Google’s Eric Schmidt: Android ‘clearly’ winning war against Apple

“Google Inc.’s Android is extending its lead over Apple Inc. in the mobile-software market at a rate that compares with Microsoft Corp.’s expansion in desktop software in the 1990s, Google Chairman Eric Schmidt said,” Brian Womack reports for Bloomberg.

MacDailyNews Take: One not-so-minor difference, Microsoft retained control of and got paid for their software, Mole.

“Booming demand for Android-based smartphones is helping Google add share at the expense of other software providers, Schmidt said yesterday in an interview at Bloomberg’s headquarters in New York. Android snared 72 percent of the market in the third quarter, while Apple had 14 percent, according to Gartner Inc. Customers are activating more than 1.3 million Android devices a day, Schmidt said,” Womack reports. “‘This is a huge platform change; this is of the scale of 20 years ago — Microsoft versus Apple,’ he said. ‘We’re winning that war pretty clearly now.'”

MacDailyNews Take: Mole likely gets it, but he’s playing stupid.

Let’s stop focusing on market share without context and let’s start focusing on what matters. Market share does not necessarily equal profits. Market share does not necessarily equal platform. And in the long run (and in the short run too), market share that doesn’t ultimately lead to profits is meaningless. Anyone can get market share. All you have to do is give away your product at cost or, better yet, for free. But you can’t beat Apple’s iOS just by losing money. Somewhere, somehow, sometime you’ve got to make a profit. Let’s stop pretending that market share is the bottom line or the only thing that matters. Profit and platform matter. Let’s focus on them, instead.

There’s one little problem with the theory that market share matters most in a platform war. By every imaginable measure and in every way that conceivably matters, it is iOS – not Android – that is winning the platform wars. And it isn’t even close.John Kirk, TechPinions, November 29, 2012

And, BTW, Schmidt is counting everything with Android in it, including point-and-shoot cameras, watches, car computers, etc.

Womack reports, “The company avoided about $2 billion in worldwide income taxes in 2011 by shifting $9.8 billion in revenue into a Bermuda shell company, almost double the total from three years before, filings show. Governments in France, the U.K., Italy and Australia are probing Google’s tax avoidance as they seek to boost revenue. Schmidt said the company’s efforts around taxes are legal. ‘We pay lots of taxes; we pay them in the legally prescribed ways,’ he said. ‘I am very proud of the structure that we set up. We did it based on the incentives that the governments offered us to operate.’ The company isn’t about to turn down big savings in taxes, he said. ‘It’s called capitalism,’ he said. ‘We are proudly capitalistic. I’m not confused about this.'”

MacDailyNews Take: Well, at least he got one thing right.

Read more in the full article here.

MacDailyNews Take: Schmidt’s love affair with market share (because that’s all he’s got) reminds us of a little story we usually use for Dell:

2012 Smartphone Profit Share, Apple vs. Samsung
Data source: Citi Research
Little Mikey had a lemonade stand. Okay, it was a kiosk. He sold 100 (8 oz.) cups yesterday for 10-cents each. He spent 11-cents per cup for artificial lemon flavoring, corn syrup, and the paper cups. He used tap water because it was free. Threw it all together in a big plastic pail. He’s out a buck for all of his trouble. Boy, that was a lot of work for less than nothing!

Around the block, little Steve runs a lemonade stand, too. It’s all blond wood and very clean. He sold 50 (24 oz.) glasses yesterday for 50-cents each. He spent 20-cents per glass on fresh-squeezed lemons, pure cane sugar, spring water (mixed with the utmost care), and some very nice glassware (he buys in bulk and gets a good price). He took home $15 yesterday. He’s currently building his newest stand right where Mikey’s used to be.MacDailyNews, April 23, 2009

[Thanks to MacDailyNews readers too numerous to mention individually for the heads up.]

Related articles:
Apple rakes in 71% of the world’s smartphone profits – September 8, 2012

58 Comments

  1. Winning as in:
    1. More viruses and security threats!
    2. More fragmentation!
    3. More messy interface issues!
    4. (put your more here)

    I’ll give him that there are more android devices worldwide. The whole problem with calling that a “win” is that google isn’t making any money from android.

  2. The guy is a POSchmidt. Stab Steve, Apple and users right on their back. His continual insult on Apple is like spitting on Steve Grave. Although he is right that Android has overtaken Apple and will be another Windows / Mac world where 90% of the market will be Android…. He won by doing exactly what Microsoft did to Apple. Jerk.

  3. This is not about Android winning the war. It is more like America is being screwed big time. Samsung is siphoning all the Android profits while all American companies on the Android bandwagon are making peanuts or big losses.

  4. Birds of a feather flock together. Both Sammy and google are very immature companies, wahhhhh wahhhhh, we are winning, wahhhhh, wahhhhhh, our maps are better. They both make me sick!

  5. Goo Schmidt is such a bozo.
    stupid.
    arrogant.
    liar.
    robber.
    he even looks like psychopath grave robber.

    1. FAKE
    his Android calculations is faked, as he counts more than phones; if Apple added all iDevices on iPhones, how is Goo anything but a goo (Shit) pile?

    2. SHORTSIGHTED
    It’s easy to gain market share with free goo, but Apple profits, whilst Android will eventually go bankrupt and all its numbers are worthless. So Erica Schmidt, anyone can think now, now, now, without outcome. You are acting as irresponsible as our government & banks. Your shortsightedness as as short as your plick.

    3. MISS
    It’s easy to beat Apple iPhone if few bought iPhones last quarter, waiting for the iPhone5 instead.

    4. XMAS
    Just wait Ericlein, for the Apple onslaught this xmas, as they upgraded iPhones, iPads. iPods, iMacs…They will take over Android numbers so far up your ass, it will hurt for you to count henceforth. Apple is on the best seller list at every source for the holiday season buys.

    5. China
    China kills Android. How can Eric ignore that biggest single market?! Apple is a China Darling. Yes, apple naysayers, Android sells in China, but at no profit! Plus China does not use Google Search or Maps or App store (Play), so Goo is dead there.

    6. Dell
    Dell sucks but is nevertheless a good number for Google. Dell, the same day Eric announced Android is doing so well, stated it will dump Dell phones, that is, Android!

    7. Google Maps
    It’s an essential part of the Google Ad wars, as ads are the only profitable biz for Google. Australia denounced Apple Maps as dangerous 2 days ago, but today Google Maps too! Google Maps is no better.

    8. Numbers
    Apple proves its numbers each single quarter. As Openly as OpenSource. Yet Google with Android, as Amazon with Kindle or B&N with Nook or MSFT with Surface, never show any numbers! It’s so easy to cheat or distort the truth. Apple does not, can not, does not need to, as it’s too real, too confident. The competition is fake, won’t last. Only Apple profits and in the end, you can not be fit to survive without profits.

    The competition remains flummoxed!

  6. Every time I read about Schmidt I’m reminded of the ex-Iraqi Information Minister, Muhammad Saeed al-Sahhaf, who kept claiming Saddams’s army was winning – until Baghdad was taken over by coalition forces.

  7. So Eric: It’s a war when you STEAL an interface, gestures, design, etc. from someone else, then foist it as your own and give it away to other people to use to fake-compete with those who actually invented the interface, gestures, design, etc.

    So Eric: You’re an asshole. Really! You stole and ate Apple’s dogfood, then shit on Apple. That makes you an honest to goodness asshole. Do I have to draw a picture?

  8. I will say this only once – market share means fuck all!

    Profit and margins are the measure of success.

    How much profit is google making on android?

    Answer = 0

    Apple?

    Answer = 60%

    Winner = Apple.

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