Google's Eric Schmidt throws down the gauntlet

[Bateluer]

http://www.droid-life.com/2011/12/0...ndroid-is-ahead-of-the-iphone-now/#more-55227

At a recent conference, Eric Schmidt has declared that Android has now surpassed the iPhone.

“Ultimately, application vendors are driven by volume, and volume is favored by the open approach Google is taking. There are so many manufacturers working to deliver Android phones globally. Whether you like Android or not, you will support that platform, and maybe you’ll even deliver it first.”

Oh, I know this is going to generate some heated posts.

 

[pm]

I'll be watching the thread closely. Please be considerate of your fellow posters with your replies. If this turns into a flamewar, then I'll be speaking with whomever started the fire.

Moderator PM

 

[ITHURTSWHENIP]

I mentioned this on the GPU acceleration thread. But Google seriously needs to come up with alternative payment methods. Not everyone wants to shop with their credit cards. Being able to buy Itunes gift cards in stores is a huge factor in sales

 

[MrX8503]

I thought Android surpassed the iPhone in market share for a while now.

Anyway, I think Android will eventually surpass iOS, but I'm not so sure it'll be within six months. Android has had an app marketplace for a long time and its still not there yet.

EDIT: I think it is easier to buy on iOS, which may be a factor. Another thing to notice is that iOS hasn't loss market share, only slowed down. I haven't checked the latest stats however.

 

[Bateluer]

I mentioned this on the GPU acceleration thread. But Google seriously needs to come up with alternative payment methods. Not everyone wants to shop with their credit cards. Being able to buy Itunes gift cards in stores is a huge factor in sales

This is a good idea, Android Market gift cards.

 

[QueBert]

I thought Android surpassed the iPhone in market share for a while now.

Anyway, I think Android will eventually surpass iOS, but I'm not so sure it'll be within six months. Android has had an app marketplace for a long time and its still not there yet.

Google dude is delusional, Android has been killing iOS on # of handsets for well over a year now. But they generate about 10% of the app revenue where Apple is about 90% If he's not lying here he's delusional thinking in 6 months that 10% will magically have them getting the good apps 1st. Android has many advantages over iOS and will continue to spank Apple in the market share. But when it comes to Apps? not gonna happen anytime soon, let alone 6 months? He should be fired if he truly believes that. It's one thing to be optimistic, but it's another to flat out lie, and he's flat out lying.

 

[cheezy321]

Where would this forum be without Bateluers constant posts about androids dominance? He is like a human RSS feed.

Anyways, I thought this was the case a long time ago. Its been long understood that Android has surpassed the iphone in volume sales. Revenue just hasn't followed that. It isn't even close.

He might have a good point if the numbers were swaying their way. Like someone else in this thread already mentioned, the app store numbers are just pathetic compared to iOS. I am sure the revenue from the android app store will be comparable to iOS at some point. In 6 months? Keep dreaming...

 

[Red Storm]

I think one or two years is a much more realistic estimate. Hopefully by then ICS will be much more prevalent among Android users.

 

[Bateluer]

Google dude is delusional, Android has been killing iOS on # of handsets for well over a year now. But they generate about 10% of the app revenue where Apple is about 90% If he's not lying here he's delusional thinking in 6 months that 10% will magically have them getting the good apps 1st. Android has many advantages over iOS and will continue to spank Apple in the market share. But when it comes to Apps? not gonna happen anytime soon, let alone 6 months? He should be fired if he truly believes that. It's one thing to be optimistic, but it's another to flat out lie, and he's flat out lying.

Reliable source?

And Android has just as many good apps as iOS, that talking point hasn't been valid in over a year.

Eric Schmidt is their CEO, kinda hard to 'fire' him. Especially when Google is raking in money hand over fist for their share holders.

 

[QueBert]

I think one or two years is a much more realistic estimate. Hopefully by then ICS will be much more prevalent among Android users.

Still not realistic, Android owners seem to be unwilling to buy any app, there are a few exceptions, but exceptions won't lead to developers rushing to get an Android version out 1st. Eric seems to have Google vision much like the Fandroids who seem to think because Android gets an exclusive game or app here and there it means it's becoming the performed platform for developers. Android will make some headway in the next few years, but Google needs to figure out how to get Android owners from the "LULZ you iOS loosers PAY for apps? LULZ Android apps are free you're stupid!" mentality.

I don't know how accurate the list is, but I'm looking at a top 10 paid Android apps list right now and 3 of them required a rooted phone. IMHO that's not exactly something that will entice developers to rush from iOS.

 

[YoungGun21]

Why pay for an app when there is a free alternative?

 

[pm]

Ok, so much for moderation... I'll jump into this, and if the thread goes horribly awry, TheStu or Virge can deal with it.

