• Hey Guest. Check out your NeoGAF Wrapped 2025 results here!

CNN: How Android beat the iPhone to world domination

Android market share means very little when their OS is broken up into a half dozen versions around the world and less than 1% of the phones run the latest update.

That and Google makes next to no money on android.
 
Android market share means very little when their OS is broken up into a half dozen versions around the world and less than 1% of the phones run the latest update.

That and Google makes next to no money on android.

And that matters to me as a consumer how?
 
We have a metric with which to judge success in business, its called profit.

Apple-Net-Profit-FY-2000-to-2015.png


google-quarterly-results-profit-gross-revenue_chartbuilder.png


Pretty hard to see where Android has dramatically increased profit, pretty easy to see where the iPhone has for Apple. Pretty easy to see who is winning the smart phone wars.

There are no losers on this chart.
 
That's actually a pretty attractive price point. Too bad Samsung is dead to me. Every time I try to give them a chance, Samsung phones always bug out on me big time. It's not like I'm using super intensive apps on it either. My carrier had been trying to give me a free Samsung phone and I flat-out told them "not interested if it's a Samsung." I finally relented with an LG Stylus 3. So far so good. We're now using it as our secondary phone.

Maybe I'd have better luck with the S7 Edge, since it's new and all. But I don't need another phone for the moment.

Yeah the S7 series is the first Samsung flagship I've gotten (well I get the Galaxy Nexus too, but I don't consider that a true Samsung phone as it didn't run Touchwiz). I had HTC and Sony flagships in other years. I've been happy with all of my phone picks. I just happened to get my first flagship Samsung device after they had made significant improvement to Touchwiz. That shit was so ugly back then...
 
So when android is referred to by articles like this and individual people, it's more about Google than say Samsung or HTC or LG right? Because of that's the case, it would make sense that both Apple and Google are happy with how things have gone. I've been for the longest time not separating the android phone manufacturers from Google, so when I see things like Sony losing money in mobile, and HTC losing money, and Samsung having their profits shrink, I forget that Google at the end of the day is still pulling in lots of money.

Well, I cant say for individual people, that would depend on the topic, but as far as this article is saying, yes basically.

Both companies are basically looking at one market and dealing with it in a way that suits their product best. Apple make more money from hardware sales, so for them its better to make a nice phone with decent profit margins and sell a lot of it. For Google, its just to get as many people using their software as possible (hence why they pay Apple to have Google search on their devices), so they can use that software to sell advertising

they went for market share and forgot that doesn't necessarily mean profit.

For Google it literally does though
 
Android market share means very little when their OS is broken up into a half dozen versions around the world and less than 1% of the phones run the latest update.

That and Google makes next to no money on android.

They make plenty of money on the Google Play store, which runs on Android.
 
I'm still here. I honestly don't see why market share, when you're dealing with multiple different manufacturers and dozens of product lines matter, when collectively they are making far, far less money than Apple.

I've tried android, and the phone I had at the time (Note 3) was the worst phone experience I've ever had. I don't need to do all this advance stuff people like to do with android. So when my day to day phone experience is worse than on my iPhone, then to me, all the freedom and customisation android offers doesn't make up for the experience I'm getting.
Marketshare matters because Google's model needs individual users to supply them with data. The more individual users, the more data, which equals more money for Google. Can't really explain this any simpler.


Android market share means very little when their OS is broken up into a half dozen versions around the world and less than 1% of the phones run the latest update.

That and Google makes next to no money on android.
This couldn't be more inaccurate.
 
Marketshare matters because Google's model needs individual users to supply them with data. The more individual users, the more data, which equals more money for Google. Can't really explain this any simpler.

Exactly.

Apple make money every time someone buys a new phone

Google make money every time someone uses their software.

The fact that Apple are able to make more money out of this than Google is irrelevant
 
Exactly.

Apple make money every time someone buys a new phone

Google make money every time someone uses their software.

The fact that Apple are able to make more money out of this than Google is irrelevant

I doubt Google execs would call it irrelevant. I have no doubts they’re happy with their current position, but if you honestly think they wouldn’t trade money piles with Apple in a heartbeat, you’re nuts.
 
Please show me on their profit chart where Android has driven this income (please keep in mind revenue =/= income). Ill wait while you show your work.

Not sure why you're bringing up income vs revenue. I don't think you understand what I was getting at.

So you said that Android doesn't make Google any money, but you're not thinking about the role of Android properly in terms its revenue generating purpose.

