Android tops iPhone OS in the US; RIM still #1

[Phobic9]

Obviously there are way more Android OS phones out there than the iPhone OS ones (and on all the US carriers too) but most analysts weren't expecting Android to slip past Apple this soon. At the end of the day, we win when tech companies "fight".

"We're number two" might not be the chant everyone's after, but we have a feeling that Google is more than satisfied with that in this case... for now. According to market research firm NPD, Google's Android operating system edged up into second place in the US smartphone market during the first quarter of the year, leaving it still well behind RIM's BlackBerry OS, but marking the first time that it has moved ahead of Apple's iPhone OS. Specifically, NPD found that RIM maintained a strong 36 percent market share for the quarter, with Android coming in at 28 percent, and iPhone OS in third at 21 percent. The growth for Android was attributed largely to strong carrier support -- like Verizon's buy-one-get-one free offer which, incidentally, also helped Verizon maintain a 30 percent smartphone market share, which is just slightly behind AT&T at 32 percent, and ahead of T-Mobile and Sprint at 17 and 15 percent, respectively.

Link: http://www.engadget.com/2010/05/10/npd-android-ousts-iphone-os-for-second-place-in-us-smartphone-m/

 

[vshah]

lol @ everyone who thought this wouldn't happen.

 

[DivideBYZero]

Bring on BlackBerry 6!

 

[Deeko]

Wow - that's huge growth. Android has been going up at a ridiculous rate over the last six months. Count me among the group to be lol'd at - I said this wouldn't happen until the end of 2010 (if at all this year).

However, before an Android circle-jerk starts, lets not forget that there is a new iPhone coming out very soon, which has likely retarded their sales somewhat. I would not be surprised of Apple wins the quarter following a new release. Q4 sales results will be very interesting to see, as will 2010 as a whole.

 

[rudeguy]

Wow - that's huge growth. Android has been going up at a ridiculous rate over the last six months. Count me among the group to be lol'd at - I said this wouldn't happen until the end of 2010 (if at all this year).

However, before an Android circle-jerk starts, lets not forget that there is a new iPhone coming out very soon, which has likely retarded their sales somewhat. I would not be surprised of Apple wins the quarter following a new release. Q4 sales results will be very interesting to see, as will 2010 as a whole.

Right...because the straight sides and front facing camera that doesn't actually do anything will be an Android killer

 

[Anubis]

Right...because the straight sides and front facing camera that doesn't actually do anything will be an Android killer

you forgot multy tasking

however deeko is most likely correct, apple will see a surge in sales when the new phone is released, however im sure most of it will be people simply upgrading and not new users. as articles has said the Single carrier thing is what is gonna hurt the iphone the most

 

[Slick5150]

you forgot multy tasking

however deeko is most likely correct, apple will see a surge in sales when the new phone is released, however im sure most of it will be people simply upgrading and not new users. as articles has said the Single carrier thing is what is gonna hurt the iphone the most

Cue round #63 of "iPhone coming to Verizon!! I read it online!!" speculation.

 

[Deeko]

Right...because the straight sides and front facing camera that doesn't actually do anything will be an Android killer

Lets not start taking everything to extremes here, that's how Apple-fanboys debate.

You know for a fact that the new iPhone will sell extremely well at launch. The aforementioned fanboys will buy it in droves, as will many current iPhone-ites that aren't necessarily fanboys but don't really know that there's potentially better out there.

Oh, and before we rip front-facing cameras, the HTC Evo 4G is going to have one too, is that to be mocked for not being widely used yet?

 

[Slick5150]

Lets not start taking everything to extremes here, that's how Apple-fanboys debate.

You know for a fact that the new iPhone will sell extremely well at launch. The aforementioned fanboys will buy it in droves, as will many current iPhone-ites that aren't necessarily fanboys but don't really know that there's potentially better out there.

Oh, and before we rip front-facing cameras, the HTC Evo 4G is going to have one too, is that to be mocked for not being widely used yet?

