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International Journal of Business Management & Research (IJBMR) ISSN 2249-6920 Vol. 3, Issue 4, Oct 2013, 29-40 © TJPRC Pvt. Ltd.

THE CONSUMER’S PREFERRED : ANDROID OR iOS

VINAMRA JAIN & ASHOK SHARMA Department of Marketing, Amity Business School, Amity University, Noida, Uttar Pradesh, India

ABSTRACT

Google’s Android and Apple’s iOS have been the frontrunners in the era that we have been witnessing. Since the past 5 years we have seen revolutionary changes in the usage of mobile phones. Apple with its iPhone series created ripples in the market but in 2007 Android OS launched by challenged the dominance of Apple iOS.

Further we have seen the smart phone market was fuelled by youth who have preference for innovations. They are the ones who have been downloading various Apps and fuelling the growth of such phones.

A comparative study was done keeping this in mind to identify the consumer’s preference towards the two most popular OS. An attempt is made to identify various factors that influence purchase decision between them and lastly to analyse which OS gave user’s more satisfaction.

The research carried out in this area helped us know the challenges faced by the marketer for reaching its target and the challenges faced by the customer while judging the brand during purchase.

KEYWORDS: Android Operating System, Customer Perception, Competition, Apple iOS, Consumer Behaviour, Apple, Google

INTRODUCTION

India has been witnessing a revolution in the smartphone market. Android and iOS are two major OS who have been fighting out in the market for the big bite. Indian Mobile market has been traditionally dominated by . But later on with emergence of the Nokia got left behind in the race. And it was Blackberry’s and iPhone’s who catches up. All the flimflams and excitement about the costlier iPhone’s and Blackberry’s vanished, after the arrival of the most anticipated, open source , the Google Android, which is fated to turn the industry upside down. Despite the growth and popularity for and Blackberry’s, it is predicted that, Android will make a history in sales and on acquiring the market share, slicing down the markets of both ’s and iPhone’s. (OHA) a confederation of 50 Telecoms, mobile hardware, and companies, headed by Google, and was found on 5th of November, 2007. The consortium's goal is deploy, the advanced open standards for mobile devices. Android is an open source mobile OS platform, purely based on the operating system.

Android is a software stack for mobile devices that includes an operating system, middleware and key applications launched by Google in 2007 and came as a threat to other leading operating systems like apple iPhone due to which apple had to undergo an extensive research and thus launched apple iPhone 4&4S which has better and more easily downloadable applications. This continuous rivalry is the main area of research which effect consumer buying behaviour while selecting a brand.

Apple may have been catching all the headlines with its revolutionary iPhone. But history could remember Google as the company that really turned the sector on its head in 2007-08. It came up with first open 30 Vinamra Jain & Ashok Sharma handset alliance operating system – Android. Android entered the market and captured a great market share of 27% in just two years.

We cannot deny the fact the apple iPhone is the best marvel ever made in the field of technology. It is very true that other businesses always learned from apple and today apple toughest emerging competition is Android. We would like to carry out research in the area of competitive analysis where in upper middle class and upper class segment of people will be targeted.

Table 1: Worldwide Mobile Phone Sales to End Users by Vendor in 1Q13 (Thousands of Units) 1Q13 Market 1Q12 Market Company 1Q13 Units 1Q12 Units Share (%) Share (%) 100,657.7 23.6 89,284.6 21.1 Nokia 63,215.2 14.8 83,162.5 19.7 Apple 38,331.8 9.0 33,120.5 7.8 LG Electronics 15,615.8 3.7 14,720.4 3.5 ZTE 14,606.6 3.4 17,379.7 4.1 Technologies 11,114.8 2.6 10,796.1 2.6 TCL Communication 8,515.9 2.0 7,396.6 1.7 Mobile Communications 7,955.5 1.9 7,898.4 1.9 7,778.9 1.8 5,820.6 1.4 Yulong 7,478.8 1.8 3,146.6 0.7 Others 150,550.6 35.4 150,229.40 35.5 Total 425,821.6 100.0 422,955.4 100.0 Source: Gartner (May 2013)

In the first quarter of 2013, smartphones accounted for 49.3% of sales of mobile phones worldwide. This is up from 34.8% in the first quarter of 2012, and 44% in the fourth quarter of 2012. On the other hand, sales of feature phones contracted 21.8% in the first quarter of 2013.

