Apple reached its Apex?

Apple have been on the rise and kicking goals for many years now, they even converted me to the Apple way, oh, and briefly become the most valuable company in the world.

The last few weeks have been particularly interesting for them, a financial bonanza (apparently they have more cash on hand the US government and increase year on year profits), but the competition are on the rise, particularly Samsung handsets and Google’s Android operating system.

Apple chose a bold path, reportedly driven by Steve Jobs, one of strict control of their environments and user experiences. But in doing so they also decided to control and limit the industry that services and profits from tech / digital / web. This included significant players like Adobe and Google that were not going to lay down and acquiesce quietly.

There are a number of operating systems and companies that are catching up, they have successfully crossed the perceived gap between Apples iPad / iPhone (highly graphical / interactive / intuitive) interfaces and functions.

The rise of the competition has been widely predicted and is inevitable – no one company or approach, particularly one that demands such a level of control and high cost of participation can fend of the wider world for long.

Some of the competitors also had the brand awareness to drive developer community involvement and have created buzzing app market places. Google’s Android taking the lead, creating app store equivalent with hundreds of thousands of apps. https://market.android.com

Key facts:

• Recent estimates show that Samsungs market share has grown a staggering 520% year on year (~19.2 handsets) which is getting very close to Apples 20.3m. 17.5% and 18.5% market share respectively.
• It is estimated that Apple will hold an 18.5 percent market share at the end of 2011, while Google will have 38.9 percent of the market — over twice as much.
• Around 50% of Apples revenue comes from the iPhone

This is, of course, all good for us consumers – my next phone could well be an android, a sure predictor of market dominance – but there is more going on than the best technology wins battle. This is more of a  Big Corporate vs Big Corporate market struggle.

One of Apples potential downfalls is the gouging of those that have helped make their devices so attractive – the app developers. Apple not only strictly controls what can and can be sold via their app store, but they also demand a large percentage of the revenue from every sale (30%). And that must really smart if you have invested considerable time, money and love in building your app, not to mention the risk!

Apple have also refused to facilitate the use of flash within their OS, so no websites using flash, nor apps built using the flash platform. This must have alienated a large portion of the development community who love flash.

Google have adopted ‘the enemy of my enemy is my friend’ approach; and they have a serious war chest to arm their friends. Creating Android as an open source OS and an open market place has seriously dented revenues at Apple, and no doubt will continue to do so, ensuring that one potential rival has reduced capacity to compete in future markets.

Another interesting indicator is the quantity and breadth of Apples legal action. Whilst this widespread in the corporate world Apple seems to be going to town in its adoption of this ‘defensive’ behaviour . HTCs’ general counsel labelled Apple “an Uncompetitive Lawsuit Drama Queen” which makes for a headline!

So, it’s all fun and games in the mobile world, but whilst these shenanigans appear to be about technology they are closer to corporation battles for dominance in an ever changing and fast moving market.