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Apple vs.

Google in Smartphone OS
(iOS vs. Android)

Submitted by:
Group 8
Ashish Kumar Verma (212)
Pratik Bhattacherya (209)
Mohit Pathaniya (142)
Chetan Mukhyan (227)

Mobile/Tablet Operating System Market Share


January, 2015 to August, 2015

Operating System

Total Market Share

Android

50.08%

iOS

40.95%

Java ME

2.99%

Windows Phone

2.42%

Symbian

2.38%

BlackBerry

1.05%

Kindle

0.06%

Bada

0.01%

Leading players:
1.
2.
3.
4.
5.
6.
7.
8.
9.

Google
Apple Inc.
Research In Motion(RIM)
Microsoft
Amazon
Oracle
Samsung
Mozilla
Ubuntu

Products offered:
1. Mobile phone OS

2. Hardware Devices( Smartphones, tablets, wearable devices, infotainment system


for 4 wheelers)
3. 3rd party applications for mobile OS ( App store)
4. Enterprise services
5. Cloud computing services
6. Messaging services
7. Video chat services

Industry Structure
As all these are software so they require hardware to run. Only Apple, RIM and Samsung
have dedicated home grown smartphones for their OS. Samsung also develops
smartphones and feature phones for other OS. Microsoft also uses their own hardware as
well as 3rd party hardware.
All other players on this industry require tie up with other hardware makers and network
providers for the sale of their OS through the sale of these smartphones.

Comparison
chart

Column1

Developer
Initial release

Android
User Rating (1475):
current rating is 4.13/5
Google
September 23, 2008

Source model

Open source

Customizability
Easy media
transfer

Available on

Messaging

App store

Video chat
OS family
Programmed in

Column2
iOS
User Rating (1360):
current rating is 3.84/5
Apple Inc.
July 29, 2007
Closed, with open source
components.

A lot. Can change almost


anything.

Limited unless jail broken

depends on model

with desktop application

Many phones and tablets,


including Kindle Fire (modified
android), LG, HTC, Samsung,
Sony, Motorola, Nexus, and
others.
Google Hangouts
Google Play 1,600,000+
apps. Other app stores like
Amazon and Getjar also
distribute Android apps.
(unconfirmed ".APKs")
Google Hangouts
Linux
C, C++, Java

iPod Touch, iPhone, iPad, Apple


TV (2nd and 3rd generation)
iMessage
Apple app store 1,500,000+
apps
Facetime
OS X, UNIX
C, C++, Objective-C

Dependent on a
PC or a Mac
Open source

No
Kernel, UI, and some
standard apps

Widgets
Call features
supported
Internet
browsing
Interface
Voice
commands
Maps

Market share

Available
language(s)
Latest stable
release
Device
manufacturer
Working state
Website

Yes
Auto-respond
Google Chrome (or Android
Browser on older versions;
other browsers are available)
Touch screen, Smartwatch,
AndroidTV, Android Auto
Google Now (on newer
versions)
Google Maps
81.5% of smartphones
globally (2014), 3.7% of
tablets in North America (as of
Jan'13) and 44.4% of tablets in
Japan (as of Jan'13). In the
United States in Q1 2013 52.3% phones, 47.7% tablets.

No
The iOS kernel is not open
source but is based on the opensource Darwin OS.
No, except in Notification
Center
Auto-respond, call-back
reminder, do not disturb mode
Mobile Safari (Other browsers
are available)
Touch screen, Smartwatch
Siri
Apple Maps
14.8% of smartphones globally
(2014), 22.8% of tablets globally
(2014), 87% of tablets in North
America (as of Jan'13) and 40.1%
of tablets in Japan (as of Jan'13)

32 Languages

34 Languages

Android 6.0(M)

iOS 9

Google, LG, Samsung, HTC,


Sony, ASUS, Motorola, and
many more
Current
android.com

Apple Inc.
Current
apple.com

Apples competitive advantage


Barney (1991) suggested resources such as physical, human and financial capital that
enable an organization to conceive and implement strategies, improve efficiency and
effectiveness leading to a competitive advantage are organizational resources. In
heterogeneous environments, organizations can have a first-mover advantage in terms
of the resources. Apple was a first-mover in the mobile operating systems, launching the
iOS before the Google Android in 2007. One could argue Porters (1980) theory on
barriers to entry is applicable to Android. As a relative first-mover, iOS was able to garner
approximately 20% market share by 2009 (Gartner, 2010).

