It appears Google is learning a lesson from Apple: mobility mean big bucks. The search giant told reporters Thursday Android could become “an accelerator” for the business. There are more than 130 million Android devices now, the company says.
“Our emerging high usage products can generate huge new businesses for Google in the long run, just like search,” CEO Larry Page said. Google activated 135 million Android devices — 35 million in just the past two months. Some 550,000 Android devices are activated each day — 50 million in the June quarter, Google claimed.
Although the Mountain, View Internet giant posted a 57 percent increase in Android activations, Apple is expected to announce 29 million iOS activations during the same quarter, for a 2 percent increase. But don’t let that gulf fool you, Piper Jaffray analyst Gene Munster told investors Friday.
“Apple’s numbers are deceivingly low given the shift in timing of the iPhone upgrade,” the analyst writes. If the iPhone 5 had shipped in June, iOS activations would have been up by around 20 percent, according to Munster. Instead, many expect Apple to unveil the iPhone 5 in August or September.
Munster also sees an Android-versus-iOS comparison unfair in other ways. First, the jump in Android activations is more a sign of overall growth in smartphone demand, something that will also benefit Apple.
Additionally, Android has the advantage of being available on multiple carriers. That could change later this year, if Apple announces new U.S. partners to supplement AT&T and Verizon Wireless. Reports suggest the Cupertino, Calif. firm could add Sprint, making the iPhone available from AT&T, Verizon, Sprint, as well as Sprint-owned Virgin Mobile and AT&T-owned T-Mobile USA.
Finally, another current advantage for Android is its prevalence as a prepaid option in emerging markets. Although Apple hasn’t had much presence there, a deal bringing Virgin Mobile into the mix could suggest the iPhone maker’s wants a part of the valuable prepaid market. Despite that, Munster does not agree with some observers who expect Apple will offer a less-expensive iPhone.
What do you think? Is Android’s current lead over iOS permanent?
Ed Sutherland is a veteran technology journalist who first heard of Apple when they grew on trees, Yahoo was run out of a Stanford dorm and Google was an unknown upstart. Since then, Sutherland has covered the whole technology landscape, concentrating on tracking the trends and figuring out the finances of large (and small) technology companies.
44 responses to “Google: Another Day, Another 550K Android Activations”
And most important when comparing the two: Apple makes a small fortune on each activation whereas google basically gives out a freebie.
A single activation means a lot more for apple than it does for google.
What are the global/international numbers like? It seemes every blog in the world in focused solely on the U.S. there’s 4 BILLION people who don’t live in the U.S. – a little bit of representation would be nice.
It all depends on what markets can handle smartphones. Not everyone that wants one can have one.
Something to keep an eye on is if the Chinese firm Telecom inks that rumored deal with Apple. The Chinese go batshit over Apple products, and Telecom has over 100 million subscribers.
Android lead over iOS is permanent. iPhone on all carriers will just be a speed bump for Android. Look around the world where iPhone is on all carriers. Android is still extremely popular.
The advantage Android has over iPhone are:
multiple price points.cheap, pre-paid
cheap phones
medium-end phones
high end phones.
Diffrent styles, features and such.
4.5 inch screen phones, phones with keyboards, phones with HDMI,USB, SD ports or slots, etc…
There is one reason why Android and Windows mobile will become the top two mobile OSes.It deals with choice. you have a huge verity of Android phones and (soon) window phones to choose from. you don’t have that with iPhone. your choices are iPhone 4 and 3GS. If you want a larger screen phone? too bad. want a phone with a keyboard? too bad. And that’s why Android and Windows mobile will dominate. Choice. You have a verity of phones (or devices) to choose from.
“If the iPhone 5 had shipped in June, iOS activations would have been up by around 20 percent…”
Let’s not forget that this delayed strategy could prove to be dramatically profitable for Apple.
By the time the iP5 is released, most iP4 users will be months away from being eligible to upgrade their devices under carrier subsidy. That means a huge turnover to new devices for Apple, and a huge number of second hand perfectly good devices (the still-not-obsolete-but-now-old iP4) under no contract, thus, freed to be unlocked. A significant number of these second-hand devices typically end up overseas, thus, further expanding the adoption of Apple’s ecosystem, and increasing the number of iTunes accounts.
Plus, launching an iP5 in an off-set calendar could mean:
(1) less constrains in demands, since many users will still be under a 2-year contract, not being eligible for a subsidized upgrade; or
(2) higher margins, since users will still pay for the new flashy device, even if that means not getting any subside.
