Menu
yARN: can Apple survive the Android onslaught?

yARN: can Apple survive the Android onslaught?

Consider the strategies, loyalty and buying patterns

Now that Apple has shown the world how to make smartphones and tablets that many people want to buy, can it withstand the onslaught of Android-based devices from a variety of competitors? After all, the Samsung Galaxy S II has received rave reviews, setting a new benchmark for Android phones and said by some to be a true iPhone competitor.

The most important thing is that the smartphone and tablet markets are still growing. Even if iOS gets knocked from top spot in the tablet market, Apple will still be one of the biggest vendors, running a profitable business, and providing a worthwhile market for developers. It’s worth noting that although the latest US smartphone installed base figures from comScore puts Apple in third place, both iOS and Android are still growing at the expense of other platforms.

The nature of the Android market is that you get devices at a wide range of price points. Apple’s strategy is to come up with something that a lot of people will want to buy with very few variations. So you can buy a $200 Android phone, but not a $200 iPhone. Back in 2008, Steve Jobs said, “We don’t know how to make a $500 computer that’s not a piece of junk, and our DNA will not let us ship that.” But Apple knew how to make $500 tablets and $700 phones (before subsidy) that weren’t pieces of junk and that proved to be very popular.

Importantly for Apple, customer loyalty seems high - iPhone owners are more likely to stick with their current platform next time they buy. Earlier this year, mobile analytics company Zokem published figures showing that while loyalty to Android phones was strong among users in the US, it was 84 per cent higher among iPhone owners.

Not only were BlackBerry, Symbian, Windows Mobile and Palm Pre owners more inclined towards iPhones than Android, but a bigger proportion of Android owners intended to switch to iPhone than vice versa.

Apart from general satisfaction, there is a degree of lock-in with mobile platforms. If you’ve purchased a bunch of apps (and to a lesser extent accessories), you’d rather not have to buy them over again. Apps may only cost a few dollars each, but that soon mounts up. If a subsidised smartphone costs you $200 upfront, do you want to spend another $200 replacing your apps? It might not be as big an obstacle as it is to switching from Windows to Mac OS X or vice versa, but it is a consideration.

As for developers, it seems that most of the market leaders have decided to go with iOS and Android rather than one or the other. That’s not surprising, as Millennial Media’s latest stats show that 50 per cent of app-driven advertising revenue came from iOS, compared with 39 per cent for Android.

As long as Apple maintains its pattern of regular - but not too frequent - updates to the iPad and iPhone lines with improved performance and new and desirable features, the company seems likely to maintain a strong position while it works on the Next Big Thing.

Follow Us

Join the ARN newsletter!

Error: Please check your email address.

Tags symbianiosPalm PresmartphonesWindows Mobile. mobile solutionsAndroidtabletsMac OS Xsamsung galaxy s iiBlackberryApplemobility

Upcoming

Slideshows

IN PICTURES: Nutanix's .NEXT channel event in Sydney (+20 photos)

IN PICTURES: Nutanix's .NEXT channel event in Sydney (+20 photos)

Nutanix recently held its customer and channel event, .NEXT, in Sydney. The event, held at the Sheraton on the Park saw attendance from more than 150 channel and technology partners and customers. It was the first in a series of events Nutanix is holding in A/NZ in August and September, the objective of which is to brief partners and customers on “what’s next” in the design and management of datacentre technology.

IN PICTURES: Nutanix's .NEXT channel event in Sydney (+20 photos)
IN PICTURES: EDGE 2015 sponsor debrief (+23 photos)

IN PICTURES: EDGE 2015 sponsor debrief (+23 photos)

Some of the sponsors of ARN's inaugural EDGE 2015 event got together at the ARN office for a debrieef of the event. Over some drinks and cheese, these attendees got an update on some key statistics that arose from the EDGE event and discussed potential topics and improvements that can be made at next year's event.

IN PICTURES: EDGE 2015 sponsor debrief (+23 photos)
IN PICTURES: ARN Distributor Roundtable, Sydney, 26.08.15 (+26 photos)

IN PICTURES: ARN Distributor Roundtable, Sydney, 26.08.15 (+26 photos)

ARN hosted a distributor roundtable at Cafe Del Mar in Sydney, at which attendees and their partners discussed the changing role of the traditional IT distributor. They spoke about the challenges of digital disruption, the blurring lines of the channel in the age of digital transformation, and examined the ever-evolving business models. This roundtable was sponsored by Distribution Central, Exclusive Networks, Rhipe, and Hemisphere Technologies. Photos by ARN Editorial Director, Mike Gee.

IN PICTURES: ARN Distributor Roundtable, Sydney, 26.08.15 (+26 photos)

iasset.com is a channel management ecosystem that automates all major aspects of the entire sales, marketing and service process, including data tracking, integrated learning, knowledge management and product lifecycle management.

Show Comments