The end of the smartphone battle may be coming into sight, but the operating system war is heating up. As the clash between handsets running Google and Apple software winds down, the fight to provide the brains for game consoles, watches and other gadgets is heating up.
According to ComScore, 141 million people in the United States own smartphones, some 59 per cent of the population. Most developed economies are at most a few years behind in penetration. As a result, it's becoming harder to sign up new users. And the market has essentially settled into a duopoly. Apple's iOS boasts 39 per cent of US users, while Android accounts for more than half the market, with a range of manufacturers making handsets running Google's operating system.
Developing countries still offer room for growth, and consumers will have to replace handsets as they break, fall in puddles, or become obsolete. But the increasing need to win customers from rivals can be a recipe for price wars. Moreover, new phones now mostly seem evolutionary, rather than radically new. If Apple's next phone is simply an iPhone 5S - signifying an improved version of the existing iPhone 5 rather than a full redesign - the average user might not see much reason to upgrade.
That's why the operating system rivalry is gradually moving to new devices. Introduce Internet-enabled glasses or a new hit watch, and millions of new users could materialise. That in turn would lead developers to create new apps, making an operating system more useful and giving it an edge over its competitors.
This explains why Google is pushing Google Glass and Apple is applying to trademark the term iWatch. The race is even recruiting older types of devices. Google is developing a game console because it thinks Apple may release one, according to the Wall Street Journal. Both companies are intensifying efforts in television as well.
Apple's integrated approach means it gains from hardware sales if users favour its operating system. Google, on the other hand, makes nearly all its money on advertising - but that business also benefits if Android dominates the OS market.
Samsung Electronics, the most prominent producer of Android-powered devices, last week unveiled a profit forecast that fell short of expectations for the first time in years. And Apple's sales of iPhones grew only seven per cent year-on-year in the most recent quarter, against nearly 90 per cent a year earlier. Both data points suggest smartphone rivalry is on the wane. But the operating system struggle isn't going away.
According to ComScore, 141 million people in the United States own smartphones, some 59 per cent of the population. Most developed economies are at most a few years behind in penetration. As a result, it's becoming harder to sign up new users. And the market has essentially settled into a duopoly. Apple's iOS boasts 39 per cent of US users, while Android accounts for more than half the market, with a range of manufacturers making handsets running Google's operating system.
Developing countries still offer room for growth, and consumers will have to replace handsets as they break, fall in puddles, or become obsolete. But the increasing need to win customers from rivals can be a recipe for price wars. Moreover, new phones now mostly seem evolutionary, rather than radically new. If Apple's next phone is simply an iPhone 5S - signifying an improved version of the existing iPhone 5 rather than a full redesign - the average user might not see much reason to upgrade.
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This explains why Google is pushing Google Glass and Apple is applying to trademark the term iWatch. The race is even recruiting older types of devices. Google is developing a game console because it thinks Apple may release one, according to the Wall Street Journal. Both companies are intensifying efforts in television as well.
Apple's integrated approach means it gains from hardware sales if users favour its operating system. Google, on the other hand, makes nearly all its money on advertising - but that business also benefits if Android dominates the OS market.
Samsung Electronics, the most prominent producer of Android-powered devices, last week unveiled a profit forecast that fell short of expectations for the first time in years. And Apple's sales of iPhones grew only seven per cent year-on-year in the most recent quarter, against nearly 90 per cent a year earlier. Both data points suggest smartphone rivalry is on the wane. But the operating system struggle isn't going away.