“Feature phones users across the world are either finding their existing phones good enough or are waiting for smartphones prices to drop further, either way the prospect of longer replacement cycles is certainly not a good news for both vendors and carriers looking to move users forward,” said Mr Gupta.

Table 2: Worldwide Smartphone Sales to End Users by Vendor in 1Q13 (Thousands of Units) 1Q13 1Q13 Market 1Q12 1Q12 Market Company Units Share (%) Units Share (%) Samsung 64,740.0 30.8 40,612.8 27.6 Apple 38,331.8 18.2 33,120.5 22.5 LG Electronics 10,080.4 4.8 4,961.4 3.4 Huawei Technologies 9,334.2 4.4 5,269.6 3.6 ZTE 7,883.3 3.8 4,518.9 3.1 Others 79,676.4 37.9 58,537.0 39.8 Total 210,046.1 100.0 147,020.2 100.0 Source: Gartner (May 2013)

In the smartphone operating system (OS) market (see Table 3), Android continued to increase its lead, with nearly 50% more Android smartphones in the market than a year ago.

“There are two clear leaders in the OS market and Android’s dominance in the OS market is unshakable,” Mr Anshul said. “With new OSs coming to market such as , Firefox and we expect some market share to be eroded but not enough to question Android’s volume leadership.

The Consumer’s Preferred Operating System: Android or iOS 31

Table 3: Worldwide Smartphone Sales to End Users by Operating System in 1Q13 (Thousands of Units) Operating 1Q13 1Q13 Market 1Q12 1Q12 Market System Units Share (%) Units Share (%) Android 156,186.0 74.4 83,684.4 56.9 iOS 38,331.8 18.2 33,120.5 22.5 BlackBerry 6,218.6 3.0 9,939.3 6.8 5,989.2 2.9 2,722.5 1.9 1,370.8 0.7 3,843.7 2.6 Symbian 1,349.4 0.6 12,466.9 8.5 Others 600.3 0.3 1,242.9 0.8 Total 210,046.1 100.0 147,020.2 100.0 Source: Gartner (May 2013)

What is Android

Android is a software stack for mobile devices that includes an operating system, middleware and key applications. Google Inc. purchased the initial developer of the software, Android Inc., in 2005. Android’s mobile operating system is based on the Linus kernel. Google and other members of the open handset alliance collaborated on android’s development and release.

The Android Open Source Project (AOSP) is tasked with the maintenance and further development of Android. The Android operating system is the world's best-selling smartphone platform.

Android has a large community of developers writing applications ("apps") that extend the functionality of the devices. There are currently over 200,000 apps available for Android. Android market is the online run by Google. Developers write primarily in the java language, controlling the device via Google-developed Java libraries.

The Android open-source software stack consists of java application running on a Java-based object oriented application framework on top of Java core libraries running on a virtual machine featuring JIT compilation. Libraries written in include the surface manager, Open Core media framework, SQ Lite relational management system, OpenGL ES 2.0 3D graphics API, Web Kit layout engine, SGL graphics engine, SSL, and lib. The Android operating system, including the , consists of roughly 12 million lines of code including 3 million lines of XML, 2.8 million lines of C, 2.1 million lines of Java, and 1.75 million lines of C++. The Android operating system is used on Smartphone’s, netbooks, tablets, Google TV, and other devices.

Android Market

Android Market is an online software store developed by Google for Android devices. An application program ("app") called "Market" is preinstalled on most Android devices and allows users to browse and download apps published by third-party developers, hosted on Android Market. Users can also search for and read detailed information about apps from the Android Market website.

Android market is one source for the users to get applications for their devices with ease and provides them with full information on its usage. It is well developed store which categorizes every application for the simplicity of users and to provide them with maximum utility.

Apple iOS

iOS is Apple's mobile operating system. Originally developed for the iPhone, it has always extended to support other Apple, Inc. devices such as the iPod touch, iPad and Apple TV. Apple, Inc. does not license iOS for installation on third-party hardware. As of May 31, 2011, Apple, Inc.'s App Store contains more than 500,000 iOS applications, which 32 Vinamra Jain & Ashok Sharma have collectively been downloaded more than 15 billion times. In the last quarter of 2010, it had a 26% share of the smartphone operating system market in terms of units sold, behind Google's Android and Nokia's Symbian. As of May 2010, it accounted for 59% of consumption—including both the iPod Touch and the iPad.

