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Google Chairman Believes Android Outranks Apple in Phones

Google Chairman Eric Schmidt | Google Management System

Google Chairman Eric Schmidt believes that Android is winning over Apple’s iOS in terms of market share. That’s because the mobile platform is available from wide array of devices and various price points.

In an interview with Bloomberg that was published yesterday, Schmidt noted that customers are activating over 1.3 million Android devices every day. In addition, Gartner’s latest data shows that the mobile operating system takes 72 percent of the smartphone market compared to Apple’s 14 percent of market share.

This is a huge platform change. This is of the scale of 20 year ago—Microsoft versus Apple. We’re winning that war pretty clearly now.

Android’s Lion Share is Not Equal to Dollar Share

However, Android’s lion share in the market does not equate into dollar share. In terms of monetary revenue, Apple is the clear winner on it. The search engine giant gives away the open-source Android OS to its hardware partners, hoping that the market will drive demand for their services supported by mobile advertising.

Schmidt’s comments were made public after Google CEO Larry Page had an interview with Fortune earlier this week. In his interview, Page talked about the highly competitive mobile landscape. The CEO also admitted that “monetization is at an early stage” with the Android platform. He also lamented that various companies’ “island-like approach” to commercialize the Internet makes users suffer.

Google: Making a Bigger Pie

In addition, Schmidt explained that Google’s strategy is to make a “bigger pie”. The search engine giant is making their mobile OS as widely available as possible, hoping to hook users into their online services.

We will end up with not a perfectly controlled and not perfectly managed bigger pie by virtue of open systems.

While Google is playing the long game in hopes that it will boost Android’s revenue, Apple’s iPhone garners about three quarters of the mobile industry’s total operating profit. In fact, the Cupertino-based company’s industry profit came from just 8.8 percent of total unit shares that were sold worldwide.

 

Eric Schmidt was a member of the Apple Board of Directors from 2006 to 2009. He was forced to step down because of the growing competition between the iPhone maker and the search engine giant in the mobile industry. Schmidt was the Google CEO during those times, but eventually relinquished that position early last year allow Larry Page—a company co-founder—to take over the position.

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