Saturday, March 8, 2014

Smart Phones

Is it more important to make phones or to get users by providing the operating system? Apple is the leader in smartphone sales. They have over 40% of the market with Samsung having over 25%. In regards to operating system, Google has over 50% of the market with Android and Apple has just over 40%. So who is winning? I don't think it matters who is winning (or what's more important), what matters is what business each player is in.

Apple is in the business of selling hardware, so being the leader in phone sales is good for them. Google is in the business of selling advertising. Their goal is to get as many people to visit their web pages as possible and to get as many people as possible to click on one of their ads. So having more people use their OS and thus having them automatically use their services (and be exposed to their advertisers) is good for them.

Now Google does not make any money from Android (or Chrome for that matter), but that's not their primary goal. Google want's to get as many users as possible to visit their sites, that's why they do what they do. Guess what, it's working. Google gets about 90% of mobile users to visit their site. Thus Apple and Google are both winning.

What do you think?