Apple iOS Store

The Apple/iOS App Store is a digital application distribution platform for iOS developed and maintained by Apple. The service allows users to browse and download applications from the iTunes Store that were developed with the iOS SDK or Mac SDK and published through Apple Inc. Depending on the application, they are available either for free or at a cost. The applications can be downloaded directly to a target device, or downloaded onto a PC or Mac via iTunes. 30% of revenue from the store goes to Apple, and 70% go to the producer of the app.

Figure 1: Global Mobile Applications Store Revenue Ranking

Apple iOS v/s Google Androids

Android and iOS are very similar. They both are based hugely on their massive application support and media. Digging beyond the skin and deep into the guts of the operating systems, they begin to differ some, but for what most of the people purchasing them are going to use them for, they will serve the exact same purpose.

Apple's iOS is and always will be based on simplicity. You pick up an iPhone for the first time and you already know how to use it. Minutes after you purchase the phone, you scavenge the App Store for the best applications and all of the ones your friends told you to download. This is where some of those differences come into play. Not only is the iPhone simple to use, but most of the applications in the App Store are visually beautiful. iOS is largely a media-driven operating system and the App Store and users have a higher expectation of graphics and visuals in their applications.

Android, however, is not there yet. It is an open source operating system and the Android Market is much more susceptible to low-quality applications and applications with horrendous graphics. Google's Android was built with openness in mind. One word describes the major difference between the two mobile platforms, customization.

Now there are a lot of comparative studies done in the past with the customer’s perspective wherein when one looks for a new smartphone, choosing an iPhone or Android phone isn't a simple task. While both phones offer a lot of great features, they may seem so similar that it's hard to distinguish between them. If you look closely, though, you'll find that there are some key differences. A few of those differences are examined

Hardware is the first place that the differences between the iPhone and Android become clear. Apple is the only company that makes iPhones, giving it extremely tight control over how the software and hardware work together. On the other hand, Google offers its Android software to many phone makers (Samsung, HTC, LG, and , among others, offer Android phones). As a result, Android phones vary quite a bit in size, weight, features, user experience, and quality. The Consumer’s Preferred Operating System: Android or iOS 33

OS Compatibility when we Look towards it we Find iPhone as to be Number One Choice and Android is a Slow Mover in this Apps Selection vs. Control While the iPhone App Store offers about the same number of apps as --around 9000,000 (as of June 2013)--overall selection isn’t the only factor. Apple is famously strict (some might say unpredictable) about what apps it allows and how it changes its policies, while Google’s standards for Android are somewhat more lax.

Gaming

A Growing Giant The iPhone has changed the way are played. The iPhone has rapidly become a major player in the mobile video market, with tens of thousands of great games. The growth of the iPhone as a gaming platform, in fact, has led some observers to forecast that Apple is well on its way to eclipsing Nintendo and Sony as the leading platform.

User Experience

Elegance vs. Customization People who like complete control over the customization of their phones, and want to be able to fiddle the lowest level functions, will prefer Android thanks to its greater openness (one downside of this, though, is that each company that makes Android phones can tweak them, sometimes replacing default Android apps with inferior tools developed by that company). Android customization can also require some complex technical skills that the average person rarely has.

PAST STUDIES

According to the diffusion of various forms of digital technologies has acted as a disrupting force in several industries, promoting open and distributed innovation processes. In this paper we argue that the supplier in open innovation networks tends to get a more active role as a creative peer producer, rather than merely a contractual deliverer. A comparative case study of the mobile phone platforms iPhone and Android is used to analyse this shift in innovative value creation. The notion of generative capacity is introduced to the research on open innovation, suggesting that it is generativity rather than openness that drives the platforms' aggregated wealth. The two cases from the mobile phone industry illustrate that innovation initiatives can successfully approach generativity in different ways and that both openness and control are important to facilitate supplier contributions (Remneland-wikhamn,b.l). Due to the extensive innovation and the fight to be the best innovative company in the field of technology according to “In today’s world every phone launched in the market is compared to iPhone due to the kind of brand value and image it has developed over the period of time”. Thus it is highly important to identify what the consumer of today feels and how it react towards apple and other competitors of its. Apple has set a benchmark in the market that consumers who once use the product don’t want to switch to some other brand. But with the changing time and by understanding the needs of the market according to the study Indian consumers prefer value of money over any other parameter while purchasing cell-phone. Android focused on this approach and targeted the Indian market with affordable yet value fulfilling product by targeting both the lower segment as well as the high end segment (Graham,j).

