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Category: Apple
November 23rd, 2009
Apple's Schiller defends app approval process; misses the point
Apple VP Phil Schiller is coming to the defense of his company’s process for approving - or rejecting - apps submitted for its iPhone and iPod Touch. In an interview with Business Week, he talks about how some apps are inappropriate, how some cross legal boundaries that could potentially put Apple at risk and others are just simply buggy. (Techmeme)
But that’s not the issue at-hand. Approvals aren’t a bad thing - at least at this point in time, given how new the marketplace is. While the Business Week piece offers some insight as to why some apps are rejected or approved, it doesn’t offer much insight into the process that happens behind the scenes.
No, I’m not asking for proprietary information on how it’s done but rather the sequence of events around the process and a estimated timeline for approval or rejection. That would directly address the biggest complaint among developers lately - the inconsistency in approval of apps and the stuck-in-perpetual-limbo status that some find themselves in. The developers just need updates. They’re simply saying, “Hey, if the app is buggy, send it back so we can fix it.” Or if it’s inappropriate, slap a rejection stamp on it, along with an explanation, and move on.
Also see: Apple’s app approval revolt: Will it matter? Maybe
If Apple wants to keep this sort of control over apps and grow its app store marketplace, it’s going to need to beef up its quality assurance department and kick that approval process into high gear, with some clear-cut policies and an established procedure for submissions and appeals.
I’m no developer so I can’t speak directly about the frustrations with the process. If there are policies and procedures already in place, they seem to be flawed. Developers are squawking and that’s something Apple needs to address because it eventually could become a problem.
When it comes to mobile app platforms, the competition is heating up. Android is entering the scene hard and fast with devices and an app store of its own. Schiller is right to defend the process as it relates to reasons for rejection and approval.
But it sounds like Apple’s app store quality assurance team needs a quality assurance team of its own, something that spots defects in the process and works on fixing them.
November 19th, 2009
Do we need a 'beautiful mess' in operating systems? Yup
Should PC makers and other hardware players each cook up their own operating systems in an effort to emulate Apple’s success? The short answer: Yes. The more operating systems the merrier we’ll be.
John Gruber at Daring Fireball makes the argument for a land of multiple operating systems and the idea isn’t as crazy as it sounds. Gruber recaps a post where he argued that there should be multiple operating systems to choose from and then addresses the feedback. The biggest argument for having 35 operating systems instead of three big ones (Windows, Mac and Linux) is the incompatibility argument.
The argument goes like this: It was a mess when there were a bunch of operating systems. Gruber’s reply:
First, it may have been a mess, but it was a beautiful mess. It was glorious. It was fun. The Apple II, the IBM PC and DOS, Commodore, Atari, Acorn. The TI-99/4A.
Gruber argues that we need a beautiful mess again in the PC market. I agree. After all, it’s been fun watching the smartphone industry, which is arguably an operating system mess. There’s Android, iPhone, Research in Motion, Palm, Windows Mobile and Symbian. There’s no clear winner yet—and it’s fun. The OS scrum in the mobile industry is a beautiful mess.
Gruber’s argument to counter all the hand-wringing over a world with a bunch of operating systems: The Web is the glue that will bridge these operating systems. Many of the incompatibility root causes—file formats, various CPUs and storage set-ups—have been solved. Simply put, the industry is better equipped to allow 1,000 operating systems to bloom.
He’s right. And the multiple OS argument is something to keep in mind today as Google dishes out a little more information about the Chrome OS.
November 12th, 2009
Is Windows 7 a Mac OS X wannabe? That explains why I like it
Now, it all makes sense. The reason I liked Windows 7 so much was because its design was inspired by Apple’s Mac OS X.
At least that’s what Microsoft’s partner group manager Simon Aldous told PCR, a UK-based online tech trade pub, in an interview. Specifically, Aldous was asked abiut Windows 7 being a more agile OS and began to talk about how it is basically the next version of Vista - but stripped of a lot of code, more efficient, with a smaller footprint and far more agile. Then, he went on to add:
One of the things that people say an awful lot about the Apple Mac is that the OS is fantastic, that it’s very graphical and easy to use. What we’ve tried to do with Windows 7 – whether it’s traditional format or in a touch format – is create a Mac look and feel in terms of graphics. We’ve significantly improved the graphical user interface, but it’s built on that very stable core Vista technology, which is far more stable than the current Mac platform, for instance.
