But Android is also available on low-end devices. This is a market unserved by either Apple or Blackberry. The low-end market is especially popular in the developing world -- consider that India now has an Android tablet priced at $60. By virtue of covering all price ranges in the market, Android is poised to take a dominant share of smartphones. In addition, the differentiation that its manufacturers are engaging it has propelled Android smartphones into a position of technological leadership, challenging Apple and surpassing Blackberry.
Consumers appreciate the structure of the Android product, even going beyond the basic price and innovation concerns. With Android devices, consumers are not tied to a relationship with any one company. This stands in contrast to the Apple and Blackberry business models, which emphasize the tied nature of the product. Android users are able to switch between manufacturers and they are able to work with whatever software they want as well.
The only competing open operating system is Microsoft's mobile version of Windows. However, Google had first-mover...
While Microsoft is expected to compete in this space for years to come, it simply was unable to match the brand power of Android, which consumers perceived as something fresh and new, compared with Windows. By getting to market first, Android attracted both the manufacturers and the developers, not to mention the carriers. As a result, it has a critical mass of partners and vendors that any subsequent competitor will have trouble matching. At this point, it will take a vastly superior operating system to overthrow Android as the result of Google's shrewd strategy.
Overall, Android has used the openness of its operating system to build market share rapidly. Google has engaged manufacturers of smartphones and developers alike, creating a product that has a much broader and deeper range of devices and applications than its competitors can deliver with their closed systems. For this reason, Android appeals to a wider swath of consumers, resulting is its dominant market share in the smartphone industry.