Google is attacking the mobile market from all angles and already stated making a dent in other competitive brands due which consumer’s expectations from other brands has increased. Android provides customer with best of value and maximum satisfaction so as to capture a huge market share. After the launch of first open source platform in cell phone industry Google has gained more respect and goodwill (Karpinski,).According to dotcom Infoway all the flimflams and excitement about the costlier iPhone’s and BlackBerry’s are vanishing, after the arrival of the most anticipated, open 34 Vinamra Jain & Ashok Sharma source mobile operating system, the Google Android, which is fated to turn the industry upside down. Despite the growth and popularity for iPhones and BlackBerry’s, it is predicted that, Android will make a history in sales and on acquiring the market share, slicing down the markets of both Symbian’s and iPhones. The iPhone is "the most sophisticated, outlook- changing piece of electronics to come along in years, which will keep on giving tough competition to android.no matter apple is the ruler of innovation but Android is not losing its control (Infoway, D.C.). Apple may have been catching all the headlines with its revolutionary iPhone. But history could remember Google as the company that really turned the mobile phone sector on its head in 2007-08. On 5 November 2007, Google finally revealed what all the fuss was about. Google was indeed officially entering the lucrative mobile phone business, but not as a handset manufacturer. In the event, its product was not hardware, but software. And it wasn’t called Gphone, but Android (Conti.j.P.).

As the researcher says Apple’s iPhone made touch and small apps a way of life Google’s Android has followed suit, providing similar features and performance in an ever-expanding collection of smart phones starting with the . Now, Android is under the auspices of the Open Handset Alliance (OHA). The winner of any comparison between Android and iOS is essentially the user. Developers will have to choose based on their application, marketing, and a host of other issues unrelated to the architecture (Wong. b.).

It is not only the user interface which is important for the user but also the pricing which a company give which shows the worth of the product is highly essential for the youth of today. Research pricing differences are one reason why we believe Android potentially poses the biggest risk to the iPhone franchise over the longer term. We estimate the iPhone costs carriers $100+ per unit more than Android phones (though some of the difference is attributable to Apple selling a portion of iPhones at its own retail stores, for which the carrier pays no incremental commission as it does for Android phones when it sells through other retail stores). As data plan prices continue to fall and usage increases, carriers may become increasingly price-sensitive, putting pressure on the iPhone's premium pricing. However, we believe that a key driver behind Android's momentum is the distribution gap created by the iPhone not selling through several of the world's largest carriers, which has resulted in unmet demand for a smartphone with an intuitive UI and strong app ecosystem that Android has largely fulfilled. The iPhone still retains the strongest consumer loyalty among smart phones according to surveys undertaken by Bernstein and others. In addition, it is increasingly penetrating enterprises, with 60% of the Fortune 500 currently deploying or piloting the iPhone. As a result, we believe that Apple can and will arrest Android's momentum by quickly expanding distribution to many of the large carriers where it is currently absent. (Research, b)While Apple may have to concede modestly on pricing ($50 per iPhone), we believe that doing so would still be financially attractive as gross margins would be above 54%. Moreover, adding carriers fits nicely with the natural course of action for Apple, which is to generate incremental distribution for the iPhone. It was stated that Google has two new key success factors: First-mover advantage and capabilities are breaking the innovation cycle this time round. Google, scoring very high on the two new success factors, that has federated the mass-market companies competing against Nokia, putting the Android ecosystem in a very strong position to play the democratizer role this time round and putting the Finnish manufacturer under immense pressure.(Research, b).The latest research cell phone industry is even taking care of the security issue attached with the applications. Today, mobile applications security is very important taking in account the high number of mobile devices and users. Worldwide, about one million people were infected by mobile malware in the first semester of 2011 (Pocatilu,P). Android and iOS were designed with in mind and are superior to traditional desktop operating systems. Both platforms enforce control policies via passwords, Symantec found, although the iOS offers more options for protecting data, such as an automatic data wipe after a specified number of failed password attempts (Insi, C.). The Consumer’s Preferred Operating System: Android or iOS 35

