Android vs iPhone: Who will be the winner?

The latest research from Ipsos says that rather than beating the iPhone, Android looks like it is beating everyone else… but the ultimate winner in the evolving Android and iPhone story is the consumer!

The iPhone has been synonymous with the rise of the smartphone, but Android has been getting the headlines recently following a surge in its market share. Is the Android’s recent success just tied to its deal with Verizon? What will the Verizon deal mean for iPhone? Does the iPhone have stronger brand equity or is its luster fading as others have entered the market and the issues with the iPhone4 have shown it to be fallible?

Ipsos OTX MediaCT is closely following the marketplace. We carried out two focus groups with owners of iPhone4 and Android to gain an in-depth understanding of these two groups of smartphone owners. More recently (in November) we conducted a quantitative survey among 1,000 adults to better understand the views of smartphone owners.

What’s driving Android’s appeal?

The Verizon deal has certainly been a key driver in the rapid growth of Android. Its appeal is wider than this, however, with Android becoming the clear alternative to iPhone. The Google name and operating system gives reassurance to consumers who want the customisation and apps of the iPhone, at a lower price point and with greater choice of handset.

“I had an LG and since getting my Android it’s been a big step up” FEMALE ANDROID OWNER

The Android owners we spoke to in our qualitative phase were delighted at their ability to access thousands of applications – and talk of an open operating system suggested that there are more choices available to them than iPhone owners (which doesn’t appear to be true yet).

The downside was that many had the sense that they were not using their Android phone to its full potential. They acknowledged how their phones helped them be more organised and made their lives better, but recognised their own limitations and that they weren’t sure how to get the most from their phone because of its lack of intuitiveness (“the techie types probably know how to do that”).

iPhone: the easy option?

iPhone owners are more likely to cite ease of use as a reason they bought their phone. In the focus groups they spoke of their phone as being intuitive; moreover, they believe that Apple listens to their needs and wants, creating products that fit their desires and lives.

“It’s so easy and intuitive even my 88 year old grandmother can use it!” MALE IPHONE4 OWNER

iPhone owners are further reassured of the quality of Apple’s products by what the consumers we spoke to described as “gold standard” after-care service. Apple personnel were perceived as friendly, knowledgeable and helpful – this instills confidence in the Apple brand and their products. Problems were seen to be resolved quickly with minimal fuss and consumers felt they were often rewarded with little extras should Apple not be able to resolve their issues.

“My iPhone died and Apple not only replaced my iPhone but also gave me a free iPod!” FEMALE IPHONE OWNER

Who is getting the most from their smartphone: iPhone or Android users?

Despite Android offering a wealth of possibilities, our data show that iOS owners use their iPhone for more activities. In the previous week, more iPhone owners had downloaded an app, taken photos and played games; and significantly more had listened to music and visited Facebook.

These differences could reflect the ease of use of an iPhone. They are also likely to stem from a difference in the lifestage of the OS – and a difference in the current user base. There’s no getting away from the fact that the iPhone has been around for longer, and the music legacy and established iTunes service help iOS maintain its current edge. iPhone users have had longer to play with the phone and have had a wider group of friends, advisors and media experts to help them learn.

Coupled with this, it is likely that Android has a user base that is not as ‘early adopter’ as the iPhone – it is the cheaper, more widely available alternative to the Apple product. Many of those who are buying Android have bought into the ‘smarter smartphone’ idea, attracted by iPhone features but not quite keen enough to purchase one right away.

In time we may see Android users learn to use their phones more widely, and early adopters may switch away from iPhone as Android develops. Right now Android’s success appears to be in being the alternative, winning over those who have chosen not to buy an iPhone.

Can Android usability catch up with iPhone?

When we interviewed iPhone owners qualitatively, many were evangelical about their device.

“I was in the dark and have now seen the light…” MALE IPHONE OWNER

Moreover, some of the Android owners we spoke to in qualitative sessions claimed that if the iPhone was available on their network they would most likely switch. Further, they referred to their “Droid” device rather than to Motorola, HTC or Samsung specifically, indicating a weak connection to their mobile phone manufacturer brand.

“If the iPhone was available on Verizon, I would 100% switch to the iPhone – it blows away the BlackBerry and it’s just easier to get around than the HTC I currently own.” MALE ANDROID OWNER

However, four months later and the market may be shifting. It’s unlikely to be a case of Apple doing anything wrong per se – the iPhone owners we spoke to were not unhinged by the bad press around the antennae issues associated with iPhone4 (either they felt it was over hyped and that Apple’s success was being targeted, Apple’s handling of the antennae issues was sufficient or else they blamed AT&T’s bad reception). Rather, as consumers become better acquainted with what Android devices offer, and as the handsets improve, it’s less about the brand and more about the features and functionality.

What will this mean for iPhone and Android?

Based on our qualitative findings, iPhone had the brand strength based on the intensity of the loyalty and satisfaction with the owner’s iPhone experience.

However, moving away from the more advanced user groups, the mass-market picture suggests a different outcome. As our quantitative data show, if Android and iOS were offered by all carriers, significantly more consumers would choose Android – and Android owners are starting to show an even stronger preference for the Google operating system.

Interestingly, around one in two consumers has no strong preference toward either Android or iPhone. These potential owners may be yet to engage with the market or not particularly attached to their current smartphone OS, suggesting that there is a big space for a mass-market OS to occupy – and perhaps even room for another OS (take note Microsoft, Symbian and RIM) to come back into play.

Who will be the winner: iPhone or Android?

The iPhone has “liberated” consumers’ experience with mobile technology by making it easy, fun and relevant. Apple has raised the bar for the ‘smarter smartphone’ user experience, awakening a broader audience than are going to be served by a single handset manufacturer.

Enter Android: its devices are quickly gaining traction in features, functionality and available apps.The openness and customisation potential of an Android device may soon rival the ease of use and consistency in updated software releases of iPhones. Moreover, for a broad base of consumers, Android can be their gateway to the enriched mobile experience through a less expensive, wide range of handsets.

So there is unlikely to be an “iPhone killer” Android device, but for now that isn’t the biggest issue. There will be an army of Android devices flooding the market and, while they will compete with the iPhone, they are rapidly outstripping the rest to become the obvious alternative to the iPhone.

Rather than beating iPhone, Android looks like it is beating everyone else. This will significantly grow the smartphone market in the US. The good news? The ultimate winner in the evolving Android and iPhone story is the consumer.

The Android v iPhone debate and lots more were discussed at MediaTel Group’s ‘Come on Mobile…Stand Up and Deliver!’ event on 18 March. To read coverage from the event, click here.

For more information please contact Brian Cruikshank – Brian.Cruikshank@ipsos.com