But an iPhone owner upgrading to a new iPhone doesn't increase their marketshare any. Sure, they'll get some converts coming over, I myself got an iPhone 3G when they came out (and got rid of it the day the Palm Pre came out and was damn glad to do it), but I'd imagine the "upgraders" will far outweigh the "converts"

but, at the same time, Android will continue to have new phones released as well...

 

[rudeguy]

Lets not start taking everything to extremes here, that's how Apple-fanboys debate.

You know for a fact that the new iPhone will sell extremely well at launch. The aforementioned fanboys will buy it in droves, as will many current iPhone-ites that aren't necessarily fanboys but don't really know that there's potentially better out there.

Oh, and before we rip front-facing cameras, the HTC Evo 4G is going to have one too, is that to be mocked for not being widely used yet?

I just had to throw a quick jab at the Apple fanbois. The ipad has already showed how willing of buyers they are. We all know that the new iphones will sell, I just don't see them hurting Android in any way.

And quit talking about the Evo. I have talked myself into not needing it....well maybe....

 

[Deeko]

But an iPhone owner upgrading to a new iPhone doesn't increase their marketshare any. Sure, they'll get some converts coming over, I myself got an iPhone 3G when they came out (and got rid of it the day the Palm Pre came out and was damn glad to do it), but I'd imagine the "upgraders" will far outweigh the "converts"

but, at the same time, Android will continue to have new phones released as well...

Potentially, no. And you're definitely correct that a convert is more valuable to a company than an upgrade - but that doesn't mean we won't see a huge upswing in iPhone sales after release - we most definitely will. Yes, the Evo 4G will be good for Android, but it won't be as big as the Incredible or the Droid were, for the simple fact of being on Sprint.

 

[tatteredpotato]

If the iPhone came to VZW it would provide a good indication of how the market feels about andriod and apple phones, since VZW has marketed android more than any other carier at this time.

 

[vshah]

i don't doubt apple will get a bump this summer.

but I don't think one phone a year on one carrier isn't enough to maintain marketshare.

although I also have a feeling the new iphone + os4 may finally hit the right balance between flexibility and usability, which perhaps some people have been holding out for.

 

[jpeyton]

lol @ everyone who thought this wouldn't happen.

I thought it would happen, but I never expected it to happen this quickly.

No surprise, though.

1 phone on 1 network vs. many phones on many networks.

 

[rudeguy]

i don't doubt apple will get a bump this summer.

but I don't think one phone a year on one carrier isn't enough to maintain marketshare.

although I also have a feeling the new iphone + os4 may finally hit the right balance between flexibility and usability, which perhaps some people have been holding out for.

LOL no. No one who is interested in an iphone has been holding out due to lack of features.

 

[tatteredpotato]

1 phone on 1 network vs. many phones on many networks.

This is an abstract point IMO... Apple made these decisions for their platform and the sales are just something that comes along with it. Apple could release more devices on more carriers but they chose not to.

 

[jpeyton]

The math says:

Verizon + Sprint + T-Mobile = 174 million subscribers

That's 174 million subscribers with an Android upgrade option when it's time to get a new phone.

Sure, people change networks. Unfortunately for Apple, AT&T seems to be scraping the bottom of the barrel for customer satisfaction with their network.

 

[rudeguy]

The math says:

Verizon + Sprint + T-Mobile = 174 million subscribers

That's 174 million subscribers with an Android upgrade option when it's time to get a new phone.

Sure, people change networks. Unfortunately for Apple, AT&T seems to be scraping the bottom of the barrel for customer satisfaction with their network.

unfortunately for Apple? They are the ones who decide who sells their product!!!!

 

[TheWart]

unfortunately for Apple? They are the ones who decide who sells their product!!!!

Well we do not know the details of the contract that Apple and ATT signed. Whatever they were, it clearly gave Apple a lot of money for letting ATT be the exclusive provider, and given Apple's ridiculous revenue growth due to the iphone, I would say it has worked out pretty well thus far.

