This is Part Two of a two-part series on Disassembling Android.
"Android is open for disruption.” That's what Stewart Putney, CEO of the mobile gaming company Moblyng, said last August. He was talking about the potential for HTML5 Web apps to disrupt the Android Market (now Google Play), but he may have been oddly prophetic. Android has not been riding high in 2012. More than one competitor is lining up to strike a decisive blow.
The Windows Phone Marketplace is a sad, sorry place. It is a land of copycat games, worn-out titles and a plethora of apps that border on outright spam. Since the end of 2011, it has grown from about 40,000 apps to nearly 70,000, but any subjective analysis of those new apps would show that almost all of them are of poor quality. Top publishers have either abandoned Windows Phone or just do not care. With the upcoming release of the Nokia Lumia 900, can Microsoft turn developer sentiment around?
There are several things that Windows Phone has going for it. The consensus among developers is that Windows Phone is the easiest mobile platform for which to develop. Apps that are given tender loving care actually look and perform great. Too bad those apps are few and far between.
Everybody is armed, forces are deployed and the battleground is chosen. Let's get this thermonuclear war started.
2011 was the year that the major mobile platform providers loaded up with ammunition in the upcoming world war between Apple, Microsoft, Research In Motion and Google. Apple acquired patents from Novell while the "Rock Star" group of RIM, Microsoft and Apple won the majority of Nortel's patents. Google went big and bought everything that Motorola owned. We know all of this already. But, that was just the staging area. The real test will be in 2012. On Monday, the United States Department of Justice approved all of those acquisitions in one fell swoop.
Steve Jobs promised to go "thermonuclear" on Android over patent violations. That seems to be a dying wish that Apple is willing to pursue. Now that the big guns are out, what will be the consequence to the mobile ecosystem? Will the arms race force a détente, powerful patent portfolios canceling each other out? Or is this the beginning of disruptive lawsuits that ultimately becomes harmful to consumers looking for choice?
If there were any uncertainty that Google's acquisition of Motorola would be approved by regulatory agencies across the world, one only has to look at the fourth quarter of 2011 to see why it never was in danger. The last quarter of 2011 showed us which companies really control the smartphone market and Motorola was certainly not one of them. Between Apple and Samsung, the two behemoths controlled 95% of mobile phone profits worldwide, according to Canaccord Genuity analyst Michael Walkley.
The pincer formation at the top of the ecosystem means that no regulatory agency can deny Google its $12.5 billion purchase. Life has also become extremely difficult for all the other OEMs and mobile platforms trying to make a dent in the market. If you are not making an iDevice or some type of Galaxy product, Apple and Samsung are squeezing you out of the market. The clock is ticking.
A little more than a year after Windows Phone 7 was launched to the world, the ecosystem is seeing some strong growth from Windows Phone Marketplace. According to a new report by Distimo shows that the Windows Phone Marketplace has downloads of 101,000 free applications per day and 20,000 paid applications. The Windows 7 Marketplace is 39 times smaller than the Apple App Store volume.
The App Store is about 12.5 times larger than the Windows Phone Marketplace (500,000 apps to 40,000). The iOS user base is mammoth in in comparison to WP7, with northwards of 200 million devices sold against the abysmal numbers for Windows Phone (2 million devices shipped into the channel in Q3 2011). The Nokia Lumia might help WP7 along globally but the Marketplace has almost reached a point where it can support a vibrant user base in the same way as iOS and Android.
If you are a mobile developer, the findings of a report from framework provider Appcelerator and research firm IDC are fascinating. The Kindle Fire is, well, on fire. So, apparently, is the Barnes & Noble Nook Android tablet. Nokia and Microsoft are making headway with Windows Phone, BlackBerry continues its free fall and HTML5 has superseded everything but iOS and Android in developer interest.
Freemium is becoming the standard mobile business model and with that developers are looking for tools to scale, create loyalty and enhance engagement to increase monetization. You can access the full report here. Check out our commentary and analysis below. Developers: what are your priorities and monetization strategies?
Microsoft is known to pay a developer ecosystem to stay loyal to its platforms and products. That has become no different with Windows Phone. On the other end, Nokia has a worldwide base of developers that are very loyal to the device maker, especially in emerging markets. The question remains though, can Nokia and Microsoft capture the hearts and minds of regular developers that would normally focus on iOS and Android? That is the question for this week's ReadWriteMobile poll.
The last two days at Nokia World 2011 were spent trying to figure out how Nokia CEO Stepehen Elop could justify his claim that his company's Windows Phone is, in fact, "the first real Windows Phone." From a marketing and merchandise perspective, it is not. If we take Nokia's value added services into account, Elop may have a point but there is still a lot of work to do.
The Nokia Lumia 800 is a beautiful phone. It feels nice to hold and has all the tech specs that gadget geeks would expect from a top of the line smartphone (except for a forward facing camera). The big question has been whether Nokia's implementation of Windows Phone is any better than LG, Samsung or HTC. The answer remains to be seen.
Patents are all the rage right now. More precisely, applying for, purchasing and suing the nearest competitor over patents is causing a craze in the mobile business environment. Did Google ever actually want the Nortel patents? Or did they just bet crazy sums (like Pi, the distance from the sun, etc.) because they knew they were going to acquire Motorola and its patent portfolio anyway? Next on line are the InterDigital patents, which are supposedly more in-depth and numerous than the Nortel or Novell patents. Some say we are in serious need of patent reform because the current ecosystem has become anti-innovation and toxic.
Thomson Reuters came out with a great chart yesterday that shows the current legal battleground for mobile patents. It is interesting to note who is getting sued and who is doing the suing. For instance, as much legal hot water that Google has been in, they are technically only being sued by Oracle over Java in the mobile realm. Microsoft has multiple suits going against Barnes & Noble, Foxconn (Apple's primary factory where iOS devices are made), Motorola and Inventec. Yet, Apple takes the crown. It is being sued, is suing, or has settled suits with five different corporations.
Nokia CEO Stephen Elop appeared onstage at Qualcomm's Uplinq developer conference in San Diego this morning to talk about his five-point strategy which he believes will make Nokia's mobile ecosystem the most compelling of the top three: iOS, Android and Windows Phone. The mobile industry is shifting from a device-versus-device battle to a battle of ecosystems, Elop explained. And Nokia believes that partnering with Microsoft was its best choice to remain a leader in the new landscape.