Google VS Apple: Who’s Really Winning?

So, it seems that Android has emerged as the leader in smartphone market share. And that’s not too surprising since there’s a whole mess of phone vendors hocking Android phones left and right.

Note that there’s a difference between the Android OS and the phone that runs it. No one says they’re using iOS; they say they’re on an iPhone. When someone says they’re on Android, there’s no way to tell what phone they’re using unless they actually tell you. So iOS = iPhone. Android = HTC/Samsung/LG/Motorola/etc.

So, is Apple losing the smartphone battle? I doubt it. Sure, when it comes to an Android phone, you have a wide variety of choices from the likes of Motorola, Sony Ericsson, Samsung, HTC, and LG. With Apple, you have just the iPhone. So if you’re the type who simply has to have a physically unique phone from your peers, then you’re probably in the Android camp.

But at the end of the day, the smartphone business is just that — a business. And in business, the profits speak for themselves. Google doesn’t actually make that much money from the Android OS; it’s the vendors selling their phones that make the real cash. And as it turns out, Apple has captured two-thirds of the smartphone profits in Q2.

MG Siegler, TechCrunch:

Take a moment to let that sink in. Apple now controls over 66 percent of all the profits amongst the major players in the mobile space. HTC, RIM, LG, Sony-Ericsson, Samsung Motorola, and Nokia combined for the other 33 or so percent of profits in the space (with a few of them: Nokia, Motorola, LG, and Sony actually losing money).

Apple, the company “losing” the great mobile race to Android, is destroying all the Android manufacturers combined when it comes to profits. You know, the money you get to keep at the end of the day. In business terms, really the only thing that matters.

While everyone is distracted by the raw numbers battle, Apple is quietly winning the real war.

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One thought on “Google VS Apple: Who’s Really Winning?

  1. Pingback: Android and iOS: Market or Profit? « Y U NO HADOKEN?!

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