Android vs. iPhone — Who Wins In 2011?

Hugh Pickens writes "Philip Elmer-DeWitt writes in Fortune Magazine that Apple and Google have two very different strategies in the competition shaping up in 2011 between Android and iPhone. According to the conventional wisdom as espoused by Don Dodge, a Developer Advocate at Google, both Apple and Google will win because they are playing different games. Android will win the market share battle, but Apple will generate bigger profits. 'Apple goes for the high end of the market where they can charge high prices and enjoy great profit margins. Apple has been successful with this strategy multiple times, and will do it again with iPhone,' writes Dodge adding that Google's strategy with Android is to generate revenue streams from mobile search and advertising. Another Google employee, Tim Bray, sees things differently and says he won't be surprised if Apple ships a cheap iPhone and if this time next year, dirt-cheap iPhones were competing against Androids that push the user-experience lever farther than Apple. 'There's nothing fundamental in Android that would get in the way of a industrial-design and user-experience rock-star team, whether at Google or one of the handset makers, testing the hypothesis that these things are central to Apple's success.'"

Comments

Advertising

[TexVex]

I have been sick to death of advertising for pretty much all my adult life. I think it's a horrible shame to name so many of our modern points of interest after corporations. I hate how everything must be branded, and I especially hate how tasteless it all is. Product placement sucks. Most of all I'm just blown away at how I have to pay for the carrier to bring the advertisements to me.

I pay about $80 per month for cable TV, and all the channels are ad-laden; it is standard for each hour of programming to contain 20 minutes of advertisements. Now, DVR technology has allowed us to skip those commercials if you're willing to watch the program on a time delay. But doing that costs extra. A few years ago I used an old PC as a homebrew DVR and it didn't cost anything above a small investment in hardware and software, but nowadays things are so locked down the only realistic option is to rent the box and pay for the "service" from the provider. So, as I see it, I'm getting screwed from every direction.

The content itself is laden with product placement, it's subsidized further by being 33% pure commercial advertisements, I have to pay to bring the crap-laden content to my TV, and I have to pay more to filter out some of the noise.

The internet is rapidly heading in the same direction. You can't view a lot of content without turning on scripting and flash, and the scripting and flash bring advertisements that cannot be blocked. I'm paying an ISP to bring the crap in for me, and the services that offer to sell me access to the content still won't promise to remove all the advertising if I do so.

So, with my iPhone, at least it's not loaded with advertisements. Of course it brings in the Internet ads for me, but it blocks the invasive ones and I bless the iPhone for the lack of flash. But at least for the most part I'm getting fair value for the service I pay for: I make and receive phone calls and text messages, and neither are subsidized by advertisement.

So, to me, the iPhone wins. I don't care about the openness and inexpensiveness of Android if it means everything I do with my phone is partially paid for by advertisement. I'm not going to pay a carrier for voice and data service so that they can use that pipe to shove ads in my face every time I pick up my phone. It's just ridiculous.

I'm starting to believe that our society will end not in natural disaster or nuclear armageddon. Instead, the signal-to-noise ratio of all our communications will drop so low that our culture and our future just disintegrate.

Re:Advertising

[VGPowerlord]

Here, let me light two of your strawmen on fire:

I pay about $80 per month for cable TV

One of these is true about this statement:
1. That currency isn't USD (I can believe $80 AUD)
2. That's for cable service including VOIP, Internet access, or both.
3. You're getting ripped off by your cable company.

So, with my iPhone, at least it's not loaded with advertisements. Of course it brings in the Internet ads for me, but it blocks the invasive ones and I bless the iPhone for the lack of flash.

So... don't install Flash. Believe it or not, neither PCs or Android devices require Flash to be installed, and if it is installed, both let you uninstall it.

$99 isn't cheap enough?

[Brannon]

I think the definition of expensive on this forum is whatever price Apple charges. Expensive in this space used to mean $600, now you can get a spectacular top of the line iPhone for $299 and less capable units (new) for down to $99.

$229 for a very nice iPod touch or $499 for an iPad? Seems like a pretty good deal to me.

Apple's strategy isn't to charge extra to artificially inflate their brand, but rather to make high quality devices and charge as little as they can for them and still sustain their business and large R & D expense.