Without Android as a platform, do you think that their advertising revenue would as high as it is today? Do understand their end-game in providing all of these assortment of services to the end user. Think about how people are consuming content from things like YouTube...

I'll just answer that for you. It's through mobile platforms which is still growing as costs decrease and more people worldwide own affordable devices that can connect to the internet (see the Android One program). What does YouTube have that millions of users will see everyday? Advertisements. When you use services like gmail, google assistant, google now, etc you will see ads there too. How are these ads delivered? Android, an operating system that keeps increasing in market share leading to greater potential advertising revenue.

Take a look at pages 25-27 on their 10-K: https://www.sec.gov/Archives/edgar/data/1652044/000165204417000008/goog10-kq42016.htm


I didn't touch on this much either, but the other major components to all of this is the user data that Google gathers, which has a ton of value and free services like Google music, Gmail, Google Maps, and Google Photos improve their overall brand.
 
I doubt Google execs would call it irrelevant. I have no doubts they’re happy with their current position, but if you honestly think they wouldn’t trade money piles with Apple in a heartbeat, you’re nuts.

Money piles, of course, but approaches? For Apple, the customer's money is most valuable. For Google, it's their data as their core businesses are built on top of big data and having tons of information
 
I doubt Google execs would call it irrelevant. I have no doubts they’re happy with their current position, but if you honestly think they wouldn’t trade money piles with Apple in a heartbeat, you’re nuts.

Ok, I'm sure Coca-Cola executives would trade their position with Apple too, that isn't really the point though
 
These warrior type threads...

Can you some of you please try to at least skim a fucking financial statement at least once before dropping in your hot takes?

It's 2017 and you wouldn't there would be any confusion on Android's role in making Google money.

Yet here we are.

There useless graphs posted on the page miss the entire point completely.
 
Google pays Apple billions every year to be the default search engine on iOS and Google apps are better on iPhone. What does that say?

Hasn't the default iOS search engine been Bing since like iOS 8? Siri uses Bing for search results too iirc.
 
I think if you like Android you should still be worried by the fact that Samsung and Apple are the only people making money, because while the OS is one thing without good hardware to run it on you're missing half of the equation. If no one on the Android side of things is making money creating hardware then it follows you're going to have less compelling choices, especially if you want a flagship phone.

Now, for Google, everything is basically working out as planned, in that they get a boatload more people on Google services to shove ads in front of, and while stuff like bad Android updates and fragmentation are still a thing, they are less dire than they once were and certainly not the world-ending problem some pundits believed.
 
Money piles, of course, but approaches? For Apple, the customer's money is most valuable. For Google, it's their data as their core businesses are built on top of big data and having tons of information

Apple's approach does make it unique in a sense. It makes it, to quote the Economist. "the only consumer-technology giant whose business model does not rely on collecting reams of personal data. It makes them sometimes the lone voice speaking for the merits of privacy. That probably isn't sustainable, but I think it does make Apple important if we are to strike the right balance between AI, Big Data, privacy and security.
 
Google make money every time someone uses their software.

It's worth noting for the sake of this discussion that this isn't the case.

Android was a purely *defensive* play to make sure the next big platforms wouldn't be able to shut Google services out. It doesn't make much money for Google so much as it functions as a defensive moat that keeps the core of Google basically immune to being rendered irrelevant for this technological generation. And, as such, it's a tremendous success (although ironically it's probably what *led* Apple to cut Google Maps out of their platform and flirt with Bing for Siri's web search). It's just not a direct moneymaker for Google and was never intended to be (even though Rubin often wanted it to be and wanted Google to withhold features from their iOS apps, a Microsoftian move that Sundar Pichai wisely avoided - Google's successful when it's everywhere).
 
Still don't get why some apps are iPhone only, or release first on the iPhone,

Is there just more money to be made than on Android, despite the lower market share?

iPhone owners have been shown to be much more willing to pay for apps and to pay more for them.
 
Coca-Cola isn't in direct competition with Apple.

The entire point of the article and the thread is talking about how that isn't really the case - hence why Apple allow Google search on their own phones

It's worth noting for the sake of this discussion that this isn't the case.

Android was a purely *defensive* play to make sure the next big platforms wouldn't be able to shut Google services out. It doesn't make much money for Google so much as it functions as a defensive moat that keeps the core of Google basically immune to being rendered irrelevant for this technological generation. And, as such, it's a tremendous success (although ironically it's probably what *led* Apple to cut Google Maps out of their platform and flirt with Bing for Siri's web search). It's just not a direct moneymaker for Google and was never intended to be (even though Rubin often wanted it to be and wanted Google to withhold features from their iOS apps, a Microsoftian move that Sundar Pichai wisely avoided - Google's successful when it's everywhere).

