The Mobile Tsunami Reframes Windows As One Of Three OS Players

Windows 8 is a make or break product launch for Microsoft. Windows will endure a slow start as traditional PC users delay upgrades, while those eager for Windows tablets jump in. After a slow start in 2013, Windows 8 will take hold in 2014, keeping Microsoft relevant and the master of the PC market, but simply a contender in tablets, and a distant third in smartphones.

Microsoft has long dominated PC units, with something more than 95% sales. The incremental gains of Apple’s Mac products over the last five years haven’t really changed that reality. But the tremendous growth of smartphones, and then tablets, has. If you combine all the unit sales of personal devices, Microsoft’s share of units has shrunk drastically to about 30% in 2012.

It’s hard to absorb the reality of the shift without a picture, so in the report “Windows: The Next Five Years,” we estimated and forecast the unit sales of PCs, smartphones, and tablets from 2008 to 2016 to create a visual. As you can see below in the chart of unit sales, Microsoft has and will continue to grow unit sales of Windows and Windows Phone. But the mobile market grew very fast in the last five years, while Microsoft had tiny share in smartphones and no share in tablets. 

If you look at the results by share of all personal devices, below, you can see how big a shift happened over the last five years as smartphone units exploded and the iPad took hold. 

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Apple Maps Exposes A Larger Strategic Battle Taking Place

Now that Apple has apologized and the uproar over Mapplegate is starting to subside, it's time to step back and focus on why Apple had to do what it did. The fact is, Apple had to replace Google Maps for three reasons:

  1. iPhone map users are too valuable to leave to Google. According to ComScore, the iPhone users account for 45% of all mobile traffic on Google Maps, with the remaining 55% coming from Android. This means approximately 31 million iPhone users access Google Maps every month. iPhone users also use Google Maps more intensively than Android users. On average, iPhone users spend 75 minutes per month in Google Maps versus 56 minutes per month for Android users. And iPhone users access Google Maps more frequently than Android users, averaging 9.7 million visits daily versus 7.1 million visits for Android users. Given this data, Apple has a vital strategic interest in moving its iPhone users off Google Maps and onto an Apple mapping solution. Doing so not only deprives Google of its best users but also gives Apple the customer base they will need to drive adoption of new location-based services. 
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