Several articles review the simple, user friendly, yet astutely designed interface of the
iOS got users attracted towards Apple devices. However, Apple created an unrivaled
combinationan iEcosystem consisting of iTunes, iDevices, AppStore Apps, and
partnership with telecom carriers such as AT&Tto deliver a competitive advantage that
was unmatched at the time. Apple is known to maintain strict control over its hardware
and software, but with the mobile devices it appears Apple made it a strategy to control
every aspect of the consumer interaction. Apple not only controls the hardware and
operating system, but also reviews and approves all the apps that go on the AppStore.
One could argue Apples competitive advantage partially lies in its strict control of every
attribute and resource engaged with its products. For example, limited number of device
sizes has allowed iOS developers to easily create good looking apps for the iOS. An easy
to use interface, good design, multi-touch enabled features, productivity and
entertainment apps, a proven music player and the Apple brand provided an unmatched
competitive advantage for the Apple iOS ecosystem.
Apple has continued to create and maintain sustainable competitive advantage by
introducing innovative products such as Siri and extending partnerships with telecom
carries such as Verizon and Sprint (Apple, 2012).
Googles competitive advantage
The first smartphone with Googles Android operating system was released in October
2008 (Google, 2012). As a comparative late-mover, Android had a barrier to entry in
being compared with the iOS (Porter, 1980).the source code is freely available, anyone
can develop it, on it, add features and adapt it. Apps on Google Play store are approved
by an automated system and the system is more lenient compared to the AppStore.
Google works with and depends on partners such as Asus, Acer, HTC, Samsung, and
others to build devices around its operating system. Such an arrangement provides
Googles customers a wide array of devices. For example, in comparison to the 10.1 inch
iPad available on the iOS, the Android has 4, 5, 7, and 10inch tablets manufactured by
several brand names around the world.
The Android devices offer almost similar basic functionalities such as multi-touch gesture
recognition, 500,000+ productivity and entertainment apps, and multi-tasking. However,
Android additionally supports extended memory and comes pre-integrated with several
other third party services such as DropBox (Google, 2012). It appears Android releases
more frequent version updates than the iOS. For example, since 2007 iOS has received
five major version upgrades in five years, compared to eight for Android in less than four
years (Apple; Google, 2012).
Google has continued to create and maintain sustainable competitive advantage by
introducing innovative products such as Google Now and twice as many version releases
of Android compared to the iOS. With the purchase of Motorola Mobility, Google is also
entering the hardware business to provide a more controlled consumer experience
(Albanesius, 2012; Google, 2012).

Conclusion
Apples market cap has grown from under $100 billion at the time of the iPhones launch
to over $650 billion in 2015. Apples growth to become the worlds most valuable
company has occurred as the worlds major economies have struggled through a
recession (Apple, 2012; Rose, 2007). The iOS running iPhone and the iPad are one of the
fastest selling devices ever made (Naone, 2011). Android has seen its market share grow
from less than two percent to 50% in less than four years. Google has introduced several
features that compete with and even outclass the iOS. Google Androids growth rate has
been faster than Apples iOS.
It can be safely argued that both operating systems have created competitive advantage
using differing strategies. Apple has preferred control over all aspects of consumer
experience whereas Google has been more liberal and partnership oriented so far. Both
organizations have managed to keep a sustainable competitive advantage so far, based
on innovative ideas, new product launches, and profitable partnerships. However, with
mounting competition from companies such as Microsoft, Apple and Google should
continually explore alternative options to retain their market share and sustainable
competitive advantage.

Counter Strategies
1. Apple introducing iOS 9 to counter Android M
2. The merits and drawbacks of the Android and iOS platforms are widely argued.
Apple fans tout the closed ecosystem of iOS as a way to ensure uniform quality
and reliability of apps and hardware.
Android supporters respond with arguments about the wider choice, flexibility,
customization and open development that their favoured platform provides.
3. Android wear made available on iOS.
4. Google introducing its software services on iOS.
5. Apple and Google have been engaged in a back and forth to add new features to
their operating systems for some time now. Apple went first with its Siri voice
assistant for the iPhone 4S.
Google has since responded with Google Now, which not only allows voice
commands and queries, but draws in location and other data to suggest
information proactively to Android users.
6. Apple upped the ante with its TouchID fingerprint scanner which offers enhanced
security for the newest iPhone devices, as well as a quicker way of unlocking
phones than entering a passcode.

Android manufacturers have followed suit. Samsung's Galaxy S5 and HTC's One
Max Android phone both have the functionality, but the Apple Touch ID scanner is
still regarded as the best on the market.
7. Android is the only operating system with support for multiple user accounts. The
functionality was added in Android Jelly Bean and has since been updated and
refined in Google's latest Lollipop version with the addition of managed profiles.
8. Apple is clearly keen to push its devices into more enterprises, having signed a
deal with IBM last year to sell more iPhones and iPads to businesses.
However, Android firms are clearly making efforts to improve the enterprise appeal
of Android from a support position, and the deal between Samsung and Good
Technology is an example of bringing enterprise support onboard.
9. iPhone don't have many different models to choose from as Apple announces just
one or two new handsets each year. With just a few iPhone models to choose from,
businesses adopting iOS will be able easily to keep track of which device each
employee is using, and will find it simpler to secure each one. Admins can also be
sure that all devices will receive software updates at the same time.
Android offers a lot more choice, and employees can pick a device to suit their
needs. This is also beneficial when it comes to price. Google offers a mix of
affordable and high-end devices, while Apple's iPhones all come with a top-end
price tag.
10.
Apple has always maintained a firm grip on its platform, rolling out updates
to everyone at the same time and encouraging people to download them. This
means that the firm can already see that over 70 percent of iOS device owners are
now on iOS 8. This is within just six months of the operating system being
released, and yet would be considered a slow uptake by previous iOS adoption
rates.
Conversely, Android has always suffered from fragmentation, with multiple
versions of the operating system in use at any one time. This is not helped by the
updates released by Google having to pass through manufacturers first.
This means that updates arrive at random times in different locations and for
different phones, leading to even wider fragmentation, which poses major security
problems for businesses and individuals.

