Among all regions, Europe is by far the worst for Apple, as the chart shows. Surprisingly even Windows Phone is getting close to iOS market share in Europe.
The reason is quite simple:
The price for the lowest spec iPad in US is $499 while in Spain is 499 Euro. For years Apple has maintained a pricing policy where prices for their products in Europe follow the 1 Euro = 1 USD rule. At today’s exchange rate, an iPad costs 36% more in Europe than in the US.
We all know the Apple target client is not price sensitive, but in a Europe in recession with an impoverishing middle class (specially in southern countries) it is not a surprise that Samsung and Android are doing pretty well.
If Apple wants their market share in Europe to resemble US, they’d better change their pricing policy in Europe. Otherwise they risk to be beaten by (shame on you Apple) Windows Phone!
With Android, Google is set to dominate mobile ads, whatever form it may take, beyond search and display. As eyeballs go to mobile, Google will have an advantage position by controlling the OS.
And TV is the next one to disrupt. Youtube might be turning to be profitable by now. The experiments in online video ads are beginning to pay off, as it shows the amount of content agreements Youtube is getting into.
Googe wants to control the underlying technology platform, so that whatever evolution digital ads go, they are at the leading edge. Chrome and Android are the most obvious cases. On2, Widevine acquisitions followed the same rationale.
Google strategy to kill competitors is also getting more and more obvious: Give for free the core value of your competitor.
Google Apps against Microsoft Office
Chrome and Chrome OS, to make the OS irrelevant, as all apps run in the browser.
Android against Apple iOS
Digital advertisement, powered by Google, is one of the biggest enablers of the Digital Renaissance. Google enables both publishers and advertisers of any size to benefit from online advertisement. They are one of the biggest ‘patrons of the arts’ for the long tail.
Highlight data points in the chart:
Mobile ads market in US is $4 bn in 2012. Facebook managed to get $339m, even if they just started mobile ads this year.
After a few weeks traveling I am back in KL after the Mobile World Congress in Barcelona. I was planning to link any comprehensive report from the blog-sphere with the highlights from last week, but strangely enough I did not find any. So I will summarize my high level impressions from the show:
The news with most press coverage was incredibly the handset that a pickpocket stole from a Telstra exec, with the yet-to-be-released Windows Mobile version 6.5, and loaded with “secret product information”. Is Microsoft using new viral marketing techniques? or was really the show lacking any more striking news?
Where are the Android handsets? After more than one year of Android birth many were expecting 2009 MWC to unveil stunning new handsets. But Android devices were missing. HTC only showed its T-Mobile’s G1. Are HTC, Motorola, Sony-Ericsson and others preserving their weapons for the Xmas season?
Android announced this week that 14 new companies are joining the Open Handset Alliance. The new members are: AKM Semiconductor, ARM, ASUSTek Computer, Atheros Communications, Borqs, Ericsson, Garmin International, Huawei Technologies, Omron Software, Softbank Mobile Corporation, Sony Ericsson, Teleca AB, Toshiba Corporation and Vodafone.
Sony Ericsson sold their shares of Symbian to Nokia to be able to run to Android, as predicted.
ARM does want to power Android handsets processors (G1 has a Qualcomm processor)
Even Vodafone will put Vodafone Live on Android. Wouldn’t they sell it as a mobile App in App Market and make Vodafone Live available to users from any carrier for a wider audience?
Softbank (is this the same Japanese mobile operator that sells iPhone?) might be hoping for an Android flip phone that meets the Japanese taste for clam-shell phones.
Garmin, fearing of the strong threat of mobile phones with A-GPS and Google Maps to their navigator devices, might be thinking that better partnering than fighting. Garmin already launched its first GPS-phone, the Nuvifone, earlier this year. It seems that there will be more to come, confirming that GPS and Phone synergy is here to stay.
Nokia, RIM, Microsoft and Apple keep resisting to join the “Alliance”, and remain in the dark side of the Force. No wonder Android logo looks so much alike C-3PO!
Let’s get ready to enjoy the cool devices that the members of the Alliance, as well as Apple, Nokia and RIM, will bring in their own star wars.
Nokia has finally reacted and announces a device to compete with the iPhone. The N97 has a beautiful touchscreen and a sliding qwerty keyboard. From the video clip Nokia posted in YouTube you can notice that Nokia bets on widgets to make the interface even more touch-friendly. One surprising thing about the video is that apart from widgets it only shows how the N97 plays video and music controlled by a soft touch interface. No demo on web browsing experience, nor on Nokia Maps powered by A-GPS, nor on any other feature that outperforms iPhone.
The device has 32GB of internal memory, a micro SD slot, and features a mini-USB interface, which already signals how Nokia is giving up on forcing users to buy proprietary Nokia cables and chargers. This shows how good (and necessary) competition is to avoid market leaders to abuse their position, as Nokia has been doing with their accessories (and Apple still does).
All in all, a quite decent device compared to previous Nokia phones. But at the expected 550 EUR price, is it cooler than iPhone? Furthermore, what new iPhone and Android models will we have by the second half of 2009, when the N97 hits the market?
Market leaders tend to be slower to respond to disruptions, usually after wasting months downplaying the disruptive competitor. Has Nokia reacted soon enough to avoid losing its throne?
Only one quarter after launching the 3G iPhone, Apple is ranked third by revenues among smartphone vendors, just behind Nokia and Samsung, and ahead of SonyEricsson and LG.
In Steve Jobs words, Apple’s mobile phone strategy focuses on “software and user experience“. It is the usability, stupid. That is the magic why a phone without MMS, video recording, videocall or a memory card slot still rocks.
Nokia downplayed Apple’s impact in the mobile phone market when iPhone was launched. Now the financial numbers confirm the revolution anticipated by all the headlines and hype iPhone generated.
Anyone bet that Android and iPhone will outsell Symbian by end 2009?