Project Report On Android VS iOS: Mobile Operating System War
Submitted in Partial Fulfilment of the requirement of Bachelor of Business Administration (BBA-GEN) Guru Gobind Singh Indraprastha University
Under the Guidance of:
Submitted By:
Dr. Ashita Sharma
Moin Panwar Enrolment No.: 02910601710
Evaluation Certificate This is to certify that the project titled “Android VS iOS: Mobile Operating System War” submitted by Moin Panwar of BBA (GEN), Semester III of Ansal Institute of Technology, Gurgaon affiliated to Guru Gobind Singh Indraprastha University, Delhi has been examined by the following examinee.
INTERNAL EXAMINER
EXTERNAL EXAMINER
Declaration I Moin Panwar of Bachelor in Business Administration (BBA) hereby declare that the project work titled Android VS. iOS: Mobile Operating System War, which has been submitted to Guru Gobind Singh Indraprastha University, is an original work of the undersigned and has not been reproduced from any other source.
Date: Place: Ansal Institute of Technology, Gurgaon
Moin Panwar
Acknowledgement A lot of hard work and effort has gone into this project. However, it would not have been possible without the kind support and help of many individuals. I would like to extend my sincere thanks to all of them.
I am highly indebted to Dr Ashita Sharma for her guidance and constant supervision as well as for providing necessary information regarding the project and also for her support in completing the project.
I would like to express my gratitude towards my parents and member of Ansal Institute of Technology for their kind co-operation and encouragement which help me in completion of this project.
My thanks and appreciations also go to my colleagues in developing the project and people who have willingly helped me out with their abilities.
(Moin Panwar)
Contents Sno.
Topic
Page No.
1.
Abstract
6
2.
Introduction
8
3.
Background Note
11
4.
About the Operating Systems
15
5.
Devices Under These OS
19
6.
Operating System Usage Worldwide
28
7.
Customer Satisfaction
31
8.
Global Market Share
33
9.
Current and Future Market Share
36
10.
And The Winner Is…
39
11.
Reasons For Android Win
41
12.
Appendix
45
Abstract
This case is about the competition between the two mobile operating systems Android and iOS to gain the top slot among the mobile operating systems. Android was launched by Google Inc. (Google) to gain control over the way mobile internet was emerging. Android gained quick acceptance from consumers as well as handset makers and was locked in an intense competitive battle with Apple Inc.’s (Apple) mobile operating system iOS in the key US market. Though Apple dismissed the competition from Android, many analysts opined that the threat to iOS from Android was real and happening. Android was an open source mobile operating system which was given to various mobile operators free of cost in contrast to iOS which was a proprietary operating system used only in Apple’s mobile devices. Even though iOS had the largest number of applications available for any mobile operating system, the number of applications available for Android was increasing due to greater freedom being given to the application developers. Rather than being limited to just smartphones, the competition between Android and iOS was extending to other devices like tablet computers as these two mobile operating systems were increasingly being used in such other portable computing devices. To take the competition forward, Google said that it was planning to introduce low cost Android powered smartphones in emerging markets like India and China. Industry observers noted that the stakes for both the companies were high as traditionally it had been observed that in such a fight, one platform dominated the market (for instance, Microsoft vs. Apple and IBM, eBay vs. Yahoo Auctions and Auction Universe, Google vs. Yahoo and Microsoft). They were watching closely to see which platform would eventually dominate the market and which company would have the last laugh.
