Are Apple Apps (NASDAQ:AAPL) Really Dominating the Market?

185

The app store has been dominated by Apple (NASDAQ:AAPL) for years with its $45 billion application business. The second best place for apps has always been Android. Facebook (NASDAQ:FB) however plans to change that all. Facebook’s (NASDAQ:FB) Africa, Middle East and Europe platform director Julien Codorniou drew this diagram in his London office which scared the folks at Apple (NASDAQ:AAPL) who work to maintain the supremacy of IOS among other app developers.

Android developers for apps are generally less profit oriented than ipad and iphone users, in terms of fee and app payments. Therefore Apple (NASDAQ:AAPL) develops its best apps first for the cellphone operating system. If that software becomes successful, android companies develop that software days or months later. Even then with all the flaws and bugs the android apps tend to be copies of original IOS apps. A very bizarre distortion always gets created because of IOS dominance in the market.

Apple (NASDAQ:AAPL) has ~1.6 billion activated devices versus ~775million android devices according to BI intelligence, which is a very unusual trend with Apple (NASDAQ:AAPL) having only 12% share of market while 80% users are on android. It’s very difficult to hire android developers as they only want to work for the IOS. You can be a very successful app creator if vast users of phones have even no connection with your product.

At Facebook (NASDAQ:FB), the executives however think that Apple (NASDAQ:AAPL)’s IOS dominance might about to be weaken.  Julien codorniou surprised us when he told that the trend is now favoring android. According to him the android is catching up to the IOS in revenue generation. And more app developers particularly gamers are preferring android first, especially in Europe. Facebook (NASDAQ:FB) takes an advantage from this through its old parse app development process.

This according to Cordiniou skips two steps of IOS/android development process by which companies can now release new apps simultaneously on both apps. According to his diagram, developers made IOS apps first and android second represented by to blank boxes but the scribbles on those boxes indicate those days are gone. In parse, developers can make one app which can then be used for android, IOS or windows. As long as the long term value is greater than cost per install then the developer will keep on generating the revenue required to keep advertising on facebook (NASDAQ:FB).

Traditionally the IOS and androids need a lot of operations to support them like servers, where as through parse they can build, store and serve apps directly from the parse cloud. All that developers have to do is to create an IOS, android and a windows client and publish them as required. The developers can then use various facebook (NASDAQ:FB) marketing products once the apps are in Apple (NASDAQ:AAPL) app store and the Google (NASDAQ:GOOGL) play store.

The increase in apps which are using the system has increased from 100,000 last year to 200,000. According to him increasingly more people become android users because of the size of this market.

Comments