Skip to comments.Android Soars Past RIM And Apple In Q2: Now The U.S.'s Top-Selling Smartphone Platform
Posted on 08/02/2010 10:32:17 AM PDT by SeekAndFind
It's happening, Apple!
Google's free and open-source Android operating system shot past its competitors last quarter to become the top-selling U.S. smartphone OS, according to research firm Canalys.
Android accounted for 34% of the 14.7 million smartphones sold in the U.S. last quarter, while RIM was 32.1% of the market and Apple was 21.7%, Canalys estimates. That's a huge victory for Google, which was zero two years ago.
Yes, Apple's iPhone 4 didn't launch until the very end of the quarter, and Q3 should be bigger for Apple. But the fact that Google is anywhere near Apple's market share -- let alone halfway above it -- must concern both Apple and RIM.
What does it mean for Apple? It's time to start selling the iPhone at more U.S. carriers, and not just AT&T.
Apple must sell the iPhone at Verizon Wireless, the biggest U.S. carrier, as soon as possible, and potentially at T-Mobile, too. In the U.S. smartphone market, carriers still handle most of the distribution -- Google learned this the hard way when its would-be-disruptor Nexus One store flopped. And now only about a third of iPhone buyers are switching to AT&T from other carriers. So if Apple wants to take the top position in the market, it's going to have to sell the iPhone at more carriers.
(Excerpt) Read more at businessinsider.com ...
What does it mean for RIM? The new BlackBerry 6 platform, which is expected to be unveiled at an event tomorrow in New York, had better be VERY good.
RIM led the U.S. smartphone market for a long time based on its strong brand and distribution across all major carriers. But RIM has totally dropped the ball when it comes to evolving and improving its platform: It missed the boat on touch phones, its app platform and web browsers have been terrible so far, and the main reason that it’s still selling so many BlackBerry devices in the U.S. are super-cheap deals and buy-one, get-one-free offers. If BlackBerry 6 isn’t a huge improvement, RIM could wind up stuck at the low-margin, low-end of the smartphone market —not where it wants to be.
It depends, Apple’s goal may be margin and profit, and not just volume. The two are not synonymous. It would also be consistent with Apple’s history. They may have entry level items, but Apple products, going back to the Apple II, have never been “Economy” models.
Count two more Android sales to me because Apple stuck with AT&T.
Of course that illustrates that some aren’t buying Android because they like it more, but because they like their own carrier more than AT&T. Dropping AT&T exclusivity should have been the “And one more thing...” at the iPhone 4 launch. I’d have held off on my Android purchases if I could have been sure that was coming.
For the love of all that is Holy and the reasoning of mankind!! Is there not one reporter in this world who understands this plain and simple situation?
I will spell it out in short bullet points. Pay attention!
Apple invented the modern touch smartphone. And because Apple was not a phone maker but a PC maker, Verizon, which was offered first dibs, passed on it.
Apple knew this idea would be gold and totally change everything in the phone world, but they needed a partner to prove it. Any partner. ALL of the phone providers laughed, and passed. Except for little cut rate Cingular. They took the chance but demanded a 5 year exclusive to the deal. Apple's choice was take it or leave it.
ATT got wind of this deal, saw the prototype and bought out, merged or otherwise took over and Cingular vanished. Verizon still laughed. Sprint shook their heads. Nokia, RIM, even Palm covered their eyes and "couldn't watch the train wreck".
Apple suddenly leaped to the top of the market. MILLIONS were sold and ATT was riding the wave to glory. Verizon came begging, but Apple had been locked in. They could NOT let Verizon have a phone if their very company depended on it.
Verizon shopped around looking for a maker who could challenge the iPhone. Enter Google. Flush with their dotcom cash, they jumped in. Palm and Sprint joined together for the 3rd combo.
Verizon IS bigger than ATT or Sprint. And everyone knows the gig is up this fall. Verizon loves android, but will ALSO love iPhone and then, when the playing field is again equal, we will see that the iPhone regains its dominance.
Droid is a plastic clunky, virus ridden bloatware of a phone with a tiny fuzzy screen. But it is ALL else their is. If you are on Verizon, you CAN'T HAVE the best, so you have to settle.
So, these little articles which purport that they know what can help Apple, that they need Verizon, is like telling conservatives they need to get rid of Obama, Pelosi and Reid. HELLO????
DUH. We are working on all of the above as fast as possible, but thanks for the newsflash!