Introduction
"Google and Apple are playing a chess game, and everyone else is playing catch-up." - Scott Schwarzhoff, vice-president of marketing, Appcelerator , in 2010 On May 10, 2010, The NPD Group Inc. (NPD), a leading market research company, said that Android, the mobile operating system had overtaken the iOS, the default operating system of the iPhone, Apple Inc.’s (Apple) mobile phone, in the US market for the first quarter of 2010. The Android operating system, owned by the Open Handset Alliance (OHA) and backed by Google Inc. (Google), had moved into the second position with a market share of 28% next only to the BlackBerry OS (BBOS) of Research in Motion Limited’s (RIM) BlackBerry smartphone devices, NPD said. However, RIM’s operating system still commanded a 36% share in the US market. Google launched its own mobile operating system which was to be distributed to mobile handset manufacturers free of cost to control the smartphone business. Google’s entry into the mobile operating system market became imminent with many people all over the world starting to browse the internet on their mobile phones. Many analysts were initially sceptical about the Android’s chances of success. They said Android would be a wasteful investment for Google, which did not have much experience in developing operating systems to compete with giants like Apple and RIM. James Faucette, an analyst at Pacific Crest Securities, Inc. (Pacific Crest), said, "For Google, Android is a cash drain. They are going to lose money on Android as an operating system. They hope to make it up from the services that they are delivering through their infrastructure and servers." But Android silenced critics by growing rapidly and proving to be a viable alternative to Apple's iOS. However, in October 2009, Gartner Inc. (Gartner) predicted that the Android software would overtake iOS by 20126. This new projection by Gartner raised expectations about Android. Apple’s iOS had, till then, been the choice of millions of smartphone users all over the world as well as third party application developers. As the operating systems used in mobile phones became the main domain in the battle for dominance in the mobile sector, the growth of Android put more pressure on Apple, which had been basking in success after emerging as the world’s biggest technology company in terms of market capitalization, overtaking Microsoft Corporation (Microsoft). Android’s rapid growth was attributed to many factors. The most important of these was the advantage Android had over iOS by virtue of being an open source operating system. iOS, on
the other hand, was a closely guarded proprietary operating system used in the products of a single firm. Many third party application developers started to prefer Android to iOS due to the flexibility it gave to them in developing applications. Another factor attributed for the growth was the adoption of Android by some major handset manufacturers like HTC Corporation (HTC) and Motorola Inc. (Motorola) which, in turn, had tie-ups with some major telecom operators like Verizon Wireless (Verizon). Android also gave operators some flexibility -- some of the services like email could be customized to be offered by the operators themselves. This adoption of Android by major handset manufacturers helped it become the operating system in many top smartphones.
Background Note
APPLE INC. Apple Inc. Is an American multinational corporation that designs and markets consumer electronics, computer software, and personal computers. The
company's
best-known
the Macintosh line
of
hardware
computers,
products
the iPod,
include
the iPhone and
the iPad. Apple software includes the Mac OS X operating system; the iTunes media browser; the iLife suite of multimedia and
creativity
software;
the iWork suite
of
productivity
software; Aperture, a professional photography package; Final Cut Studio, a suite of professional audio and film-industry software products; Logic Studio, a suite of music production tools; the Safari web browser; and iOS, a mobile operating system. As of October 2010, the company operates 317 retail stores in ten countries, and an online store where hardware and software products are sold. As of May 2011, Apple is one of the largest companies in the world and the most valuable technology company in the world, having surpassed Microsoft. Established on April 1, 1976 in Cupertino, California, and incorporated January 3, 1977, the company was previously named Apple Computer, Inc., for its first 30 years, but removed the word "Computer" on January 9, 2007, to reflect the company's on-going expansion into the consumer electronics market in addition to its traditional focus on personal computers. As of September 2010, Apple had 46,600 full time employees and 2,800 temporary full time employees worldwide and had worldwide annual sales of $65.23 billion. For reasons as various as its philosophy of comprehensive aesthetic design to its distinctive advertising campaigns, Apple has established a unique reputation in the consumer electronics industry. This includes a customer base that is devoted to the company and its brand, particularly in the United States. Fortune magazine named Apple the most admired company in the United States in 2008 and in the world in 2008, 2009, and 2010. The company has also received widespread criticism for its contractors' labour, environmental, and business practices.
