Android vs.iPhone: Who will be the winner?

I P S O S
O T X
M E D I A C T
Point ofView
Android vs.iPhone:
Who will be the winner?
February 2011
© 2011, Ipsos OTX MediaCT
I P S O S
O T X
M E D I A C T
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 customization and apps of the iPhone, at a lower price point
and with greater choice of handset.
Reasons for Purchasing Current Smartphone
Total
(n=1,039)
Android
(n=282)
Many great features
iOS (iPhone)
(n=206)
59%
Easy to use
68%
50%
Ability to download lots of apps
57%
39%
The operating system
37%
Good value for money
37%
The ability to customize it
34%
The carrier
33%
It looks cool
70%
65%
55%
59%
51%
37%
43%
29%
48%
42%
44%
32%
26%
38%
42%
Friends recommend it
24%
28%
33%
The brand of the handset
22%
28%
32%
The pre-installed apps
To impress friends/status symbol
19%
28%
12%
Did not have choice/given to me
7%
Other reason
7%
17%
2%
6%
18%
16%
4%
5%
= significantly higher at the 95% confidence interval
Base: Smartphone Owners
“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 organized and made their lives better, but recognized 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”).
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© 2011, Ipsos OTX MediaCT
I P S O S
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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.
Smartphone Activities: Past 7 Days
Total
(n=1,039)
Android
(n=282)
Made a phone call
81%
83%
Texted
55%
Played games
51%
Listened to music
Used IM
28%
27%
Recorded a video
26%
67%
70%
71%
55%
42%
31%
Watched downloaded/recorded videos
60%
50%
41%
Watched streamed videos
69%
64%
46%
Used maps
71%
61%
54%
49%
Downloaded an app
70%
68%
59%
Gone to Facebook/MySpace
80%
63%
62%
Checked out websites/gone online
84%
73%
69%
Sent an email
87%
82%
78%
Taken a photo
Something else
iOS (iPhone)
(n=206)
32%
45%
27%
38%
39%
32%
9%
10%
33%
12%
= significantly higher at the 95% confidence interval
Base: Smartphone Owners
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.
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© 2011, Ipsos OTX MediaCT
I P S O S
O T X
M E D I A C T
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.
Smartphone OS Preference
Assuming all carriers offered both Android and iPhone devices, which of these best describes you?
100%
80%
25%
12%
4%
63%
22%
60%
40%
20%
17%
35%
10%
18%
16%
15%
2%
53%
4%
0%
Total
(n=1,039)
Android
(n=282)
iOS (iPhone)
(n=206)
Base: Smartphone Owners
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© 2011, Ipsos OTX MediaCT
M Strongly prefer Android
M Somewhat prefer Android
M No preference
M Somewhat prefer iPhone
M Strongly prefer iPhone
I P S O S
O T X
M E D I A C T
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 customization 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 U.S. The good news? The ultimate winner in the evolving Android and iPhone
story is the consumer.
For more information please contact:
Brian Cruikshank
Ipsos OTX MediaCT, US
612.573.8507
[email protected]
Leslie Rich
Ipsos OTX MediaCT, US
814.835.1785
[email protected]
Christine Ong
Ipsos MediaCT, UK
+44.7827.893566
[email protected]
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© 2011, Ipsos OTX MediaCT
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