The two cell phone giants have given toughest competition to Nokia who was a pioneer in its field ten years back. The battle between Apple and Android should translate into an immediate increase in the competitive pressure facing Nokia, not only on market share, but also on ASPs and gross margins. As Android gains traction, Nokia will experience an acceleration of market share losses in the "lower high-end," which is the high end of its portfolio today (Bernstein R.). To give more competition to the market apple plans to launch iPhone 5 which will have lot more for its consumers There’s much more in iOS 5 that will make life easier for users: the ability to search message bodies in the Mail application, improvements to Mobile Safari that incorporate features from the desktop browser, iCloud storage of bookmarks and reading lists, and tabbed browsing in the iPad version of Safari. And that’s just scratching the surface (Connolly P. J).

THEORETICAL BACKGROUND

Many comparative studies have already been made in the field of android and iPhone but still consumer need and perception needs to be checked upon as to why the youth of today prefers android or iPhone and what factors affect their buying decision. The race between the cell phone giants will never end but the user needs to take correct decision in order to be highly satisfied and content with the purchasing decision, which can be solved only if the consumer chooses what suits them the most.

The research is carried out in order to know the consumer preferences keeping in mind the following objectives

 To analyze post purchase satisfaction towards both iPhone and Android enabled phones.

 Consumer preference towards the two most popular operating systems (iOS and Android)

 To study the factors that influence the purchase decision between iPhone or an android based cell-phone.

Hypothesis

To carry out my research it was essential for us to know the usage patter of application stores available in iOS and Android and which store does the consumer feels comfortable using

Thus the hypothesis set is

 H0 - Android applications are easier to use than iPhone

 H1 - Android applications are not easy to use than iPhone

RESEARCH METHODOLOGY

The research was carried out from two points of views

 Customer point of view

 Retailers point of view

The research required studying both primary as well as secondary data. For the primary data target audience was of Delhi and NCR and the study employed structured interviews with a sample size of 200 for the consumers of Android and iOS while from retailers point of view an informal and unstructured questionnaire was prepared so as to study the factors which influence the consumers at the point of purchase which further helped us in developing the structured questionnaire.

The research design required both exploratory and descriptive research. The exploratory research was carried out with the help of an informal questionnaire where in few retailers of Android and iOS were interviewed and factors 36 Vinamra Jain & Ashok Sharma affecting the consumers purchase decisions were accessed and hence data was extracted for preparing a structured questionnaire. Descriptive research was carried out with the help of a well-structured questionnaire in order to check the consumer preferences and purchase decisions towards Android and iPhone.

TESTING OF HYPOTHESIS

The tool used for the Hypothesis analysis was paired T test and the Factors on the basis of which the hypothesis was tested were

 Usability

 Variety available

 File size

 Number of Free applications available

 How many times do you download the suggestive applications?

According to Paired T-test, if significant value is greater than .05 then no statistically significant difference between your two conditions. While if significant value is less than .05 there is a statistically significant difference between your two conditions.

According to pair t test at confidence level 95% null hypothesis is accepted when p value in more than .05.

In this case for the various pairs the values derived are

 Usability - .874

 Variety Available - .074

 Application size- .320

 Number of free applications - .620

 Number of useful application - .000

Thus according to the values derived it was seen that the Null Hypothesis was accepted. That is Android applications are easier to use than Apple iOS.