Whoa? So basically Windows 7 is a Mac OS X wannabe? We Mac fans will have a field day with that comment for years. But wait just a minute there. As soon as word hit Redmond that one of its own uttered such blasphemy, the company took to its official blog to clear the air. A post on the Windows Blog, titled “How we really designed the look and feel of Windows 7,” went up last night.
That post is relatively short, so here it is in its entirety:
An inaccurate quote has been floating around the Internet today about the design origins of Windows 7 and whether its look and feel was “borrowed” from Mac OS X. Unfortunately this came from a Microsoft employee who was not involved in any aspect of designing Windows 7. I hate to say this about one of our own, but his comments were inaccurate and uninformed. If you’re interested in learning more about the design of Windows 7, I suggest reading this AP story with Julie Larson-Green as well as these WSJ (membership required) and Fast Company articles. And here is one of many blog posts on the E7 blog discussing the design process of Windows 7.
The headline on the post is a bit misleading. Author Brandon LeBlanc doesn’t really tell you how the company designed the look and feel of Windows 7. Instead, he points to pretty favorable pieces in other publications so they can explain it.
I’ve said once before that I do like the look and feel of Windows 7 - and even dropped a few bucks to save a Windows Vista laptop that came close to being thrown from the window of a moving car a few times and install Win7 on it. Microsoft can say all it wants to distance itself from the Mac Wannabe comment - but I can’t help but look at the screen of a Windows 7 machine and wonder if this function or that function was supposed to replicate something off of Mac OS X.
I guess this makes me feel like less of a traitor for thinking highly of Windows 7.
November 10th, 2009
Macworld 2010: Gearing up for an Apple-less event
He’s no Steve Jobs - but filmmaker Kevin Smith, whose works include the Clerks films, will do his part as a featured presenter to attract a crowd to the 2010 Macworld Conference, which is being held in February in San Francisco, the first without any sort of presence by Apple.
Does this make Smith - recognized by movie fans as his Silent Bob character - the replacement keynote presenter? The folks behind Macworld aren’t necessarily saying that - but they are calling him a “feature presenter” and said he will be on-hand for a Q&A with attendees to talk about pretty much any subject, but likely will stay focused on the role of video technology in the film industry.
You’ll recall that last year, Apple said the 2009 Macworld conference would be its last. And with CEO Steve Jobs headed into a medical leave of absence that would eventually include a liver transplant, Apple exec Phil Schiller represented the company on the stage for the last time.
As they say in Hollywood, the show must go on - and so the folks behind Macworld have been busy lining up speakers. Smith, who was announced today, will join tech journalists Leo LaPorte or David Pogue as presenters this year.
In addition, the show has moved from its traditional spot on the calendar in January - which always overlapped with the big Consumer Electronics Show in Las Vegas - to February 9-13. It will continue to be held at San Francisco’s Moscone Center.
November 5th, 2009
Congratulations to Steve Jobs, Fortune's CEO of the Decade
Love him or hate him, you have to admit that Apple CEO Steve Jobs has had a helluva decade.
Consider that, under his helm, Apple defined the portable music player market with the iPod, has shaken up the mobile industry with the iPhone, rocked the retail music business with iTunes and re-invented the computing business with OS X in a way that the PC business - with less than 10 percent of market share - is no longer the bread-and-butter of the company.
Add to that the brilliant marketing behind Apple and the loyal, almost cult-like, following of Apple’s fans and it’s no wonder that Fortune Magazine today named him the CEO of the Decade. The opening lines of a story written by Fortune Editor-At-Large Adam Lashinsky (which also includes a nice video segment) explain it nicely:
How’s this for a gripping corporate story line: Youthful founder gets booted from his company in the 1980s, returns in the 1990s, and in the following decade survives two brushes with death, one securities-law scandal, an also-ran product lineup, and his own often unpleasant demeanor to become the dominant personality in four distinct industries, a billionaire many times over, and CEO of the most valuable company in Silicon Valley. Sound too far-fetched to be true? Perhaps. Yet it happens to be the real-life story of Steve Jobs and his outsize impact on everything he touches.