MORE NEWS HERE :
Report: Android is New Smartphone Market Leader; Passes Apple, RIM
Google posts an amazing 886 percent year-to-year growth in sales
When Google’s Android mobile OS launched it was met with skepticism, pessimism, and doubt. Slowly but surely, Google recruited new hardware partners, launched new handsets, eventually reaching sales of 65,000 units a day — then 100,000. And Google maintained a relentless pace of OS releases — with such high profile updates as Android 1.5, 2.0, 2.1, and, most recently, 2.2 (Froyo).
Now market researcher Canalys claims that Google is now the top player in the U.S. smartphone market in terms of market share. According to Canalys’s extensive study, Google owns 34 percent of the market compared to Research in Motion’s 32 percent and Apple’s 21.7 percent.
Propelled by wildly successful handsets like HTC Hero (October 2009), Motorola Droid (November 2009), HTC Droid Incredible (April 2010), HTC EVO 4G (June 2010), and Motorola Droid X (July 2010), Google has dominated the market with an astounding sales growth of 886 percent.
Perhaps the only analogy to what Google is doing in the history of operating systems is Microsoft’s incredible conquest of the personal computer operating system market with Windows. Much like Windows, Google’s multi-hardware OEM, open approach, focused on providing customers with a broad array of choices, is crushing its more specialized competitors, like Apple (which ironically was similarly crushed by Microsoft in the PC OS market).
That’s not to say that Apple or RIM are posting financial losses. In fact, Apple grew 61 percent in sales year-to-year and RIM grew 41 percent. What is happening, though, is that they appear to be missing the growth opportunity that Android has found with its open, third-party hardware model.
Android’s success looks especially scary considering that it appears to just be getting warmed up. Android 3.0 “Gingerbread” should launch this holiday season with some pretty amazing new features. Motorola, HTC, and others are reportedly already cooking up new high end handsets to accompany the OS launch.
In terms of individual hardware OEMs, Nokia still is the dominant party, owning 38 percent of the market. Overall smartphone sales rose 64 percent on a year-to-year basis.
No smart phone manufacturer is going to pony up and build their own when you can license and modify Google’s for free. The app developers (i’m a developer) will follow. Once Androids market penetration reaches close to 50%, you find a lot of developers (particularly smaller developers) will pass on developing for other OS’s and focus on Android exclusively. It’s a feedback loop. People buy the Android because it has a lot of cheap apps, which causes more developers to jump on, which pushes sales.
Still can’t sync my Outlook contacts to my Droid. Only thing that syncs is the calendar. That’s it. Only way it seems to work well is if you are working with an exchange server.
I thought that the iPhone 3G was a decent piece of tech, but that the AT&T service was seriously lacking.
Still miss my Blackberry.
On what planet is that?
My my... Droid X eats iPhone for breakfast. Fuzzy screen indeed.
The iPhone 3 was still selling. Plus iPhone 4 has had serious loss of signal issues anyways. Plus, Motorola's hot sellig Android X didn't launch till the very end of the quarter as well, and that never stopped Android phones from blowng the doors off the hinges did it?
In any case, I posted a few months back in another thread that Androids will take the lead by a year's time. Seems to have happened even faster than I expected.
and Q3 should be bigger for Apple
Q3 will be bigger for Android's too, with all the hot new Androids that just launched (and more to come), like Moto’s hot new Android X and Samsung’s Galaxy.
You neglect the basic point of this article. Google suceeds not because it is superior. But because it has a monopoly on the largest carrier. This ends this year. 2011 the game field will be level.
Appleheads can’t have the best...AT&T for carrier and a device controlled by the whims of Steve Jobs. vs. Verizon network and Android OS. Take your choice
Huh? What monopoly is that?
Verizon sell smartphones from everyone apart from Apple. RIM sells plenty of Blackberry smartphones on Verizon.
in this area microsoft is done.
Does android sync outlook contacts and calendaring?
Great. If he's right, then mediocrity will win again in the phone market.
Android 3.0 Gingerbread should launch this holiday season with some pretty amazing new features.
I just don't see anything even rumored about 3.0 to be anywhere close to "amazing." It's going to get WebM video compatibility and, wow, the copy/paste may not suck like it does now. Rumored is an answer to iTunes (already several store options out there), a better UI (yay, they've done that for the last couple releases), and streaming media from your PC (basically integrating SlingPlayer, which was recently released for Android anyway). Android 2.2 was a bigger release just for installing apps on the SD card, multiple app updating, Flash support, and JIT compiling (the latter giving a big speed increase).
