More reasons Apple should release a Verizon iPhone soon
A few days back I wrote about the impetus for a Verizon iPhone launch in early 2011, mostly citing John Gruber from Daring Fireball. NPD just gave us a little information that could very well serve as more evidence of the impending release. The iOS market is actually shrinking, while Android is exploding. You don’t have to be a genius to see how a Verizon iPhone could change that, or at least help Apple’s position.
It’s not that Apple isn’t doing well – its market cap proves that it is – but Android is on so many more handsets now. From Peter Kafka at AllThingsD:
So how did Android gain share? Because it’s on so many other new phones. Canned quote from NPD’s Ross Rubin: “The HTC EVO 4G, Motorola Droid X, and other new high-end Android devices have been gaining momentum at carriers that traditionally have been strong RIM distributors, and the recent introduction of the BlackBerry Torch has done little to stem the tide.”
The mobile world is Google’s oyster
I’ve spent most of my tech reading time over the past few days reviewing the world’s reactions to Google I/O. Google announced some pretty cool stuff for Android, and the company clearly has Apple in its sights when it comes to market share. Even more interesting to me, though, was that the “Microsoft” didn’t seem to be on anyone’s mind. John Gruber put together a great read on the subject, so I’ll defer to him here.
As Gruber sees it, Google is taking its gigantic, Android-shaped bite out of Microsoft’s pie, not Apple’s. Google is the licensed OS player because it licenses Android for free, not on a fee-per-unit basis. That says nothing of Microsoft’s crazy volume requirements to turn a profit. The company currently charges something between $8 and $12 per handset. When you hold just 6.8 percent of the world market share, that license fee is a joke.
The volume game isn’t necessarily where you find the profits, either. Nokia sells a LOT more units than Apple, but Apple still makes a better profit. Microsoft is in an absolutely awful position to make a dent in the market. Hell, they still haven’t even launched a competitive platform. Microsoft was already too late when the iPhone launched three years ago. I have to thank John Gruber for this Ballmer quote about the iPhone launch, which I had never seen before:
“There’s no chance that the iPhone is going to get any significant market share. No chance. It’s a $500 subsidized item. They may make a lot of money. But if you actually take a look at the 1.3 billion phones that get sold, I’d prefer to have our software in 60 percent or 70 percent or 80 percent of them, than I would to have 2 percent or 3 percent, which is what Apple might get.”
Well, Steve, I have bad news. The iPhone OS was just reported at 15.2 percent of the global market share. That 80 percent market share you were hoping for? Yeah, that’s never going to happen.
Source: Daring Fireball