Yes, I’m a Mac guy. We’ve been through that on this blog many times. But that doesn’t necessarily mean I’m a huge fan of everything that Jobs and Apple do - after all, I’m also one of those press guys who would like to be less surprised and more prepared when the company makes news. I would especially appreciate the company confirming or squashing a rumor every now and then, too, so I don’t have to spin my wheels trying to find out whether there’s any real substance to it.
Putting that aside, you cannot deny that the manner in which Apple conducts business has been highly effective at not only increasing sales and broadening the company’s portfolio but also setting trends, creating buzz and putting out top-notch (dare I say near perfect?) products again and again and again.
Having been to many of Apple’s news announcements, I know first-hand about the giddiness in those auditoriums - even from the press. And the fact that Apple almost always has the items in-store and online by the time Jobs takes the stage surely helps spark some spontaneous sales. There’s rarely a months-long wait for products the way there is for some competitors.
So, congratulations to Steve Jobs for a strong decade at the helm of Apple. Here’s to the next one.
November 4th, 2009
Smartplanet: Apple can grab more share by slashing Mac prices
Macs are expensive - there’s really no way to argue that point. But Mac owners - myself included - find enough value in the computing experience to justify the expense.
Even with a premium price, Apple has been gaining share, nearing the double-digit mark, but still not quite there. Realizing all of this, Smartplanet blogger John Dodge argues that Apple could cross that double-digit mark if it would just drop its prices.
How low would Apple need to drop those prices to gain more share? Check out Dodge’s blog post on SmartPlanet for details.
November 2nd, 2009
iTunes TV subscriptions: Sure, it could happen - and probably will
Apple is reportedly working on a subscription model that would open television viewing through iTunes - sort of. We’re not talking about some sort of service tied to the Apple TV product or even a standalone TV with iTunes built-in (at least not yet.) The Media Memo blog today cited several unnamed sources who say that Apple is pitching the TV networks on a subscription model - though no deals have yet been reported.
Currently, television shows on iTunes are available for purchase, either by the episode or the full season. This model, from what I can tell, would allow users who pay $30 per month for a subscription to watch them without “buying” them.
Sure, the $30 subscription rate is far cheaper than monthly cable or satellite bills. But that doesn’t mean the cable or satellite folks should be running scared just yet. When iTunes first made the leap into video programming on iTunes, Disney was the first to jump on board. The others followed, but not right away. Today, the programming lineup looks much better - but surely, Apple would have to cut new deals on a different distribution and revenue models with the networks.
Would the networks be on board with a model like that? It’s hard to say. I can’t imagine they’d want to disrupt relationships they already have in place with the big cable and satellite providers. But at the same time, it’s hard to ignore the influences of not only the programming being streamed over the Internet itself, but more importantly Apple, a powerhouse with a history of dominating and accelerating the growth of digital media in a “legal” marketplace.
For now, this subscription model chatter is all just rumor. No one, including Apple, has confirmed it. But I don’t put it past Apple. It sounds like something Steve Jobs and company consider. I also trust the reporting and sourcing of Media Memo’s Peter Kafka, so that makes it a bit easier to swallow.
Plus, it’s Apple - which, of course, means the rumor mill kicks into high gear again.
November 2nd, 2009
Analyst: Big on Motorola, Android; no love for RIM, Palm
Citigroup analyst Jim Suva said in a note this morning what I’ve been saying for some time now - Google’s Android is going to be the “it” smartphone platform in 2010 while Palm’s WebOS and RIM’s Blackberry just don’t have the wow factor - for now - that it will take to compete in the smartphone wars.
Specifically, Suva was bullish on Motorola, which has placed its bets on Android for a turnaround of the struggling handset business. According to a post on the Tech Trader Daily blog, Suva sees Motorola putting some heat on the competition, including Apple’s iPhone. In his note, Suva wrote:
Motorola is launching of one of the most compelling offerings at [a] time when many investors have given up on the company’s handsets. The revolution of product and application service offerings is going to start to crack open the enterprise door and could pose a risk for BlackBerry. Major shifts in promotion support creating a promotion commotion in the months ahead of favor of Motorola and post a challenge for RIMM and PALM.
