Are we seeing history repeating itself here?
Apple has been very successful with the iPhone, iPad and the newly re-named iOS operating system driving both these devices.
But Google’s Android has come out of nowhere to overtake iOS as the 3rd most popular mobile OS, as this Gartner report claims.
The advantage of Android is that it is open source and generally available to anyone wishing to make a smartphone or tablet device. This is very much like the PC industry, where the appearance of non-IBM BIOS vendors (Phoenix, AMI etc) and Microsoft’s MSDOS pretty much allowed anyone to build personal computers that were somewhat mutually compatible.
In contrast, Apple has always operated in the framework of a closed system. Apart from a brief period in the 1990s, Apple has not and does not license its operating system for use on third-party hardware.
Advantages of a closed system is that Apple has full control over the software and hardware and is therefore able to innovate and deliver an awesome user experience. The regular PC manufacturers who have depended on Microsoft to deliver that experience have been sorely disappointed by Windows 7′s inability to function well as a tablet OS.
The downside is that Apple as a single company, with finite resources, can only deliver a finite number of variants of its products. Variations are limited: amount of memory, WiFi vs 3G/broadband, color scheme etc.
On the other hand, an open system allows more participants. In the Android space, for example, we had Motorola and HTC taking the lead in delivering Android devices, but other players like Sony Ericsson, Samsung, LG, Dell, Asus and a whole slew of who’s-who in the PC and mobile device industry are also jumping in.
The sheer number of players in the Android space is allowing for innovation, in both hardware, software and user experience. There is also a better ability to fill the needs for a larger number of market segments. For example, you can get simpler, lower cost devices with smaller screen sizes and resolutions or you can spring for the supersize 4″ displays in the Sprint EVO 4G or Motorola Droid X. You can opt for physical keyboards (Droid, Droid 2, MyTouch Slide) or just use the touch screen keyboard. If you don’t like Motorola’s Motoblur interface, opt for HTC’s Sense UI or Samsung’s Touchwiz.
So in brief, the larger number of Android player results in not only economies of scale, but also economies of innovation as there are more resources to innovate and deliver on that innovation.