1. The CEO of Google is Larry Page, not Eric Schmidt. Eric is the chairman of the board.

2. I will agree with the comment that buying Android apps is more annoying than buying iOS apps. I'm participating in the 10 for 10 days for $0.10 thing and buying an Android app on either my Asus Transformer, or through the web takes 4 or more clicks to buy and then an announcement when it's installed, and each purchase generates a receipt. On iOS, you click once, type in your password and then you can go on a crazy spree and everything after that is 1-2 clicks/touches and when you are done you get one receipt for your entire shopping spree. This is not a FAIL sort of thing, but it's definitely a "ok, this is getting annoying even though these 9 apps just cost me $0.90". I can't figure out how to update apps en masse as well... on iOS, you touch "update all" but I don't see the similar button on Android and updating requires that I revisit the permissions list again, and accept and download, and then it's got all of these announcements about how it's downloaded and now I have to install. Is this better on ICS?

3. Quebert, where did you get this idea that the top apps on Android require rooting? The top apps don't need root:
https://market.android.com/details?id=apps_topselling_paid
It's possible that they may not install on all Android devices, but they don't require rooting... And can you stop throwing around the term "Fandroids"? You reduce your credibility when you go around labeling all Android users as if they are crazy people, or teens with poor spelling skills.

 

[Anubis]

EDIT: I think it is easier to buy on iOS, which may be a factor. Another thing to notice is that iOS hasn't loss market share, only slowed down. I haven't checked the latest stats however.

how so, clicking buy ap is pretty much the same regardless of platform

 

[Suspicious-Teach8788]

Why pay for an app when there is a free alternative?

Because even the free apps on iOS have far more polish and quality than the free apps on Android? The quality is night and day difference.

 

[ITHURTSWHENIP]

Because even the free apps on iOS have far more polish and quality than the free apps on Android? The quality is night and day difference.

Wich ones specifically? Evernote, dropbox, whatsapp, twitter look equal to my iphone 4. Facebook sucks but there is a massive update coming today for it

 

[Accord99]

I can't figure out how to update apps en masse as well... on iOS, you touch "update all" but I don't see the similar button on Android and updating requires that I revisit the permissions list again, and accept and download, and then it's got all of these announcements about how it's downloaded and now I have to install.

In the list of installed apps, anytime there's more than one app that's been updated, there's another Update button in the top-right which does a one click update all. I have this with a HTC Desire running 2.2.

 

[TakeNoPrisoners]

I do hope that Android ends up beating iOS. It just isn't good for consumers for one company to have the best stuff.

Android is a better OS just because more then one company can use it.

 

[TuxDave]

Reliable source?

And Android has just as many good apps as iOS, that talking point hasn't been valid in over a year.

Eric Schmidt is their CEO, kinda hard to 'fire' him. Especially when Google is raking in money hand over fist for their share holders.

Can I quote another thread as a reliable source? (it's locked so you can't really participate in that anymore)

http://forums.anandtech.com/showthread.php?t=2207362

 

[Bateluer]

Ok, so much for moderation... I'll jump into this, and if the thread goes horribly awry, TheStu or Virge can deal with it.

1. The CEO of Google is Larry Page, not Eric Schmidt. Eric is the chairman of the board.

My mistake. Still a hard position to simply fire, especially when the company is making massive profits.

2. I will agree with the comment that buying Android apps is more annoying than buying iOS apps. I'm participating in the 10 for 10 days for $0.10 thing and buying an Android app on either my Asus Transformer, or through the web takes 4 or more clicks to buy and then an announcement when it's installed, and each purchase generates a receipt. On iOS, you click once, type in your password and then you can go on a crazy spree and everything after that is 1-2 clicks/touches and when you are done you get one receipt for your entire shopping spree. This is not a FAIL sort of thing, but it's definitely a "ok, this is getting annoying even though these 9 apps just cost me $0.90". I can't figure out how to update apps en masse as well... on iOS, you touch "update all" but I don't see the similar button on Android and updating requires that I revisit the permissions list again, and accept and download, and then it's got all of these announcements about how it's downloaded and now I have to install. Is this better on ICS?

If buying iOS apps is comparable to buying apps on the Mac App Store, then Android Market's method of tap 'Buy', tap 'Accept', app downloads, run app is far better, quicker, and easier. Provided you've got a VISA/MC attached to your account.

Anytime there's more than one app to be updated, there's an Update All option from Market, its been there since one of the Market updates that came with 2.2.

3. Quebert, where did you get this idea that the top apps on Android require rooting? The top apps don't need root:
https://market.android.com/details?id=apps_topselling_paid
It's possible that they may not install on all Android devices, but they don't require rooting... And can you stop throwing around the term "Fandroids"? You reduce your credibility when you go around labeling all Android users as if they are crazy people, or teens with poor spelling skills.

While he's not correct, he might be referring to an article that came out a while back that had apps like Rom Manager, Cachemate, and some other utilities that needed root in a Top App list. I forget the details though, too lazy to look it up now. 99.99% of the Android apps don't need root.

