http://goo.gl/Aaqg Apple's concession to developers may well reduce its competitive edge over Android in the app world. Whether that leads to an erosion of Apple's profit advantage is less clear.
By relaxing rules on how developers can build applications for the iPhone and other Apple devices running iOS software, such as the iPad, it should be easier for developers to make apps for both Apple and devices running Android. That is both good and bad for Apple. As Android's smartphone market share has now passed that of Apple—17.2% to 14.2% at the end of the second quarter, Gartner estimates—Apple's strict app rules could have ended up hurting it. Some developers might have chosen to go with Android instead. Now they can do both. In the short term, though, Apple likely has more to lose, given its existing lead in apps—roughly 250,000 to Android's 80,000. This is significant. It has been largely that edge in apps that has distinguished the iPhone over the past year, as an array of Android devices have hit the market. Apple certainly no longer holds automatic claim to offering the best hardware—witness problems with the antenna in the iPhone 4. So closing the app gap could reinforce Android's momentum. Indeed, Gartner predicted Friday that Android would boost its mobile-device market share to 29.6% by 2014, compared with Apple's 14.9%. Should that matter to Apple shareholders, given that earnings-growth estimates are predicated on sharp increases in iPhone sales along with the fat profit margin on the device? Happily for Apple, the rapid growth of the smartphone market should easily offset any flattening in market share over the next few years. Gartner, in fact, projects that the number of smart phones running Apple's iOS will jump to 130.39 million by 2014 from 41.46 million this year. The question is whether the iPhone can maintain its average selling price of around $600. A major reason Android's market share is expected to expand so much is that cheap phones using its software are expected to emerge. Already, Android phones are much cheaper than iPhones. Consider: Prepaid carrier Leap Wireless has begun offering an Android phone made by Sanyo for around $250. As Leap doesn't generally subsidize phones, that is likely around the wholesale price. Some in the industry expect Android phone prices to drop to $100 or less. As a premium brand, Apple is unlikely to go down that route, but it may have to accept some price cut. A similar dynamic has emerged with its iPad tablet, which also faces Android competition and is more keenly priced. Apple shareholders can stomach losing some market share. They need to really worry if Android starts forcing the price of iPhones down sharply. —Martin Peers -- Salam, Agus Hamonangan http://groups.google.com/group/id-android http://groups.google.com/group/id-gtug Gtalk : id.android Follow : @agushamonangan E-mail : [email protected] -- "Indonesian Android Community [id-android]" Join: http://groups.google.com/group/id-android/subscribe?hl=en-GB Moderator: [email protected] Peraturan Jual dan Kloteran ID-Android http://goo.gl/azW7 ID Android Developer: http://groups.google.com/group/id-android-dev ID Android Surabaya: http://groups.google.com/group/id-android-sby ID Android on FB: http://www.facebook.com/group.php?gid=112207700729
