Why U.S. Android Handset Sales Are Outpacing the iPhone

107 Comments

More handsets sold in the U.S. during the first quarter of 2010 were running atop Google’s Android (s goog) than Apple’s (s aapl) iPhone operating system, according to the latest findings of The NPD Group. Android smartphones accounted for 28 percent of sales; the iPhone, just 21 percent (both still lagged behind Research In Motion’s BlackBerry (s rimm) platform, which was the market leader at 36 percent). So what’s propelling Android past the iPhone?

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There’s the obvious explanation: Exclusivity on AT&T’s network limits the potential sales for Apple. As Verizon announced on its most recent quarterly earnings call, it has more than 92.8 million subscribers, none of which can buy an iPhone for use on the network — although a recent poll found that a majority of them want one. Enter Google Android phones, whose user interfaces are similar to the iPhone and have access to a growing software store, now estimated at 50,000 applications. Verizon is helping the Android cause, too — it devoted $100 million in advertising muscle to back the Android-powered Motorola (s mot) Droid.

An additional factor is the number of handset choices. By providing its Android operating system to any hardware manufacturer that wants it, Google allows for a near limitless number of handset variances for consumers to choose from. iPhone selection, on the other hand, is akin to choosing the paint color of the old Ford Model T’s that only came in black — you can have any iPhone model you like right now, so long as it’s an iPhone 3G or 3GS.

Finally, the many permutations of Android devices offers another advantage — pricing flexibility based on the hardware used and the features offered. The NPD Group cites an average smartphone price of $151 in the first quarter of 2010, roughly half of the $299 price tag for a top-shelf iPhone. Apple offers subsidized models at $99 and $199, but most subsidized Android phone prices top out at $199 and go down from there. The Samsung Behold 2 running Android is currently free with a service plan at T-Mobile, for example. With so many choices, consumers can find Android units for well under $99 these days and can shop around in a greater range of price points.

Related research on GigaOM Pro (sub req’d):

Google’s Mobile Strategy: Understanding the Nexus One

107 Comments

TheFilter

This article is somewhat comical….
Q: “Why U.S. Android Handset Sales Are Outpacing the iPhone”
A: Apple already released the iPhone and Android’s numbers have no where to go but up.
JUST like everything else, the media spins away.

How bout comparing 1stQ Android sales NOW to 1stQ iPhone sales THEN??? Yea….. cause they won’t. Cowards.

For all you haters please pay close attention to the following:
“As Verizon announced on its most recent quarterly earnings call, it has more than 92.8 million subscribers, none of which can buy an iPhone for use on the network — although a recent poll found that a majority of them want one.”

Bet that’s YOU iFonePhag :) hahahahhahahaha

Kevin C. Tofel

“Apple already released the iPhone and Android’s numbers have no where to go but up.”

By that rationale, Palm would be selling webOS handsets like hotcakes, no?

James

This was really an inevitability. It’ll be interesting once WinMo7 finally gets released to see what kind of traction it gets. The part that I find interesting is people jumping from one platform to another, how long is that going to keep happening? These phones are no longer simple, disposable devices. You’re essentially investing in a platform, the same way you would a Mac or a PC. I know myself I wouldn’t really even entertain the idea of moving away from iPhone just for this reason, I’m already invested into it for 2+ years now.

culligan man

its really not that tough to understand why, everyone in waiting for the new one to come out, once it does any android wont even be competition

Kevin C. Tofel

That’s an interesting thesis, but I have to ask: now that we know what the next iPhone will look like from a hardware and software perspective, what are the features it will have over Android that justify your thought? I’m not suggesting you’re wrong — simply curious on how you arrived at your position.

PXLated

He pretty much overstates his case (or non-case) but…
The only downside to iPhone is AT&T. I don’t know a single Android user that didn’t really want an iPhone instead but were with Verizon (or they were just cheap and wanted the two for one deal). I don’t have either but just watching the two camps work with their phones, iPhone just seems slicker, smoother, and easier to use.

roz

We know what to expect from iPhone 4.0 but not from the hardware side. We don’t actually know how representative the found device is in terms of the full line of iPhone hardware Apple will ship or at what price.

I think there are a lot of iPhone purchasers who are waiting to see what is offered and on what carriers.

