Google Nexus One vs. Apple iPhone

On January 5, Google did something in the style of Apple. A presentation held at the office complex Googleplex in Mountain View, Calif., 11-year-old giant presented Nexus One – a stylish smartphone with a touchscreen that uses their operating system Android, sold through a website maintained by Google and the market welcomed the ad slogan “The network in your phone, just as a slogan and optimistic in the presentation of Apple’s iPhone in 2007: “Internet in your pocket.

The same day Apple make something in the style of Google. Steve Jobs, the king of the glamorous presentation of new products and developing its own software, today announced a new strategic asset. For $ 275 million purchase Apple Quattro Wireless, an advertising company specializing in targeted advertising for mobile phones and consistent with consumer behavior.
When companies begin to imitate, or generally talking about an extreme case of flattery, or war. In the case of Google and Apple have both. Companies whose offices in Silicon Valley is located only 15 km apart, are famous for their relations over the past nearly ten years. And Jobs, and Google’s CEO Eric Schmidt is a 54, and both have fought long battles against Microsoft (the time when Schmidt worked for Sun Microsystems and Novell). After a while they were not only religious adherents, and strategic allies. When in 2006 the management board at Apple’s position appears free, Jobs Pulling Schmidt.

This friendly Union of Silicon Valley began crackling at the end of 2007, when Google announced its intentions to develop a system for their Android phones. Apple had released its iPhone in January of that year and it was clear that both companies will challenge the dominance in the field of smartphones. At the same time as new players in this niche, they had to face a titanic rivals such as Nokia, Samsung and Research In Motion. But after thousands began to develop applications for mobile phones and realized that phones will become the computers of the future, the clash is cruel. Last summer Apple did not give its approval for the sale of two applications of Google for iPhone, thus calling into question whether the company would allow Google to display their equipment. In August, Schmidt gave up his seat on the board of Apple. Currently, companies entering a new more rival phase. With Nexus One Google, which have hitherto contented themselves with its Android offering multiple mobile devices are entering the field of hardware and so become a direct threat to the iPhone. Buying Quattro, Apple aims to create mobile ads entirely new type, according to sources familiar with the intentions of the company. Their aim is not so much to compete with Google on search engines as to undermine the use of search engines on mobile phones. Katie Cotton, an official spokesman for Apple, declined to comment on what plans the company in the field of advertising and their relationship with Google. Katie Watson, a spokesman for Google, said the company will appoint representatives to comment on this material. She said only a statement that attributed to Vic Gundotra, deputy director of field engineering at Google: “Apple has been a valued partner for us, and we continue to work together for the development of the entire mobile ecosystem.”

Tehnoindustriyata is known for his legendary rivalries: IBM v Digital Equipment Corp., Microsoft against Netscape, America Online against Yahoo! But against Apple, Google may overshadow all. Both companies are zealous followers, glorifying them as they worship movie stars and professional athletes. Have a multi-capital, founders with vision and ambition in the field of smartphones, web browsers, music and Tablet PCs that they face each other.

The main battlefield in the near future will be that of mobile PCs. Analysts who spoke some time ago with trepidation for the Internet, today felt the same thrill as regards the potential of mobile. Mary Miykar of Morgan Stanley believes that within five years consumers will increasingly use the internet through your mobile device and not through your computer. Internet use in the desktop led to the emergence of Google, eBay and Yahoo, but leading in mobile yet to appear.

Money in mobile advertising are not much – about $ 2 billion last year, according to data from Gartner, while online they were $ 60 billion, but much more important to find a way to make mobile advertising more lucrative than simply get involved in the game now, when making a sharp curve upwards. Will win the most the company that manages to conquer the mobile market and share of profits at many software developers who write all those good times (business card reader Business Card Reader), sometimes amusing (Flick Fishing) mobile programs. Who created the strongest ecosystem of applications and devices, as all will cause your opponents to breathe the dust behind him.

Apple has a strong lead in the development of this ecosystem. Software developers have done it over 125 000 applications for mobile devices, the company – 7 times more than those who use Android – and this infinite variety of applications of the iPhone helped to win 14 percent faster than the share of smartphones, while all devices using Android have a total share of 3.5 percent, according to the company’s market research IDC. But for the past few months more and more software developers complain that they earn from their work. Free applications have become commonplace and very few of them are sold for more than ¢ 99. Some developers earn as advertisements embedded in their applications, but the amounts are small, as these ads are smaller and less effective versions of Web banners. According to a source familiar with the ideas of Jobs, he acknowledges that “mobile advertising is good” and that if Apple find a solution that will make them even more difficult opponent.

And since it is not someone who runs away from challenges, especially when they affect its aesthetic tastes, Jobs and his subordinates seek to revolutionize mobile advertising as it did with music players and phones, said two sources close the company . They have not revealed specific plans for Apple, but said that there are several possible approaches to advertising. Apple may use the data for the consumer and technology to locate him, to adjust their ads so that the user, for example, entered into the mobile network at noon to receive ads for a local specialty restaurant. The company could use creativity and capabilities of iPhone – for example, shaking the phone, one to win off just as it does to roll the dice in some games.

