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Google's Eric Schmidt says Android 'clearly' winning against Apple in phones

post #1 of 198
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With a wide range of devices at numerous price points running the Android operating system, Google's mobile platform is "clearly" winning over Apple's iOS, Eric Schmidt believes.

Schmidt, the chairman of Google, made the comments in an interview with Bloomberg published on Wednesday. He noted that customers are activating more than 1.3 million Android devices every day, while the latest data from Gartner gives Android a 72 percent of the smartphone market, compared to Apple's 14 percent.

"This is a huge platform change," Schmidt said. This is of the scale of 20 years ago ??Microsoft versus Apple. We're winning that war pretty clearly now."

Of course, while Android controls the lion's share of the smartphone market, its dominant position has not translated into dollar share ? a measure where Apple is the clear winner. Google gives away the open-source Android operating system to its hardware partners, in hopes that a market dominated by Android will drive demand for Google's services supported by mobile advertising.

Schmidt's comments have been publicized just after Google CEO Larry Page spoke with Fortune about the highly competitive mobile landscape. Page admitted that "monetization is at an early stage" with the Android platform.

Eric Schmidt
Google Chairman Eric Schmidt talking to AllThingsD in October. | Source: AllThingsD.


Schmidt explained that Google's strategy is to make a "bigger pie," making Android as widely available as possible, in an effort to hook users in to Google's online services.

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

While Google is playing the long game in hopes of boosting revenue from Android, Apple's iPhone accounts for nearly three-quarters of the total operating profit in the mobile industry, according to data compiled earlier this year. Apple's control of the industry's profits came with just an 8.8 percent total unit share among mobile devices sold worldwide.

Schmidt was a member of the Apple Board of Directors from 2006 until 2009, when he was forced to step down due to growing competition between Google and Apple in the mobile space. At the time, Schmidt was the CEO of Google, but he eventually relinquished that position in early 2011 to allow Page, a company co-founder, to take over.
post #2 of 198

HE is all of the trolls here. That's the only way to explain the things he's saying.

 

If he's so deluded as to think he's "winning" because of volume, let him die the same death Microsoft is dying.

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post #3 of 198
I guess he hits a nail here
post #4 of 198
Quote:
Originally Posted by Tallest Skil View Post

HE is all of the trolls here. That's the only way to explain the things he's saying.

If he's so deluded as to think he's "winning" because of volume, let him die the same death Microsoft is dying.

And there I was, all the time thinking he is showing Google's marketshare in that picture...

Then again, I do hope he stays on the board. Just like Ballmer, I'd like to hear more of this nonsense coming from him. Creates FunThreads.
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post #5 of 198

I guess Schmidt and that other guy aren't on the same Page.

 

These statements really don't sound like a guy who just wants to get along with others.
 

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post #6 of 198
Originally Posted by pedromartins View Post

I don't get it. Maybe I need another Masters degree so i can understand it.

 

I like how this can also be applied to everything that analysts say.

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post #7 of 198

Obviously, he and Charlie Sheen have the same idea about "winning."

 

Phew!  Glad I got that nonsense out of the way.  lol.gif

post #8 of 198
Activations don't mean much. How many customers are actually using an Android as a smart phone? As indicated on Black Friday, the iPad and iPhone separately trounced android in usage. Apple is winning most of the profits. Apple developers are winning all the app profits as well.
post #9 of 198
Yes, Android is "winning" by the numbers because most of it go to low cost, cheap phones. But is Google Microsoft of the 80's and 90's, or Commodore, or TI 99.

When Amazon or Nook comes out with a $10 phone, it is all over for Android.
post #10 of 198

That's like saying American cars clearly are the winner over BMW. You can't look at one element of the product and categorize it against one company.

 

From now on when I compare basketball teams I'm going to compare the LA Lakers vs. the Eastern Conference. Hmm...Eastern Conference scores a lot more points per night and has a lot more depth!

post #11 of 198
Quote:
Originally Posted by jungmark View Post

Activations don't mean much. How many customers are actually using an Android as a smart phone? As indicated on Black Friday, the iPad and iPhone separately trounced android in usage. Apple is winning most of the profits. Apple developers are winning all the app profits as well.

Good point.

