Verizon iPhone Surge Yields First Slip in Android U.S. Sales Share in Two Years

[j-traxx]

When your sales numbers for phones are ~50% of that of your competitor; whereas a few years ago they were barely a blip, then yes that means they are getting kicked in the teeth in handset OS sales.

i think you meant buy one get one free numbers instead of sales. omg i fed the troll.


android is not a handset manufacturer. it just is a viral mobile platform supplier. it works for them for market share but low on maximum profitability. apple must be appreciated for what they are. Leaders. they did what everyone else was scared to do with smartphones (no stylus) and took the jump into a dead segment (tablets) and they went about it well and reaped the rewards. now johnny come lateley (goog) has come in with the "ours is almost as good but for FREE" and have roped in many marginally satisfied adopters. android's every success is a tribute to its forerunner and DADDY, apple, who still does it best and wont relinquish that fact ever because they Lead the entire industry in all things and they lead well. stop being so butthurt about it and raise your glass to the best. APPL!

 

[alhedges]

The market share data needs to be looked at in a more nuanced way than "Apple Wins!" or "Android Wins!".

The iPhone's market share *right now* is okay - enviable even - because, when combined with the interests of people who are buying iPhones *right now*, it means that developers have more incentive to make apps for iPhones than for Android...and the better app availability for iPhones makes the platform even better. (And to some extent the Touch and the iPad play a role here)

The *trend* of the iPhone's market share is more concerning, though, and anyone interested in the future of the iPhone should pay attention to these numbers. (I'm sure Apple is). If the iPhone's marketshare drops too far, or stays too low for too long, there is a risk that developers may shift their resources to developing for Android first. Which will further undercut the iPhone's advantages.

But these trends are certainly not fixed in stone...I know a lot of people (non-techies) who recently bought a 3GS...$49 for that phone is a steal. But $49 for the iP4 when the iP5 comes out will be even more of a steal...and, presumably, the old iP4 will be available on both AT&T and Verizon. And as more Verizon users come off of their contracts, there may be some additional iP uptake.

I really see no reason why - with $49 phones available from both Verizon and AT&T, the iPhone market share shouldn't go up to 50% or beyond.

 

[Zunjine]

I think the idea of winning and losing here is far more subtle than can be expressed in terms of market share or sales figures. The mobile OS arena is likely to mature into a three player game; Android and WinMob will take the largest user bases - I don't think any analyst would disagree with this. There is no way that Apple's model can compete on absolute sales to the multi-device approach of their competition. But that's only a tiny part of the picture.

Look at the personal computer space. See how much money Apple makes with a fraction of the worldwide install base of Windows? If Apple can hold onto 15-20% of the mobile OS market (which I think they will) they will be the most profitable of any of the players in the game by a massive margin. What's more they are likely to hold on to the upper end of the demographic, just as they do in personal computers. Their customers will be high earners who will buy music and apps and other content. They'll be invested in the ecosystem in a way which Android users will not be.

Right now Apple is a huge player in the smartphone business, the only player worth talking about in the tablet game and makes more money from selling personal computers than anyone out there. They own the OS and the hardware and they have placed themselves at the centre of the software ecosystem. This is an integrated approach which no one else offers. This makes them unique. No one competes with Apple because no one else does what Apple does. I don't think Jobs and co. will be weeping into their skinny lattes at the growth of Android or their market share dipping. They'll be too busy counting the money - same as their software partners who are making more from iOS development than all the other platforms put together.

The future is bright. We consumers now have three top notch mobile OS options and dozens of great pieces of hardware. RIM will go bye-bye soon I fear - WinMob will kill them off. But we're the winners and we have a lot to thank Apple for. I worked in the mobile industry for years and I remember what passed for a smartphone before iPhone. We're living in a future dreamland compared to the crap that came before and that's massively down to Apple raising the bar. Apple wins, Android wins, MS wins and we win. Be happy people.

 

[marksman]

Not surprising the iPhone 3GS was #2.

