5 reasons why Google’s Android has peaked

Apple Online Store“The astonishing rise of Androids from 0.7 million phones a year ago to 10.6 million phones as of the end of June has proven to be one of the biggest strategic moves in tech since, well, since Apple decided to get into the phone business,” Scott Moritz reports for TheStreet. “But that breakneck zero-to-60 dash was at a pace that Google has no chance of repeating ever again.”

MacDailyNews Take: Yes, Scott has more hair than sense, but many MacDailyNews readers requested this one, so here we go!

Moritz continues, “Riding the touchscreen trend launched by iPhone in 2007, Apple and Android phones were essentially the only two players in the game. Now that wide-open field is changing shape.”

Here are five reasons why the Google Android heyday is ending:

5: Hewlett-Packard’s Palm OS: Palm created one of the best touchscreen operating systems to rival Apple’s iPhone. Hewlett-Packard pickup of Palm gives it a viable smartphone software to power its mobile device attack.

MacDailyNews Take: Like we said, hair and sense or lack thereof. Palm’s WebOS is a failure. It is a double that needed to be a grand slam. It is superfluous in the market today. Let’s see if HP can get a CEO to stick around for more than few years before we proclaim their pickup of Palm – and subsequent shedding of key Palm personnel – as a viable threat to anyone.

4: Nokia: Down, but not yet out, Nokia, the Finnish phone colossus which still ranks as the world’s largest smartphone player, could make a go of MeeGo, its restart in smartphone software.

MacDailyNews Take: Yeah, and Steve Ballmer could win “Dancing With The Stars.”

3: Microsoft Windows Phone 7

MacDailyNews Take: Oh, please. Android vs. WebOS vs. Windows 7 vs. MeeGo – it’s the battle of the also-rans! Who can make the closest iOS facsimile without getting sued back into the stone age?

2: RIM BlackBerry 6

MacDailyNews Take: Oh, yeah, BlackBerry. Tellingly, we forgot. Add it to the list in our previous Take above.

1: Verizon iPhone

MacDailyNews Take: BINGO. Damn you, Scott, for toying with us by serving up four jokes before finally getting to the one real reason why Google’s Android has peaked.

Full article – recommended, gasp! – here.

49 Comments

  1. Moritz sucks, but he did notice the obvious: Android has surged because in the US it had no real competition for the customers of 3 of the 4 telcos for over a year. just like the iPhone had no competition at all for 2 years. now finally there will be several serious competitors. the market will inevitably divide up among them.

  2. He discounts T-Mobile (GSM)… 34 million is less than VZ’s 100 mil or so… still, i have so many friends that have Androids or a Jailbroken iPhone… Because of this outdated deal with AT&T.

    Apple barely makes enough iPhones to keep up with demand. And they haven’t even made it to all the countries on their list, let alone the carriers in the US outside of AT&T.

    In any case… I say, T-Mobile… followed by VZ… lastly Sprint…

    in the end it doesn’t matter what order… just as long as it happens.

  3. It is odd that most analysts have not picked up on the desperation in the Android sector. The toehold they have is based on Apple’s exclusive with ATT. They’re giving away the OS and the phones and shoveling cash into advertising. They are not making money, and significant profitability is a distant dream. Apple devices are making billions. New Apple product upgrades are coming one after another.

  4. If the iphone hits verizon I’d assume they would have an exclusive for a certain amount of months just to lock people in.. then off to sprint or tmobile…

    I’d presonally rather see sprint get it so verizon can take it up the ass for making a dumb move of not getting the iphone in 07. And because they are bigger crooks than the rest.

  5. Android will eventually hit an incompatibility wall, as more and different hardware specs are released. The differences in screen resolution alone will make a big difference in that regard. Apple supports 3, with one disappearing in current devices soon.

    At this point in the US, neither Verizon, nor Sprints’s networks support 3G. Apple would have to redesign the iPhone to support those current CDMA networks.

    T-Mobile supports 3G. Today.
    AT&T supports 3G. Today.
    The iPhone is 3G. Today.
    The GLOBAL STANDARD is 3G. NOW.

    Which US network would be the logical NEXT choice for Apple to partner with, especially given Apple’s strategy of simple product lines?

