Unique (first mover) Vs. Distinctive (competitive)

In all my commercialization efforts, from shampoo bottles to molecules to wireless antennas to software, I always look at whether there is an opportunity to have the first mover advantage, in some cases it is merely marketing based perception.

Apple has charged its app publishers 30% for AppStore (article here). Google is countering with 10% cut. Apple made 20% more by entering the market first and delivering a consumer value and winning them while earning from the customer and enabling the customer to reach the consumer.

Just to emphasize what this means, Apple earned 30% of $250MM AppStore sales in December 2010 only. Unique (or first mover) advantage $50MM!!

Please see the very nice work done by GigaOM folks here in detailing the number of AppStore users and their application buying behavior and data.

I have taken the liberty to publish their information graphic below. The comments to the article are insightful as well.

Click to enlarge

Android's Growth - Is it due to an Open System?

Graphic from FT... question is why the growth? Is it because it is an Open System?

Technologically Closed Systems

Though in the 20th century closed systems could survive, in the 21st century, speed of capturing the customer's/consumer's hearts will be the key... I wrote about leaving the Apple platform here, specifically the iPhone. Now, Netgear's Lo states that the iPhone is "ultimately a closed system just can't go that far…If they continue to close it and let Android continue to creep up then it's pretty difficult as I see it." Read the rest here.

Google: The Democratization Engine

Google is the "Democratization Engine" for the world's shoppers and consumers.  Let's talk Android - 

I am leaving the charms of the iPhone and the Apple!  If a few decades in the technology industry has taught me anything, it is that closed systems have revenue spikes when they deliver on the unmet need, though quickly lose it as competitors emerge with more standardized and open systems.  It is more so at speed now as the consumer is empowered.  Sounds cliche because marketers have used "we are empowering the shopper/consumer to make intelligent choices", yet today, the marketer has a tough battle on had.  The shopper/consumer are empowering themselves.

My foray into Apple's world was with the Lisa... then came the standardization driven through the IBM PC compatible running DOS and Apple products took their niche spot in the market while a somewhat open and driven towards standardization system of the IBM compatible allowed a world of inventions to become innovations, from hardware, firmware to software.

Can history repeat itself? Yes, it can and will.  It is not a claim but reality that the Android based smartphones will trump the iPhone in growth and market share.  Unless - Apple decides to change "some" thing(s) in its approach.  Its differentiation is diminishing due to competitor offerings, while its lock on distribution through AT&T will be ending in the USA.  Its partnership with AT&T perhaps will add to iPhone's decline as Consumer Report recently rated AT&T as the worst wireless service provider, see here.  Also, the Consumer Report has declined to recommend the iPhone as well, details at Consumer Reports here.

The activations of Android based devices is growing at 110 million, 5X what they were 10 months ago.

Andy Rubin, head of Google's mobile software recently said, "We are web-centric."  This is the reason to believe that Google will be successful against Apple and Microsoft.  He further added, "We really understand distributed computing - and I think Apple really understands desktop computing."

For those who may have forgotten or don't know, Google quietly acquired Android, Inc. back in 2005, see Business Week article here.

Core to this transformation in the market will be, as Financial Times quotes Andy Rubin "Leaving developers free to create new versions of their apps, rather than forcing them to "jump through hoops" to seek approval each time, as Apple does, echoes the web's approach to rapid iteration and improvement."

See FT article here.

Next on Google's democratization list, my guess - The SmartGrid!!!  I will write more how it can accomplish it soon.

Ad Age Disappoints - iPhone OS 4 Multi-tasks

Ad Age writes in Apple Brings Multitasking, Skype Support to iPhone Update here, "The new software answers many developers' and consumers' requests, especially with features like some multitasking support, a unified e-mail inbox, better VoIP calling, and a social-gaming network. It's cool that you'll be able to listen to Pandora radio and make Skype calls while reading e-mail and surfing the Web."

The statement in the article "These are fine features, but nothing revolutionary" shows that Ad Age has to go a ways to comprehend technology.  Multi-tasking implies that emergency messaging can get through, automated email updates, superior use of bandwidth when available, continuous consumer engagement solutions, continuous monitoring solutions in healthcare, etc. etc.

I'm disappointed in Ad Age!

User Centric Design is Dead

Found at Design Sojourn "User Centered Design Innovation is Dead", details here.  Reminds me of a Steve Jobs quote - "You can’t just ask customers what they want and then try to give that to them. By the time you get it built, they’ll want something new."

1984: PC vs. Apple? PC - 2009: Android (based) vs. iPhone? Who?

In the 1980s IBM diluted Apple to single digit share of the personal computer market place.  I believe if Apple continues in the same vein, the Android powered smart-phones will do the same to it now.

Can Apple change? Will it?

Read more at Wired here.

Apple Ads

Apple: Our Ads Don't Lie, But You're a Fool if You Believe Them, see Wired article here. A 70 year old Mr. William Gillis, San Diego resident has filed a complaint alleging that Apple falsely advertised the iPhone 3G by calling it "twice as fast for half the price" compared with the original handset.