Zagreb

Differentiation to the average user will come down to one word: Flash. After the initial beating Flash has taken at the hands of Apple, when it’s finally up and running on the Android platform, the android sellers will be able to show all sorts of Flash sites running on the thing and compare the footage with an iPhone showing a blue Lego piece. That by itself ought to be enough to put paid to Jobs’ “Flash doesn’t work” rhetoric.

hardmanb

Another reason Android is outselling Apple right now:

Amazon is selling the Android Backflip for one penny ($ 0.01).

Joke Buddha

Apple is loosing my trust heavily due to closed platform and limited ability to load content or application to its devices… As soon as an alternative with same usability is available I will be really happy to try it.

Ray

Back when all these companies were using their own OS instead of Android, if you combined their total sales they outpaced sales of the iPhone back then, why does that matter now that they are using the same OS? If a single phone maker out sold Apple, that would be news, but otherwise it’s irrelevant since Google doesn’t make any money off Android. Also, iPhone sales are probably low right now because of the iPhone leak by Gizmodo becoming so mainstream, who would want to buy a new iPhone right now with the new one coming out so soon?

Droid is a cool OS and has a lot more functionality than the iPhone, but it’s way too cluttered and unorganized. It’s only a matter of time before their lack of restrictions turns it into a hackers playground and all Droid phones start suffering from viruses, spyware, instability, and performance issues like Windows does. Who wants to deal with any of that when you’re just trying to make a phone call?? Also, all the Android phones I’ve seen have seemed really cheap and clunky, I haven’t found one yet that I’d want to own.

Ultimately I just want the best cell phone. If Android emerges as the best OS and someone makes a better phone, I’ll gladly give up my iPhone, but it just ain’t happening yet. Also if the iPhone ever actually makes it to Verizon it’s going to be huge for them and really show who the leader is.

Kevin C. Tofel

“Droid is a cool OS and has a lot more functionality than the iPhone, but it’s way too cluttered and unorganized.”

That’s interesting to me since you can easily organize Android by using folders — something that’s coming in Apple iPhone OS 4.0. ;)

Max

Because Linux, what Android is built on, has had so many problems with hacking and viruses in the two decades that it’s been around?

James

One more important reason may be that Apple tightly controls what apps you can run on the Iphone and does its best to exclude apps that do not fit its philosophy or provide competitive services. Google is a truly open platform.

Shai

While all the points above are true and are probably the main reasons there are also some distinct software advantages Android has/had during that time period: e.g. far more customizable, multi-tasking (for that time period), open platform & development (huge geek appeal), google tie in (if you use gmail etc. its amazing), street view, google voice etc…
The Android devices shipping right now have also some hardware advantages such as higher resolutions for the screens/cameras, keyboards (if you are so inclined) etc.

I genuinely think Apple totally lost the fight, its going to go back to a niche player status just like the PC in the 90’s and Android will dominate the market just like the old Mac vs. PC. In fact you can take every decision made by Apple today and see how it matches exactly to the case of the inferior (and open) PC platform beating the socks out of Apple.

Hephail

In India, it is a difference of $330 for the HTC Tattoo versus $660 for the iPhone.

With regards to the Ford model T analogy, people will always find ways to customise it to them, like with a Zippo, hence you have great skins and coloured covers which people use, like turning their iPhone white with one of them covers.

Riot Nrrrdâ„¢

Who cares. I don’t let Linux near my desktop at work or at home – why would I want it anywhere near my phone? These numbers are meaningless.

Czar

Maybe we’ll see some significant price drops in the iPhone’s newer models. Man, I love competetion. Now if someone could produce something akin to the iPad. I’ll be getting something when I see those prices start to drop.

rabidcb

I would like to see how the competition is being played when you compare handset maker to handset maker. If you think that Motorola is content that Android is outselling other handset OS’es, then you are blind to the real race. Compare Motorola vs HTC vs Apple vs (smartphone maker) and you have the data that really matters to the handset makers. Android primarily matters to Google for adveritising reasons. Ultimately all handset makers are competing against each other, not matter what OS they are running.

Tom B

God– anyone who buys ANY Motorola product is insane. One of the most screwed up companies on the planet.

Mark

Ah yes, Kevin, that was the article in which you completely missed the obvious point of Nokia’s unit sales increase being about the same as RIM and Apple’s increases combined despite the fact that they don’t actually realistically compete in the US market which, by country, is… err… where the majority of Apple and RIM’s sales are made.

rabidcb

@Mark,

I read somewhere, and not sure if its true or not, that Nokia devices that were used to get these numbers were not even smartphones. So, the numbers for Nokia may be scewed based on the what the survey considered a smartphone in Nokia’s case. They should provide a list of the model of phones used to get these numbers.