This is the real data. How are the actual phones selling... That is why when people try to convolute Android vs iOS on phones only it is silly.

Apple is dominating the smartphone markets with their individual products. Opening up to Verizon has taken away one of Android's advantages in the US.

All 4 iPhones are in the Top 10 of smartphones sold since the iPhone came out. In fact they are probably all in the top 6 or 7.

 

[coder12]

Anyone else find these stories on market share to be completely boring?!?

Can MacRumors setup a Page 3 section to put these on and keep the interesting rumors on the first page (new Macs, new iOS, etc)?

Until Apple announces they are stopping production of the iPhone due to low sales.....I don't care who sells the most.

-Kevin

Thank you! I was thinking the same thing here...

 

[dgree03]

Why do you keep comparing a single phone model to an entire platform used on 20 some devices?

Oh... that's right... it's all you can hang your hat on. Sorry... let's talk pummeled or badly beaten when any single Android phone outsells the iPhone.

Question should be, why does it matter how many android devices there are? There is still a one to one relationship, one customer buys-one device. Its android smartphones vs Apple Smartphones.

 

[ChazUK]

Hmmmm . . .

Should Google be more excited about how many copies of Android it has sold . . . .

Or Apple about how many copies of the iPhone it has sold ?

(little hint, Google isn't selling the Android OS)

Whlst Google doesn't sell Android OS, it does licence the closed source Google apps to third parties who want them. Without the google apps they wouldn't ship with Android Market, GMail, Google maps e.t.c. I'd assume they get a licensing fee for including the GApps.

 

[bpaluzzi]

Question should be, why does it matter how many android devices there are? There is still a one to one relationship, one customer buys-one device. Its android smartphones vs Apple Smartphones.

No. No. No.

Comparing Android vs. iOS : fine

But why the arbitrary distinction of "phones". It's an OS that can be run on multiple devices. Do you compare Mac laptop share vs. Windows laptop share? (In any meaningful context, that is)?

 

[dgree03]

Silly how? iPhone is a hardware and Android is an OS. This is apple v.s. meat. It's not even fruit v.s. fruit



Since you are talking about "sale". Can you list any Androids device that outsell the iPhone?
---->>>>>>> Buy one get one free --> only 1 device make money, the second is free. So, for 100 Androids devices got on the customers' hand, only 50 of them are "sold".

No in bogo they BOTH make money. Verizon, Att, Tmobile and Sprint have already paid retail for the phone before customers recieve the contract price. Apple, Samsung, HTC etc have already made their money. Telcos now have to make their money over time with the contract.

So Bogo makes them money also.

 

[ThisIsNotMe]

So the iPhone went from being pummeled by Android to now just being badly beaten.

That is Awesome.

Beaten in terms what what?

The entire Android platform only generates 1 billion dollars per year in revenue for Google.

On the flip side, the iOS platform generates 1.4 billion dollars per quarter through the iTunes store for Apple.

Google hasn't found a way to significantly capitalize on Androids market share and that is a major loss. Hell, Google could take over the other 30% of the market held by RIM/ect. and the yearly Android revenue would still be below Apples quarterly revenue for the iOS platform.

 

[dgree03]

No. No. No.

Comparing Android vs. iOS : fine

But why the arbitrary distinction of "phones". It's an OS that can be run on multiple devices. Do you compare Mac laptop share vs. Windows laptop share? (In any meaningful context, that is)?

Phones are different. Regarding your example you can have "anything vs anything" so sure Mac Laptop share can be compared to windows laptop share. Just as Windows desktop share can be compared to Linux Desktop share.

Sure we are talking OS here, but without the hardware.. the OS doesnt mean anything and vice versa.

 

[marksman]

.....About the the mentality of the people who buy a two year old phone just so they can say they have an iPhone.

Actually it is because a 2 year old iPhone is better than any Android device out there.

We all know the iPhone 4 is streets ahead of any other smartphone, but the 3GS provides a superior experience as well. It is not about spec sheets, it is about performance, software, reliability and the rest.