One thing is for sure: It will indeed be very interesting to witness .
Android and iPhone markets are just different.
iPhone is (so far) for a higher end user than Android. iPhone is a $199 device (under subsidy), while you can get 2 Android devices for $50 in BOGO at Walmart (figuratively).
The “advantages” you mention for Android, are actually disadvantages. The iPhone itself is a remarkable device, and definitively a pioneer and the one that is setting the trends. But it is not just the hardware what makes it remarkable: it is the hardware + iOS + AppStore, and specifically the AppStore.
It is primarily because of the “advantages” you see in Android the reason for why developers don’t want to create apps for it. Multiple screen sizes, multiple hardware configurations, touch screens and keyboard, touchscreens alone… it’s just a nightmare to develop for that thing. You create one App today, and 10 new Android devices are being launched tomorrow, and your App might not work right on them. Then they need to debug, and the process is endless. Plus, there is no one unified and efficient way to distribute this apps. Android users do not pay as much of an App and as frequently as iOS users do. It’s just not appealing for developers, and that limits the functionality of the device.
It’s a different market. Period.
Steve Jobs got it right, and described it the most accurately; it is just too “balkanized”. It has a lot of potential, but it’s just too fragmented.
“And that’s why Android and Windows mobile will dominate.”
You made extremely good points right up until you included Windows mobile. Windows does anything BUT dominate. There was a time when they did, but they’ve fallen to 7.7% and are continuing to fall.
Different markets.
Apple’s strategy is to get to a huge slice of the premium market and leave entry level to others. For example, they have 9% of the PC market overall, but 90% of the market for $1000+ PCs.
Same goes for phones. They do quite well in the $200/$300 phone market and don’t bother to compete with the freebies and el cheapos.
Also to note: Android is pure garbage
You do realize that by this fall, Windows powered Nokia Handsets will start shipping? Besides that, there are tons of Mango powered handsets that will come along with Nokia handsets.
The reason they are falling is because the “killer” Window powered handsets are going to start coming out this fall. Once the handsets start coming out, their percentage will start climbing.
Last I checked, Android best selling handsets are the $200 ones. not the cheap ones or buy one get one free deals. Matter of fact, The $250 and $300 android handsets were some of the best selling handsets on Verizon.
Well, the cheapo ones and buy one get one free does help android, but literally, all the best selling android handsets are the $200+ handsets.
All the advantages I mention are disadvantages? That strange, almost all of the people I know got android phones because of those “disadvantages”. They wanted phones with large screens, they wanted phones with keyboards, etc.. And I know plenty of iPhone users who will be picking up android phones because of these Android “disadvantages”. Also, like 95% of the people I know who have android phones, have the $200+ android handsets.
This is what I’m seeing. The die-hard apple fans are the ones who are sticking with iPhones. Everybody else (literally) is getting android powered phones. And here is the startling thing I’m seeing. A huge percentage (about 80%) of people I know who are mac users, have android phones and/or not interested in getting an iPhone at all. Why? Because they want to have the best phone possible for them, and the iPhone doesn’t even come close. Matter of fact, I see that with all the people I know who have android phones, blackberries and even webOS phones. They wanted to have the best phone possible for them and the iPhone was not even close.
Why? It basically came down to choice. Because other phone manufacturer made phones with stuff they wanted to have. Like keyboards, large screens, HDMI/USB/SD ports or slots. They wanted to have things that Apple says people do not want or need, or whatever else apple says.
And I have yet heard one of the people I know with an Android phone, or webOS phone or Blackberry phone at all complain about applications. Matter of fact, they are quite pleased with what applications they can get and some love their OS because they are able to get applications they could not get on iOS.
To sum it all up again, its choice. 99% of the people I know who have android devices got them because of choice. And literally, all of them either have an android phone with a keyboard and/or with a large screen. (4 inches or bigger) And at least half of the iPhone users I know, will be getting Android phones, because of choice. The only people I know who are sticking with iPhones are die-hard apple fans and will buy whatever apple makes.
