Posts Tagged ‘wireless’

Is Android winning?

The real question is, winning what? Take a look at this mobile industry profit share data.

Where on that chart do vendors who have adopted Android start seriously stealing profit share away from Apple? Nowhere.

The key thing to understand about Android is that its market share growth has been driven almost entirely by handset vendors who where never able to field serious mobile operating systems of their own, who are now ditching the systems they previously used in favor of Android. Though it’s often framed very differently, this in-place substitution has very little direct relevance to Apple.

To give a more concrete illustration, imagine that the handset market consists of four companies, A, B, C and D, each with 25% market share, and each selling a single model of phone (call these Phone-A, Phone-B, etc.) that runs an OS developed by the company that makes the phone (call these OS-A, OS-B, etc.). Now, let’s say companies C and D decide “Hey, OS-C and OS-D are actually kind of terrible. Let’s both switch to using OS-E, this new open source mobile OS”.

OS-E will immediately have 50% market share, while OS-A and OS-B still have just 25% each.

What the pundits declaring Android victory right now are doing is stepping in at this point and declaring that OS-E has “won” over OS-A and OS-B because it now has twice as much market share as either one. But you really have to ask the question… has anyone won anything? If so, who? And exactly what have they won?

As far as I can see, the answers to these questions are “no”, “nobody” and “nothing”.

I suspect some pundits are having so much trouble understanding this because if OS-E were a licensed commercial product, there would be a winner, namely the company that owned OS-E. They’re conceptualizing this market as Google = Microsoft, HTC = Dell, Samsung = HP, etc. But this is wrong. There is no equivalent of Microsoft in this market. There is no discrete entity that owns Android (in any useful sense) and aggregates benefits from all Android handsets sold by all vendors.

Apple sees iPad as major new platform

Unless you’ve been living in a cave that doesn’t get 3G reception, you’ve probably heard by now that Apple has a shiny new tablet called the iPad.

As far as I can see, the announcement does largely validate my earlier analysis. It’s not just a media player, it’s a device designed to do 75% of the useful things people do on the desktop computers, in a new and better way. And the long term goal of such a device can only be to try to shift the center of the computing universe away from Wintel.

There are specific indicators that this is what Apple is after.

  • iWork was announced along with the device. I said this would be a key early indicator. Creation of word processing, presentation and spreadsheet documents is the keystone of desktop computing. Isn’t the web more central to computing now? Yes, perhaps. But the web was already a multi-device platform; to the extent that the web is central to computing, that was already an example of the industry moving away from traditional desktop computing.

  • It runs iPhone apps. For some companies, this sort of compatibility would be taken for granted, but that’s not the case for Apple. iPhone apps are not going to provide the world’s best user experience on a device with a much larger screen. The typical Apple approach would have been to favor user interface purity over practical compatibility considerations. The fact that they went the practical route indicates they’re trying to remove as many barriers to adoption as possible.

  • The keyboard. I’m positive the optional external keyboard lies outside of Apple’s vision. As with the previous point, I think this is an example of Apple sacrificing its principles a bit to remove objections people would otherwise have to using the device.

  • The structure of the AT&T deal. Apple cut a deal with AT&T for reasonably priced wireless data services. But the iPad is only sold unsubsidized and unlocked, and even if you sign up for an AT&T plan, there’s no contract. Apple doesn’t want carrier lock-in to be a barrier to the adoption of this device, and doesn’t want to be beholden to outside parties for anything basic to the device. This kind of independence is essential to a flexible general purpose platform (imagine if Macs only worked with one kind of Internet access), and Apple probably had to negotiate pretty hard to get it.

More iPad analysis soon.

Dell Mini 3 Smartphone

So, Dell has a new Android based phone.

We’re seen this sort of nonsense before, with the Dell Ditty (rhymes with…) music player. I predict this product will get essentially no market traction, and we’ll hear very little about it, except perhaps in a few years when there are some articles about how Dell is either exiting the smart phone market or rebranding/retooling its smart phones because nobody has been paying attention to them.

One of the reasons Apple is so successful is because the company has a very good understanding of its own strengths and weaknesses, and uses that understanding to determine what markets it can make valuable contributions in. Dell is atrociously awful at this. Instead, the company seems to feel a compulsion to enter every significant market, regardless of whether it has anything valuable to contribute there, apparently on the basis that being a serious player in the PC industry makes the company some kind of technology leader. (Microsoft often follows a very similar pattern.)

AT&T concerned over iPhone MMS rollout?

So some sources indicate. Really? More than two years after the introduction of the iPhone, AT&T’s infrastructure is really still in such bad shape that offering MMS to users who might actually use the feature seriously is going to put substantial strain on it?

The US wireless industry is a joke.