I agree with others that it is very telling that the 3GS outsells every single android iPhone on the market. That tells me people just buy random Androids when they go to buy a phone because they are cheaper or on deal, or if they don't have a choice to get an iPhone.

It is not like the general consumer is going "Wow this HTC magicamalcallit is so awesome. I tell all my friends to get it." or "This Samsung Soslightynotasbad is really an awesome phone and people are eating them up."

They might as well not even put labels on android phones. They are essentially a commodity compromised of a big pile of iPhone copycats with an inferior ecosystem. It almost seems like Cell Phone stores require people buying android devices to do so blindfolded.

 

[ChazUK]

Beaten in terms what what?

The entire Android platform only generates 1 billion dollars per year in revenue for Google.

On the flip side, the iOS platform generates 1.4 billion dollars per quarter through the iTunes store for Apple.

Google hasn't found a way to significantly capitalize on Androids market share and that is a major loss. Hell, Google could take over the other 30% of the market held by RIM/ect. and the yearly Android revenue would still be below Apples quarterly revenue for the iOS platform.

I dont know if Google want Android to be a pure moneyspinner. They're already better off with smartphones accessable to more people which in turn means more people online doing searches, using their services and data mining. OEMs like HTC, samsung, lg, zte and chipset makers will be the real breadwinners of Android if they can push successful products based on the OS.

 

[Michael Scrip]

Beaten in terms what what?

The entire Android platform only generates 1 billion dollars per year in revenue for Google.

On the flip side, the iOS platform generates 1.4 billion dollars per quarter through the iTunes store for Apple.

Google hasn't found a way to significantly capitalize on Androids market share and that is a major loss. Hell, Google could take over the other 30% of the market held by RIM/ect. and the yearly Android revenue would still be below Apples quarterly revenue for the iOS platform.

Obviously Google has the same opinion as other Android fans... marketshare is king.

Although... in the business world... cash is king.

Congratulations Google... you now have a lot of marketshare. What are you gonna do with it?

Oh yeah... you're an advertising company. I forgot!

 

[LagunaSol]

No in bogo they BOTH make money. Verizon, Att, Tmobile and Sprint have already paid retail for the phone before customers recieve the contract price. Apple, Samsung, HTC etc have already made their money. Telcos now have to make their money over time with the contract. Telcos now have to make their money over time with the contract.

One must assume the carrier would prefer to sell an iPhone, where they don't have to make up the cost of a "free" Android phone over time. Carriers thus would want to sink more advertising dollars and apply more sales pressure for the more profitable iPhone.

Again, let's get the iPhone on Sprint and T-Mobile and see how it all plays out.

 

[Laird Knox]

They can always try.
Please can we have some rumors abour iOS5 maybe?

Quick, somebody make up some rumors for the man.

 

[wovel]

So the iPhone went from being pummeled by Android to now just being badly beaten.

That is Awesome.

There is not a single Android device that outsold the iPhone 3GS. That is pathetisad...

 

[ProfessorApple]

They can always try.
Please can we have some rumors abour iOS5 maybe?

Nice!

 

[SmileyBlast!]

This is the important part:

Apple's iPhone 4 ranked as the top-selling mobile phone in the U.S. during the quarter, and perhaps most surprisingly, the iPhone 3GS took second place in the rankings. Despite essentially being a nearly two-year-old device . . .

That speaks volumes.

I noticed that 2 which must mean that Samsung and LG still ship a lot of Feature Phones as well in addition to their Android phones.

Still, we can surely expect this trend to continue where Smart Phones rise and Feature phones sunset.

 

[LagunaSol]

Why do people allow the same 2 or 3 chronic trolls to drag these threads out into perpetuity?

Since the mods refuse to weed out the obvious agitators, please use the Ignore list and add these pitiable individuals to it. It will make this forum a much better place.

 

[wovel]

No. No. No.

