Apple is planning a big press event this morning.  Over the past few days Apple has shown the world that their franchise on the new web is dominating.   Apple’s financial performance is staggering.

Apple’s performance is about the present and the future.   It was reported via asymco.com that 60 percent of Apple’s sales are from products that did not exist three years ago. This highlights the changing game in technology in that the future market leaders will be determined by how fast they can release new products.  As an aside, this is a direct diss on Carol Bartz, who once compared the Yahoo turn around to the 7 year run by Apple.  Carol and the Yahoo team need to pump out some new products fast or they will be toast.

Steve Jobs is geared up for competition, and he launched this statement, a five minute blast on Google Android during the Apple conference call this week.  Here is Steve Job’s statement – Believe me,  Steve knows what’s coming from Google. Google is trying to change the game on Apple. Meanwhile, Apple’s iPad is killing it with no competition in sight.

Google is no stranger to launching new products fast (and killing them fast when they don’t work out – ala Wave).  Google’s Android is taking a different approach.

Money Talks But Is Product Leadership The Real Deal

Google’s Android is an inferior product at the moment across the board. Mainly because the iPhone has had a big lead, but Google is catching up fast.  Google’s strategy is to use their market presence to control the developer community with money. This is evidence in the recent September Millennial Media Mobile Mix Report. Millennial Media is the largest independent mobile ad network, so their data is a reflection of the overall market not just Google via Admob and Apple via Quattro.

The developer community is interested in a few core things:  1) distribution, 2) monetization, and 3) standardization.  Millennial’s recent report shows that Android is providing more money for the developers (hence distribution by default.) This is why Steve Jobs is irritated. Because money is trumping product leadership something Apple has owned and continues to dominate. Google Android is catching up fast.

The debate about open versus closed as articulated by Steve Jobs will continue to evolve.  What will trump the conversation is quality of product and innovation.

The iPhone (now Android) kicked off a massive development boom for applications.  In this case, millions of apps.  So what we have here is a "long tail" of applications.  These long tail apps are creating a data tsunami and this data is very valuable. The opportunity is to make sense of the data and move that back through to the apps and the consumer.  This cycle is very rapid and will create an opportunity for platforms that can leverage the data to provide a better user experience.

This is new data never seen before, so it’s a big opportunity.

Growth of Android Smartphones

In September, Android revenue exceeded iPhone-only revenue while iOS still outpace Android impressions.  So, what is the key issue here?

Devices versus operating systems – the data only talks about iPhone and Android devices, not operating systems. iOS includes not only iPhone, but also iPad and iPod Touch. Android only consists of Smartphones on the Millennial network. This doesn’t include any Android tablets which are non existent. iPads are dominating the market in what is a new category.

Broader distribution to fulfill demand from consumers – the adoption of Android by carriers other than AT&T has influenced the Millennial number mainly around the big time demand (and advertising).

Ad economics of supply and demand is the key driver here.  Because of the lower Android app inventory the Android market is seeing higher fill rates – because of the smaller amount of ad inventory on the Android the prices were higher than the iPhone. This is a skewed stat as Android supply of ad inventory increases.

New smartphone buyers – getting the first time user is an device manufacturer and advertisers dream. Like in other markets, such as automotive, where the car companies often want that first time purchaser to (hopefully) to become a lifetime customer,  the smartphone manufacturer is motivated to push hard to become the brand for the consumer hence the higher price for reach and conversion.

Should Apple Be Worried – Yes & No

Apple should be worried by Google since Google is using all of their resources (people, products, and money) to change the landscape.  At the moment, Apple products are dominating and throwing off tons of cash.  Especially the iPad. The other thing that Apple has shown more than Google is the ability to compete in new markets. Google has failed to capture new markets with new products although Android looks to break the string of losses. Conversely, Apple has shown that they can not only introduce new products into new markets consistently, but also generate value in terms of revenue and satisfied customers.

Steve Job’s aggressive stance is one of a fierce competitor who is taking the gloves off to defend against a charging Google Android. Steve should be worried, but Apple is looking good in its position.

My Angle and Advice to Steve Jobs and Apple

Don’t let Google advance the broader market approach with Android distribution and monetization. Instead, Apple needs to open up the distribution and monetization quickly. Apple can have their closed approach in technology in terms of bundling the software and hardware while opening up the ecosystem to drive developer adoption – it’s about distribution and money.