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.