Google’s primary source of profit is search-related advertising while Apple’s is consumer hardware. And Google’s five-front assault on Apple’s profit model takes advantage of that difference.
Here are five of Apple’s fronts and how Google is attacking them:
Apple lags and has lost share in high end smartphones where 426 million units were sold during the first three months of the year. Gartner reported that in the first quarter of 2013, Apple’s global share of the high-end mobile phone market declined from 22.5% in the 2012 period to 18.2%.
Apple is number two to Samsung — which supports Google’s Android operating system. Samsung’s market share increased from 27.6% to 30.8% in the first quarter of 2013.
Android has already taken the tablet market lead from Apple. IDC expects Android to control 60% of the tablet market by the end of June 2013.
It wasn’t always so gloomy for Apple’s iPad. After all in the second quarter of 2012, the iPad commanded over 60% of the tablet market — but that figure has dropped ”to around 40% in each of the third and fourth quarters of 2012 and the first quarter of 2013,” reports Venturebeat.
And Android has been gulping iPad’s market share. Venturebeat notes that between the first quarter of 2012 and the first quarter of 2013, Apple swapped the lead with Android — in 2012 Apple outsold Android by 11.8 million to 8 million; while in that same period in 2013, Android trumped the iPad by 27.8 million to 19.5 million.
Moreover, IDC expects skies to darken for the iPad. In the second quarter of 2013, IDC believes that Apple will ship fewer than 19.5 million units because Apple is not launching what CEO, Tim Cook, called its “amazing” new hardware until “fall 2013 and throughout 2014.” Thus IDC expects Apple to ship between 17 million and 18 million iPads — leaving Android tablets with 60% of the market in Q2 2013.
When it comes to competing with Android smartphones and tablets, Apple can either cut price and slash its profits or hold its prices and win fewer new customers. Cook has yet to prove that Apple can innovate its way out of that profit-growth dilemma.
3. Apple Maps
Under a year after Apple removed Google Maps from the iPhone, Google introduced a new version that is simpler and can be customized to each user.
By sharing what Google knows about each individual from other services, Google can customize maps. According to the New York Times, “When users who are logged into Google visit Maps, they will see the places they frequently visit highlighted, like restaurants, museums and their home. Google learns the places they go by drawing information from all of Google’s services — including search and Maps history, Google Plus posts and information in users’ Gmail in-boxes.”
Bernhard Seefeld, the product management director for Google Maps, bragged to the Times, “We can build a unique map for every place and every click.” For those who are worried about Google knowing too much about them, this new service is creepy — but potentially useful.
Meanwhile, the memory of Apple Maps six most epic fails lingers.
Google is going after music streaming through the introduction of Google Play Music All Access (GPMAA) — a service that lets users stream music using Google Play for Android. For $9.99 a month, GPMAA combines “users’ current Play collections with access to millions of additional songs,” according to Fortune.
Meanwhile, Google was able to secure content deals with three major record labels—Universal Music, Sony, and Warner Music Group — and beat Apple to market with the streaming service that iTunes has long-been rumored to be developing, says Fortune.
The most important front where Google is trouncing Apple is innovation. To be fair, under Steve Jobs, Apple’s approach to innovation was to introduce a much better product in an established industry. The result was big success from great products like the iPod, iPhone, iPad, and iTunes.
But Google Glass’s big media splash suggests that creating entirely new categories of products can also be a way to spur growth. We can also speak about the Google Cars that can for sure impact also IT solutions.
Google certainly needs help there — since its traditional markets are slowing down.But it looks like Google is winning the war for the future: Google is offensive and Apple only defensive.
- Google’s Five-Front Assault on Apple (forbes.com)
- Who can rescue Google Wallet? Apple. (sivag1.wordpress.com)
- Google’s Five-Front Assault On Apple (soshitech.com)
- Google’s Getting Its Game (Console) On (newsy.com)
- Report: Google developing an Android-powered console (polygon.com)
- Why Apple, Google want to make consoles (stuff.co.nz)
Innovation is a big corporate buzzword, and it’s one of the hottest topics on this blog. That’s because it’s one of the biggest mysteries to business leaders. A new study from Accenture, “Why Low Risk Innovation Is Costly,” revealed that fewer than one in five chief executives believes their company’s strategic investments in innovation are paying off. Because of the high percentage of failure, nearly half of the executives surveyed said their companies were less likely to risk implementing breakthrough ideas.
Innovation only happens in the right environment, one where everyone is not only allowed to innovate, but they are actively encouraged to speak up and bring new ideas to the table. This may sound like common sense, but it is far from common practice. How do you create an innovative environment?
- Innovation only comes by invitation. Invite people to bring forth their new ideas. True innovation takes place when people are free to raise ideas, take ownership of them, and then implement them. If people are required to ask permission for every step they take, they will stop asking permission.
- Innovation is not a solo sport, it requires a group of players with skills specific to the effort. Many companies appoint an innovation department or hire a chief innovation officer, which can make innovation just another stovepipe in the organization. The message this sends to your organization is that innovation is “their job” and “not mine” – siloed off. While an idea may come from one individual, it’s the cross-functional creativity, trust, and collaboration that bring innovation to life.