Can I quote another thread as a reliable source? (it's locked so you can't really participate in that anymore)

http://forums.anandtech.com/showthread.php?t=2207362

No, but you can cite the article from the thread.

http://tech.fortune.cnn.com/2011/11/21/piper-jaffray-android-app-revenue-is-7-of-iphones/

But, since they basically made a rough guess using sketchy numbers from several blogs and surveys, its worthless information. Unless Google releases some hard numbers or a market research firm has actual data, it means nothing.

 

[Anubis]

Ok, so much for moderation... I'll jump into this,.

pretty sure on all versions after 2.2 there is an update all button as well as the ability to let them auto update

however depending on the phone you have the edits to it may have changed things

 

[Puddle Jumper]

You don't need a credit card to buy Android apps. I know at least on Tmobile and At&t there is an option to purchase apps and have then charged to your cell phone bill. I bought 4 apps yesterday using this method and 2 more using my credit card and both times it could not have been easier, just click purchase, pick the payment method, and click buy.

I don't see a problem with generating spererate receipts either, it's not like getting two emails instead of one is an inconvenience and it makes it easier to track your purchases.

 

[Anubis]

you can charge to your accnt on VZW as well

 

[TuxDave]

No, but you can cite the article from the thread.

http://tech.fortune.cnn.com/2011/11/21/piper-jaffray-android-app-revenue-is-7-of-iphones/

But, since they basically made a rough guess using sketchy numbers from several blogs and surveys, its worthless information. Unless Google releases some hard numbers or a market research firm has actual data, it means nothing.

Here is a critique of that article:
http://www.insidemobileapps.com/2011/11/21/android-ios-revenue-piper-jaffray/

The cliff note of it ignores ad revenue and ignores in app purchasing

So for the data it does account for, the critique does concede that it is correct in spirit.

To be fair, the spirit of the report is true. The top-tier and mid-size developers generally concede that Android trails iOS revenue.

 

[QueBert]

Reliable source?

And Android has just as many good apps as iOS, that talking point hasn't been valid in over a year.

This is from a reliable source cnn.com, sorry my 10% figure was incorrect, it's actually 7% according to this

Since its inception, Google's (GOOG) Android Market Place has generated about 7% of the gross revenue of Apple's App Store.
Apple (AAPL) has about 85% to 90% market share of the total dollars spent on mobile apps.
Only 1.3% of Android apps are paid, compared with 13.5% of iPhone's.
Apple developers have made more than $3.4 billion since 2011, compared with less than $240 million for Google developers.
Although Android is likely to grow its smartphone market share faster, Apple will probably maintain a 70%+ share of mobile app dollars spent over the next 3 or 4 years.

iOS developers have made 3.4 BILLION compared to Google developers $240, if the Market somehow pulled off a 5x increase in $ in the next 6 months they'd still barely be 1/3 $ wise. Does the market have potential? hell yes, but his 6 month quote is totally laughable. If they double the $ to 480 I would be totally impressed, but developers would still look at the 3.4 number and continue to treat Android like a second class citizen. 85-90% to 7% won't change much because Android's market share isn't going to grow by leaps and bounds any more. They will continue to vastly outsell Apple when it comes to hand sets, and iOS will continue to bring in vastly more money. Apple will never come close to winning the handset war, and Google will never come close to winning the app war. They could 10x their app share and still would be far behind and a billion + $$$ under iOS.

 

[Puddle Jumper]

This is from a reliable source cnn.com, sorry my 10% figure was incorrect, it's actually 7% according to this

Since its inception, Google's (GOOG) Android Market Place has generated about 7% of the gross revenue of Apple's App Store.
Apple (AAPL) has about 85% to 90% market share of the total dollars spent on mobile apps.
Only 1.3% of Android apps are paid, compared with 13.5% of iPhone's.
Apple developers have made more than $3.4 billion since 2011, compared with less than $240 million for Google developers.
Although Android is likely to grow its smartphone market share faster, Apple will probably maintain a 70%+ share of mobile app dollars spent over the next 3 or 4 years.

iOS developers have made 3.4 BILLION compared to Google developers $240, if the Market somehow pulled off a 5x increase in $ in the next 6 months they'd still barely be 1/3 $ wise. Does the market have potential? hell yes, but his 6 month quote is totally laughable. If they double the $ to 480 I would be totally impressed, but developers would still look at the 3.4 number and continue to treat Android like a second class citizen. 85-90% to 7% won't change much because Android's market share isn't going to grow by leaps and bounds any more. They will continue to vastly outsell Apple when it comes to hand sets, and iOS will continue to bring in vastly more money. Apple will never come close to winning the handset war, and Google will never come close to winning the app war. They could 10x their app share and still would be far behind and a billion + $$$ under iOS.

If i am not mistaken that study ignored add revenue making it's conclusions just about worthless.