Android may have started out slow but it’s made up a lot of ground in the last year. According to new data from the NPD Group, Google’s Android operating surpassed Apple’s iPhone in U.S. unit sales in smartphones in Q1. Apple’s OS was in 21% of the smartphones sold (namely iPhones), while Android accounted for 28%. Research In Motion continues to hold the No. 1 slot with 36% market share.
Perhaps what’s most interesting about NPD’s Q1 data is that smartphones appear to be driving up handset pricing, the opposite of what we’d expect to see in an industry where devices constantly get cheaper — perhaps Apple’s anti-commoditization powers are now being used on the mobile market. According to NPD’s press release:
The continued popularity of messaging phones and smartphones resulted in slightly higher prices for all mobile phones, despite an overall drop in the number of mobile phones purchased in the first quarter. The average selling price for all mobile phones in Q1 reached $88, which is a 5 percent increase from Q1 2009. Smartphone unit prices, by comparison, averaged $151 in Q1 2010, which is a 3 percent decrease over the previous year.
Connected Planet’s take,
Kevin Fitchard
Apple may make the single most popular phone in the U.S., but it’s now starting to witness the power of the platform. By offering up Android to any device-maker and any operator, Google is ensuring its OS will be everywhere, even if the individual devices may not be able to compete head to head with the iPhone. Now we’ll have to see how long it takes Android to pass RIM.
RIM’s BlackBerry portfolio is definitely more diverse than Apple’s, and it works with any operator — Apple essentially sells one device through a single carrier to all comers, refreshing the software and hardware every summer — but it’s still a single manufacturer with it’s own proprietary operating system. The beauty of Google’s strategy — and to a lesser extend Microsoft’s and Symbian’s — is the more successful it becomes the more successful it becomes. The more its OS penetrates, the more developers hop on board, meaning more and better apps, which in turn means more interest from handset operators and carriers in supporting Android devices.
The only drawback is that Android’s quick penetration into different portfolios of manufacturers and vendors and its attempts to keep the platform fresh and up-to-date have led to a lot of fragmentation among the different versions of the Android OS. One thing RIM and Apple can do easily is control the releases of their software so they don’t have to worry about a hodge-podge of OS versions being sold simultaneously across the world. It’s not a problem for Android so far, but it well could be.
That’s our take on this. Let us know what you think in the comments section below:
Well, hopefully this is one of those research companies that spews out bad numbers. Maybe they neglect Apple store sales or something. If Android IS selling more units, it shows the value of two-for-one specials– and the effect will not be sustainable without incurring losses in the long run. Nor is there any reason to buy a Droid outside the US, bcause the only other selling point– maybe the bigger feature– is that you are not tied to ATT, a company some people do not like. This is a US-only issue, and a temporary one, because the ATT exclusivity runs only a few more years.
I guess the reason could be people are waiting for the magical iPhone 4g which is rumored to be released this June. Once that is out, then Apple will be the leader again!
Note the hysteria and disbelief from the Apple Fan Bois who just cannot believe that Android is really better than the closed playground of the evil Dictator in Cupertino. It’s really amusing to see the deer in the headlight look. Much like what Palm Treo fans (me included) had when the iPhone was released. The market moves on once again.
Family plans? Jobs doesn’t have one, why should you? ROTFLMAO!
Google = Do No Evil
Apple = Pure Evil
It is amusing to see the denial among iPhone fans. Let’s face it, having more phone and carrier choices is just more consumer friendly. Exclusive deals with carriers is a turn-off for me as a potential buyer. Also, there are some advantages to the Android and other smart phones over Apple such as Adobe flash support, multi-tasking, better cameras, etc.
I am not surprised about the numbers; however, just like ATT, verizon, and Sprint have a lock on smartphones built to their specification. As for T-Mobile, the Motorola Milestone running Android 2.1 is available to their customers worldwide, except in the US. I would definately buy one if only I could.
This is not too surprising – why do you think PCs outsell Macs? The ability (and willingness) to run the OS on lots of different hardware, manufactured by a variety of vendors, allows it to scale quickly. We’ve seen this story play out before (Win/Apple), with probably the same outcome.