Add to this that its easy to get tons of volume when you sell cheap, do buy one get five free deals and create software that can't be updated so a new phone is required to get new features (that could be the OEMs not Android on that move)
post #12 of 198
For me, using words like "clearly" in an interview raises red flags in the back of my mind.
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post #13 of 198
Quote:
Originally Posted by charlituna View Post


Good point.
Add to this that its easy to get tons of volume when you sell cheap, do buy one get five free deals and create software that can't be updated so a new phone is required to get new features (that could be the OEMs not Android on that move)


He needs to compare phones that are on par or somewhat close to iPhone.

 

I used a totally junky Samsung Android phone in Thailand this year. Not on par. Can't use the app store.

post #14 of 198

deleted


Edited by MacRulez - 1/28/13 at 8:36pm
post #15 of 198
Google's problem is that it isn't actually Android that is "winning," it is Samsung. Samsung could bind all of Google's offerings to Yahoo in a flash and "android" would lose 60% of its market share.
post #16 of 198
It's a shame they didn't chuck that thief off the Apple board a few years earlier.
post #17 of 198
Originally Posted by MacRulez View Post
Yep, with nearly 70% of the total desktop+mobile market, Microsoft is doomed.

http://en.wikipedia.org/wiki/Usage_share_of_operating_systems

 

Wh… wh… wh… You're saying this without sarcasm. You're literally saying this without sarcasm.

 

Not ten years ago, Microsoft had 97% of all marketshare. In less than ten years, they've lost 27% marketshare. And you're pretending that they have nothing to worry about? 

 

I seriously don't know why I'm surprised that you're saying this, but I am. I guess I have more faith in you than I should.

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post #18 of 198

McDonalds sells a lot more Happy Meals than Morton's sells steaks.

 

 

 
post #19 of 198

Wall Street believes Android is winning and winning big over Apple.  Google's P/E is 21, Apple's P/E is 12.  Google's share price is $695, Apple's share price is $535.  To Apple shareholders, it would certainly appear as though Google is basically kicking the crap out of Apple and Android is on the verge of putting Apple and iOS out of business.  It would also appear as though the average investor would rather spend close to $700 a share on Google stock rather than spend $540 on Apple stock because they obviously think that Google has more upside than Apple.  Only time will tell if this appearance holds up.

 

However, it does seem as though Wall Street always prefers companies that have very high market share and sells very cheap products.  Wall Street firmly believes this is the formula for long-term success.  I know that doesn't always work out (both Nokia and RIM are recent prime examples) but that's how Wall Street sees it.  Apple's profits, lack of debt and huge cash reserve don't seem to be doing anything for the share price and that is a fact.  This is the current reality of the Apple vs Google situation.

 

I see Android as a fragmented and hard to control OS that's already grown larger than what can be easily managed as far as updates are concerned.  There's just too many types of devices in both smartphones and tablets spread over too many companies and carriers.  It also seems like a very poor financial model for nearly every company using it save Samsung.  I doubt Android has even lived up to Google's financial expectations of ad revenue.  So, I don't understand why Wall Street loves Google and Android, but that doesn't change the fact that all I ever hear is bravado about Android gaining ever more market share on a daily basis, somehow always leading to huge Apple losses in the future.

post #20 of 198
Quote:

Wall Street believes Android is winning and winning big over Apple.  Google's P/E is 21, Apple's P/E is 12.  Google's share price is $695, Apple's share price is $535.  To Apple shareholders, it would certainly appear as though Google is basically kicking the crap out of Apple and Android is on the verge of putting Apple and iOS out of business.  It would also appear as though the average investor would rather spend close to $700 a share on Google stock rather than spend $540 on Apple stock because they obviously think that Google has more upside than Apple.  Only time will tell if this appearance holds up.

 

However, it does seem as though Wall Street always prefers companies that have very high market share and sells very cheap products.  Wall Street firmly believes this is the formula for long-term success.  I know that doesn't always work out (both Nokia and RIM are recent prime examples) but that's how Wall Street sees it.  Apple's profits, lack of debt and huge cash reserve don't seem to be doing anything for the share price and that is a fact.  This is the current reality of the Apple vs Google situation.

 

I see Android as a fragmented and hard to control OS that's already grown larger than what can be easily managed as far as updates are concerned.  There's just too many types of devices in both smartphones and tablets spread over too many companies and carriers.  It also seems like a very poor financial model for nearly every company using it save Samsung.  I doubt Android has even lived up to Google's financial expectations of ad revenue.  So, I don't understand why Wall Street loves Google and Android, but that doesn't change the fact that all I ever hear is bravado about Android gaining ever more market share on a daily basis, somehow always leading to huge Apple losses in the future.

