March 24, 2014

Mobile Devices: The Inequality of Market Share and Money

Infographic - iOS vs Android Marketshare

The battle between iOS and Android makes it clear that the most market share doesn’t always equal the most money. And while this counter-intuitive conclusion might have surprised you, it makes a lot of sense when you start to peel back the layers of the onion.

As clearly evidenced in the infographic above, Android has unapologetically captured market share over the last 5 years. It’s taken the mobile operating-system world by force. But even with over 70% market share, Google isn’t reaping the profits you might have expected – despite the ongoing growth in mobile ecommerce.

The truth is, not all customers are created equal. While Android’s dream of bringing a free mobile operating system to the masses is undoubtedly an honorable one, it’s not yet the most profitable go to market strategy. This scenario is further exacerbated when the push for global mobile adoption is included in the analysis. Recent data suggests Android adoption vs iOS adoption is especially fierce in emerging markets. So what does that mean?

While emerging market growth sounds promising at first glance, it’s hasn’t led to short-term profits. On the contrary, low-income consumers in India, Brazil and China are swelling the Android adoption numbers but aren’t yet paying through the platform. This in large part explains why Google hasn’t been able to cash in on the unparalleled Android adoption.

On the other hand, Apple has spent years carefully cultivating a consumer following that appreciates the high end products (and their accompanying price points). Logically then it follows that Apple customers on average have more disposable income and likely higher incomes. Apple has also done a great job integrating the mobile experience making it easy for customers to purchase apps, songs and movies through a seamless user interface.

In the end, there will be sales to made on all types of mobile devices. But for the interim, online retailers would be wise to recognize that iOS is the most profitable market segment. Ensuring their ecommerce store renders beautifully on Apple devices should thus be a priority. While Android might drive a large portion of your overall mobile traffic, you might want to consider them tire kickers (for now).

Filed under:  Business  ||  Tagged under:

Orun Bhuiyan

As SEOcial's marketing technologist, Orun loves to discuss his hard-won knowledge on topics like SEO, programming and design. He's an enthusiast in emerging technologies, including big data and the semantic web.
Leave a comment
comments powered by Disqus

Base Terminology

SEO is the process of affecting the visibility of a website or a web page in a search engine's un-paid ("organic") search results.
The semantic web refers to the next stage of the world wide web and aims to ascribe semantic meaning to all web content through a collection of systems of classification. This means that, in the future, machines will be able to better understand the content we produce, resulting in better search results, new applications and an Internet that is fundamentally different from the one we use today!
What if each of the objects around you had a unique identifier that can be connected to the Internet? The goal of the Internet of things is to equip all objects in the world with tags that allow them to be digitally organized or manipulated. The implications? Less theft, less waste and the ability to control your surroundings in a manner never before possible.
Conversion optimization is the practice of modifying the parameters of a lead-generating system to stimulate a higher success rate as defined by goals. Most conversion optimization is structured to create an increase in ROI (return on investment). We frequently use multivariate and A/B split testing when optimizing conversion, wherein we test two or more systems at the same time, analyze their performance and deduce precisely what action items will bring us closest to the set goals in the least amount of time.
Market diagnostics or analytics is the process of collecting and analyzing business data — especially consumer data. This allows us to assess and improve the effectiveness of a marketing campaign.
In many applications today, there is such a phenomenal quantity of data available that it's difficult to collect and process with traditional database tools. The field of collecting, manipulating and drawing conclusions from massive quantities of data from a particular source is known as big data.
What started as a CMS (content management system) that was only meant to create and edit blog content has grown at a tremendous rate to become the most ubiquitous system for developing websites on the internet. WordPress accounts for an incredible 15% of all sites on the web.

RT @PicardTips: Picard engineering tip: Use the metric system.

7 months ago

RT @PicardTips: Picard management tip: Suppress your inner alarm. Be the calmest person in the room.

1 year ago

RT @dakami: i'm not saying everything you need to know about hacking, machine learning, and hacking machine learning is in this photo https…

2 years ago

Request Our Portfolio

  1. Which option best describes you? *

  2. Are you a key decision maker in the business you represent? *