  6. People also forget that Verizon hates Apple. Well, at least Apples rules for selling the iPhone. While Apple could sell an unlocked iPhone for use on Verizons network, I just have trouble seeing an Apple / Verizon partnership.

    Remember Verizon…. Passing on the iPhone cause of all of Apples requirements.?????

    Just a thought,
    en

  7. But just a few weeks ago, according to the media, Android, or Hemorrhoid as I like to call it, was going to rule the world. Could ANALyst like Moritz have lied to us? Oh the humanity of it, say it isn’t true.

    MW: Values, as in whats happened to them?

  8. @EN
    Remember Verizon…. Passing on the iPhone cause of all of Apples requirements.?????

    I know! Apple just couldn’t close the dealio, even after agreeing to every one of Verizon’s requirements, huh? Perhaps Apple should lower their standards.

    Pfffffhhhhht!

  9. Good ol’ Mr. Reeee. Make sure your ass is there when MDN makes their post on the release of the Verizon iPhone. Don’t go sticking your head in the sand. I’ve got a list and you’re at the very top. R2 is gonna have a lot of fun that day.

  10. I can’t understand why so many people are expecting WebOS to take off on tablets. If it failed miserably on a phone, why would it suddenly work on a tablet? It’s the same stupid hype all over again. Those who don’t learn from history (HP) are doomed to repeat it (gizmodo commenters).

  11. So if iPhone on Verizon is the only thing that is holding back the iPhone from world domination, how come the iPhone is only neck and neck with Android here in Europe, where every vendor sells the iPhone? I’m an HTC Desire user, but I seriously considered the iPhone beforehand. I just think this whole idea of iPhone on Verizon being the ultimate trump card a little simple minded.

    I personally think its the hardware. There is just more choice in the Android camp. You have to wait a while between new iPhones, but there is a new Android phone almost weekly. I mean, it looks like there will be a dual-core, 1.3Ghz HTC Glacier soon, plus with Samsung and Motorola firing on all cylinders, the Android camp is going to be getting even more exciting.

    I think different versions of the iPhone might help. Maybe a keyboard on some models, or different size screens. Who knows.

  12. #1 reason why this story is crap: simple, Android is nowhere near peaking. You can bury you head in the sand and believe all is good and android is just going to quietly go away, consigned to the dustbin of IT history has an anomaly, but we know differently. It is here, it huge and getting bigger all the time. Luckily for apple they trawl the deep end of the ocean where the high profitability is so it’s impact will mean smaller marketshare (from increasing market), but probably no less profit. Seems a bit analogous to windows and osx really.

  13. Start by saying I have an iphone 3GS and love it. Bought my daughter the 4, and she loves it too. My grown daughter and husband also have iphones and an ipad (my wife is a smart phone holdout). I own no other apple products other than a couple of ipods, which I hate (itunes).

    Having said that, I don’t understand the fanboy “Us against the world” mentality at all. It seems that you don’t want the iphone to have any competition at all and that makes absolutely no sense (unless you own Apple stock). I only know one person that actually has an android phone (HTC Evo), but he really likes it. There are certainly advantages to having a phone that you don’t have to “jailbreak” to really take advantage of it’s capabilities. I hate the Apple itunes captive customer business model. It seems to me that Apple is trying to become the “Big Brother” that they used to say was the enemy. Closed system, fewer incompatibility issues etc etc. I understand that and it makes Apple great for the technically challenged, but why would you want that to be the only option? I use a lot of guitar and music/recording software that is just not available on the Mac and never will be. The Apple II was so successful against much cheaper competitors in the 80s largely because of those “slots’ that let you do what you wanted with it. The losers in that war (Commodore, Atari, TI, Coleco, to name a few) were closed systems. The PC is so successfull because of it’s open system and because they don’t charge you to write software for it and Microsoft doesn’t get a cut of every “app” sold.