Motorola, HTC, and others are reportedly already cooking up new high end handsets to accompany the OS launch.
They don't time phone releases with Android releases. If they did, the recent high-end Android phones would have been timed and shipped with Android 2.2, and none of them were. In reality, manufacturer-specific updates will be released months after Android 3.0 is released, hopefully, maybe, we hope so. Verizon won't even tell me if they'll release 2.2 for my phone I bought earlier this year.
Looks like he still is not very teachable and will quickly fall flat on his face a second time.
People just don't like being gouged, overcharged or forced to buy a product. The moment a better product that offers a better bargain or choices comes along, consumers quickly vote with their feet.
Mediocrity will always win in any market place.
There will always be more Chevrolet Malibus sold than Lamborghini vehicles. That is just the nature of any economic purchase. You may not want to believe this, but a lot of people buy a phone for no other reason than to talk.
A lot of phones have had a lot of serious problems recently. Somehow, mainly the iPhone's seem to get the headlines, and get posted here. The HTC Eris even had the "silent call bug" where it calls, but the parties can't hear each other. Only a reboot could clear it. One person had this happen when trying to call 911 to report an accident, had to wait the couple minutes for the reboot to do it. The EVO 4G has a problem with grounding on the screen contacts making the touch screen freak out, keeping you from doing anything. At least with the iPhone you could just hold it differently and still make that emergency call.
I posted a few months back in another thread that Androids will take the lead by a year's time.
Many agreed that it will happen if Apple sticks to AT&T. Apple is severely limited in how many phones can be sold without getting at least Verizon on board. With a vacuum of even halfway decent touch phones at Verizon, Sprint and T-Mobile, Android was sure to sell well.
"Good enough" rules in volume. Android was "good enough" for me, given that the alternative was to switch from Verizon to AT&T.
Just in time for a massive tax hike that won't be helping anyone. Lots of folks may just sit tight with what they have in hand as their disposable income is stripped away.
“Apple must sell the iPhone at Verizon Wireless....”
Absolutely. I would own an iPhone today if they had. Instead, I am now committed to my new Droid X.... so far, I like it.
I lived through that, and I don't know where you get your attempted monopoly idea from. At that time, most home computer systems had their own operating system and didn't play well with others. Microsoft got its initial success by writing BASIC for multiple incompatible pre-PC systems like Apple, Atari, Commodore and TRS-80.
IBM was the one who came up with the idea of using commodity parts to build a system so that everybody would be compatible, and INTENDED to create a monopoly with it, leveraging the copyright on the BIOS to retain control. That monopoly didn't appear because Compaq reverse-engineered the BIOS in a lawsuit-proof manner, and Bill Gates was smart enough to retain control of the default OS shipped with PCs (MS-DOS).
After the PC, most of those incompatible computer makers went out of the computer business, like Atari, Commodore and TRS-80 (Tandy played with making PCs for a while). Apple was the only one that remained using the pre-PC business model.
Looks like he still is not very teachable and will quickly fall flat on his face a second time.
As opposed to that bastion of PC hardware, Dell, which is falling flat on its face. Turns out making commodity PCs isn't all that profitable, and Dell's best profit years were a sham, profits inflated by Intel paying off Dell to not use AMD chips, illegal accounting tricks used to hide that fact. Dell paid the SEC $100 million in fines for it, and Mr. Dell had to shell some out personally, too.
People just don't like being gouged, overcharged or forced to buy a product.
Turns out there's a rather lucrative market of people who are tired of having mediocre goods shoveled to them, too. That's where Apple comes in.
The moment a better product that offers a better bargain or choices comes along, consumers quickly vote with their feet.
That's probably why Apple's computer sales have been growing at a higher percentage rate than other PC OEMs for years.
Well, fair enough, but it’s not fast enough. Folks don’t wait very well. I couldn’t wait and now I’m locked into a Droid, so Apple will now have to wait for a few years for my business.
It seems to me that if Apple is truly going to contract with Verizon, it would have been better for them to clearly advertise that impending change. “Rumors” that this is coming, just isn’t enough to keep a good many of us waiting, and waiting and waiting.