GOOGLE INC. Google Inc. is an American multinational public corporation invested in Internet search, cloud computing, and advertising technologies. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords program. The company was founded by Larry Page and Sergey Brin, often dubbed the "Google Guys", while the two were attending Stanford University as PhD candidates. It was first incorporated as a privately held company on September 4, 1998, and its initial public offering followed on August 19, 2004. At that time Larry Page, Sergey Brin, and Eric Schmidt agreed to work together at Google for twenty years, until the year 2024. The company's mission statement from the outset was "to organize the world's information and make it universally accessible and useful", and the company's unofficial slogan – coined by Google engineer Amit Patel and supported by Paul Buchheit – is "Don't be evil". In 2006, the company moved to its current headquarters in Mountain View, California. It has been estimated that Google runs over one million servers in data centres’ around the world and processes over one billion search request and about twenty-four petabytes of usergenerated data every day. Google’s rapid growth since its incorporation has triggered a chain of products, acquisitions, and partnerships beyond the company's core web search engine. The company offers online productivity software, such as its Gmail email service, and social networking tools, including Orkut and, more recently, Google Buzz and Google+. Google's products extend to the desktop as well, with applications such as the web browser Google Chrome, the Picasa photo organization and editing software, and the Google Talk messaging application. Notably, Google leads the development of the Android mobile operating system, used on a number of phones such as the Nexus One and Motorola, as well as Google Chrome OS, which is brand new (was just released on June 15, 2011) but is best known as the main operating system on the Cr-48 and also on commercial Chrome books since June 15, among them the Samsung Series 5 and Acer AC700 Alexa lists the main U.S.-focused google.com site as the Internet's most visited website, and numerous international Google sites (google.co.in, google.co.uk etc.) are in the top hundred, as are several other Google-owned sites such as YouTube, Blogger, and Orkut. Google also ranks number two in
the BrandZ brand equity database. The dominant market position of Google's services has led to criticism of the company over issues including privacy, copyright, and censorship.
About The Operating Systems
A mobile operating system, also known as a mobile OS, mobile software platform or a handheld
operating
system,
is
the operating
system that
controls
a mobile
device or information appliance—similar in principle to an operating system such as Windows, Mac OS X, or Linux distributions that controls a desktop computer or laptop. However, they are currently somewhat simpler, and deal more with the wireless versions of broadband and local connectivity, mobile multimedia formats, and different input methods. Typical examples of devices running a mobile operating system are smartphones, personal digital assistants (PDAs), tablet computers and information appliances, or what are sometimes referred to as smart devices, which may also include embedded systems, or other mobile devices and wireless devices.
iOS (By Apple Inc.) iOS also known as iPhone OS is Apple's mobile operating system. Originally developed for the iPhone, it has since been extended to support other Apple devices such as the iPod touch, iPad and Apple TV. Apple doesn't license iOS for installation on third-party hardware. As of May 31, 2011, Apple's App Store contains more than 500,000 iOS applications, which have collectively been downloaded more than 15 billion times. In the last quarter of 2010, it had a 26% share of the smartphone operating system market in terms of units sold, behind Google's Android and Nokia's Symbian. As of May 2010, it accounted for 59% of mobile web consumption—not including the iPad—in North America. The user interface of iOS is based on the concept of direct manipulation, using multi-touch gestures. Interface control elements consist of sliders, switches, and buttons. The response to user input is immediate and provides a fluid interface. Interaction with the OS includes gestures such as swipe, tap, pinch, and reverse pinch, all of which have specific definitions within the context of the iOS operating system and its multi-touch interface. Internal accelerometers are used by some applications to respond to shaking the device (one common result is the undo command) or rotating it in three dimensions (one common result is switching from portrait to landscape mode). iOS is derived from Mac OS X, with which it shares the Darwin foundation, and is therefore a Unix-like operating system by nature. In iOS, there are four abstraction layers: the Core OS layer, the Core Services layer, the Media layer, and the Cocoa Touch layer. The current version of the operating system (4.3.5) uses roughly 660 megabytes of the device's storage, varying for each model.
