Apple and Google: how they made it to become the prevalent mobile platforms

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This presentation -in English- is related to a longer, more detailed paper published within the proceedings of the VIIIInternational Conference on Communication and Reality, held in Barcelona in May, 2013, available -in Spanish language- via http://cicr.blanquerna.url.edu/actas/acta-congres.pdf#page=334
I hope it can help someone.

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Apple and Google: how they made it to become the prevalent mobile platforms

  1. 1. The new players that changed the rules and the game itself: how Apple and Google transformed the content distribution business Andreu Castellet Universidad de Murcia Juan Miguel Aguado Universidad de Murcia Inmaculada Martínez Universidad de Murcia
  2. 2. Internet becomes mobile u  1,224 billion connectable devices sold in 2012 Tomi Ahonen Consulting, 2013 u  695 million smartphones sold Tomi Ahonen Consulting, 2013 u  Not included u  100 billion app downloads 2010-2012 Svanberg, 2013 u  The biggest expectations in consumer goods come from mobile technologies
  3. 3. The growth of the mobile market 695 million smartphones sold in 2012 215 million smartphones sold in 2009 Source: Tomi Ahonen Consulting, 2013
  4. 4. The growth of the mobile market 695 million smartphones sold in 2012 Google and Apple have 87% of the market Source: Tomi Ahonen Consulting, 2013 Nokia and RIM have 64% of the market 215 million smartphones sold in 2009
  5. 5. Our research questions u  How have they developed their platforms in order to achieve market hegemony? u  Have Google and Apple developed their respective platforms in equal ways? u  Has any of them copied the other in crucial steps of platform development?
  6. 6. The era of platforms Devices OSs App stores “Industry platforms are technological building blocks (that can be technologies, products or services), that act as a foundation on top of which an array of firms, organized in a set of interdependent firms, (sometimes called an industry “ecosystem”), develop a set of interrelated products, technologies and services”. Gawer, 2011
  7. 7. The generation of Apple-iOS ecosystem Proprietary Paid and free apps Direct sales and advertising revenues In-app purchase On sale All retail channels All users registered
  8. 8. The generation of Google-Android ecosystem Open-source Free license Paid and free apps Direct sales and advertising revenues In-app purchase Open Handset Alliance (OHA) On sale All retail channels Loose control
  9. 9. A face-to-face view Integrator Platform The platform owner controls many of the assets to ensure value proposition, and establishes a relationship with end-users. Entry of ‘third-party’ service providers is actively encouraged Ballon & Van Heesvelde, 2011 Enabler Platform The platform owner controls many of the necessary assets to ensure the value proposition, but does not control the customer relationship Ballon & Van Heesvelde, 2011
  10. 10. Different platform architectures Core legacy business IT hardware contents aggregation Year of launch 2007 2008 OS proprietary, closed free, open Devices licensing no yes OS licensing no yes Devices under leader’s brand yes yes (< 1%) Access to platform free, under registry free, no registry necessary Relationship towards users personal anonymous
  11. 11. Further lines of research u  How and why have the losers missed such a big business opportunity? u  Mobile platforms as private spaces of regulation
  12. 12. Our conclusions u  Both Google and Apple have gone through major internal and external transformations to take advantage of their respective starting points: Google’s was an information utility one, while Apple’s was a hardware one. u  With Android, Google has set up a platform based on cooperation of several diverse players, bets on a free OS financed by advertising revenues, and allows other players to keep their own relationships with customers. Apple bets on a tightly controlled platform, based on iOS, a proprietary system, and only allows others’ players, users included, if they accept Apple’s strict rules. u  It doesn’t seem that anybody copied the other, although an ordinary user doesn’t notice big differences between them. However, their observe each other’s steps and tend to emulate some strong points of their opponent.
  13. 13. Thank you. Remarks are welcome Andreu Castellet Universidad de Murcia andreu.castellet@um.es Juan Miguel Aguado Universidad de Murcia jmaguado@um.es Inmaculada Martínez Universidad de Murcia inmartin@um.es

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