Yes, is there not an irony in the fact that a big US corporation is fueling the success of a foreign competitor at the expense of another US corporation?

post #21 of 198

Point is you go with your strength. The only place Android is winning is in shear numbers. Every other metric says iOS is winning. And I can guarandamntee you that were the shoe on the other foot Eric Schmidt would be commenting on how market share isn't really important and that customer satisfaction, web presence, profits, ad revenue, and public perception were more important. You know, all those other metrics where iOS is wiping the floor with Android.

 

And Tallest Skil is right on when he says Schmidt represents all the trolls that infest AI and that Google can die the same slow death as Microsoft is. Trolls like Schmidt don't comprehend how a company like Apple can even exist, let alone thrive and control the tech future. They have no explanation to offer other than "only stupid people buy Apple." 

 

Oh, and this is the same Eric Schmidt who predicted that developers would be overwhelmingly to Android first and iOS later or not at all within six months. That prediction is a year old now with no sign of coming to fruition.

post #22 of 198

I dont think Apple was ever out to "win" anything (aka marketshare).  The price of their products certainly suggest they are more interested in quality vs. quantity.

 

This is the difference between Apple & Google.  Apple puts out the best phone is possibly can once every year.  Google puts out the the latest version of its FREE phone software it can throughout the year.  While numbers are meaningul, Apple never has targeted absolute marketshare as a goal.. if they would they would make cheaper products at a lower price.  Google on the hand has never targeted putting out the best overall user experience in a single product, as their goal is marketshare.

 

As someone posted in a thread yesterday, here is how Google thinks:

 

 


Quote:
Originally Posted by Alfiejr View Post

Google's basic business plan is:

 

1. rip off/scrape everybody else's stuff.

2. slap ads on it.

3. then give it all away for "free" to anyone.

4. then data mine everyone that takes any of it.

5. and sell them to advertisers.

 

but let's all be friends!

 

seriously, Google IS evil.

 
post #23 of 198
Quote:
Originally Posted by AppleZilla View Post

McDonalds sells a lot more Happy Meals than Morton's sells steaks.

 

 

 


But that misses the point...McDonalds may not be the same quality, but the iPhone is both better quality than the average Android phone, but also more profitable.

 

This would be more like comparing Cubic Zirconia vs. Diamonds. (I assume) there are more Cubic Zirconia sold, but they are worse quality and make less money for the people who sell them.

post #24 of 198

Hey Eric Schmidt, actor Charlie Sheen was "Winning" also, still it didn't stop people from looking at his actions and thinking he was a kook and notice how you don't hear too much about Charlie Sheen anymore, whether on purpose or not!  

 

WINNING!...  1rolleyes.gif

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post #25 of 198

Well I guess its all over but the crying. We lose.

 

http://www.macworld.co.uk/ipad-iphone/news/?newsid=3416167&olo=rss

post #26 of 198

Uhh, what else would we expect him to say?? They may have a larger market share but that doesn't mean it's a better product (see Microsoft Windows vs. OS X).

post #27 of 198
Quote:
Originally Posted by AppleZilla View Post

McDonalds sells a lot more Happy Meals than Morton's sells steaks.

 

 

 

Yeah, but the data they are using is PRE-iPhone 5 sales.  IPhone 5 STILL hasn't landed in China yet.  So far, in the US, the numbers are vastly different, based on the latest information, iPhone is more like 30% and growing.  These guys are just using last quarter's data and just milking it to get attention.

 

Eric Schmidt is a dick.

post #28 of 198
Quote:
Originally Posted by Tallest Skil View Post

HE is all of the trolls here. That's the only way to explain the things he's saying.

 

If he's so deluded as to think he's "winning" because of volume, let him die the same death Microsoft is dying.

Yeah, but they aren't making much money because their business model is a flawed business model.  They just like spitting out predominately cheap products and they are now having to dump prices to compete against Apple.

post #29 of 198
Quote:
Originally Posted by drblank View Post

Yeah, but they aren't making much money because their business model is a flawed business model.  They just like spitting out predominately cheap products and they are now having to dump prices to compete against Apple.

They're certainly making money. Just not from the same market as Apple does.

