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Apple vs google soft ai

Date post:15-Jan-2015
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  • 1. Apple vs. GoogleWho will win the soft AI war?Ismael Soto Cantero

2. Executive Summary:1. Apple in creating a stack in the search engines business with Siri2. Google + Samsung seem to be the main competitors that Apple should defeat in this battle; correspondingly, they dominate the customers data and the mobile phones industry3. Apple has the right technology and the right products to captivate the customers but starting from scratch is difficult and will take longer than analyst though4. Soft AI technologies open a new business horizon for mobile devices and the interaction of the customers with them devices 3. Siri is something new and it is here to stay with us for a longtime, so be aware about what it really means On October 4th, 2011 Apple announced that Siri would be included with the iPhone 4S Siri represents the first soft AI and virtual personal assistant that is launched to any device; it interacts with us through our questions and it is not limited to recognize our voice and transform it into actions"We are at a turning point in history where people can talk to a computer and be understood. Its a watershed moment where people wont go back" Gary Morgenthaler (first VC investor in Siri) 4. Apple has made his iPhone its main line of business and Siri isthere to take advantage of all the information of its customers Apple revenues and profits are driven by the iPhone & iPad products; around 72% of Apples revenues Apple is taking less than 5% of market share in the smart phones market but nearly 75% of its profitsCharts from Business Insider 5. The Siris back business model is to learn about customerspreferences and get money from them, just as Google does1. Siri will learn from the customers their preferences2. Apple will put the customers information over an open map data base using other search engines in the back as a Wolfram Alpha and Yelp3. Apple could use Siri as a crowder to become a preferences-based data base4. Apple can monetize the information via 2 complementary ways:a) Selling devices with the best VPA among other characteristicsb) Using the information that Siri is taking from the customers; - Traditional way: getting money from advertisement - New way: price discrimination and getting a haircutCharts from Harrison Research 6. iPhone customers have received well Siri; however its non-fullydeveloped capabilities could entail a menace to Apples plans iPhone customers like Siri and they are satisfied with its capabilities; however, due to the fact that it is a unfinished product, they cannot use the add as frequently as they should (for Apples interests)Charts from Business Insider 7. Google is the main competitor in this new soft AI business dueto its data bases and to its presence in the mobile industry (1/3) Google is the leader in both, the core search services as well as the overall number of searches by surfers Besides that, its mobile operating system, Android is the most popular by number of phones sold around the world with around 47% of market share and Samsung as the big fish in the market by number of sold phonesCharts from Business Insider 8. Google is the main competitor in this new soft AI business dueto its data bases and to its presence in the mobile industry (2/3) Google has historical data of us and a powerful tools called Gmail, Google, Google Maps and Google+ that mimics Siris preferences learning process since years Google included in its Android system tools that act as a VPA since before Siri appeared Google is also embedded into iPhone as predefined search engine. Something that seems to change in the following weeksCharts from Business Insider 9. Google is the main competitor in this new soft AI business dueto its data bases and to its presence in the mobile industry (3/3) Samsung is an intensive R&D company with more than 45.000 US patents (4.800 Apple) that can face Siri technology soon or later Samsung leads the market and has launched the new Samsung Galaxy III that includes a self build VPA. It is true that is not as advanced as Siri is Samsung works over Android and would use this to create powerful collaboration between Google and them whenever they get and maintain enough market shareCharts from Business Insider 10. However, Google also has problems to retain its core businessand iPhone is at the end a massive business by itself; a $100Bbusiness only surpassed by 53 other companies in the worldCharts from Business Insider 11. and a technological war have started through the firms viaacquisition processes in aim to adquire a massive amount ofpatents, increasing lawsuits among them 12. The end of this war depends on whether Apple is able to makeSiri work better and if Google can make attractive the value ofits current and potential capabilitiesAppleSamsung + Google Cutting the edge soft AI technology Massive data andcustomers Starting from Cutting the edgescratch is always Android andknowledge Google do not mobile phonedifficult, specially product and Android is the when Apple has offer products as business model leader mobile OS launched Siriattractive as Applein absolute termsunfinished does Apple starts fromand Samsung is the scratch with the first cell maker in Apple product Soft AI current customers learning the worldusers are high portfolio is process value ones but few atomized and not Potential synergiesin relative terms to Wide portfolio ofamong Googlecutting the edge products and itsthe market sizeproducts complementarity Newdevelopments in Users are moresoft AI VPA fromand more search- Entering into aSamsung and Being the leader isdriven by new business; bigother developers always questions and data management challenging, willanswers and not and its Fully integration of Apple keep on thejust by links. Also, implications each of thetrack? they useGoogles tools andalternative ways ofthe Android searchingsystems 13. ismael-soto.com

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