Mark

@rabid cb

It’s not true. All Symbian S60 series Nokia handsets are smartphones by the accepted definitions and have been since 2001. That’s why Gartner, IDC and Canalsys report them as such.

Kevin, that’s the point. Android and Apple’s growth has been largely US driven. Nokia do not compete in this market yet still increased smartphone sales by nearly Apple and RIM’s combined increases. I don’t think a lot of US tech analysts realise just how entrenched Nokia are.

The real threat to Nokia comes from Samsung and HTC, not Apple or RIM.

Kevin C. Tofel

Thanks for clarifying, Mark. I think we’re seeing different sides of the same coin. I agree with you that Nokia is fairly well entrenched outside of the U.S., but over the past few years, their worldwide market share has been in decline. Unless the U.S. is accounting for a bulk of the worldwide smartphone growth (highly doubtful), the data tells me that Nokia isn’t gaining market share in the markets where it’s the current leader.

Again, I’m not questioning Nokia’s unit sales growth – the data in the post we’re referencing shows that Nokia sold more smartphones. I’m simply looking at the rate of growth in overall, worldwide market share. Nokia didn’t show any while others did. As I read it, you seem to be applying the U.S market numbers to the worldwide market and I’m not sure why. Perhaps I’m still missing the point or we’re just in disagreement. ;)

Mark

Kevin, a large part of that growth actually has come from the US market. You might want to read the big three’s – Canlys, IDC and Gartner – commentaries on regional market share and growth.

Here’s a link to Canalys report. You’ll note that outside the US Nokia continue to increase share.

http://www.canalys.com/pr/2010/r2010051.html

Kevin C. Tofel

Again, Mark, I appreciate the conversation and info. Here’s the thing: I just looked at the link you posted to the Canalys report. Here’s what I’m reading (not interpreting – just reading) from it:

Nokia WW share in 2009: 41.4%
Nokia WW share in 2010: 38.8%

Now the interpretation: if Nokia is growing so much outside of the U.S. market, why would it’s WW share be decreasing? I do see good growth rates for Nokia in the report, but I see even higher rates from other vendors. Again, your position is predicated on Nokia’s relative lack of a U.S. presence – which I understand. But I’m not seeing the leap between that point in the U.S. and worldwide numbers. It places too much emphasis on the U.S. market, IMO.

It’s fine with me if we want to agree to disagree on the topic – I don’t think we’re quite looking at it from the same perspective, so it’s unlikely that we’ll arrive at the same conclusions. :)

Mark

“Now the interpretation: if Nokia is growing so much outside of the U.S. market, why would it’s WW share be decreasing?”

Because the US market grew the fastest at 27% year on year ahead of the 16% average growth. Since Nokia don’t compete in the US market they don’t benefit from this quicker growth. If you discount the US their share remains stable or grows because they did very well in APAC, EMEA and other regions.

It’s a pretty simple concept. I was kind of hoping you would use Canalys’ other data:

http://www.canalys.com/pr/2010/r2010033.html
http://www.canalys.com/pr/2010/r2010021.html

So, 166 million smartphones shipped in 2009 of which 47.2 were shipped in the US.

If you do the maths and work out ex-US market share you can see that it’s:

Symbian: 65%
Apple: 12%
RIM: 10%

I’m sorry if I come across as a bit rude here but I’ve kind of run out of patience with bloggers who just don’t appear willing to look behind the numbers and instead jump to some very dodgy conclusions.

Mark

Although I should point out that Nokia’s share is 57% given that Symbian covers DoCoMo, Samsung, SE, and other handsets too.

Kevin C. Tofel

“I’m sorry if I come across as a bit rude here but I’ve kind of run out of patience with bloggers who just don’t appear willing to look behind the numbers and instead jump to some very dodgy conclusions.”

Mark, I think we’ve both been patiently making our points, so no need to apologize. Of course, it would have saved us both some time if you had just shared the smartphone unit sales in the U.S. and worldwide from the get-go. ;)

I’ll dig around in the numbers some more – thanks!

Tom B

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, because the ONLY other selling point– The Droid OS itself, is lame– 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.

pb1994

I 100% agree with this analysis… at least at this point in time.

