Google Android vs. iPhone: It’s 1984 All Over Again

Google Android vs. iPhone: It’s 1984 All Over Again

Android vs. iPhoneBack in 1984, Apple was on top of the computing world with top-notch sexy hardware and it partnered with Microsoft for some top-notch [not so] sexy practical software. It was a winning combination for both Apple and Microsoft. Microsoft’s strategy in 1984 was hardware agnostic making its software available on any popular platform. Apple’s strategy in 1984 was holistic. We’ll call the period between 1984 and 2000, Round 1.

In Round 1, it turned out that Microsoft’s strategy was the clear-cut winner. By being hardware agnostic, hardware vendors competed with one-another to drive down the price of hardware much faster than anyone could have imagined. Clone prices fell so fast and so much lower than the price of a Macintosh that it simply became impractical to own a Mac. Software vendors also took note and quickly the non-Mac-PC became the standard. Apple nearly died.

2007 set off Round 2. This time around it’s in the cell phone business. Once again, Apple is on top of the Cell Phone game with top-notch sexy hardware and it has partnered with Google this time for some top-notch [not so] sexy practical software (think Google Maps, YouTube and other web-based Google Apps for the iPhone). Once again, it’s a winning partnership for both Apple and Google. And Once again, Google’s strategy is exactly the same to that of Microsoft in 1984: stay hardware agnostic. Apple’s strategy is also identical to its own strategy back in 1984: stay holistic. Round 2 has begun.

The similarities are eery. In 1984, while Microsoft was building the most popular application software on the Mac, it had begun a similar hardware-agnostic operating system (Windows) on its own. In 2007, while Google has some of the most popular application software on iPhone, it has begun a similar hardware agnostic Cell-Phone operating system (Android) on its own. Apple’s strategy has not changed a single bit. It refuses to license its operating system or any other technology while it continues to want more and more control over the entirety of the experience. The iPhone in 2007 has set off a brand new race much like the original Macintosh did in 1984. Interestingly, 24 years later, the strategies are still identical on both sides.

So will Round 2 end in the same way with Google’s Android prevailing due to exceptionally cheap phones that are sure to emerge using Android? Maybe not. There is one key difference between Round 1 & Round 2: Steve Jobs. Steve didn’t get to finish fighting the strategy that he helped establish for Apple in Round 1. He left Apple in 1985. So there’s no telling how things would have turned out. The fact that Apple lost round 1 may have taught everyone a lesson and it might falsely embolden Google to think Microsoft’s winning strategy was the better strategy. After all, Google’s chief, Eric Schmit, has been learning from (and losing to) Microsoft for 20+ years. Eric is now using Microsoft’s own strategy to successfully beat them. Google is the new Microsoft.

But this time around Steve is much smarter than he was in 1984. So smart in fact, that he’s resurrected Round 1 from the dead and may still pull off a win (the Mac is coming back). It’s possible that Steve & Apple’s holistic approach will still be the winning approach for Round 1, assuming you extend round 1 to at least 2015. But in Round 2 Apple’s chances are a lot better. Everybody is at the beginning of the race. There are no clear winners and just like in 1984, Apple has a major lead. It’ll be interesting to see what happens.

I’m curious to know your thoughts on:

  • Who you think will win Round 2: will it be Google with its Android or Apple with its iPhone?
  • Is Round 1 over in your view or will the Mac eventually beat out Windows-based PCs in market share?
  • Is Microsoft even a player in Round 2? (I would never recommend a current Windows-Mobile phone to my worst enemy – so do they even stand a chance?)

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