1 bn! That's roughly about one-seventh of world's entire population!
Almost the entire population of either India or China. Android is the biggest,
no doubts.
Interestingly, history seems to have repeated itself. The architecture
of PCs first was closed with each player having their own design, and then IBM
standardized it. This environment was and is dominated by Operating System (OS)
and Chip combination of Wintel who actually grew the market. The brands productized
and marketed.
Mobiles were also segmented with each brand defining its architecture
till iOS and Android started scripting the road map.
In many ways, Android ecosystem is similar to IBM PC whereas Apple has
retained its philosophy of being closed. The benefit of an open architecture is
that the market is grown by many of its constituents. Whereas Apple is solely
responsible for growth of its devices. Imagine a cart driven by many horses
versus the one with just one horse. Which one do you think will run
faster?
I wonder if the Late Steve Jobs underestimated the power of the
multi-horse chariot steered by Google. Even if he had seen, which I assume he
did, I am sure nothing could have changed the way Apple approached the market.
Being the sole owner of its ecosystem is at the core of its strategy.
But I think Apple should do two things, differently.
- Products at multiple price
point:
The problem with Apple is that we see only one product at a time. iPhone 3
has to be killed before iPhone 4 is launched. And iPhone 5 has to be over
iPhone 4, itself. So at any point of time, a consumer has only one option
from Apple, limiting the market size. Apple could do better by planning
products at different price points. Why can’t 3 co-exist with 4, 4S and 5?
- Look East: America without a doubt
will remain a strong market for Apple. But then there is a mighty chunk of
willing fans in this part of the world. Though little late, Apple has
finally started to focus on East, especially the big emerging markets. If
you noticed, India got a special mention during
the last results for being a high growth market. I personally know many
acquaintances who jumped at the opportunity to own iPhone 4 and 4S.
Apple already has a great brand equity and its technology leadership is
unquestioned. But it always loses out due to its close architecture. What Apple
needs in my opinion is smart product planning. Products at different price
points.
It may still not be enough to beat Android base, but it would certainly
shore up its numbers.
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