- Encourage everyone to put their ideas to test fast, fail fast, and then reiterate. If people wait for perfection before they put the idea to work, the effort will lose steam before it ever gets off the ground.
- Value the lessons taken from failure as much as your successes, and apply those lessons toward each new attempt. This makes it safe for everyone to innovate. The idea is not to encourage failure but to foster innovation that leads to winning success as rapidly as possible.
- Ensure this behavior gets modeled at every level, from the very top to individual contributor. That means the senior leaders must be actively involved, not just mandating the change.
- Resist the desire to project manage your way to innovation. It cannot be generated by focusing solely on budgets, resources, and timelines. If you try, you can guarantee your innovation investment will be wasted.
- IT Innovation: is outsourcing possible? (worldofinnovations.net)
- CMiC Innovation Award Contest 2013 – Submit for a Chance to Win for Your Charity! (prweb.com)
- Week in Review: Dell, Innovation, and Clean Energy (axialmarket.com)
- Six Steps to a Smarter Start-Up (inc.com)
- Chief Innovation Officer (leticiacaminero.com)
- Guest Post: 4 Ways to Turn Your Company Into an Innovation Machine (marenhogan.wordpress.com)
4-day visit to Santiago on Innovation
A 12-person delegation, headed by Julian Robinson, minister of state in the Ministry of Science, Technology, Energy and Mining, has just returned from a four-day visit to Santiago, Chile, to see first-hand how that country is developing a robust ecosystem for entrepreneurship and innovation.
The primary purpose of the mission was to visit Start-up Chile (SUP), a government-financed programme launched in August 2010 to attract early-stage, high-potential entrepreneurs to bootstrap their ventures in Chile, without taking equity in the firms.
Its goal was to convert Chile into the innovation and entrepreneurial hub of Latin America, akin to other centres of innovation in the world, particularly the Silicon Valley.
The Jamaican group was particularly thrilled to meet the founder of SUP, Nicolas Shea, a Stanford-educated entrepreneur who was recruited by the then minister of economy, Juan Andrés Fontaine, to join his staff as his entrepreneurship adviser. Only days after Shea relocated to Chile, a massive earthquake struck in February 2010, causing more than $15 billion in damages.
Today, after two and a half years, SUP is a highly successful programme that supports both foreigners and Chileans to create innovative ventures using much the same model as it did in 2010 with some minor changes to enhance its effectiveness.
Now, 40 per cent of the applications received are from Chile, but it is clear that the original objective of importing talent with a view to changing the entrepreneurial culture is still very much at the forefront of the programme.
To understand SUP innovative program
With a current budget of US$12 million per year, funded by Chile’s economic development agency CORFO, which is itself funded by a tax on mining companies operating in Chile, SUP can boast some impressive results.
Today, it has received 5,600 applications from 70 countries, admitted more than 1,000 entrepreneurs from 53 countries, and a host of social impacts – almost 600 “meet-ups” organised by SUP and participants or “suppers”, and 3,790 hours of mentorship provided by suppers. Additionally, there are all kinds of spin-off programmes supporting entrepreneurship and innovation and a global rush to emulate the programme’s design elements and impacts.
SUP has also created strong links to local and international companies and entrepreneurs, the global investor community, local and international universities and other programmes in Chile.
We visited one facility, Wayra, a tech incubator operated by Telefónica that incubates 10 companies for 10 months. The incubator manager, Claudio Barahona Jacobs said that Wayra wants to support international start-ups to capture the “winds of talent blowing” in its midst.
Wayra makes a direct investment of US$50,000 in each company in three parts: an initial sum and the other two tranches when agreed milestones are achieved. The investment is in the form of convertible notes. The incubator provides space and services, coaching in how to make a pitch to investors, how to run a company, to hire people and be a boss.
The entrepreneurs we spoke to said that the coaching was one of the most important elements of the programme, and they also participate in management courses run in collaboration with a local university.
Critical is making business links with Telefónica itself, using the company as a distribution channel or as a first customer, testing the applications developed by the entrepreneurs.
Telefónica has 11 million customers in Chile who have smartphones and 300 million business and consumer customers in 30 countries worldwide, so the company is a vital link to this huge market for mobile apps and business applications for its incubator clients.
Optimistic about Jamaica
SUP’s founder, Nicolas Shea, is optimistic about Jamaica and encouraged the group to adopt and adapt the best elements of the SUP programme. The World Bank and Minister Robinson plan to invite Shea and a number of the Chileans whom we met to Jamaica, later in the year, to continue discussions with a wider group of stakeholders.
Everyone on the mission agreed that Jamaica has the opportunity to replicate some of the successful elements of the Start-up Chile programme. Jamaica has talented and technologically savvy young people who are eager to tap into the global demand for creative applications that solve real-world business and social problems.
In so doing, they create their own employment. We have the interest and support of international development partners including the World Bank to finance initiatives that will support the growth of the Jamaican economy. It is an opportunity to forge public-private partnerships to provide early stage and venture capital financing for SMEs, mentorships and access to markets. But will our leaders champion such efforts to move us beyond mere talk? And will we collectively have the courage to act now to secure the future of our nation?