Android (By Google Inc.) Android is a software stack for mobile devices such as mobile telephones and tablet computers developed by Google Inc. and the Open Handset Alliance. Google purchased the initial developer of the software, Android Inc., in 2005. The unveiling of the Android distribution on 5 November 2007 was announced with the founding of the Open Handset Alliance, a consortium of 80 hardware, software, and telecommunication companies devoted to advancing open for mobile devices. Google released most of the Android code under the Apache License, a free software license. The Android Open Source Project (AOSP) is tasked with the maintenance and further development of Android. Android consists of a mobile operating system based on the Linux kernel, with middleware, libraries and APIs written in C and application software running on an application framework which includes Java-compatible libraries based on Apache Harmony. Android uses the Dalvik virtual machine with just-in-time compilation to run compiled Java code. Android has a large community of developers writing applications ("apps") that extend the functionality of the devices. There are currently more than 250,000 apps available for Android. Android Market is the online app store run by Google, though apps can also be downloaded from third-party sites. Developers write primarily in Java, controlling the device via Google-developed Java libraries.
Devices Under These OS
Devices Under iOS (Only Apple Products)
iPhone
iPad
iPod Family
Devices Under Android By HTC:
Nexus Series
Vivid Series
Sensation Series
Desire Series
Wildfire Series
Evo Series
Incredible Series
Cha Cha Series
Flyer Series
Optimus Net
Optimus Pro
By LG:
Optimus 3D
Optimus Me
Optimus Slider
By Micromax:
Andro A60
By Motorola:
Atrix Series
Bravo Series
Motokey Social
Droid Series
Defy Series
Flipside Series
Milestone Plus
Milestone X
XOOM
Photon Series
By Sony Ericsson:
Xperia Ray Series
Xperia Arc Series
Xperia Neo Series
Xperia Mini Series
Xperia Play
Live With Walkman
Xperia Active
By Samsung:
Galaxy Note
Galaxy S II
Galaxy Pro
Galaxy Fit
Galaxy Tab
Galaxy Y
Galaxy Nexus Series
Operating System Usage Worldwide
iOS
Less than half of iOS Devices are in North-America.
The iOS experienced its strongest growth in unique devices in the past year in Asia, Oceania and Western Europe
iOS Devices by Country:
Rank
Country
% of User
1
United States
43%
2
United Kingdom
9%
3
France
6%
4
Canada
5%
5
Japan
4%
6
Australia
4%
7
Germany
4%
8
China
2%
9
Republic of Korea
2%
10
Italy
2%
Data based on the 43.8 million iOS devices in the AdMob network in May 2010.
Android
67% of Android users are in North America
China was the second largest Android market with 13% of users
Android Unique Device Distribution 2010 1%
1% 1% 1%
12%
North America Asia Western Europe Eastern Europe
18%
Latin America Oceania
66%
Africa
Android Devices by Country: Rank
Country
% of User
1
United States
66%
2
China
13%
3
United Kingdom
4%
4
France
2%
5
Japan
2%
6
Germany
2%
7
Republic of Korea
1%
8
Spain
1%
9
Canada
1%
10
Sweden
1%
Data based on the 12.7 million Android devices in the AdMob network in May 2010
Customer Satisfaction
According to ADMOB User Application Survey Summary: iOS and Android users willing to recommend their device to others •91% iOS, 84% Android would recommend. This shows iOS users are more satisfied with their devices compared to Android.
Are you likely to recommend your device to a friend or colleague? Yes
3% 5%
91%
iOS
Maybe
No
5% 12%
84%
Android
Global Market Share
Android Tops iOS in 3rd Quarter Global Smartphone Share in 2010:
Report by Gartner:
Company 3Q10
3Q10 Market Share
3Q09
3Q09 Market Share
Units
(%)
Units
(%)
Android
20,500.0
25.5
1,424.5
3.5
iOS
13,484.4
16.7
7,040.4
17.1
Worldwide Smartphone Sales in 3Q10 in Thousands of Units (Source: Gartner)
Gartner released its data, revealing a tremendous Android surge that saw the platform leap above iOS with over 20 million units sold during the third quarter to reach second position and grab a 25.5% share of the global smartphone market. Apple slipped slightly to 16.7% of the market from 17.1% in the year-ago quarter, but was able to maintain its third-place position from the year-ago quarter and move up from its fourth-place position last quarter.