Suva raised his price target on Motorola and cut his targets for RIM and Palm. Shares of Motorola were up nearly five percent in mid-day trading while shares of Palm were mostly flat and shares of RIM were down more than five percent.
Related coverage:
Motorola bullish on Android, Motoblur rollout in 2010
Motorola’s big Android bet kicks off
Android opens doors for Google’s next-gen search, ads and tools
Motorola: Android device launches get us back in the smartphone game
October 30th, 2009
Apple TV update looks good but doesn't offer much more
As Larry Dignan has repeatedly pointed out here, I am one of the few people out there who has an Apple TV device in my living room. For the most part, we like it, using it mostly to rent HD movies or share the occasional photo slide show with friends or family. But just because we like it, doesn’t mean I would automatically recommend it to anyone.
The latest software update - now at version 3.0 - brings a new look to the user interface, making it look more like the “cover flow” look used in iTunes to give browsers a sneak peek of content via thumbnails. But beyond a new UI, the new version of Apple TV doesn’t offer much more. 
That’s disappointing.
Apple has been one of the most innovative companies when it comes to understanding how people want to interact with their digital media, whether photos, music or video. And given what the company has done to introduce us to the power of apps, it’s frustrating that the company hasn’t done more to bring that experience to the Apple TV device. Where’s Hulu? Where’s Netflix? Where’s Pandora? Where’s the innovation?
Quarter after quarter, Apple TV barely gets a mention by the company during its earnings call with analysts. In its 2009 Q1 call back in January, Chief Operating Officer Tim Cook - who was seated in the CEO’s chair while Steve Jobs was on medical leave - said the company would continue to invest in Apple TV, even though it had repeatedly been referred to as a “hobby.” During that call, Cook noted that Apple TV growth was almost triple from the year-ago quarter and that movie rentals were sparking some interest among consumers.
We like the movie rentals, too. But we’re finding more value these days in our Netflix subscription, which comes with some titles available for streaming. In recent weeks, I’ve connected the laptop - with Netflix streaming - to the living room HD TV for Family Movie Night.
It’s too bad there’s no Netflix button on Apple TV. Having it there might feel like there’s actually some value in having an Apple TV set-top box in the living room.
Related coverage:
October 29th, 2009
Gallery: Best business iPhone apps
Apple’s iPhone might be seen by many as largely a consumer device, with games and media apps regularly topping the ‘What’s Hot’ list on iTunes. However, the App Store currently stocks more than 2,000 business apps and, with the iPhone currently dominating around 13 percent of the smartphone market, the device’s potential as a business tool can no longer be ignored. Silicon.com’s Sophie Curtis leads a tour of some of the best business apps that can help turn your iPhone into a portable office.
A look at some of the key selections:
Oracle business indicators…
October 28th, 2009
Can Droid mask iPhone envy? Or will Verizon iPhone rumors keep users guessing?
I have made no secret of my iPhone envy - or my refusal to switch to AT&T just to own one. I also have been pretty forthcoming about how much I like Google’s Android mobile OS. Seriously, in my opinion, if there’s going to be a real contender for the iPhone, it’s going to be an Android device.
Today, there’s a bunch of excitement surrounding Droid, the Motorola Android phone gearing up for a Nov. 6 release through Verizon Wireless. Just reading Andrew Nusca’s initial look at the Droid, which was previewed at a press event in New York today and has landed in his hands for a review, has made me jealous.
The beauty of all of this is that my contract with Verizon is up, leaving me free to jump ship, get a promo price on a new device or just hang out month-to-month until I’m ready for the next plunge. Suddenly, Droid hits the scene and - just days after being out of contract - I’m suddenly ready to re-up and run out and buy a Droid when it hits the stores.
But wait… What’s this about an iPhone on Verizon?
October 28th, 2009
The month ahead: Will Droid do damage to the iPhone's mojo?
ZDNet correspondent Sumi Das and senior editor Sam Diaz discuss the new Droid phone set to release in early November. Diaz also previews the upcoming Salesforce.com conference and weighs in on whether consumers will buy Windows 7 during the holiday season.