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post #30 of 198
The real problem is many of the android activations are for phones in developing countries that are sold with all Google services stripped out. Growing the pie that way will not help Google.
post #31 of 198

That depends on how you define "winning".  In terms of the sheer number of devices that run Android, including those that don't even qualify as a smartphone or tablet, then sure.  In terms of quality, no.  In terms of ecosystem, no.  In terms of profitability, no.  In terms of usability (i.e. stability, UI issues, fragmentation), no.  What we have here is just a new decade's version of lipstick on a pig.

post #32 of 198
Quote:
Originally Posted by Daekwan View Post

I dont think Apple was ever out to "win" anything (aka marketshare).  The price of their products certainly suggest they are more interested in quality vs. quantity.

 

 

I probably misunderstood Jobs when launching the first iPad. Didn't he say (word by word) that the price point made it quite impossible for a competitor to enter the tablet market?

post #33 of 198

Eric Schmidt... what a Bozohole!

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post #34 of 198

He's just casting his line to reel in more people who's information he wants to harvest.

post #35 of 198
Quote:
Originally Posted by drblank View Post


Eric Schmidt is a dick.

 

that's an insult to all male genitalia.

post #36 of 198

We need to start up a list and call it: "$hit Eric Schmidt Says"

 

- He said last year that by summer 50% of TV's would have Google TV. Where are they? **crickets**

- He stated last December that iOS's 2:1 lead in developer support would switch sides and in 6 months you'd see Android having the higher interest in developer support. It's now 1 year and iOS still commands more than 2:1 developer interest on iOS. **more crickets**

 

Now he says he's winning the war. What war exactly is that? The race to the bottom? Who can flood the market with the most garbage? Who can develop an OS the quickest by stealing other people's IP instead of creating their own?

 

Poor Apple, all they can win at is:

 

- Higher quality Apps and more developers coding for iOS than Android.

- Total domination of tablet Apps (as in Apple actually has more than 10).

- Higher internet usage by phones (almost 2:1) and by tablets (almost 9:1). Ask web developers who they should be targeting when they make mobile specific sites for their companies.

- Online shoppers use iOS devices almost 5:1 over Android. Who's more likely to get an online offer, an iOS user or Android user?

- Most money paid out to developers.

- Best eco-system from Apps to Music to TV/Movies to books to the ABSOLUTELY HUGE aftermarket accessory industry.

- Having the terrible problem of not being able to make products fast enough to keep up with demand.

- OS adoption rate. Over 60% on iOS 6 shortly after launch. Meanwhile 50% Android users are stuck on a 2 year old OS full of security holes. And there are still brand new phones being sold today with that same 2 year old OS.

- Support. Try taking your Galaxy to a store for service when something goes wrong. Or try getting an update for your barely one-year-old phone.

- Profits. Not important for the consumer, but very important for the company.

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post #37 of 198

Schmidt did not tell the truths.  I will tell the truths for him.  This year China sold 100 million smartphones.  The overwhelming majority of them are Android based. This is the reason Schmidt can claim Android is winning the war.

 

But what is the real truth?  Let's understand the use model of those developing nations.  In China I was told that the smartphone buyers are sold a fixed amount of data plan.  They don't have to pay month by month as long as the data is not used up.  I believe most of those smartphone users in China don't use the phone to surf the internet regularly.  They use the phone just as a phone.  They bought the smartphone because it cost about the same as a feature phone. 

post #38 of 198
Quote:
Originally Posted by Tallest Skil View Post

 

I like how this can also be applied to everything that analysts say.

I strongly disagree. To understand analysts you need at least a PHD. Better yet, two. One in philosophy and one in applied chaos theory. lol.gif

post #39 of 198
Quote:
Originally Posted by odditie View Post

That's like saying American cars clearly are the winner over BMW. You can't look at one element of the product and categorize it against one company.

 

From now on when I compare basketball teams I'm going to compare the LA Lakers vs. the Eastern Conference. Hmm...Eastern Conference scores a lot more points per night and has a lot more depth!

The reason that the car analogy doesn't hold up well here is that any of the American car companies earn/keep more than BMW or Mercedes while making a (by definition) lower-end product. If the car analogy held, Apple would be trailing in usage and profits, as well as in units sold.

Apple leads in quality, profits, and usage, and trails only in units sold.

post #40 of 198

Eric Schmidt thought bubble...

"Once we destroy Apple iPhone/iPad/iOS and we have all users data on our servers, we can simply start charging these dumbass users to access their own data and our services in addition to selling all this info to our advertisers.

Hah! We WILL rule the world (but still not do any evil)"

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