Comparing Android vs. iOS : fine

But why the arbitrary distinction of "phones". It's an OS that can be run on multiple devices. Do you compare Mac laptop share vs. Windows laptop share? (In any meaningful context, that is)?

Actually it is not fine. There are still Android devices sold that will never run 2.0+

What percentage of those Android phones are compatible with each other?

The market share data needs to be looked at in a more nuanced way than "Apple Wins!" or "Android Wins!".

The iPhone's market share *right now* is okay - enviable even - because, when combined with the interests of people who are buying iPhones *right now*, it means that developers have more incentive to make apps for iPhones than for Android...and the better app availability for iPhones makes the platform even better. (And to some extent the Touch and the iPad play a role here)

The *trend* of the iPhone's market share is more concerning, though, and anyone interested in the future of the iPhone should pay attention to these numbers. (I'm sure Apple is). If the iPhone's marketshare drops too far, or stays too low for too long, there is a risk that developers may shift their resources to developing for Android first. Which will further undercut the iPhone's advantages.

But these trends are certainly not fixed in stone...I know a lot of people (non-techies) who recently bought a 3GS...$49 for that phone is a steal. But $49 for the iP4 when the iP5 comes out will be even more of a steal...and, presumably, the old iP4 will be available on both AT&T and Verizon. And as more Verizon users come off of their contracts, there may be some additional iP uptake.

I really see no reason why - with $49 phones available from both Verizon and AT&T, the iPhone market share shouldn't go up to 50% or beyond.

The trend is iPhone Marketshare went up and Android went down...

 

[Thunderhawks]

Quick, somebody make up some rumors for the man.

Heard from an analyst who knows a reputable source that ios 5 will be released next Tuesday.

The date makes sense since it coincides with the 3rd of the month, which is also a prime number.

For now the ios has the code name: ios5 as insiders confirm.

Apple is close lipped as usual, but we hear 3 engineers who were asked: "What's new?" gave each other
high 5's in public and were thus arrested for releasing company secrets.

Verizon will have this ios too and it comes in white

 

[dgree03]

One must assume the carrier would prefer to sell an iPhone, where they don't have to make up the cost of a "free" Android phone over time. Carriers thus would want to sink more advertising dollars and apply more sales pressure for the more profitable iPhone.

Again, let's get the iPhone on Sprint and T-Mobile and see how it all plays out.

Very true, I am sure Telcos would rather sell you a $199 device AND still lock you into a contract(which is how is happens on high end Android and Iphones.)

Also I think carriers do bogo because they can push THEIR proprietary software that they bloat android devices with and make money that way. They cannot bloat iphone because apple doesnt roll like that. If you notice, T-mobile(who usually sells all the "pure" android devices) never do bogo for them. They will, however do a BOGO for a low end android phone with their apps on it.

 

[Popeye206]

Question should be, why does it matter how many android devices there are? There is still a one to one relationship, one customer buys-one device. Its android smartphones vs Apple Smartphones.

So two against 20+?

It does matter because different devices have different costs, and features. Sure the iPhone isn't for everyone. Some people have to have a keyboard and that automatically deletes the iPhone from the choices. Some people think the Pink phones are cute and will go that route. Etc., etc.

But when it comes down to overall features and functionality, the iPhone is still cleaning house against them all.

However, I'll say it one more time for the Android boys that don't seem to get it... it's not the iPhone vs Android. It's the iPhone vs the Thunderbolt, or the EVO or ???? None of which have come close to matching the iPhone sales.

And lastly... it's not Apple and Google that should be worried... RIM should be. They are loosing market share faster than I can type this post.

 

[wovel]

That low price sells?

According to your past posts, selling phones at a low price ($49 in this case) is a sign of desperation, of an attempt to flood the market.

Heck, that's far cheaper than BOGO sales for other handsets where two people have sign long contracts.

Or, could it just possibly be that people aren't always swayed just by price? That the device itself could be a major factor?

Are there any carriers not giving away at least one free Android phone...