October 26th, 2009
Apple slate "impending," says NYT exec editor; Much ado about nothing?
There’s quite a ruckus brewing after Bill Keller, executive editor of the New York Times, said that an Apple slate—read iTablet—was “impending.”
Gawker, Engadget and others have made hay over the following line, which comes at 8:30 in the video below:
“I’m hoping we can get the newsroom more actively involved in the challenge of delivering our best journalism in the form of Times Reader, iPhone apps, WAP, or the impending Apple slate or whatever comes after that.”
Bill Keller speaks to the digital group at The New York Times from Nieman Journalism Lab on Vimeo.
The big question: Was Keller divulging top secret information or just indicating what most of us already believe: Apple has an iTablet in the works?
You’d assume Keller would at least know if the Times was collaborating with Apple. But it’s unlikely that Apple would fill Keller in on much. Overall, this slip-up may not amount to much. Watch the video and decide.
October 26th, 2009
IT Exec: iPhone builds goodwill with users
Bill Detwiler talks with James Brown from Talecris about how the benefits of deploying Apple’s iPhone far outweighed the hazards. The biggest perk: Better employee morale.
See also:
October 22nd, 2009
Nokia sues Apple, alleges patent infringement by iPhone
The world’s biggest cell phone maker is dragging the maker of one of the most popular cell phones to court over patent infringement. Nokia said today that it has filed suit against Apple, alleging that the iPhone infringes on Nokia’s patents for GSM, UMTS and wireless LAN (WLAN) standards.
The suit surrounds ten patents that cover wireless data, speech coding, security and encryption. Nokia alleges that all infringement has occured since Apple shipped the first iPhone in 2007. In a press release, Ilkka Rahnasto, Vice President, Legal & Intellectual Property at Nokia, said:
The basic principle in the mobile industry is that those companies who contribute in technology development to establish standards create intellectual property, which others then need to compensate for. Apple is also expected to follow this principle. By refusing to agree appropriate terms for Nokia’s intellectual property, Apple is attempting to get a free ride on the back of Nokia’s innovation.
October 20th, 2009
With Apple, there's a fine line between paying a premium and being a sucker
It’s no secret that I’m a Mac guy (and yet I always find the need to disclose that). Therefore, I must be one of those types of people who finds value in Apple products and is willing to pay a premium for them. But that doesn’t go for every product.
Apple made a series of announcements this morning regarding upgrades to the lineup of iMacs, Macbooks and MacMinis. They correctly highlighted the enhancements - battery life on the Macbooks, glass displays on the iMacs and increased performance on the MacMini lineup. These are the sort of things I’m willing to pay for.
Then, the company put out a separate press release about a new mouse, called the “Magic Mouse.”
Some people laugh at us Mac types because we think $999 for a 13-inch Macbook is a bargain. They howl when we defend ourselves for spending $600 or $800 for a computer that doesn’t come with a keyboard, mouse or monitor. That doesn’t bother me at all - the computing experience that I get with a Mac is worth it to me.
But unless this new Magic Mouse can actually do something amazing like respond to voice commands or read my mind, I just cannot see dropping $69 - yes, Sixty-Nine Dollars - for a mouse. And if I did, I would fully expect friends and family to laugh directly in my face.
October 20th, 2009
Apple announces refresh to Macbook, iMac, MacMini lines
The media wasn’t summoned to a splashy event. Steve Jobs didn’t take center-stage. And there were no random celebrity appearances. Still, Apple made some product announcements today, including a refresh to the iMac and Macbook lines.
For the Macbook, the message is “More features, same price” as the company delivers features it’s been talking about for some time now - an LED-backlit display, a glass multi-touch trackpad and new battery that promises up to seven hours of life. At $999, the new 13-inch Macbook is being marketed at consumers, students and first-time Mac buyers.
As for the iMac, you can see the biggest selling point with your own eyes. The company is playing up LED-backlit 21.5 and 27-inch widescreen displays, which use a new edge-to-edge glass design. It’s also highlighting the the iMacs, which start at $1,199, as being the fastest ever, using Intel Core 2 Duo processors and Core i5 and i7 quad-core processors.
