Aurel Jamilov iPhone & Android Comparison

Agenda Introduction Business Comparison Software Comparison App Store: User & Developer Summary 2

Introduction: Mobile vs Desktop Source: 3

Business Comparison: Some facts from Internet GoogleApple MottoDon’t be evilThink Different Key to successAlgorithmsElegance Work ethic20% of employees' time for pet projects 120% of employees' time for Steve's projects The employees who matter EngineersDesigners How decisions get made Data, data, dataBecause Steve says so Car of choicePriusMercedes SL55 Big challengeCan they make money on anything but search? Does anyone but Jobs have vision? 4

Business Comparison: Market Capitalization In 6 years, Apple’s market capitalization outweighed both the new and old tech champions Bloomberg.com 5

Business Comparison: Supply Chain Overview Figure 1: Supply Chain Overview Source: Communications of ACM 6

Business Comparison: Android vs iOS 5 Nov 2007:Android announced Oct 2008 First Android running smartphone 1 st 1 mln devices sold within 70 days 14 OEM currently ship the Android based devices 5 Nov 2007:Android announced Oct 2008 First Android running smartphone 1 st 1 mln devices sold within 70 days 14 OEM currently ship the Android based devices 9 th of Jan 2007 iPhone announced 29 June 2007 market introduction of iPhone First 1 mln devices sold within 74 days Manufactured by Apple only 9 th of Jan 2007 iPhone announced 29 June 2007 market introduction of iPhone First 1 mln devices sold within 74 days Manufactured by Apple only 7

Business Comparison: Google Android Originally Search Engine/ Online Ad Business Economies of Scale Broad Handset Manufacturer Base Supported by variety of Mobile Operators New Platform for mobile ads New business opportunities in HW segment Originally Search Engine/ Online Ad Business Economies of Scale Broad Handset Manufacturer Base Supported by variety of Mobile Operators New Platform for mobile ads New business opportunities in HW segment 8

Business Comparison: Google Android Source: Jason Chen,

Business Comparison: Apple iOS Originally in HW & SW Business Premium Brand with high margin Strong product ecosystem Halo effect Economies of Scale Controls the seamless integration of hardware and software Less bargaining power from supplier/ODM/buyer side Faster response to market needs Originally in HW & SW Business Premium Brand with high margin Strong product ecosystem Halo effect Economies of Scale Controls the seamless integration of hardware and software Less bargaining power from supplier/ODM/buyer side Faster response to market needs Strong Ecosystem fosters Apple’s “Digital Hub” Strategy through Halo Effect 10

Source: Apple Annual Reports 2009 iTunes’ goal is to lock the consumer in Business Comparison: Apple iOS 11

Source: Gizmodo.com

Business Comparison: VRIO Model iPhone named based smartphone device by Engadget, Gizmodo, Consumer Reports, ZDNet, Walt Mossberg of Financial Times etc. 13

Sotware Comparison: Specifications Source: PCWorld.com 14

Software Comparison: Market Share Overview Source: Nielsen Company 15

Smartphones generate 46% of mobile media traffic in May 2010, up from 22% in May 2008 Software Comparison: OS Traffic worldwide May 2010 Source: 16

App Store Comparison More than 10 bln downloads More than 250K Apps Jailbroken 1-2 bln downloads More than 100K Apps Jailbroken 17

Android and iPhone users spend minutes/day using apps App Store Comparison Source: 18

iPhone users and Android users spend similarly App Store Comparison Source: 19

iPhone OS average purchase price higher than Android App Store Comparison Source: 20

App Store Comparison Source: 21

App Store Comparison Source: 22

App Store Comparison Source: 23

App Store Comparison Source: 24

Summary Mobile on track to eclipse desktop in the year 2015, 1 out of 3 of phone owners using mobile media. Globally mobile internet use has grown 43% over the last year Android and iPhone users spend min/day using apps Over the past year (from May 2009) the number of Android devices has grown 29% Enjoy the great products from both sides! 25

Bibliography Burrows, Peter, „Apple VS Google.“ BusinessWeek, 1/25/2010, Issue Nr.416 Linden G,Kraemer K, Dedrick J, ” Who Captures Value in a Global Innovation Network? The Case of Apple’s iPod” Communications of the ACM, March 2009, vol. 52, no _2010_U.S._Mobile_Subscriber_Market_Share /idUSTRE6AS0XB

Thank you!