And fragmentation? none of the android users I know care at all about fragmentation. Matter of fact, its the iOS users who /complain/ about fragmentation. “I can’t run this or have this feature on my iPod Touch/iPhone”
The media has a huge problem of, blowing stuff out of proportion. This thing is a huge problem! that thing is a huge problem! etc!!! In reality, at the most it could be a minor problem. It’s amazing how many people left and right you hear saying that X problem (related to apple) is blown out of proportion, but when there is an Android problem or Microsoft problem, they don’t say its blown out of proportion and matter of fact they say its a huge problem. To add to that, its amazing how many articles (and similar things) I have found that had 1) completely wrong information, 2) completely misleading information and/or 3) flat out lies. And majority of the time, it played in Apple’s favor.
To sum it all up, people want choice and the Media blows things out of proportion.
If a lot of android advantages are disadvantages, why are people choosing android devices on those “disadvantages”? “Nobody want’s a keyboard on their phone” Everybody who I know who has a keyboard on their smartphone, loves it. “Nobody want’s a 4 inch screen or larger” Everybody I know who has a large screen phone LOVES it. If Fragmentation is such a huge problem, I do we not hear this in the computer world? To tell you the truth, I don’t think I ever heard a problem with fragmentation. Dear god, you have 8 inch screens to 30+ screens, many different resolutions, dual core, quad core, 8-core. 4GB memory, 128GB memory. SSD drives, platter drives. No wi-fi, built-in wi-fi. Bluetooth, no bluetooth, killer graphics, horrible graphics. If fragmentation is such a huge problem in the phone/tablet world, why is it never mention in the computer world? (desktop, laptop) If you thought fragmentation is a huge problem in the phone/tablet world, dear god, its out of the solar system in the computer world, because fragmentation is a much huger problem in the computer world than in the mobile world. And, there is a lot of stuff Steve Jobs said that is absolute crap. Case in point. “nobody wants a hummer sized phone.” Steve jobs was talking about these 4 inch+ phones. Interesting enough all the top selling Android phones have 4 inch screens or larger. Matter of fact, there is one android phone with a 4.5 inch screen and its the best selling android phone on At&t! There is stuff that Steve Jobs says is true, but there is a lot of stuff he says is false. And the reason why he says XXXX? is to promote his things. Thats why.
I love Android
I need some help here. Isn’t Android Open Source? How does Google monetize an effectively free program?
In the US you often pay $200/$300 for the phone and then pay a monthly fee that you are bound to the next 2 years or something right?
Just wondering, over here you either pay ~$800-$1000 (Europe, so VAT is included) or something for the phone and you aren’t bound to any fees at all, you can get a subscription of any kind you want or even use prepaid.
That or the phone is free for a ~$25 (VAT again) subscription per month that you are bound to for 1 and a half or 2 years.
Since when does activating an iPhone cost anyone anything, it gets activated after every restore or update and on first use, just like a android more or less.
Because while the OS is open source the OEMs have to license it to be able to get the Android Market and other Google software like maps and such. (This is why you see really cheap android tablets that don’t have the Android Market)
Of course, the biggest income for Google with Android is the benefits it gives them for marketing, as always.
I wouldn’t go quite so far, Android in itself is pretty decent, but due to the lack of standards and proper APIs for developers and the openness of the Android Market there is no standard design for Apps like on iOS, they all look different and none as good.
And from what I’ve heard, compared to iOS developing for Android is a real pain in the ass.
I know where the confusion is; evidently, we live in different worlds.
Sorry I didn’t have time to read your dissertation (I only read to about the third line), but I’m sure somebody will enjoy it though.
Even if it becomes permanent, that doesn’t make Android any better. 1,000,000,000,000,000,000,000,000,000 flies eat sh*t every day, and that doesn’t make it any tastier.
You mean you got as far as the line that disproved your half-baked assertion and then stopped reading. And of course, rather than concede that you’re in the wrong, you follow with a dismissive and condescending remark.
You sound like a thoroughly unpleasant individual.
Nope, it’s just that evidently I live in a different world than the one you guys do.
The vast majority of the people I know who one a smart phone, own an iPhone, and love it. Then, there were a few who bought Android bricks, and after a few months they’ve accepted thet the size of it is just too big to be pocket friendly, and that the capacitive display, the snappiness, the apps offer, just don’t compare. If you need more than a 4 inch screen, then you need it in a tablet, not in a phone.
Again, the vast majority of then people I know have, or will have, an iPhone. But that’s just my world. And I didn’t mean to be disrespectful. I apologize if I did.
The usual idea is that you would use NFC to set up the link between the two devices and then do an automatic hand over to a different protocol for doing the actual transfer of data – eg Bluetooth,iphone 5
Amazing, it has been the most successful o.s ever.
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