Report by The Nelson Company:
The race for the lead in U.S. smartphone operating system (OS) consumer market share is tighter than it has ever been. According to November data from The Nielsen Company, the popularity of the Android OS among those who purchased a smartphone in the last six months (40%) makes it the leading OS among recent acquirers.
Conclusion: Both the reports by The Nielsen Company and Gartner show that Android has had a better market share in 2010 even though Android was launched recently in the market as compared to iOS.
Current and Future Market Share
According to Gartner, Android to command nearly half of worldwide smartphone operating system market by Year-End 2012. Worldwide smartphone sales will reach 468 million units in 2011, a 57.7 % increase from 2010, according to Gartner Inc. By the end of 2011, Android will move to become the most popular operating system (OS) worldwide and will build on its strength to account for 49 % of the smartphone market by 2012. Sales of open OS* devices will account for 26 % of all mobile handset device sales in 2011, and are expected to surpass the 1 billion mark by 2015, when they will account for 47 % of the total mobile device market. ―By 2015, 67 % of all open OS devices will have an average selling price of $300 or below, proving that smartphones have been finally truly democratized,‖ said Roberta Cozza, principal analyst at Gartner. Android's position at the high end of the market will remain strong, but its greatest volume opportunity in the longer term will be in the mid- to low-cost smartphones, above all in emerging markets.
Worldwide Mobile Communications Device Open OS Sales to End Users by OS (Thousands of Units)
Operating System
2011
2012
2013
2014
Android
67,255
179,873
310,088
539,318
Market Share (%)
22.7
38.5
49.2
48.8
iOS
46,598
90,560
118,848
189,924
Market Share (%)
15.7
19.4
18.9
17.2
Source: Gartner (April 2011)
Gartner predicts that Apple’s iOS will remain the second biggest platform worldwide through 2014 despite its share deceasing slightly after 2011. This reflects Gartner’s underlying assumption that Apple will be interested in maintaining margins rather than pursuing market share by changing its pricing strategy. This will continue to limit adoption in emerging regions. iOS share will peak in 2011, with volume growth well above the market average. This is driven by increased channel reach in key mature markets like the U.S. and Western Europe.
And The Winner is…
Reasons for Android Win
Following are the reasons for Android’s success: 1. Android’s Ubiquity There is little debating the importance that ubiquity has played on the success of Android OS. With the help of so many great Android devices, more and more customers have adopted Google’s operating system. No single device is beating the iPhone, but if nothing else, Android OS has proven that a bundle of moderate-selling products is better than one big one. 2. Google’s Focus Google has shown since the beginning that it has one main goal in mind: to beat the competition as quickly and efficiently as possible. It has done that with the kind of focus and expertise that few expected the search giant to have in the mobile market. Along the way, it’s applied the principles of its success in the search engine field to its mobile strategy. 3. Motorola Motorola has been integral to the success of Android OS. With the release of the company’s Droid, Motorola started a firestorm in the Android space. And now, with the company’s Droid X and Droid 2 on Verizon store shelves, the company is providing even more value to customers. Going forward, Motorola will likely double down on Android OS. Considering customers’ acceptance of those products, it’s not a stretch to say that the company will continue to enjoy such success going forward. 4. Apple’s Mistakes Apple might be wildly successful, but the company has made mistakes over the years that have helped Android OS become so popular. For example, Apple’s desire to deny certain applications access to the App Store rubbed some consumers the wrong way. And its unwillingness to deliver multitasking for so long turned some consumers to other devices. Plus, the company still hasn’t nixed its AT&T exclusivity. Those combined issues have pushed some consumers to Google.