    “They’re giving away the OS and the phones and shoveling cash into advertising. They are not making money”. My fanboy friend told me the same thing when more and more people started using droids, “They’re buy one get one free. Apple is making way more money”. And that is cause for celebration? Is the object for me to have the best smart phone available at the best price or for Apple to make lots of money? I dont’ care if Apple or Google make more money and I don’t understand why you do. Bigger display, wifi hotspot – I wouldn’t mind having those features on my iphone. If somone makes a good smart phone and they will give it to you in return for signing a service contract, why isn’t that a good thing as opposed to a two year commitment AND 200 dollars? The Mac has (I’m told) a much better os than Windows, but Windows PCs have 80 or 90% of the market (I’m guessing) anyway. Why? Price.

    “Apple can’t meet the demand” Neither can the android mgfs. The recession caused cutbacks by all the asian chip manufacturers. That’s causing delays in droid phone production as well.

    “The android has peaked”, therefore Apple dominance of the smart phone market will continue, and that’s good?

  14. Android is already dead. Its already become so fragmented it doesn’t really exist anymore. To the average consumer Droids, Samsungs and HTCs are completely different. While the underlying OS is the same the consumer interacts with each very differently. what works on one doesn’t work on another. Hell you can get confused going between models of the same brand. iPod, iPad, iphone 3G, 3GS and 4 all work the same to the consumer. They all work with iTunes the same way.
    In the end the biggest thing that will kill android is the fact that people are using android and finding all the rough edges.

  15. 6: User Word Of Mouth: Now that Android devices are in the hands of a significant number of users, word of mouth is being shared about the OS being an unreliable PITA. Many applications are crapware, are user-hostile, are unreliable, do not meet user expectations. Both Blackberry and Apple iOS users share their superior experiences, making Android users very sad, envious and regretful. No FUD required.
    šŸ™

  16. @derek
    I don’t agree that Android users are badmouthing about them. Most seem very pleased and only too happy to show me how they think it outdoes mi iPhone 4. Where can one find these Android owners callinfg it a PITA? None in my experience

  17. I cannot wait for the Droid Heads to suck styrofoam when the iPhone hits Verizon. This will be a head-to-head comparison and then we will see who can really brag about having the most popular phone.

    In Europe and Asia where there is choice, Droid is not winning.

  18. Android units will continue to sell. Even a half-a$$ copy of the iPhone is better than anything else that was out there before. How quickly people forget that Apple created the *real* personal computer, the first good PDA (Newton was far ahead of its time), the first good notebook computers, and cutting edge all-in-1 computer designs. On top of that, I add the iPod, iPhone and iPad which need no further explanation.

    Virtually everything else on the market is a copy. Everyone, Mac user or not, owes Apple a big thanks. Do you really think that Microsoft and the rest could have done it on their own? No iPod, no Zune. It’s that simple.

  19. @Sam
    You make a lot of good points. As I stated in my previous post, I believe that Android units will continue to sell. So will Windows PCs and lots of other non-Apple consumer electronics.

    Apple does not chase marketshare if that deviates from their plan. Why take the risk when they are achieving great revenues and profits and there is still plenty of room for growth? That is one of several reasons why I still say “no CMDA iPhone on Verizon.” That would be a step back for Apple, regardless of the potential gains in unit sales (if they could actually make more iPhones, that is).

    I don’t actually want an overwhelmingly dominant Apple. It would attract more government scrutiny and could also stretch Apple too thin. I would prefer to keep quality high and maintain a reasonable marketshare – enough to keep developers eager to produce software for Apple devices.

  20. @Silent Contributor

    “I cannot wait for the Droid Heads to suck styrofoam when the iPhone hits Verizon. This will be a head-to-head comparison and then we will see who can really brag about having the most popular phone.

    In Europe and Asia where there is choice, Droid is not winning.”

    Well, in the Asia where I live, where you buy a phone, then pick a carrier, only the very wealthy own iPhones. They are by far the most expensive phone on the market. Even the newly released Samsung Galaxy (which has been rated higher than the iPhone in many reviews) costs about 1/3 less. HTC has several models selling for around 1/4 the price of an iPhone. I work at an international school full of rich kids who all have Macs, but Blackberry’s are by far their most popular choice of phone.
    There seems to be this misconception that the US is the center of the universe, and an even bigger misconception that 4th place somehow makes iOS dominant in the smartphone market. The latest numbers actually show the iPhone losing market share.
    Android just keeps getting better with every update, and new and better phones are coming out almost daily. Sure, their explosive growth over the last year cannot continue forever, but to declare that Android has peaked is ridiculous.