AT&T reported they activated 3.2 million iPhone 4 units in the 2nd Quarter of 2010. ONE company accounts for 1/5th of the smart phones sold in the US... And claims the entire lion's share of the profits. The Android makers are busy giving away phones.
If you want on or off the Mac Ping List, Freepmail me.
Android, being Google's baby, is built to sync all that info with Gmail. So what you do is sync Outlook with Gmail, and then Android will sync with Gmail. You'll need to install Google Calendar Sync to do the first part.
More recent Android versions will work directly with Exchange.
We know that Apple has renegotiated the contract with AT&T at least once, probably twice. Either time gave Apple a way out of the exclusivity. AT&T must be ponying up some good terms to keep Apple exclusive, to the disappointment of the rest of us. One term we do know is the no-contract data rates for the iPad — pretty darn good.
Or just put a free gratis bumper on it and hold it any way you want and make the emergency call...:o)
It's not a matter of choice, the exclusive contract Apple signed with Cingular before AT&T acquired them was for five years. That will expire in January 2012.
This is one of those times I disagree with Apple’s strategy (and I know there are some technical reasons for it, but still.) You can buy Android phones from several carriers not just AwfulT&T. So it is understandable that they would gain market share. I’ve had Palm Treo and Blackberry, based on the dictates of my company. I now have the HTC Hero (substantially better than either of those two) and would have an iPhone except for being locked in to Sprint for a while.
RIM still makes their own OS, HP bought Palm with the express intention of continuing to develop WebOS, Nokia still uses Symbian. The appearance of Android is far more disastrous for MS in the phone space than anyone else.
I just got my phone upgrade with Verizon.
If they’d had an iPhone I might have gotten it. Looked at the Droid X. That is one big clunky phone and the sync options for my Mac are minimal. Instead, I stayed old school and got a Samsung Convoy because I do a lot of outdoor stuff. Ruggedized and long long battery life.
It reminds me of that bumper sticker about honor roll kids -> “My phone can beat up your smart phone”.
I figure by the time another two years is up Verizon will have gotten iPhone, and most importantly, gotten the kinks out of it using someone else.
It's also a fact that IBM was not interested in a private PC market at the time. They laughed at Bill Gates when he went to them, asking them for support and suggested that it would revolutionize the PC World. They were only interested in Corporate and business/office applications.
As far as the market share, MS still outnumbers Apple by over 10 to 1. (Setting the iPhone thing aside.)
Check out a recent movie called “The Pirates of Silicone Valley”. It explains the history nicely and was well done. Anthony Michael Hall played Bill Gates in the movie and did a great job of displaying his nature.
Twice. The first negotiation was with Cingular and then with ATT two years ago to extend the original terms. BEFORE Droid came out. I think Apple just saw NO serious competition and thought they could play the profits game a little longer. Now, of course, everyone knows the Droid while inferior in construction and security is nevertheless taking huge market share by the virtual monopoly on Verizon. Apple just missed the prediction of Droid and how fast Google would bring it to bear. They will recover and dominate. But it will be 2011 and 2012 not 2010. Droid wins 1 out of the last 4 years. I can live with that.
Please explain your monopoly comment. Android phones are available on all of the big 4 carriers and some of the smaller ones I believe. Verizon sells phones with the Blackberry OS, Web OS and WinMo in addition to Android. I don’t see a monopoly going either way.
Sure. I do not mean monopoly in the traditional sense where one owns the means and the items of the sale, but just that due to being the first to come up with the idea, Apple is excluded from the largest market and Google being 2nd in, is not and thus has the market all to themselves. Not, Monopoly the pejorative, but just monopoly the exclusive. This ends in 6 months. And I am saying Google better make GOOD of it now, cause when iPhone 5 is on Verizon, Apple will be the largest. The field is unequal, by contract, and soon it will be equal and that’s all.
They are misconstruing this... Google is not making ANY SALES at all... they are GIVING AWAY the OS. There are no REVENUES AT ALL going to Google from the sales of these phones. Google intends to gain revenues from Advertising associated with users accessing websites and apps from the phones using Android OS. Strangely, the online presence of iPhones in July 2010 grew TWICE as fast as Android, according to NetApplications... and that's ignoring iPod Touch and iPads.
"Upon the version 4 release, the iPhone posted its largest single-month usage gain ever in July. This gain comes amid persistent reports of antenna problems. Global usage share jumped from .59% to June to .7% in July. In comparison, the May to June share was esssentially flat. However, this is a typical share pattern prior to the release of a major upgrade, since buyers hold off purchasing until the new release
In more good news for Apple, the iPhone grew usage share at over twice the pace of Android.
