Why Apple cannot sit back on its 100,000 apps? [Opinion]
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This is a great time to be writing this post. Like everyone else, I am excited about the launch of Motorola Droid and this is a great opportunity to take stock of the smart phone market. Today, I analyze the impact of Droid and other handsets on Apple, the de-facto smart phone leader.
Apple had a significant early mover advantage in the smart phone arena and it has done well (so far) to protect its lead. However, unless Apple gets into the act quickly, the future may not be as rosy as the past. This assertion is based on the following points…
- Competing Handsets/Platforms: When the iPhone was launched, there was literally no other smart phone that was even half as good as the iPhone. Not surprisingly, Apple scored a home run. However, things have come a long way since then. Android as a platform has come of age and is being developed rapidly. Android already has received support from several leading handset manufacturers including HTC, Motorola, Sony, Toshiba, etc. The amount of money pumped into the Android ecosystem far exceeds Apple’s investment in iPhone and we are already seeing the results. The latest Android phone – Droid is touted to be almost as good as (or even better than) the iPhone and the next generation phones will only get better. The year 2010 is touted as the Android year. A solitary iPhone may not meet everyone’s requirements, but the range of Android phones is sure to satisfy every requirement.
- Mobile Network: Apple’s exclusive contract with AT&T to carry the iPhone does not help either. AT&T is not the carrier of choice for a vast majority of the population. AT&T’s spotty network, limited 3G services, and exorbitant data plans have been ridiculed over and over again (remember there is a “map” for that!!). Consumers have greater (and better) choice with Android and other phones, e.g., Verizon, Sprint, etc.
- Apps: Apple’s biggest advantage is the number of apps in its app store. A recent statement puts the number of apps over 100,000. This is a huge lead as compared to the next biggest platform Android, which has about 10,000 apps. While Apple may bask in the glory of the size of its App store, reports indicate that most of these apps are useless and are seldom used. Android is already attracting developers to work on its platform – the number of Android projects started have grown over 94% in the recent past. Moreover, platforms other than the App store offer greater margins for the developers. Further, developers are not subjected to Apple’s whims and fancies.
- Google: The biggest threat to Apple comes directly from Google. Google has made no bones about its interest in the mobile space and Android provides a perfect platform for its mobile aspirations. Unlike Apple, Google has great apps to offer on its platform. The recent move to offer free turn by turn GPS on Android is in line with Google’s strategy to provide a compelling reason to consider Android. Google has several apps that enhance the smart phone experience, including Google Maps, Google Voice (mobile VoIP), Gmail, and Google Reader, among others. Thus, not only Google offers a great platform (Android), it offers compelling content to go with the platform.
To summarize, the future is definitely challenging for Apple. It needs to get its strategies in place to continue to be a leader in the industry. Whatever the case, the future looks promising for consumers. The increased competition will force everyone to produce its best…may the best phone prevail!!!
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