  21. Come on people. The Android and iPhone can coexist together. Some people just have a preference for things one way or another. That being said I switched from an iPhone to an Android and to say I hate it doesn’t even begin to describe it. The Android is terrible to type on, the touch response isn’t very good, and the menu system is cumbersome and confusing. However, I have friends that swear by their Android. So, to each their own I suppose. Personally I can’t wait to get back to an iPhone but I do recognize that there are those out there that do like their droids.

  22. “then we will see who can really brag about having the most popular phone.”

    That’s just a wierd goal, unless your last name is Jobs or Woz. I want choice and competition. If my mother or some other technophobe wants a smart phone, I will enthusiastically recommend the iphone. It’s slick, intuitive, and just cool in general. When I’m due for an upgrade, there is a very good chance I will just get an upgraded iphone, BUT I hope the android phones survive and improves, because I like the idea of an open system that I can use the way I want no matter what Apple says. My guess is that the next iphone will have some of the features that excite people about the droid phones. That’s why competition is good. How about an iphone 5 with WI-FI hotspot, HDMI output, changeable “themes” etc. ? How about an Android phone with incredible video like the iphone4 has?

  23. HughB sez: “@derek I don’t agree that Android users are badmouthing about them. Most seem very pleased and only too happy to show me how they think it outdoes mi iPhone 4. Where can one find these Android owners callinfg it a PITA? None in my experience”

    Where to find one Android owner calling it a PITA:

    My brother, who owns a DROID, pleading with me to fix his email settings because his DROID dumped all his AOL mail into his Hotmail account where he could not open them. DROID would not let him delete his Hotmail account. I solved that for him. Then DROID would not let him reinstate his Hotmail account. I solved that for him as well.

    Therefore, via my brother’s complaints that the DROID is a PITA I have first hand experience that Android, compared with iOS, is a PITA.

    Oh, and then this morning my brother received a URL regarding the death of a member of his fraternity. His DROID would not let him open the URL. He has to wait until he gets back home and can access his laptop, again verifying that Android is a PITA.

    I personally can’t wait for side-by-side comparison ads. How about it Apple?

  24. @Sam
    “The Mac has (I’m told) a much better os than Windows, but Windows PCs have 80 or 90% of the market (I’m guessing) anyway. Why? Price. “

    Ok, I was way off the mark. Mac share of the PC market was less than 4% as of last April. If you’re a fanboy, you think this is a MUCH superior OS and you may be right (I’ve never used a mac at all), but the general public couldn’t care less. It’s all about price. Even after all the clever commercials, even with the technical and compatibility issues, even with more viruses and malware attacks, even after the Vista fiasco, Wintel boxes still rule the world, but the fanboys are happy because Apple made a boatload of money. Strange.

  25. @Derek Currie

    Sound like your bother needs an iphone and YOU should be the one to get the android because you’re smart enought to use it. I have relatives who should bite the bullet and pay for a mac because they can screw up a PC in a week. They buy a second drive for more storage (I have to install it) then they install everything on C: anyway and then wonder how they ran out of space. They click “ok” no matter what the dialogue box is saying. They install all kinds of toolbars and crap just because they don’t pay attention, then they call me). I don’t have any problems keeping all my PCs up and running smoothly. It’s a tradeoff between simplicity and flexibility isn’t it? The mac solves a lot of those problems, but you have to bend over when you buy it.

  26. By daughter’s high school age boyfriend has an EVO and never asks me for any help. He is downloading emulators to run PSP games and all kinds of crap. The complaints are 1. battery life, he had to turn things off to make the battery last. and 2. the video is horrible especially compared to my daughters iphone4. It’s supposed to be HD and even has HDMI output, but it looks grainy and actually flickers like it has a low frame rate. On the plus side, he can plug SD cards into it. That’s definitely something Apple should look at.