That being said, I have to imagine that Apple will release a CDMA version at some point in the medium term. While they are making money hand over fist in the status quo, why turn down more if the contract is up?

 

[jpeyton]

That being said, I have to imagine that Apple will release a CDMA version at some point in the medium term. While they are making money hand over fist in the status quo, why turn down more if the contract is up?

The contract isn't up, and AT&T seems to be extending it all the time.

From what I've read, the iPad's no-contract data plans were something AT&T offered to keep the iPhone exclusive.

Furthermore, IIRC, the primary reason AT&T was chosen in the first place is because they granted Apple more control over their network. With the way Android smartphones are selling, Verizon doesn't need to offer any concessions to Apple.

 

[Cuda1447]

Rofl, didn't we just have a huge debate thread about Android vs Apple and all the Apple guys were clamoring about how Apple wasn't going to lose the any ground to Android and that they were superior in every way.


ROFL, where are they at now? Bottom line is this, the more Android grows, the more they will grow. Apples biggest selling point (and imo, the ONLY selling point) is that they have a tremendous app store. The reason the app store is tremendous is the amount of developers putting out quality applications. As Android grows, more and more developers will start going that way, putting out better quality applications, causing Android to grow even more. Apple screwed the pooch on this one. They need to do something DRASTIC in order to compete with Android long term. Simply releasing software updates with a new shell every year isn't going to cut it.

 

[dwell]

lol @ everyone who thought this wouldn't happen.

Global smartphone market share:

iPhone: 15%
Android: 5%

The NPD data is US only for one quarter. iPhone still has 3x the install base with one device on one carrier.

 

[rudeguy]

Well we do not know the details of the contract that Apple and ATT signed. Whatever they were, it clearly gave Apple a lot of money for letting ATT be the exclusive provider, and given Apple's ridiculous revenue growth due to the iphone, I would say it has worked out pretty well thus far.

That being said, I have to imagine that Apple will release a CDMA version at some point in the medium term. While they are making money hand over fist in the status quo, why turn down more if the contract is up?

Apple is afraid of the competition. Right now the iphone is ATT's baby...their reps treat it like a king. Put that same phone on a Verizon shelf and it will be compared apples (heh) to apples with the Incredible/Droid sitting next to it. Who would pay for that thing if they saw a much better phone with the same network, same rate plans and a (presumably) lower price?

Apple is scared.

 

[TheWart]

Apple is afraid of the competition. Right now the iphone is ATT's baby...their reps treat it like a king. Put that same phone on a Verizon shelf and it will be compared apples (heh) to apples with the Incredible/Droid sitting next to it. Who would pay for that thing if they saw a much better phone with the same network, same rate plans and a (presumably) lower price?

Apple is scared.

Well if you are comparing the 11-month old 3GS to a about-to-be-shipped phone then ok....

I don't really understand how some of you state that X android phone is objectively "better" than the iphone....it is all a matter of personal preference. Some people like flip phones, some people like qwerty keyboards, some people like hyper-accurate touchscreens, some people like android, some people like the games on the iphone, etc etc.

It is condescending and foolish to scoff at iphone users/buyers as sheeple who just dont realize 'there is something better out there.'

I don't understand why these numbers can't be celebrated for what they show - smartphones are a hotly-contested consumer space.....which is great for all of us. IMO, we are all better off to have these choices than the old Nokia-Winmo-RIM choice that we had before.

 

[jpeyton]

Global smartphone market share:

iPhone: 15%
Android: 5%

The NPD data is US only for one quarter. iPhone still has 3x the install base with one device on one carrier.

The big problem for Apple being two-fold:

1) Phones get upgraded often. Unlike say, the install base for a video game console which has a market life of 5-6 years, a phone gets chucked in 1-2. And Android phones are coming out a faster pace than Apple can match.

2) The smartphone market has a huge way to go before it reaches a saturation point. The difference between 5% and 15% at this stage of the game isn't much when there are hundreds of millions of smartphone customers worldwide over the next decade.

Open will win out.