It should also be pointed out that a percentage of sales growth over last year is a meaningless statistic unless one knows the number of units sold last year. IF there were only 1000 units sold last year and there were 8860 units sold this year, they you can easily say there was an 886% increase over last year... but that is not so impressive when you know that there were only 1000 sold last year. Apple sold 8.4 million iPhones in the last quarter, when sales went flat in anticipation of the release of the iPhone 4, and 8.8 million in the preceding quarter, for a six month total of 17.2 million in the two slowest quarters of the year. Compare that to Google announcing as of the end of December 2009, that 8,450,420 Android phones, from all makers, had been sold since Android was release in October of 2008. 30% of 14.7 million is only 4.4 million... and 28% of 13.5 million (1st quarter US 2010 smartphone sales) is only 3.8 million... bringing the total to ~16.7 million Android phones sold worldwide... total, since October 2008. Less than what Apple sold worldwide in just six months. I don't think Apple is too worried.
Incidentally, in the iPhone's 1st year, they too posted growth figures in the same range...
This one, Joe. I don't think there are many who would disagree that Apple set the bar far higher on the modern touch smartphones. You may disagree, but the iPhone is the one that everyone compares new challengers to see if they compare... not to the last Android "iPhone killer."
As it stands right now, Apple is selling every iPhone they can make... and the demand far exceeds Apple's ability to fill it. They are seeking other manufacturers with the ability to meet their exacting standards. That is not easily met. They have also absorbed a lot of the flash memory manufacturing capacity at this time between the iPhone4 and the iPads, as well as the manufacturing capacity of the companies capable of making the Retina Display, which no other phone maker.
For Apple's suppliers to tool up to make more iPhones to meet the demand that adding another US carrier of the size of Verizon, would probably take months of planning, manufacturing, and supply chain set-up to accomplish.
They cannot without materially damaging their current contract partner AT&T. If they were to have a future contract with Verizon or any other carrier, and were to advertise that fact, AT&T would have a restraint of trade case against Apple that would be a slam-dunk in the courts, as they could easily demonstrate that customers who would consider switching to AT&T would decide to wait for the announced iPhone on (insert name of carrier her). Instant proof of financial damage... and fodder for a lawsuit.
Until the current contract term is complete, Apple must abide by that contract and the partnership it entails. Unless AT&T releases them from that contract, or materially violates the terms of that contract, Apple is stuck with them.
Actually, we don't know that. We suspect that portions of the contract were re-negotiated... but not the overall contract, or the exclusivity portions, which may be non-negotiable. The iPad contract is not related to the iPhone contract... and was negotiated separately from the iPhone contract. I hear that Apple did approach other carriers on the iPad but the carriers (Verizon?) insisted on iPad and iPhone together, which is something Apple could not grant under their existing contract with AT&T. Apple refused AT&T an exclusive on the iPad, and also would not allow them the 2 year contract they so wanted to offer on the iPad, because Apple did not want to be locked in again.
As always, thank you for your clarity.
Same with HTC.:
“HTC Heavily Investing in Building New Manufacturing Facilities
by Quentyn Kennemer on July 23rd, 2010
HTCs gone on the record to say that theyre working diligently toward getting new facilities up and running in which to build their phones (Android and WinMo-based). Recent issues with component shortages from their suppliers (namely Samsung and their inability to ship adequate amounts of AMOLED screens) has pushed them to build a more efficient manufacturing process to ensure that they can build phones just as fast as they can get parts in stock.
HTCs Jon French the companys UK director speaking to Mobile Magazine:
We are catching up. We are still in a position where the demand keeps growing and like any good manufacturer, it takes time to build up capacity just to meet demand so we are doing that now by very heavily investing in new production capacity and we will catch up very, very soon
Motorola is also ramping up production to meet the booming demand for their new Droid X.
You can repeat and repeat until you are blue in the face, Joe, but you are still wrong. Try putting the word "modern" in there and Apple did invent the "modern touch screen smartphone"... or did you not notice the italics I placed on that word?
No one else combined the features and ease of use that the iPhone has, and so far, no one has found that combination that equals it. Otherwise why are all the other makers scrambling to make "iPhone killers" and failing?
What smartphone do you think pre-dates the iPhone that meets the criteria?