The company also announced some improvements to the MacMini - it’s faster, comes with more storage and double the memory. In addition to the $599 and $799 models, the company is also now offering a $999 Mac Mini that is configured with Mac OS X Snow Leopard Server, which features two 500 GB hard drives.
Finally, the company also introduced Magic Mouse, a innovative new wireless multi-touch mouse that comes with the new iMacs or can be purchased separately.
The products are all available today.
October 19th, 2009
Another strong quarter for Apple; credit strong iPhone, Mac sales
updated: Apple said today that Mac computers and iPhones saw strong year-over-year sales jumps in the fourth quarter, allowing the company to once again beat Wall Street’s expectations for the quarter and sending the stock surging in after-hours trading.
Apple today reported fourth quarter earnings of $1.67 billion, or $1.82 per share, on sales of $9.87 billion, up from $7.9 billion in the year ago quarter. Wall Street analysts had been expecting an eps of $1.42 on revenue of $9.2 billion. (Statement, Techmeme)
For the fiscal year, the company reported earnings of $5.7 billion, or $6.29 per share, on sales of 36.5 billion, up from $32.5 billion last year. In a statement Apple CFO Peter Oppenheimer said:
We are delighted with our September quarter and fiscal 2009 results. For the full year, we grew revenue by 12 percent and net income by 18 percent in extraordinarily challenging times.
Looking forward, Oppenheimer said it expects revenue for Q1 2010 to be between $11.3 billion to $11.6 billion and earnings per share of $1.70 to $1.78.
The fourth quarter was a busy one for Apple. Steve Jobs made his first public public appearance since undergoing a liver transplant during a medical leave of absence earlier this year. Jobs hosted a a September event in San Francisco, where he announced a refresh to the iTunes and the iPod line. During the quarter, the company also released Snow Leopard and plans for the iPhone in China were unveiled as China Unicom said it reached a three-year deal to sell the 3G and 3GS in the country. It also faced Washington regulators in the ongoing questions over the Google Voice app for the iPhone/iPod Touch.
Among the highlights from the quarter:
Mac sales: The company shipped 3.05 million Mac computers, up 17 percent from the year ago quarter. In its third quarter reports, IDC and Gartner showed market share gains for Apple in the U.S., up to 9.4 percent, a year-over-year gain of nearly 12 percent.
iPod: The company sold 10.2 million iPods during the quarter, an eight percent unit drop from a year ago. RBC Capital Markets analyst Mike Abramsky has said in an investor’s note that he sees iPods as a shrinking market - despite the addition of one with video recording capabilities - that’s being replaced by interest in the iPhone and other smartphones. Analysts had expected sales of 9.9 million iPods.
iPod Touch: The company doesn’t break out iPod Touch sales but did say that sales were up 100 percent and that the company anticipates greater growth with the new $199 entry-point price tag.
iPhone: The company sold 7.4 million iPhones in the quarter, a seven percent jump over a year ago. During the quarter, China Unicom announced a three-year deal to sell the iPhone in the planet’s most populated country.
Corporate: Google CEO Eric Schmidt resigned from Apple’s Board of Directors on concerns that the competitive landscape between the two companies (notably the Android smartphone vs. iPhone and Mac OS X vs, the forthcoming Chrome OS.)
Accounting: During a call with analysts, executives explained changes in accounting rules that will likely benefit Apple as it allows the revenue from iPhones and Apple TV to be recognized immediately, instead of over a 24-month period. Adopted earlier this year, companies have until this time next year to adopt the new accounting processes. Apple said it believes the new rules will allow a better reflection of its performance - and analysts believe the numbers will increase Apple’s earnings - but is still looking into how it will transition. It does not yet have a set timeframe for the changover and the forecasts for the next quarter reflect the deferred revenue method.
Shares of Apple were up less than one percent in regular trading, closing at $189.86. Shares were surging in after-hours trading, up more than eight percent.
October 19th, 2009
Apple's September quarter: Expect Mac unit upside
Recent signs of PC market strength are likely to translate into a happy September quarter for Apple courtesy of Mac sales.