Apple realized that to succeed, will need an ad network and technology to select which ads to the client’s behavior. In the autumn of 2009, Apple was one of the companies bidding on AdMob – driver in the field of mobile advertising. For them it was a completely logical end, because more than half of the ads delivered to the smartphone via AdMob, appear on the iPhone or iPodTouch (which also use applications on Apple). But before Apple to succeed in the deal, Google has intervened and on 8 November said it would pay an astounding $ 750 million for AdMob.

Having failed to obtain the best, Apple is immediately drawn to Waltham, Massachusetts, where it has Quattro Wireless, the strongest competitor of AdMob. It is said that after the announcement of the deal Jobs gave the Executive Director of Quattro Andrew Miller the title of deputy director of mobile advertising. Deputy Director is rarely given a title in Apple, but Miller was first appointed to be responsible for online advertising. The company has hired and a specialist in mergers and acquisitions to be more competitive in the battle for good deals.

For almost every company would be folly to confront Google in advertising related to search the web. Google reigns in the search engines, such as control over 65% of the market but its share in demand in mobile phones is even more impressive. Over one million businesses are advertised through keywords in the search ad derive their side of the results, but most experts are beginning to switch to mobile devices as they are increasingly used as portable computers.

Demand in mobile devices but not yet obsolete. According to data from Gartner last year worldwide have spent $ 924 million for ads running through mobile search engines, less than 2% of Internet advertising as a whole. The problem is that consumer behavior in desktops and mobile devices is different. Most people avoid visualize miniature windows of the search engines of your phone and dial keywords uncomfortable their keys. Ads accompanying search results are also inefficient, because people are reluctant to cede the screen of your phone that can display a single browser on any ad. In most cases applications are far more efficient, finding the best local sushi restaurant is a lot less steps or through Urbanspoon Yelp, than if you write “the best local sushi” into a search engine and then review the results.

Apple has many valuable information that can help them drive profitable advertising business one. The company knows exactly what applications, podcasts, videos and people download songs from iTunes, in many cases has the detailed information on credit card numbers and home addresses. This gives Apple the opportunity to combine advertising and electronic commerce in new ways, especially now, after the acquisition of Quattro. Utility works with advertisers like Ford, Netflix and Procter & Gamble, helping them to decide when and how to publish ads on publisher sites like Sports Illustrated and CBS News. By combining advertising technology with its Quattro, Apple will be able to tell advertisers how often and under what circumstances a person is click on an ad. This technology could be used in the new Tablet PC that Apple must submit later this month.

When Google introduced its Android system in 2007, the company said it will focus on developing software for the operating system and will leave the usual phone manufacturers like Motorola and HTC to make the devices. Their strategy was similar to that of Microsoft in computers – to work with multiple partners and thus to attack all product areas, geographic areas and demographic groups.

The emergence of Nexus One means that Google is worried that Android does not achieve the anticipated marketing. The mobile market is so important that Google can not afford access to him to depend on other companies; offensive by Nexus One, the company hopes will provide her a stable position in the smartphone so it could steer its own fate.

Nexus One and carries risks. Manufacturers of hardware for Android may not like the idea that will compete with his alleged partner. Meduvremenno Google is aware of its weak position in mobile advertising and efforts to improve them. Schmidt believes that one day mobile advertising will be more significant than the computer, mainly due to the fact that it can be personal and local. Although Google has declined to comment on his plans for this material, Schmidt has been tossing the idea that at one point mobile devices can become a free for customers, and costs to be covered by advertising. “If Google fails to do so would become untouchable – technical consultant said John Metcalfe, worked with Google on mobile projects in the field. – Apple will not be able to respond to such a shock. ”

Of course, maybe Apple and Google can benefit from the introduction of computers in the mobile phase. But the losers will certainly. Microsoft fail quickly in the field of smartphones, because it ignored the manufacturers of devices Windows Mobile, as it has many fewer applications and developers of Android and Apple. Nokia, the largest manufacturer of mobile phones in the world, also suffers, its online store Ovi works in full anonymity compared with iTunes of Apple. Even Samsung and LG Electronics, the Korean producers, which is renowned for its pioneering technology, lost their positions.

Some analysts believe that the battle between Apple and Google probably gets tough in the coming months. Yarmis the company Ovum believes that Apple may soon decide to sever the search engine Google, search defoltnata its mobile devices in time to stop access to Google’s mobile information which could be used to improve advertising and technology Android. Jobs can strike a deal with the note, Microsoft and use their search engine or even Bing launched its own search engine, says Yarmis.

Whatever happens, this time it is clear that the conflict between Apple and Google will grow. Android is a threat to the iPhone, which now represents over 30% of sales to Apple. Meanwhile, almost all the expected growth in demand can be implemented in mobile devices, such as in the Piper Jaffray believe that in 2016 it will be 23.5% of all searches, and today this share is below 5%. This determines the appearance of a new event in the technology sector. “Rivalry will accelerate innovation – Behtolshaym commented Andreas, one of the founders of Sun Microsystems and one of the first invested in Google. – Apple is moving pretty quickly, but when you know they persecute you run faster. And that will bring benefit to consumers. “

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