- Start-Up Chile: See Why Many Americans are Itching to Enter This Early-Stage Accelerator (youngentrepreneur.com)
- Wayra seeks 10 digital start-ups for Dublin incubator (siliconrepublic.com)
- Vanessa Van Edwards: Start-Up Chile: Growing Pains of the Chilecon Valley (huffingtonpost.com)
- Jamaica – the hub of innovation and entrepreneurship in the Caribbean? (emergingfrontiersblog.com)
- New Irish venture Reverbeo selected for Start-up Chile programme (siliconrepublic.com)
- Twin Cities-based Exotic Wood Chips LLC becomes Sole US Importer of Jamaican Pimento Wood, Leaves and Charcoal (prweb.com)
- The lure of Chilecon Valley (oguz.me)
- Wayra Dublin start-up accelerator makes last call for new entries (siliconrepublic.com)
Despite my early optimism for Windows 8 and its potential for interesting laptop-tablet hybrids, I must make a confession: I haven’t gotten around to buying one yet.
It’s not because I lack the funds or the knowledge of what’s available. For the right machine, I’d be willing to spend $1,000 or more --it would serve the purpose of two devices, after all--and I’ve tested a handful of PCs that fall roughly within that range.
- Windows 8.1 'Transfer Settings' Screenshot Leaked (microsoft-news.com)
- The ASUS Transformer Book Trio: Atom + Haswell, Android + Windows 8 (anandtech.com)
- Big surprise: Bill Gates thinks Windows 8 is great (reviews.cnet.com)
- Asus unveils Transformer Book Trio -- a Windows 8 and Android hybrid (betanews.com)
- By Sebastian Anthony (courtesy extremetech)
Against all probability, a device that purports to use cold fusion to generate vast amounts of power has been verified by a panel of independent scientists. The research paper, which hasn’t yet undergone peer review, seems to confirm both the existence of cold fusion, and its potency: The cold fusion device being tested has roughly 10,000 times the energy density and 1,000 times the power density of gasoline.
Atheer company, based in Mountain View, Calif., employs 20 people and is not venture capital funded so far. Atheer hopes to integrate its augmented reality and gestural control platform into existing mobile operating systems, such as Android, iOS, and Xbox.
Atheer’s technology demo at D11
Stealth startup Atheer came out of the shadows at the D: All Things Digital conference here, unveiling its wearable 3D augmented reality platform that works on top of Android and potentially other mobile operating systems.
Atheer’s technology employs stereoscopic glasses and a 3D camera to track hand movements to manipulate virtual objects in real space, similar in concept to the portrayals of gesture control in movies like “Minority Report” and “Avatar.”
“We are the first mobile 3D platform delivering the human interface. We are taking the touch experience on smart devices, getting the Internet out of these monitors and putting it everywhere in physical world around you,” said founder and CEO Sulieman Itani. “In 3D, you can paint in the physical world. For example, you could leave a note to a friend in the air a restaurant, and when the friend walks into the restaurant, only they can see it.”
Another startup: Meta
Another startup, Meta, is making similar claims about commercializing 3D glasses and gestural interfaces with mobile features such as Wi-Fi, GPS, accelerometer and voice control. But unlike Meta, which grew out of a Columbia University project, Atheer doesn’t want to go the route of Apple, creating a new, proprietary device.
More power efficient than SmartPhone
“We are aiming to make it significantly more power efficient than a smartphone,” Itani said. “We want to create a portable device you can put in your pocket and the interface is as big as possible.”
Atheer’s platform, which has been in development for a year and a half, is a bridge between existing mobile apps and games and those purpose-built for 3D augmented reality and gestural control. The platform will work with apps built on the open source Android platform, and could be integrated with Apple’s iOS, Microsoft Xbox, or Windows Mobile if they grant access to Atheer.
For Android apps not optimized for Atheer, users see a virtual tablet in front of them that they can manipulate by touch, just like a physical tablet. “This is important for people moving to a new platform. We reduce the experience gap and keep the critical mass of the ecosystem,” Itani said. “We don’t want to create a new ecosystem to fragment the market more. Everything that runs on Android can be there, from game engines to voice control.”
User experience like better than reality
Like other 3D augmented reality pioneers, Atheer, is facing an uphill battle and dependent on partners making the devices low-cost and easy to use. “In the end, it’s all about giving an experience will make their live easier and happier, whether a doctor or someone selling sandwiches,” Itani said.
One of the significant barriers to adoption for the wearable augmented reality glasses is creating an immersive user experience that doesn’t make it feel like a worse version of reality.
About Atheer and Meta
- Atheer bringing 3D augmented reality and gesture control to Android (news.cnet.com)
- Atheer Labs unveils 3D augmented reality mobile platform and a natural human UI (hands-on) (engadget.com)
- Atheer Looks to Add Human Touch to Futuristic Wearable Computers (allthingsd.com)
- Atheer’s Augmented Reality Glasses Tech Looks Cool (techland.time.com)