize maps. According to the New York Times, “When users who are logged into Google visit Maps, they will see the places they frequently visit highlighted, like restaurants, museums and their home. Google learns the places they go by drawing information from all of Google’s services — including search and Maps history, Google Plus posts and information in users’ Gmail in-boxes.”
Bernhard Seefeld, the product management director for Google Maps, bragged to the Times, “We can build a unique map for every place and every click.” For those who are worried about Google knowing too much about them, this new service is creepy — but potentially useful.
Meanwhile, the memory of Apple Maps six most epic fails lingers.
Google is going after music streaming through the introduction of Google Play Music All Access (GPMAA) — a service that lets users stream music using Google Play for Android. For $9.99 a month, GPMAA combines “users’ current Play collections with access to millions of additional songs,” according to Fortune.
Meanwhile, Google was able to secure content deals with three major record labels—Universal Music, Sony, and Warner Music Group — and beat Apple to market with the streaming service that iTunes has long-been rumored to be developing, says Fortune.
The most important front where Google is trouncing Apple is innovation. To be fair, under Steve Jobs, Apple’s approach to innovation was to introduce a much better product in an established industry. The result was big success from great products like the iPod, iPhone, iPad, and iTunes.
But Google Glass’s big media splash suggests that creating entirely new categories of products can also be a way to spur growth. We can also speak about the Google Cars that can for sure impact also IT solutions.
Google certainly needs help there — since its traditional markets are slowing down.But it looks like Google is winning the war for the future: Google is offensive and Apple only defensive.
- Google’s Five-Front Assault on Apple (forbes.com)
- Who can rescue Google Wallet? Apple. (sivag1.wordpress.com)
- Google’s Five-Front Assault On Apple (soshitech.com)
- Google’s Getting Its Game (Console) On (newsy.com)
- Report: Google developing an Android-powered console (polygon.com)
- Why Apple, Google want to make consoles (stuff.co.nz)
Since 2012, no major innovation comes from Apple. The company collapses on Wall Street since September 2012, and the Dow Jones with, in April 2013.
Greater the success, greater will be the fall?
While Apple’s stock had exceeded U.S. $ 700 in September 2012, she fell yesterday to U.S. $ 380 in the stock market on Wall Street, nearly half! As a result, the New York Stock Exchange finished well in the red and the Dow Jones dropped 0.94%. Worse, Apple action now displays a price / earnings ratio of nine times, it is ie very low, worthy companies deemed (“Permanently screwed”) by the markets. group at Apple, must publish the results of its first quarter results on Tuesday, April 23 through a difficult period, punctuated by disappointments. Admittedly, expectations are so strong!
What ignited the powder?
Cirrus American company said this week that its unsold inventory “of a product from a customer” were greater than expected in the first quarter 2013. Yet the company is a leading provider of audio components for Apple on the supposed flagship models such as the iPhone and iPad and it generates 90% of its sales through Apple!
This concern on sales adds to doubts about the future of the company: the management team have a vision for the company? Did Apple really revolutionary new products in the hood? How to improve its margins in decline since its flagship products become commonplace?
On mobile phones, the lead taken by Samsung
In terms of mobile phones, Samsung, selling 25 million smartphones per month, continues to steal market share at the California firm. According to forecasts from research firm Strategy Analytics, the South Korean should hold 38% market share in 2013, while Apple on the other hand do have more than 19%. In 2012, the gap was much thinner since Samsung had 32% and Apple 21% market share.
2013 financial perspectives
If in 2012, the company has still reached $ 43 billion, up 10%, some analysts predict that Apple’s net income could decline by 18% in the first quarter compared to the same period of the last year it would be an absolute first: the benefits have not declined over the past decade!
Some data still green
Apple has $ 150 billion in cash reserves, and has no debts. It helps to relative the health of the company. Who can say the same?
- Action Apple baisse chute ventes (economiematin.fr)
- Biz Break: Has Apple reached rock bottom, or can it slide more? (mercurynews.com)
- What to Expect of Apple Inc. (AAPL)? (insidermonkey.com)
- Apple Shares Falls Below $400 Amid Slow Sales (gadget.com)
- Apple Inc. (AAPL) Will Regain Glory (insidermonkey.com)
- Crunch time: investors punish Apple (smh.com.au)
Using the data from December & January, we get the following market share split by platform.
This projection is likely to be somewhat conservative for Android tablets. Display shipments in February are likely to be closer to January’s figures, as compared to December, which puts the iPad’s market share under even more pressure.
In addition to this, rising demand from emerging markets is likely to continue to boost Android tablet shipments. Meanwhile, Windows 8/RT tablets seem to be following in Windows Phone’s footsteps.
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- Android tablets projected to outsell iPad for first time in 2013 (bgr.com)
- 7-inch Android tablets to overtake iPad in Q1 2013, analyst says (androidauthority.com)
- Sales of Apple iPads to be overtaken by Android tablets (telegraph.co.uk)
- Android tablet sales to overtake Apple iPad for first time in 2013: Report (news.in.msn.com)
- Apple’s iPads to fall behind Android tablets this year: IDC (news.yahoo.com)
- BlackBerry has big plans for 2013; Includes tablet and phablet device (mobigyaan.com)
Scaling innovation certainly does pose challenges – particularly when it comes to mobile, unless mobile is at the heart of your innovation strategy.
Today, the top 5 devices activated are iPhones and iPads and enterprise adoption of smartphones is reaching 80%. App development has also accelerated. Companies who were experimenting with a handful of business apps are now deploying dozens or even hundreds of apps. And organizations that were once considered early adopters are now joining the majority. Given the proliferation and impact of mobile, it’s easy to see why scaling mobile innovation is now critical.
But how do you accomplish this? And what role should your Mobile Center of Excellence (MCoE) play? There are four obstacles that may be standing in your way:
1. Putting All Your Apps In One Basket
Mobility is a channel, not only a technology. With expansive proliferation of mobile apps, mobile stores, point solutions and platforms, there is a significant risk of investing in the wrong place – or putting all your eggs in one basket — a point made amply clear by the high rates of mobile app abandonment after first use.
2. Organization Without Representation
How do you organize and operate to drive mobile innovation within your enterprise? What kinds of operating models can capture the strategy and innovation cycles of your mobile effort while also accommodating the sometimes-stormy implementation and survival phase? Identifying influential mobile stakeholders will help you uncover ottom-up alignment opportunities amongst those who drive and support use case decisions.
3. A Use Case is a Terrible Thing to Waste
Today with mobile, the transformation focus is shifting to business user behavior and engagement. Finding the right way to engage users or customers can direct process change and subsequently transform entire businesses and industries. Use cases that leverage mobile technology and provide the right level of business orientation ultimately become the strategic use cases that truly matter.
4. Not Innovating Innovation
To realize the true power of mobility, especially Enterprise Mobility, the innovation process must be ongoing. It needs to focus on finding, building, managing and operating the right mobile portfolio at a predictable cost while also evolving with the needs of your users.
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