Table 4 Paired Samples Test Paired Differences 95% Confidence Interval Sig. (2- of the Difference t df tailed) Std. Std. Error Mean Lower Upper Deviation Mean USABILITY Android o/s Pair 1 -.029 1.847 .180 -.386 .329 -.158 104 .874 - usability android[variety available] Pair 2 .286 1.621 .158 -.028 .600 1.806 104 .074 - iOS [variety available] android [application size] Pair 3 -.124 1.269 .124 -.369 .122 -1.000 104 .320 - iOS[application size] android [number of free applications available ] - Pair 4 -.067 1.375 .134 -.333 .199 -.497 104 .620 iOS [number of free applications available ] The Consumer’s Preferred Operating System: Android or iOS 37

Table 4: Contd., android [number of useful available applications for Pair 5 you] - iOS [number of -.714 1.621 .158 -1.028 -.400 -4.514 104 .000 useful applications available for you ]

FINDINGS

The other key findings to achieve the objectives were

 According to the respondent maximum of the users are highly satisfied with the touch screen quality and features which apple iOS provides to its users while on the other hand Android users also like the touch screen quality and the features but not that as much as of Apple iOS users

 On comparing the above two data it is seen that Apple iOS has more number of useful free applications than Android but Android has better categorization of applications and better user interface than Apple iOS.

 For judging the consumer perception towards the two operating giants Apple user prefer iOS because of the user friendly criteria followed by prestige and brand name and since they are using iOS they feel comfortable with it thus when compared to Google Android 60% users opted for Apple iOS only.

 Consumer perception towards Google Android is mainly towards the user friendly approach and value for money. The user don’t feel that it’s a prestige value when they use Android based cell phones. Thus when Android was compared to Apple iOS and Android user were asked as to which operating system they would prefer, preference was given to Apple iOS but a difference of only 2% was there.

 Before using Apple iOS maximum users used Nokia Symbian operating system which due to its obsolete operating system and lack of features made it lose its market share. Thus while purchasing an Apple iOS it is the operating system and the features which are taken it utmost priority.

 Maximum Android users before switching over to Android based phones used Nokia cell phone followed by few Blackberry cell phone users. The reason for the shift is seen in the purchasing decision where in due to lack of features and a user friendly operating system they wanted to go in for Android based cell phones.

 For Apple iOS users, numbers of useful applications are more due to which the percentage of weekly downloadable applications are more. The users mainly download applications once in a week.

Using a consumer behaviour model the two cell phones were analysed and it was seen that

Figure 2: Influences on and of Consumer Behavior 38 Vinamra Jain & Ashok Sharma

 Perception- Apple iOS is perceived to be highly user friendly and a prestige symbol when they consume iOS based cell phone due to the quality it provides to its consumers. Whereas Android users feel that Android based cell phones is value for money and with high degree of user interface.

 Cognition – Cognition is the belief a consumer has on the attitude of the product. For Android user the belief is more of a Value for money product with the number of applications available for free of cost and the enhanced user interface, while for Apple iOS it’s the prestige value which is attached which influences the consumers to buy the products due to the brand name attached along with it.

 Affect- How a consumer feels about the product is very essential as it help us know the consumer behavior of the users towards the products consumed. When analyzed it was observed that consumers feel that buying an Android based phone will help them gaining value for money but when compared to iOS which has a brand name attached to itself consumers preferred Apple iOS based phone due to the existence in the market and Google Android being new in the market will create a mark in the market over the period of time.

 Beliefs – beliefs are the pre-defined notion attached with the product thus due to higher brand image Apple iOS was preferred over Android whereas iOS based were not considered value for money as they have a prestige value associated.

 Social and Other Influences- Social influence is attached with the brand name and the utility it provides to its customers hence since both the operating system are high on user interface and ease to users but they have a different place in the society. Android based phone are available in different price ranges and are thus high on providing value for money to its users but for Apple iOS brand name and the price skimming strategy attached to the product hold utmost importance.

CONCLUSIONS

Hot-selling Android and iPhones have already conquered the consumer market, and with users becoming accustomed to those devices, more people want to use them for work. In the competitive environment where every second day a new technological advancement takes places and the two cell phone giants Android and iOS are pushing themselves every now and then to achieve excellence in their product.

Today Android’s percentage share in the market is increasing at an increasing rate on the other hand with apple 4S coming up in the market it is stealing all the market shares. With the help of our research it is found that Google android is rapidly taking its pace in the eyes of today’s youth and every person today wants affordable and the best operating system which Android guarantees to provide to its users.

On the other hand Apple with its brand name and prestige value attached attracts its target customers but is not able to come up with useful and more free applications which Android based cell phone has in their store house.

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