"Their software" in this case referred to the services they offer, Maps, Gmail, search, whatever else, all of which are used more the more people have Android

The general point is that Google need people to be using their stuff to make money - so a large market share is good for them, whereas Apple just need people to be buying their hardware to be making money - so pure phone sales are good for them
 
Limiting an operating system to your hardware only in a market that's basically used by everyone will always result in a niche marketshare. It's basically you versus the rest of the world - competition will catch up and beat you.

What's impressive is how much cash Apple continues to make.
 
We have a metric with which to judge success in business, its called profit.

Apple-Net-Profit-FY-2000-to-2015.png


google-quarterly-results-profit-gross-revenue_chartbuilder.png


Pretty hard to see where Android has dramatically increased profit, pretty easy to see where the iPhone has for Apple. Pretty easy to see who is winning the smart phone wars.

For sure Apple has been more successful in that regard. But in terms of long term, Google is in a far better position as their software is used by virtually everyone.
 
Now, for Google, everything is basically working out as planned, in that they get a boatload more people on Google services to shove ads in front of, and while stuff like bad Android updates and fragmentation are still a thing, they are less dire than they once were and certainly not the world-ending problem some pundits believed.

Each update to Android has been generally well received, iOS playing catch-up (and very well I might add), fragmentation is another persistent issue.
 
It's worth noting for the sake of this discussion that this isn't the case.

Android was a purely *defensive* play to make sure the next big platforms wouldn't be able to shut Google services out. It doesn't make much money for Google so much as it functions as a defensive moat that keeps the core of Google basically immune to being rendered irrelevant for this technological generation. And, as such, it's a tremendous success (although ironically it's probably what *led* Apple to cut Google Maps out of their platform and flirt with Bing for Siri's web search). It's just not a direct moneymaker for Google and was never intended to be (even though Rubin often wanted it to be and wanted Google to withhold features from their iOS apps, a Microsoftian move that Sundar Pichai wisely avoided - Google's successful when it's everywhere).

While yes, Android does not directly make money for Google, it definitely expands its reach, and viewability, which means $$$ when it comes to auctioning ad space and selling data.
 
It's worth noting for the sake of this discussion that this isn't the case.

Android was a purely *defensive* play to make sure the next big platforms wouldn't be able to shut Google services out. It doesn't make much money for Google so much as it functions as a defensive moat that keeps the core of Google basically immune to being rendered irrelevant for this technological generation. And, as such, it's a tremendous success (although ironically it's probably what *led* Apple to cut Google Maps out of their platform and flirt with Bing for Siri's web search). It's just not a direct moneymaker for Google and was never intended to be (even though Rubin often wanted it to be and wanted Google to withhold features from their iOS apps, a Microsoftian move that Sundar Pichai wisely avoided - Google's successful when it's everywhere).

Ehhh it mostly is the case. For whatever reason they decided to enter the market is irrelevant, Android is now by far Google's most popular trojan horse. Unless you specifically opt out, they collect staggering amounts of data from your phone usage and input and they use that to generate ads wherever they can. Android is likely the biggest driver of their ad revenue.
 
I think if you like Android you should still be worried by the fact that Samsung and Apple are the only people making money, because while the OS is one thing without good hardware to run it on you're missing half of the equation. If no one on the Android side of things is making money creating hardware then it follows you're going to have less compelling choices, especially if you want a flagship phone.

Now, for Google, everything is basically working out as planned, in that they get a boatload more people on Google services to shove ads in front of, and while stuff like bad Android updates and fragmentation are still a thing, they are less dire than they once were and certainly not the world-ending problem some pundits believed.

I have been hearing for several years how I should be worried.

I'm not worried. There are still tons of choices (and tons of apps).
 
It's kind of misleading when Apple has world domination over the money in smartphones. Android has market share via tons of surrogate license companies selling cheap crap in many cases.

Apple sells their standards only and won big time.
 
Android is the best because it doesn't require iTunes.

iTunes ruins everything.

I think it still pops up on Windows with updates like software did back 10 years ago rather than just silently update continuously.
 
For sure Apple has been more successful in that regard. But in terms of long term, Google is in a far better position as their software is used by virtually everyone.