Critical appraisal of the strategies/tactics of the firm and its rivals


1. Google has a focus on operational excellence. They aim for low cost and high
market share. Google is focusing on optimizing the software. Apple has a focus on
product leadership and aims to make the best products in the world. Apple is
focusing on synergy of hardware and software.
2. Primary apps like Facebook, maps, email, messaging, and Twitter make phones as
important as air and bacon. Secondary apps can be free, paid, or games with
magic potions for sale. Combined, they make or break an OS. Individually, they
wield little power. Services are the Holy Grail for apps. Standouts like Spotify,
Netflix, Evernote and Dropbox collect monthly or annual fees a feat mostly
reserved for carriers.

3. Google services must either make money from ads or collect info to enhance ad
targeting. So its not surprising to see Android borrowing Windows old strategy
becoming universal. Google wants Android on every device, in every pocket. Unlike
Microsoft, theyre giving Android to manufacturers for free and monetizing through
ads. This poisons the well for Microsofts paid OS model. Googles mobile strategy
works like a two-tiered sleeper cell. For high-end users its about infiltrating hostile
platforms, like iOS. And someday, consuming its host. Even if it cant earn much on
iOS, Googles primary apps (Maps, Gmail, Hangouts) can build loyalty, collect data,
and feed off-platform revenues.
4. Apples primary apps range from serviceable to disastrous. Theyre still finding
Chinese tourists in the Pacific after using Apple Maps to drive to Japan. Google is
taking advantage. Its infiltrating iOS with better apps like Maps, Gmail, Drive, and
Voice. Essentially, Google is Appvertising Android on iOS.
5. Google Inc. believes it is an innovative software company and is taking a page out
of Microsoft's playbook -- control the software and leave the hardware to "the
experts". Google also believes in the concept of an open platform -- that the input
of
many
will
improve
the
power
of
the
one.
On the positive, this strategy allows more money and intelligence to be thrown at
building the operating system, which should lead to Android releasing
more features than iPhone over the long run. Google also gets the power of a
community helping to develop its product which is not only cheaper in the long
run, but helps create those features faster and more efficiently.
On the other hand, this will also undoubtedly lead to incredible fragmentation.
Apple (company) believes it is an innovative product company and is taking a page
out of... well... its own playbook. Control the product and be the experts.
On the positive, this strategy allows control of the end-to-end experience. A perfect
example of this is voice technology. Android was first to get this technology out -users could use their voice to do data entry, which made it easier to use voice than
keyboard. Not exactly innovative, but definitely a cool and helpful feature. Apple
then -- much later, of course -- introduces Siri (in addition to voice data entry),
which allows you to use your voice to accomplish things, which not only addresses
data entry but rather the actual problem users were trying to solve: "I want to do a
few things with my phone but it takes so many taps and screens to do!".

Recommendations:
1. The Internet of Things revolves around increased machine-to-machine
communication; its built on cloud computing and networks of data-gathering

sensors; its mobile, virtual, and instantaneous connection; and they say its going
to make everything in our lives from streetlights to seaports smart.
Google announced Brillo, the "underlying operating system for the internet of
things," with a developer preview coming in Q3 of this year. Brillo is "derived" from
Android but "polished" to just the lower levels. It supports Wi-Fi, Bluetooth Low
Energy, and other Android things.
2. Over the next few years our phones will become even more important for making
payments, transferring money and verifying our identity.
New services like Google wallet, Samsung Pay will make android more competitive
in comparison to iOS.
3. Better coding for better and efficient resource utilization so that hardware
requirements such as less RAM and internal memory is required. Efficient software
will also help in increasing the battery life.
4. Android One: Google tests Android One phones to ensure theyre fast and
responsive - and that they stay that way over time. This ensures faster
performance when jumping from app to app, better multitasking, more responsive
touch and long-term performance.
5. Google could also limit the number of screen combinations it allows its hardware
manufacturers. For example, screen sizes for the smartphone could be limited to 4, 4.3
and 4.7 inches. Tablets could be restricted to 5, 7 and 10 inches. This would allow for a
better UI experience. Google could also screen apps on the Play store more closely to
ensure a better UI experience for all devices.

Summary
The two companies are focused on different things. Google is focused on software, and
Apple is focused on user experience. That's why Google will release hundreds of
features while Apple only releases a fraction of that each year. That's why Apple will
release a number of innovative features that change the way we think about using
technology while Android will probably turn those ideas into more open, developeraccessible
elements.
And that is, to a degree, the fundamental differences between Google and Apple
strategies as it pertains to their mobile platforms.