With the volume of handsets, application downloads, and financial transactions through the respective app stores, of course Apple (with iOS) and Google (with Android) should be seen as the winners of the smartphone wars. The two companies are unsurpassed in the mobile space - Microsoft is still at the table with Windows 10 but the focus is on the desktop and cloud computing, not recreating the success of Nokia. Meanwhile the other notable rival of BlackBerry has moved to adopt Android's platform and is relying on reference design hardware.
Looking at the other side of the identification debate in software, and there are some other companies that would likely have a stake in claiming a win in mobile. The biggest of those companies would be Facebook.
Reporting its quarterly figures, Mark Zuckerberg's social network report posted over $2 billion profit - but made a point of drawing particular attention to the impact that mobile has had on its success: over a billion daily active users (up twenty-two percent year-on-year), with eighty-four percent of advertising revenue in the quarter coming through mobile. While Facebook is still strong on desk-bound commuters (that is, after all, where it started), it has managed to successfully pivot that success into the mobile space.
Much of the competition failed to see what was happening over the last five years, or did see and failed to make an effective jump. Facebook understood where mobile could take it, it understood mobile users then and now, and most importantly it now knows how to monetize those users and create value for the countless partners, brands, publications, and hobbyists that place their content on the big blue network.
That is how to win at mobile. Do it better, with bigger numbers, while delivering increasing levels of revenue.
Facebook's Mark Zuckerberg. (Photo: Associated Press)
Facebook has taken a number of risks along the way, and much of its current strength has been a perfect case study in avoiding The Innovators Dilemma. It has consistently looked to the next goal and placed significant bets. Some of those fail (such as the 'Notify' news app), but other decision that might have seemed curious at the time have become strong parts of its ecosystem. Instagram is the obvious big win, and while the jury is still out on the purchase of Oculus Rift it does illustrate Facebook's hunger to explore the edge of the envelope to stay on top of the latest trends.
Mobile continues to be the engine that drives Facebook, and it expects the core and ancillary apps to continue delivering growth during 2016 and beyond. Although it still needs to get onto Android and iOS devices, it would be a risky move for either Google or Apple to restrict access - the danger of being the phone which doesn't support Facebook would not be worth it.
Facebook understood the need to get on mobile quickly, and is now reaping the rewards. It continues to innovate with video and virtual reality services set to increase Facebook's return. Which other software or services based company has leveraged mobile as effectively as Zuckerberg and his team?
Exactly. We have a winner.
Now read how Facebook is increasing its grip over digital publishers.
