When I think about technologies that I use and are subject to network effects smart phone is the first thing that comes to mind. I have been an iPhone user for over 4 years now. For the longest time I was a very happy and proud user. However, recently the competition has become increasingly appealing and in some ways even superior which is why I do sometimes think of switching to an Android or (gasp!) Windows based phone.
Aside from the obvious physical specifications (screen size, memory, battery life, etc.) one of the most important factors to consider when choosing a smart phone platform is the application market. Google Play has recently caught up with Apple store impressive number of apps – 700,000. Windows store app 120,000 selection looks like a joke next to its two well-established competitors. Two-sided network effect is to blame.
Both platforms in the two-horse race have a pretty solid and loyal customer base. This is the main factor why businesses owners, game makers, advertisers choose these markets for their apps vs. Windows store. Apple and Google have bigger stores with more users and this attracts more developers with new apps, this in return creates more appealing stores and invites new customers. Windows store just happened not to be a part of this network effects vicious circle.
Could this mean game over for Windows OS phones before the game even began? Not necessarily. But Microsoft management and developers have a lot of catching up to do if they want to get their foot in the door and be a part of the smartphone network effects war currently dominated by Google and Apple.
Aside from the obvious physical specifications (screen size, memory, battery life, etc.) one of the most important factors to consider when choosing a smart phone platform is the application market. Google Play has recently caught up with Apple store impressive number of apps – 700,000. Windows store app 120,000 selection looks like a joke next to its two well-established competitors. Two-sided network effect is to blame.
Both platforms in the two-horse race have a pretty solid and loyal customer base. This is the main factor why businesses owners, game makers, advertisers choose these markets for their apps vs. Windows store. Apple and Google have bigger stores with more users and this attracts more developers with new apps, this in return creates more appealing stores and invites new customers. Windows store just happened not to be a part of this network effects vicious circle.
Could this mean game over for Windows OS phones before the game even began? Not necessarily. But Microsoft management and developers have a lot of catching up to do if they want to get their foot in the door and be a part of the smartphone network effects war currently dominated by Google and Apple.
I read this article recently about how iOS accounts for 75% of mobile ad revenue. It makes an interesting point that while Google Play has nearly as many apps available as the Apple App Store, the user experience on Android apps could suffer because developers have more monetary incentive to create and update apps for iOS.
ReplyDeletehttp://venturebeat.com/2013/04/18/why-75-cents-of-every-dollar-spent-on-mobile-advertising-is-spent-on-iphone-and-ipad/
I have to say that my hopes for iOS and the iPhone left the same time Steve Jobs did. The guy was crazy, but he brought a focus and intense passion to staying ahead of the curve that I think is gone from Apple now. IMHO, that might make some room for more variety in the smartphone market.
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