Google aren't very diverse in revenue. They are stomping in ads and that's about it.
 
iPhone jumpstarted smartphone age. They were revolutionary back then. But now, Android is bringing millions and millions of people online (mostly from developling world from poor economic backgroud), it is incredible. This is causing some serious disruption around the world.
 
It's kind of misleading when Apple has world domination over the money in smartphones. Android has market share via tons of surrogate license companies selling cheap crap in many cases.

Apple sells their standards only and won big time.

Not misleading at all. Market share is more important for Google's bottom line. The money they indirectly make off Android is listed elsewhere so directly comparing the two is nonsensical.

Also, Apple sells their name more than anything else.
 
Google has the marketshare but they don't have the same level of control (almost none in China) and Apple makes way more money with the iPhone. There is a reason that Google is going to start making their own chips like Apple has for years.

Apple has the better strategy and makes a better phone overall.

Google pays Apple billions every year to be the default search engine on iOS and Google apps are better on iPhone. What does that say?
I'm not sure google cares. Android is and will be a way to get as much user data as possible to sell ads around.
 
I don't know why you guys are arguing about the profits of corporations. Who cares about that? You're not on the Google or Apple boards, and you probably don't work for them or own their stock. It's a pretty silly metric.

I'm glad Android "won". Apple is trying to flog me something they have complete control over at extortionate prices, and I have little trust or faith in them. Meanwhile, Android is a freely available and modifiable OS that I can get on a phone I can actually afford. No matter what Google does, that won't change. And that's why I like it more.

(And there are people arguing that Apple-style control is a good thing? The hell?)
 
Google aren't very diverse in revenue. They are stomping in ads and that's about it.

That is like saying Apple is not diverse because most of their money comes from direct to consumer sales.

Ads are just one form of monetizing a product, like direct sales are a form of monetizing a product. The important thing for Google is that they sell ads for a diversified range of products like Search, Youtube, Maps, and Ad Words.
 
Aw, I love iTunes. It's a neat and tidy app that keeps all my music organized and in place.

Been using iTunes for 10 years now and I couldn't imagine life without it.

It was fine on my MacBook when I had one, and when I had an iPhone that was easily my biggest gripe with it. I hate how everything is reliant on iTunes. I can't just plug my phone in and start dragging/dropping files; it's incredibly annoying.

Though they kind of seemed to have addressed that with a file explorer now on iOS 11, finally.

I just hate the reliance on it! iTunes is also garbage on Windows so it doesn't help.

I appreciate what Apple is doing with the iPhone and I enjoyed it when I had it, but I like doing things a certain way and Android gives me more flexibility to do what I want to do.

I'm glad both companies are doing well right now in the mobile space - that said, I also think both companies have kind of peaked with their mobile strategies. iOS 11 and Android O look like minor upgrades; which is fine, but it's kinda boring now.
 
Having an iPhone (or Apple product in general) is like living in a Police State. Of course Android would be more attractive to the general masses. The build quality is great and all in the iPhones but it feels really restrictive.

Depends what you consider to be a 'Police State'. Google's hunger for your data is part of their business model, and as far a personal security and privacy goes there is an argument to be made for Apple's approach.
 
I don't know why you guys are arguing about the profits of corporations. Who cares about that? You're not on the Google or Apple boards, and you probably don't work for them or own their stock. It's a pretty silly metric.

Agree - I find it really bizarre how people are glad that a couple of companies are so powerful and can make this much money in the first place. Especially given how relatively little tax they pay. It's basically arguing over the most nakedly offensive business tactic of either company

(I'm not particularly happy at Google making so much money either, most arguments in here have been due to the Apple fanboys inability to even see past the article posted as opening post)
 
Agree - I find it really bizarre how people are glad that a couple of companies are so powerful and can make this much money in the first place. Especially given how relatively little tax they pay. It's basically arguing over the most nakedly offensive business tactic of either company

(I'm not particularly happy at Google making so much money either, most arguments in here have been due to the Apple fanboys inability to even see past the article posted as opening post)

For me I appreciate what both are doing for the mobile space more than I'm simply happy for the companies doing well; That said, them doing well means we see more advancement of mobile devices too. I won't lie though, it'd be nice if there was a third competitor to shake things up.
 
Both are still making products, just in different ways. One isn't objectively superior to the other

but you mentioned that apple's strategy is centered on the product itself. which makes a ludicrous amount of sense, no? when the end result is an actual product we use all day everyday.
 
Top Bottom