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Apple’s Rapid Upgrade to iOS7 vs. Android’s Massive Fragmentation = Market Share Shift to Apple ๐ŸŽ๐ŸŒ๐ŸŽ๐ŸŒ๐ŸŽ๐ŸŒ๐ŸŽ๐ŸŒ

October 23, 2013

๐ŸŽ Apple’s Rapid Upgrade to iOS7 vs. Android’s Massive Fragmentation is causing a significant and continued Market Share Shift to Apple from Android. These figures do not include the last 10 days of September, the period of the release of iPhone 5S and 5C.

๐ŸŽ Recalling that Apple got into the SmartPhone arena in mid-2007, it selling its first iPhone. Presently, October, 2013, Apple is selling iPhones at a clip of over 40 Million/Quarter with only 3 models available (iPhone 4S, iPhone 5C, iPhone 5S). Conversely, Android has over 11,800 different Models to deal with, manufactured from a few-dozen Companies, causing Massive Operating System Fragmentation. Fragmentation and Ease of Use (among a few other elements such as advance design, hardware quality, better Apps, stable operation) are making the iPhone the Choice of most North American users.

๐ŸŽ Data from Web Ad network Chitika, who tracking the source of mobile web requests in North America, indicated what the company called "a "remarkable achievement" and represents a "significant impact on the iPhone ecosystem," with "obvious implications for smartphone Application and Web developers in terms of compatibility and functionality issues, but also for the technology industry as a whole."

๐ŸŽ Apple is already known to have a growing percentage of smartphone sales (via Kantar) and subscribers (via comScore) in North America; The premium route, is the path buyers are taking to arrive on Apple’s iOS is newsworthy.

๐ŸŽ Apple had made its latest iOS 7 software available to devices dating back to the iPhone 4 released in 2010, users are aggressively upgrading in large numbers (presently over 75% have already upgraded to iOS7 in 30 Days of its release) to Apple’s newest hardware. The majority of new iPhones sold last year were iPhone 5. That trend is continuing even faster now that Apple sells two iPhone 5 models, and the iPhone 4S, representing an increasing percentage of the iPhone installed base with only 3 high-end models.

๐ŸŽ Last month, Chitika saw 36.5% of North American iPhone web traffic originating from the iPhone 5. In three weeks, that figure has jumped by more than 10%. As the trend continues, the firm notes that within a few months, "Apple will have a plurality, and possibly a majority, of its iPhone customer base using a device less than one and a half years old." The company observed, "This is a remarkable achievement, especially for an industry player as large as Apple."

โ˜… By stark contrast, Android’s growth, primarily through its leading licensee Samsung, was achieved through shipments of very large volumes of low-end, budget-priced devices equipped with old versions of Google’s OS 2.2.

โ˜… Meanwhile, Sales of high-end, "iPhone-class" smartphones, such as the Galaxy S4 and HTC One, have fallen significantly below expectations. Galaxy reduced its forecasts for the Galaxy S4 three times and is now promoting Buy One – Get one Free, and the HTC One huge failure has caused HTC to announce its First Quarterly Loss, due to disappointing sales, in spite of very aggressive Advertising expenditures.

โ˜… This High-End and Low-End smartphone sales of Androids is further perpetuating fragmentation on the Android platform, most obviously in software and App Development. Developers have little incentive to take advantage of new features on Android, and must write for the lowest common OS denominator (like version 2) to reach a widest installed-base of users, as even relatively new phones often ship with an old Android OS and rarely get software upgrades. The most popular Android Version is 2, which is the dated-equivalent of Apple’s iOS 3.

โ˜…โ˜…โ˜… Analysts have repeatedly voiced expectations that Android’s volumes would eventually attract developers’ attention away from iOS, but that isn’t happening. The reason is FRAGMENTATION of the Android OS. However, Android’s fragmentation due to the 11,800 "sheep smartphones" android devices" mostly on OS 2, is also rooted in hardware, because low-end, volume shipments are distributing outdated devices that are not only unreliable and frustratingly laggy, but also cuts corners with weak graphics, slow processors, limited memory and other design shortcuts that make it difficult for Developers to develop new Apps and Games that work well across the platform.

โ˜… Donald Trump’s tweet today is correct: …Apple needs to release a Large Display iPhone Immediately… Personally, I agree, Apple should not delay its release of the Larger Display iPhones. I too, have Large-Display envy, of my friends that have 5" Android smartphones.


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