Posts Tagged ‘comScore’

Fighting for Mobile Platform Market Share

Friday, November 12th, 2010

What Business Model Will Win?

The recent release by comScore of its mobile subscriber report continues to show Google Android (promoted as Droid by Verizon) closing the market share gap with Apple for mobile platforms.

Google’s market share is up 6.5% from June to 21.4% and now only 2.9% behind second place Apple which has 24.3% of the market. Apple’s share is the same as reported in June. RIM continues to lead the pack with 37.3% share slipping 2.8% from what was reported in June.

The Google / Apple competition for market share presents two very different business models. Google’s Android or Droid contains an open source operating system. The code is available to manufacturers to add their own features and functionalities. They can listen to their market and shape the product. Apple owns their operating system and keeps their code proprietary. Apple allows developers to build applications on top of their operating system. These applications are then sold through retail or on the web where Apple controls distribution of iPhones and iPads.

It will be interesting to see how these competing business models evolve over time.

Apple’s recent announcement that iPhones will now be available at Target stores through the Target Mobile Centers, located in 846 stores, might be the start of a change in strategy to sell more phones. In the third quarter of 2010, Apple sold 14.1 million iPhones, up 91.4% from the prior year and beat the top competitor, RIM, which sold 12.1 Blackberry’s in the same quarter. Apple is already selling a lot of phones.

Regarding the Google / Apple business model differences, during a conference call with analysts, Steve Jobs was quoted as saying “It’s worth remembering,” he said. “that open systems don’t always win.” “In reality, we think the open versus closed argument is just a smokescreen,” he concluded. The real issue he said is integrated versus fragmented. “We think integrated will trump fragmented every time.”
We will continue to watch how the story unfolds…
So how are the actions of, Apple and Google, influencing how you will reach your customers in the digital world?

Google Takes a Bite out of the Apple!

Friday, September 17th, 2010

What does that mean to mobile commerce?

This week comScore released their July 2010 US mobile subscriber market share report.  The results show the American Consumer is using the phone for more than just a call.

The hardcore data users, smartphone subscribers, grew to 53.4 million people at the end of July 2010, up an 11 percent from the three month period ending July. The majority of the growth in the market came from the Google smartphone operating platform. Google’s market share was up from 5% to 17%, while Apple’s share drop by 1.3 percentage points to 23.8%. While Apple’s market share dropped, the number of subscribers using the platform still increased.

Apple analysts have been quick to point out that all is well and this is just an unusual blip caused by two main factors:
• A delay in Apple iPhone subscriptions in May and early June as everyone waited for the new iPhone 4 model. After all, who wanted the old iPhone 3Gs line!
• The inability of Apple to meet the demand for Apple 4 iPhones in June when they ran out of stock.

Is that really the case or is history repeating itself?

Apple has a great platform but is prisoner to the AT&T network and one hardware manufacturer, Apple. The focus has just not been on producing a great smartphone platform.

Google’s approach is to focus on delivering a great platform that is easy to develop and can be incorporated by Motorola, Samsung, and HTC mobile handset manufacturers. Google’s app store is growing and now boasts more free applications than Apple.

Who has a better strategy?

Well if you are a mobile marketer who cares! You need to plan to reach both smartphone platforms. The good news is that mobile subscribers are using the phone for more data oriented activities. Just look at these comScore stats:
• Sent text message to another phone – 66.0% up 1.4 percentage points.
• Used browser – 33.6% up 2.5 percentage points
• Used downloaded apps – 31.4% up 1.6 percentage points
• Accessed social networking – 21.8% up 1.9 percentage points.

So Google taking on Apple is all good news for digital marketers who want to reach their customers while they are on-the-go. Mobile is becoming the way to deliver your digital message.

Okay. So how will the Google and Apple smartphones impact how you manage your business in the digital world?

Data Source: comScore Reports July 2010 US Mobile Subscriber Market Share – July 15, 2010.