Gartner and IDC reported that the third quarter was better-than-expected for PC sales and that bodes well for Apple. Meanwhile, NPD data is also looking good for Apple. Piper Jaffray analyst Gene Munster reckons Apple will deliver 2.8 million Macs in the September quarter.
Wall Street is expecting Apple to report earnings of $1.42 a share on revenue of $9.2 billion for its fiscal fourth quarter ending Sept. 30.
Susquehanna Financial Group analyst Jeffrey Fidacaro is also upbeat about Apple’s Mac potential in the quarter. He wrote:
October 16th, 2009
Android opens doors for Google's next-gen search, ads and tools
There’s no question that there’s been some pretty astounding growth around Android, Google’s open-source mobile phone operating system. A year ago, there was only one Android device out there - the T-Mobile G-1. Today, Android is powering 12 devices in 26 countries with 32 carriers - and there’s more on the way.
During the company’s quarterly earnings call with analysts yesterday, CEO Eric Schmidt said it plain and clear: “Android adoption is literally about to explode.” And he may be right. Earlier this month, Gartner predicted that Android - which currently runs on less than 2 percent of all smartphones - will power 14 percent of the global smartphone market in 2012.
That would make Android second only to Symbian. Yes, that means it would surpass the iPhone, Blackberry, Windows Mobile and others.
The key, in part is the applications. Apple has already proven that the app experience is a winner in mobile devices. So far, there are about 10,000 applications for Android and its touch-screen interaction is probably the best I’ve experienced aside from the iPhone. (FTC disclosure: Google gave attendees at its last developer’s conference a free Android phone. I picked one up and activated my own pre-paid account to take it for a test drive.)
Also see: Android bolsters its app market as device lineup swells
Android has good engaged base for future app growth
For other consumers to experience Android, it’s important to get the devices into as many hands as possible. Unlike Apple, which has one device on one carrier in the U.S. (but other carriers worldwide), Google is offering multiple devices across multiple carriers, including a major launch with Verizon earlier this month. Once the devices - which have deep ties to Google’s other services, such as Mail, Maps and Search - go mainstream. Google will be positioned to capture a lead in the mobile search advertising business.
Execs yesterday boasted that mobile searches grew 30 percent quarter over quarter. It was interesting to hear them acknowledge that it’s not always obvious how the company’s big investments tie together. But there are connections. On the call, CFO Patrick Pichette said:
The combination of the Android platform with all the smart phones and the momentum in there, as well as the iPhone and the rest of them, I mean, they’re just basically transforming how people live on a mobile basis… If we move forward the adoption of these smart phones by having a lower cost infrastructure because it’s open-source and you bring that, instead of taking seven years—I’m just kind of giving an illustration—all this happens in four years. Think of all the searches that will happen so much faster. So the ecosystem is incredibly vibrant right now and truly what’s interesting about these phones is there are a lot of new types of searches because you are location-specific, you are activity-specific, you are local-specific. Just a new set of areas that are to create a new set of monetization opportunities.
So, to be clear, we’ve got location-specific, activity-specific and local-specific searches being conducted on mobile devices. You also have the Internet’s No. 1 search engine integrating its own services - such as search - directly into the phone’s operating system. At the same time, the mapping application - where many of those location-based queries occur - is also deeply integrated.
And finally, don’t forget that Google is working hard on new advertising products that allow businesses to reach out to and find customers wherever they may be (even if it’s at a red-light down the street) and provide them with turn-by-turn directions on how to reach that business and a link to launch a Google Voice call to that business.
Put it all together - search, maps, voice and a mobile operating system that probably has the best chance of truly challenging the mighty iPhone - and I’d be bullish, too.
It’s no wonder that Schmidt thinks Android is about to explode.
Also see:
- Is the Google Android platform the upcoming smartphone of choice?
- CTIA: Android and Apps everywhere
- LG goes Android, but Google’s mobile OS is still swimming upstream [video]
- Motorola bullish on Android, Motoblur rollout in 2010
- It’s official: Google and Apple are competitors (especially in mobile)
- If everyone bets on Android does anyone get an advantage?
Sam Diaz is a senior editor at ZDNet. See his full profile and disclosure of his industry affiliations.
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