Jul 16, 2012

Why Google and Microsoft want to emulate Apple

It's clear as retina display. Microsoft and Googlewant to do an Apple. The time for bluster, arguments and experiments has passed. The situation has turned desperate in the iPad, er,tablet market. All the 'Transformers' 'Galaxies' and 'Playbooks' haven't humbled the iPad. Worse, research firm IDC forecasts that by 2016, iPad and iPad-Mini (moniker for rumoured 7-inch version) will still control over 60% of the market. If you can't beat Apple's game, what do you do?

Play by its rules and share the spoils. Don't just code, weld. Microsoft went all the way, Google found a Taiwanese partner, Asus, to chip in. Two companies which swore by "open systems" took the first step towards controlling the entire user experience.

Of course, neither admits to the strategy change. Carefully worded scripts say the same blah-blah: adapting to market and giving consumers something they hadn't seen before.

Like the two weren't going green in their gills with Apple envy. Or weren't worried that a whiz-bang for Apple was vending out pennies for them. What if the Cupertino guys thought of "one more thing" before they got a chance to understand the slate market?

From this perspective, the hardware route wasn't a choice for Google and Microsoft. It was a compulsion, not just because of Apple but demons in their backyards.

Survival issues
Google's operating system (OS), Android, is all over the place. The big complaint: most devices don't do justice to the tablet version of the OS. As a result, smartphone apps perform poorly and dilute user experience on the tablet.

For Microsoft, the problem is more existential. The tablet and smartphone markets are growing at the expense of laptops and PCs. Tech advisory firm Gartner predicts that by 2016 tablet sales will total a whopping 665 million units. Microsoft is staring at a shrinking source of bread-and-butter revenue.

Yet, it remains a laggard in the smartphone/tablet market. Latecomer Windows Phone 7 hasn't been able to lift the fortunes of Nokia or Microsoft. Nokia's Windows 8 tablet was due this summer but has been delayed.

Microsoft couldn't afford the wait. It needed a product bang. So it imported the only strategy that has proven successful in the market - hardware plus software. But imitating a business model doesn't guarantee that Surface will make money. Look at Kindle Fire.

Math behind hardware
Google earns nothing from Android as the OS comes without licence fee. Last year, it even gave up its share of glory when Kindle Fire pipped Samsung, Asus, etc, to become the world's second largest, and Android's highest-selling tablet-cum-e-book reader between October and December 2011.

But Amazon doesn't make money out of Kindle Fire. In fact, some say it suffers a net loss to sell at $199. Yet Google wants to snuff out Amazon Fire. For the Nexus 7 may be a long-term bet against iPad Mini, but immediately, it bulldozes Kindle's territory. Same price - $199 - similar looks, more features.

This article comes from:http://timesofindia.indiatimes.com/tech/personal-tech/computing/Why-Google-and-Microsoft-want-to-emulate-Apple/articleshow/14988446.cms

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