ARCHIVES: This is legacy content from before Marketing Dive acquired Mobile Marketer in early 2017. Some information, such as publication dates, may not have migrated over. Check out the new Marketing Dive site for the latest marketing news.

Android business model threatens Apple?s strength in smartphone market

In their battle for smartphone marketshare, Apple has the short-term advantage but Google will be the winner over the long haul, according to a study by Information Consulting.

The new report, "Google vs. Apple: Clash of the Titans,? evaluates Google and Apple?s business models and finds that Android is on the right path to success.

?We did a related study on the market valuation of Apple and what we are seeing is that Apple is producing all these products that are continuing on the same basic technology and that is all Apple has,? said Naqi Jaffery, chief analyst and executive vice president of Information Consulting, Vienna, VA.  

?Today, any other company produces a better product and Apple is finished,? he said. ?Apple needs to do more than that.?

Quantity or quality?
Riding on its recent successes, Apple will continue to be the dominant player in the short term, the Information Consulting study says.

In addition to its devices that have generated record-breaking sales, Apple created an App Store that has redefined mobile commerce.

Apple is now staking its claim in Web advertising. That could give it a significant boost on the Internet.

Because of its unwillingness to license iPhone OS to other vendors, Apple faces the prospect of being confined to a niche status in the mobile world, not unlike its share in the PC market where it failed to dislodge Microsoft from its top ranking, the report says.

Clash of the Tiatans
With Google, Apple has met its match, the study says.

Google is attempting to dominate the space that represents the intersection of Internet and mobility.

This strategy is embodied in the company's foray into cloud computing and its venture into the markets for operating systems and mobile devices.

Google's Internet presence is ubiquitous and its Web advertising tools have been unsurpassed, per Mr. Jaffrey.

Google also has an impressive portfolio of cloud-based products.

Apple?s exclusivity
Unlike Apple, which has chosen to be the sole vendor of devices based on iOS, Google has created an ecosystem that is conducive to the growth of the Android platform.

Therefore it is safe to say that Android-based smartphones and tablets are posing a serious challenge to iPhone and iPad.

Google's Chrome browser has overtaken Apple's Safari in market share, the study finds.

Its upcoming Chrome OS is already creating ripples in the marketplace that should unsettle the likes of Microsoft.

?Google licenses Android to other companies and it is being produced by more manufacturers than any other operating system and that is a big plus for Android,? Mr. Jaffrey said. ?And, Google Android phones are becoming better and better and these devices are almost at par with iPhone.

?So my problem is with Apple?s business model and the fact that it refuses to license its software,? he said. ?If it did, it could still make its own devices and would be able to build the same type of ecosystem that Android has built.?

Final take
Giselle Tsirulnik is senior editor of Mobile Marketer and Mobile Commerce Daily
/>