  27. Palm’s WebOS didn’t fail. It didn’t even get a chanse… Apple should really have bid up for Palm. Apple got so much cash, us it for something would be useful although not for dividend thank god. I think Palm technology, patents and talent would have made Apple much stronger and would have been a good fit.

  28. This lecture is so old, but requires constant repeating. If you’ve read it before, move along. Otherwise, open your eyes:

    ‘Sam’ sez, regarding Windows box vs Mac: “It’s a tradeoff between simplicity and flexibility isn’t it?”

    No. Mac is the most simple and the most flexible. I’ve got full UNIX on my Mac OS X boxes. Therefore, if you’re a CLI fanatic, I’ve actually got more control over my computer than a Windows box via DOS. I suspect people don’t comprehend this because they have no experience with UNIX.

    Then add to that the fact that I can run Windows natively on my Macs, either booting to it or using virtualization.

    “The mac solves a lot of those problems, but you have to bend over when you buy it.”

    That has never been the case. Every single professional study comparing same hardware between Macs and Windows boxes has found that all Macs are cheaper. There has been no deviation from this fact.

    How is this possible?! Because there is more to the cost of a computer than shelf price. There are two further factors:

    1) Return On Investment (ROI):<b> Macs always win. They are more efficient, leading to greater productivity. They are better built and typically have 2x the period of use compared to a Windows box. Examples: I still use my 1993 Mac Quadra 650, upgraded with a 601 PPC chip, as an imaging workstation. I have my 1997 PowerMac 9600, souped up with a G3 900 MHz CPU, running 24/7 on the internet as an FTP server for over 800 users. I still use my 1998 PowerBook Wallstreet PDQ, souped up with a G4 500 MHz CPU, to run my old Mac OS 9 software as well as Mac OS X 10.2.8 software.

    <b>2) Cost Of Ownership (COO): Windows boxes always lose. This is how much more time, money and effort it costs to make and keep the computer functional. Windows is less efficient than the Mac, getting less work done, paying employees more money to complete the same tasks. Windows remains the single least secure OS available. This requires buying anti-malware software and dealing with the consequences of it running in the background. Windows boxes require more repairs than Macs. Still to this day Windows boxes suffer from ‘Plug and Pray’ because there is no marriage between the hardware and the OS, unlike the Mac.

    Macs are not only better built, more flexible and easier to use. Macs are cheaper when you account for ALL costs involved. You won’t find any professional proof to the contrary.

    So why all the mythology about Macs being more expensive?

    “There’s a sucker born every minute.” Sad. True.

    But Windows boxes work, mostly. They’re great tools. You’re lucky to have ANY computer on our world. The vast majority of people do NOT have computers. So be glad you have whatever computer and it does what you need it to do. I simply don’t have the time, money or patience to buy and contend with the lesser computer. That being said, I still consider us to be ‘The Stone Age of Computing.’ Computers are far too difficult for the average person, including Macs. Stuff like the iPad, iPhone and iPod Touch are gradually improving usability.

  29. Derek Currie

    Boy, what a reach. ROI? COO? To the average computer buyer it’s very simple. Hmm. this one is $400, but that one is $1200. I think I’ll get the cheap one, and I believe it would be very rare that they spent $800 cash out of pocket to keep the thing working for 6-10 years. Businesses DO look at ROI and COO and If it could be proven that PCs cost more than Macs, the business world would be run by Macs, and we both know that’s not the case. Windows is less efficient than the Mac? LOL. ‘Wow, I think the Mac recalculated my spreadsheet 3 nanoseconds faster than Windows did!!! An average computer user is not going notice any difference at all. Better built? If a computer doesn’t fail in the first month of use, it’s probably not going to. I’ve never replaced a windows PC because it wore out. The average computer user isn’t going to extend the life of his Mac by “souping” it up either. They’ll probably never open the case and they certainly don’t care about running UNIX on it. Check their email, surf the net. They don’t need an overpriced Mac and that’s why they have 4% market share.

    More fanboy rationalization. Lot’s of people like Macs. I don’t have any problem with that. If you like it and think it’s worth the money, go for it. What irritates me is when you try to convince me that I’m stupid for not buying Apple. I don’t think you are, but the average computer buyer is wasting money if they buy a Mac.

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