News Analysis: As rumors continue to swirl around the iPhone 5, it’s becoming clearer that Apple’s upcoming smartphone could take a bite out of Android adoption this year.
Apple iPhone 5 Will Cut Android Adoption in 2011: 10 Reasons Why
Apple’s iPhone has been nothing short of an unbridled success in the mobile market. Since its launch in 2007, Apple has sold millions of smartphones to customers around the world, and several companies, like Motorola Mobility, HTC, and others, have tried to jump on that bandwagon and generate the same kind of cash Apple has been able to tally.
In some cases, those competitors, who have opted in most cases to run Google’s Android platform, have been successful at achieving success in the mobile space. In other cases, they have not. But with each passing year, Apple’s competitors seem to believe that with the right product, they can supplant the iPhone as the top smartphone in the market.
However, in 2011, that won’t happen. When Apple releases the iPhone 5 later this year, it will likely achieve even greater heights. Perhaps most importantly, it will cut into Android adoption for the duration of the year.
Android might eventually become the top mobile operating system in the marketplace, but through 2011, Android adoption won’t be as high as some think.
Here’s why:
1. The possibility of a slimmer, cheaper iPhone is huge
Recent rumors suggest that Apple is considering offering a slimmer, cheaper iPhone that will offer those on a budget an opportunity to get into the smartphone game. Currently, there are several cheaper Android-based devices available to consumers. The only issue is, those cheaper Android options lack some important functions, and if Apple offers a cheaper version of the iPhone 5, Android alternatives will likely lose their commercial appeal to Apple’s new product.
2. There is too much fragmentation in the Android ecosystem
The Android ecosystem is a bit of a mess right now. There are a countless number of devices that are running several different versions of Android. There are also several applications stores that are compatible with varying devices. The iPhone 5, on the other hand, will offer a more uniform experience that customers have grown accustomed to. As more people start trying out different Android devices, they might realize that such uniformity really is better.
3. There aren’t enough “killer” Android smartphones
Let’s face it: when one considers all the Android smartphones on the market right now, there aren’t nearly as many outstanding devices as Google would like the market to believe. Motorola Mobility’s Droid X and the HTC Evo 4G are among the top Android-based devices on the market. But they compete in a space that’s also inundated with sub-par devices, like the Motorola Bravo and the HTC Aria. Even the Nexus S isn’t as appealing to customers as the Droid 2. Meanwhile, Apple keeps churning out highly sought-after products that sell extremely well. If nothing else, consumers will know later this year that opting for a device like the iPhone 5 won’t be as big of a risk as choosing an Android-based smartphone that might or might not work well.
4. The rumors suggest more choice
As with any Apple product, rumors surrounding the iPhone 5 are everywhere. Some are more plausible than others. But so far, there is a single persistent rumor that makes quite a bit of sense: there will be more iPhone model options available to customers. Granted, that might only mean that Apple offers up the iPhone 5 and a slimmer, cheaper version of the smartphone, but the company might also offer the previous generation iPhone 4 at a reduced price. After all, this strategy worked quite well with the iPhone 3GS. Later this year, consumers might be able to choose from a reduced iPhone 4, a new iPhone 5, and a cheaper iPhone alternative. With three devices on store shelves, Apple will be able to attract more customers. This could definitely cut into Android adoption.
5. Verizon plays a role
One of the key elements of Android’s success over the last couple years has been Apple’s exclusive deal in the United States with AT&T. Potential iPhone customers in the U.S. simply didn’t have as many options available to them as Android customers did. But now that the iPhone is running on Verizon’s network, Apple has literally doubled its potential market. Given how popular the iPhone is, it’s not a stretch to say that the next Apple smartphone will capitalize greatly on that expanded customer base.
6. The iPhone 5 will be more enterprise-friendly
One of the major issues standing in the way of even more widespread Android adoption has been its inability to attract enterprise customers. Recent scares over the potential of security problems hitting the Android platform have pushed some IT decision-makers away. The operating system also lacks the level of policy enforcement that corporate customers are after. But over the past year, Apple has made serious inroads in the enterprise, thanks to services like its Mobile Device Management, which allows enterprise users to monitor employee use while they’re away from the office. The platform also includes security features that enterprise users are seeing value in. Combine all that with expected improvements to the iPhone 5, and Apple’s smartphone might see more widespread enterprise adoption this year.
7. A new and improved iPhone?
As with every other update, the iPhone 5 will likely boast several new features that customers have been looking for. Speculation abounds that the device could come with a 4-inch display to get it closer to matching larger competitors, like the Droid X, which has a 4.3-inch display. The smartphone is also expected to include a more-capable processor—potentially a dual-core model—to deliver better performance. If those rumors are true, the iPhone 5 might just be the product power users have been waiting for.
8. No single company has emerged as an Apple threat
Motorola Mobility, HTC, and Samsung have emerged as top Android handset makers. But when it comes to actually competing with Apple, it’s tough to see how those companies are real threats to Steve Jobs and Company. Sure, they offer nice smartphones, but as Apple revealed in its last quarter earnings report, it sold 16.24 million iPhones during the period. Motorola Mobility, on the other hand, shipped 4.9 million smartphones during the last quarter. And that company offers many more devices than Apple. Until any single firm can emerge as a real threat to Apple, one shouldn’t be so quick to believe that with an updated iPhone and Verizon capability, Apple can’t stunt Android’s growth.
9. Apple can capably focus on tablets and smartphones
Google has proven itself as a top player in the smartphone space, thanks to its Android platform. But now it needs to show the world that it can capably compete in the tablet and smartphone space at the same time. It must prove that when it’s focusing its efforts on tablets, it can still adapt to appeal to smartphone customers. It’s much more difficult than some think. So far, only Apple has been able to achieve such success in those markets. That’s why few question whether Apple’s iPhone 5 will be a success, and some wonder if Google has what it takes to compete with Apple in both the smartphone and tablet markets.
10. With latest improvements, what can beat the iPhone 5?
When it comes down to buying decisions for consumers and enterprise customers, they want to know which device is best for them and their budget. If Apple delivers a smaller, cheaper version of the iPhone 5, it can appeal to budget-conscious customers. And if it delivers on the hardware improvements many expect in the iPhone 5, it will be able to at least match the competition. So, if the competition doesn’t have an advantage, who can say that the iPhone 5 won’t be able to cut into Android’s success this year? Value propositions mean everything. And if Apple can deliver the best value proposition, it will have a huge year.
Apple iPhone 5 Will Cut Android Adoption in 2011: 10 Reasons Why
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