5. Verizon Verizon is widely considered the top carrier in the space. It has the most subscribers; it has the best service around the country; and it has outstanding customer service, according to a recent study by J.D. Power and Associates. But the company is also heavily invested in Android. And its continuing commitment to the mobile operating system has helped increase Google’s market share by a wide margin over the past few years. 6. The Nexus One Google’s Nexus One is viewed as a failure by most. After all, the device was discontinued after a relatively short amount of time on store shelves. But it served a key purpose: it was branded by Google and it gave Android OS the kind of hype that only a Google product could offer. In other words, Nexus One put Android OS on the map. And its legacy is still being felt today as more and more consumers buy an Android-based device. 7. iPhone 4 Antenna Issues Although Apple was successful at getting the iPhone 4’s antenna problems out of the headlines, it still had a major impact on Android OS. Consumers were concerned that their calls would drop. And it was viewed as another strike against Apple’s relationship with AT&T. The issue pushed some consumers to Android. It’s possible that those folks won’t come back anytime soon. 8. Android’s Vast Improvements When Android first launched, the operating system was hampered by several issues. It didn’t have many of the features available in iOS, and it lacked the kind of usability that consumers wanted. But over time, Google has made Android OS far more usable. Now it’s arguably more feature-packed than iOS nowadays. Consumers have realized that. They’re starting to buy Android-based devices at an increasing rate because of it. 9. Google Plays Nice with Developers Apple has made some serious mistakes throughout the years in its handling of developers. The company was secretive and it denied certain applications for what seemed to be poor reasons. Google hasn’t followed that path. The search giant has played nice with developers, and in the process, its Android Market has grown with outstanding programs. It’s still dwarfed in size by the App Store, but applications have drawn customers to Android OS that would have otherwise gone to Apple’s iPhone.
10. RIM’s Failures RIM has helped Android OS become the success that is. Before Apple and Google joined the mobile market, it was RIM that dominated. That was the company that was captivating audiences. But the company failed to see the future as Apple and Google joined the market. And now, it’s watching Android OS overtake it and start dominating the smartphone space. Simply put, RIM’s lackadaisical attitude has only helped Android over the past few years.
Appendix
QUESTIONNAIRE Personal Details: Name: _____________________________________________________________________ Date of Birth: ______________________________________________________________ Gender: ___________________________________________________________________ Contact No.: _______________________________________________________________ E-Mail Address: ____________________________________________________________
Ques1. Which of the Following Brand of Mobile Phone do you use? a) Apple b) Samsung c) Nokia d) Blackberry e) Micromax f) Others. Please Specify: ______________________________ Ques2. Which Feature do you look for in a Mobile? a) Value For Money b) High Quality Camera c) Games d) 3G e) Social Networking f) Instant Messaging g) Sound Quality h) Push Mail i) All of the Above
Ques3. How much are you willing to spend on a mobile? a) Less than Rs.5000 b) Between Rs.5000 to Rs.10,000 c) Between Rs.10,000 to Rs.15,000 d) Between Rs.15,000 to Rs.20,000 e) Rs20,000 and Above Ques4. Out of the Following which phone will you prefer? a) Nokia Lumia 800 b) Samsung Galaxy Note c) Apple’s iPhone 4S d) Blackberry Bold 4 e) Others. Please Specify:__________________________ Ques5. How frequently do you get a new mobile phone? a) 3 months or less b) 6 months or less c) 1 year or less d) Whenever you feel like Ques6. How many mobile phones do you carry around? a) 1 – for office b) 1 – for personal c) 1 – both office and personal d) 2 – 1 for office and 1 personal e) More than 2 Ques7. Do you think mobile phones will transform in future? a) Yes b) No c) Don’t Know
If Yes, Ques8.Which Feature would you like to add in your Mobile? Ans. __________________________________________________________________ Ques9. Which Platform is your Phone is built on? a) iOS b) Symbian c) Android d) Blackberry OS e) Windows f) Others. Please Specify:_________________________________ Ques10. Do you install any application on your mobile phone? a) Yes b) No Ques11. Which is you favourite mobile application? Ans. ______________________________________________________________________ Ques12. Which Style of Phone do you prefer? a) Touch Screen b) QWERTY Keypad c) Mono Block d) Slide e) Flip Ques13. If given a chance will you purchase an iPhone over Samsung or Blackberry? a) Yes b) No
Survey Analysis
Bibliography
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http://en.wikipedia.org/wiki/Mobile_operating_system
http://en.wikipedia.org/wiki/Google
http://en.wikipedia.org/wiki/IOS_(Apple)
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