Wednesday, January 27, 2010

Why Android vs. iPhone war is not quite the PS vs. Apple of the 80s

Content is the king, this is the key to understanding why Apple will continue to succeed with iphone, ipod and now ipad.

Here's what I think would happen -

1. Pretty soon Apple's profits from selling the apps and music would far exceed its profits from selling the devices.
2. This should be (if not already) a wake up call for the device makers (Google, Nokia, Motorola and the like) and more so for the telecom companies (Verizon, ATT and the like). They would want to be in on the content and apps goldmine.
3. Telecom companies especially Verizon would want to have its own marketplace for apps and music. That would create tension between them and Android marketplace.
4. Google will most likely come up with a revenue sharing model with the mobile careers for the apps and music that they sell through the cell phone networks. That, just like the google ads, can be their killer app.