Android Tops 50% Share of Smartphone Sales, But Apple Still Dominating Profits

MacRumors · Nov 15, 2011

Research firm Gartner today released its results of worldwide mobile phone sales for the third quarter of 2011, once again revealing how delayed purchases ahead of the iPhone 4S resulted in a dip in unit sales and market share for Apple. According to the report, Apple's share of the total mobile phone market came in at 3.9% for the quarter, down from 4.6% in the previous quarter. The performance was strong enough, however, to maintain fourth place in the rankings behind Nokia, Samsung, and LG.

Apple shipped 17 million iPhones, an annual increase of 21 percent, but down nearly 3 million units from the second quarter of 2011 because of Apple's new device announcement in October. Gartner believes Apple will bounce back in the fourth quarter because of its strongest ever preorders for the iPhone 4S in the first weekend after its announcement. Markets such as Brazil, Mexico, Russia and China are becoming more important to Apple, representing 16 percent of overall sales and showing that the iPhone has a place in emerging markets, especially now that the 3GS and 4 have received price cuts.

Looking at the narrower smartphone market, which represented 26% of mobile phone sales during the quarter, iOS slipped from an 18.2% share in the second quarter to 15.0% in the third quarter, trailing market leader Android and Nokia's soon-to-be-defunct Symbian platforms. Notably, Android leapt to grab 52.5% of the smartphone market during the quarter, more than doubling year-over-year and up significantly from 43.4% just last quarter.

But even as Android surges to take more than half of the worldwide smartphone market by units, Apple continues to increase its share of mobile phone industry profits, with several studies showing that Apple currently takes in more than half of the industry's profits.

In another stark example of Apple's rise to dominance in profit share, Fortune yesterday published several charts from a new report from analysts at Oppenheimer & Co. The graphs show that while Apple's share of smartphone unit sales has somewhat stagnated over the past couple of years, its share of smartphone profits has soared to an estimated 65% during 2011. That trend is predicted to continue in 2012, with Apple pushing toward 70% profit share.

Article Link: Android Tops 50% Share of Smartphone Sales, But Apple Still Dominating Profits

rmwebs · Nov 15, 2011

Nice stats.

Hopefully now that Android 4.0 source is out, we'll see some true competition, resulting in Apple being put in a position where they have to go on the defensive and up their game (not that its not already 'upped') to new levels.

Competition is the only way to ensure both iOS and Android will remain the excellent platforms that they currently are.

scotty321 · Nov 15, 2011

Those marketshare reports always fail to include the iPod and the iPad, which are all part of the iOS ecosystem. If they actually included ALL iOS devices in those studies, the TRUTH would be revealed: that Apple completely dominates & decimates their competition.

DMVillain · Nov 15, 2011

In 2007 Steve Jobs said he was after only 1% marketshare. Obviously, marketshare is not what they are chasing.

scotty321 · Nov 15, 2011

rmwebs said:
Competition is the only way to ensure both iOS and Android will remain the excellent platforms that they currently are.

Android is an excellent platform? We must have very different definitions of the word "Excellent".

ranReloaded · Nov 15, 2011

HTC Headquarters, 5 minutes ago...

Dammit! 50% and we still ain't making any profitz! Unleash the hyper-cheapo/BOGO handsets and make it 60%!111!!!!!

Oletros · Nov 15, 2011

scotty321 said:
Those marketshare reports always fail to include the iPod and the iPad, which are all part of the iOS ecosystem. If they actually included ALL iOS devices in those studies, the TRUTH would be revealed: that Apple completely dominates & decimates their competition.

Yap, because the iPod touch is a very good smartphone, isn't?

scotty321 said:
Android is an excellent platform? We must have very different definitions of the word "Excellent".

Well, you also have a definition for smartphone or phone that includes iPod Touch and ipad, so yes, perhaps your definition of excellent may be also wrong

ghostface147 · Nov 15, 2011

scotty321 said:
Those marketshare reports always fail to include the iPod and the iPad, which are all part of the iOS ecosystem. If they actually included ALL iOS devices in those studies, the TRUTH would be revealed: that Apple completely dominates & decimates their competition.

Why include them? This is only about phones and based on that, Android marketshare can't be touched.

aeaglex07 · Nov 15, 2011

i love iOS 5 but hopefully Apple can revamp the UI in the next iteration.
I think ICS will force their hand a little.

samcraig · Nov 15, 2011

scotty321 said:
Those marketshare reports always fail to include the iPod and the iPad, which are all part of the iOS ecosystem. If they actually included ALL iOS devices in those studies, the TRUTH would be revealed: that Apple completely dominates & decimates their competition.

Maybe because the stats are about smartphones as per the chart and not based on operating system. Note it's SAMSUNG not Android/Windows.

So what "truth" are you looking for. In sales, others are dominant. In profits, Apple does.

bushido · Nov 15, 2011

good now apple can stop being lazy and release a new phone. going the "but it sells anyway" route wont work forever and they better realize it before its too late. now u can vote me down whatever

TSYoder · Nov 15, 2011

Well, this only makes sense. I know so many folks that buy a Samsung or HTC, then look at my iPhone and say, "Wow, your phone works!".

iekozz · Nov 15, 2011

scotty321 said:
Those marketshare reports always fail to include the iPod and the iPad, which are all part of the iOS ecosystem. If they actually included ALL iOS devices in those studies, the TRUTH would be revealed: that Apple completely dominates & decimates their competition.

The iPod and the iPad are not a phone. Only the iPhone is. Can you make calls with a iPod or iPad via a celluar network? Thought so.

scotty321 said:
Android is an excellent platform? We must have very different definitions of the word "Excellent".

Here we go again. Yes, some people prefer Android and some iOS en some others WP7. It's called personal prefference. Bassicly it is letting them pick the tool that they want to use to acomplish the same thing.

Both iOS,Android and WP7 are very good, and they both have their positive and negative sides. Who are you to judge someone just because they use a different platform...

vartanarsen · Nov 15, 2011

This saddest part of all this is I remember a time, not too long ago, when you were considered cool having iPhones, and MacBook Pros, etc......now everyone has one.....

rmwebs · Nov 15, 2011

scotty321 said:
Android is an excellent platform? We must have very different definitions of the word "Excellent".

Really? You want to start that debate up?

Android is obviously an excellent platform if over 50% of smartphones are shipping with it. The hardware providers wouldn't be using it otherwise.

Shockingly just because we're on an Apple orientated fan site it doesn't mean that Apple > All Competitors, despite one or two users narrow minded views.

Debate over, I dont care if you think Android is a piece of <insert insult here>, facts are facts and the fact it, its clearly doing pretty damn well.

Oletros · Nov 15, 2011

TSYoder said:
I know so many folks that buy a Samsung or HTC, then look at my iPhone and say, "Wow, your phone works!".

Why people exaggerate so much that make their arguments and claims totally unbelievable?

BaldiMac · Nov 15, 2011

What are the benefits of Android's 50% market share?

mkrishnan · Nov 15, 2011

ghostface147 said:
Why include them? This is only about phones and based on that, Android marketshare can't be touched.

Android is, for better or worse, rapidly becoming the Microsoft Windows of the phone market. Their market share will keep going up for some time yet. The question is whether this time, Apple will be able to stay relevant instead of going into hibernation.

Right now, there are really no downsides (except OS flexibility, which is almost always going to be a downside of choosing Apple over their major competitor) to owning an iPhone that result from Android's marketshare. Unless and until market share drives developers away from iOS, it really doesn't matter to consumers. And it clearly isn't hurting Apple's bottom line. I'm not saying the analysis would be reasonable by trying to include non-phone devices (which exist for both Android and iOS, but in which Apple vastly outnumbers competitors), but they are relevant, in that they make up the overall consumer demand for software and services on iOS, which in turn is what keeps the iPhone relevant.

bushido · Nov 15, 2011

TSYoder said:
Well, this only makes sense. I know so many folks that buy a Samsung or HTC, then look at my iPhone and say, "Wow, your phone works!".

im starting to get "bullied" for my iphone at uni

everyones like hahahaha look at that screen or hey can u send me that song over bluetooth .. oh wait. its starting to get rly annoying

rmwebs · Nov 15, 2011

BaldiMac said:
What are the benefits of Android's 50% market share?

Competition.

Stella · Nov 15, 2011

vartanarsen said:
This saddest part of all this is I remember a time, not too long ago, when you were considered cool having iPhones, and MacBook Pros, etc......now everyone has one.....

If the iPhone wasn't so popular you wouldn't have the healthy eco system that iOS currently has.

OSX.. remember 2003? I do - 2012 vs 2003 - more hardware supported, more "mainstream" software, more games etc.

The more popular a product, the more support - hardware, software from 3rd parties.

samcraig · Nov 15, 2011

BaldiMac said:
What are the benefits of Android's 50% market share?

Are you asking sincerely? Because I thought (honestly) you were smarter than that.

michaelsviews · Nov 15, 2011

bushido said:
im starting to get "bullied" for my iphone at uni everyones like hahahaha look at that screen or hey can u send me that song over bluetooth .. oh wait. its starting to get rly annoying

Gee whiz you let opinions bother you about a device that you obviously like allot

TMay · Nov 15, 2011

rmwebs said:
Really? You want to start that debate up?

Android is obviously an excellent platform if over 50% of smartphones are shipping with it. The hardware providers wouldn't be using it otherwise.

Gee, and I thought the OEM's just liked it 'cause it was "free", which it turns out it really isn't. (see MS IP licensing).

Oh, I'm sorry, was the debate over?

nylonsteel · Nov 15, 2011

re original article

"dominating profits" - yeh - no kidding

Android Tops 50% Share of Smartphone Sales, But Apple Still Dominating Profits

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