I think people might be misinterpreting these early numbers. Before the Droid was launched (at the end of 2009) there really wasn’t a serious Android device to compete with the iPhone on a major US carrier. So of course, once it launched on Verizon the Android sales numbers got a bump. I suspect that a lot of people who wanted a consumer oriented smartphone but were tied to Verizon (couldn’t or didn’t want to switch to AT&T) are responsible for this surge in Android sales. This effect is much more likely a result of Verizon entering the consumer smartphone market with “an option” rather than people flocking to Android for the sake of Android.

Carrier lock in is still a big factor in the US. A decent portion of those people who bought Droids this time around would most likely consider the iphone if it was available on Verizon. Lets see if these numbers hold up over time in general, and especially if Apple launches the iPhone on Verizon.

What would be a more interesting statistic to discuss is the motivation behind this shift. You can’t tease the motivation out from just the raw sales numbers. I wouldn’t assume people bought Android it because they had any particular dislike of the iphone or strong preference to google or motorola – although some people may have.

Nonetheless, Apple should pay attention to the trend and adjust their distribution/marketing strategy if needed. It could be a significant challenge to their position, regardless the reasoning.

Kevin C. Tofel

“Carrier lock in is still a big factor in the US. A decent portion of those people who bought Droids this time around would most likely consider the iphone if it was available on Verizon. Lets see if these numbers hold up over time in general, and especially if Apple launches the iPhone on Verizon.”

Very true as U.S. customers typically pick their carrier first and the phone second. But I don’t put much the “if Apple launches the iPhone on [insert carrier here]” scenarios because much of those are speculation on iPhone availability. However, if they do release an iPhone on Verizon, it would indeed have a huge impact on these numbers.

OneMonkeysUncle

You’re leaving out the single factor driving Android sales in the past three or four months: every carrier I see is basically GIVING them away. $99 AND 2-for1? Of COURSE TMo can hang on to some subscribers with that. This kind of bottom-of-the-barrel, fire sale model is not now nor has it ever been Apple’s main focus. I doubt one report from one consulting company for one quarter is causing his Jobsness to lose much beauty sleep, particularly with the Hype Machine spinning up for iPhone4 products in 6-8 weeks. I know Fandroids need to clutch at every glimmer of hope while they can, but you might want to temper your effusions a bit, kids…

trip1ex

It’s definitely hurt Apple not to be on other carriers. If they wanted market share then they made a mistake by not putting the IPhone on Verizon, TMobile and even Sprint. Too many consumers choose the carrier first and the phone second especially with all these friends and family and corporate plans.

pb1994

I agree. Currently the only only objective comparison between iPhone OS demand and Android OS demand that factors carrier preference, plan pricing, device subsidies, coverage, and lock-in out of the equation would be between a similar android phone and an iphone on AT&T. Otherwise you are likely just looking at an initial bump in sales for verizon having “a smartphone” not any strong indication that consumers actually prefer Android.

Dave52

Somehow, I don’t think Apple feels hurt. Their objectives are not the same as other handset makers, nor those of the gadgetistas. Apple is doing what it wants to do, and is making money hand over fist in the process.

The iPhone is not on non-AT&T networks for one simple reason: none of the other big carriers follows the wireless phone standard that the majority of the world uses: GSM. (And apparently Apple decided that having leverage with AT&T was more important than inviting T-Mobile and a few even smaller carriers to the party.)

Think of non-GSM wireless networks as the hardware equivalent of Flash.

fjpoblam

Samsung is a superb manufacturer of electronics in general, and cellphones in particular, in our experience. That’s one point for their Androids, right away.

Add iPhone’s AT&T bondage and “walled garden” approach, and the result is for us a cinch.

PXLated

Can one really compare Android as a whole to iPhone? Android phones from different manufacturers are so different with entirely different interfaces that me thinks not.
None of my non-geek friends even know that the Droid is an Android phone, they bought it because it was a two-for-one sale. Nexus1, what’s that.

Charbax

The prices you are quoting are subsidized. Comon. Consumers in the US are trickered at paying $2000 to $3000 for an iphone because they have to sign a 2-year contract.

Why do you always think it’s a given that everyone has to get screwed in the US?

Android brings new business models to the industry. Which means soon enough people can buy a 3.5″ nice Android phone for $199 and be on a Virgin Mobile or MetroCPS pre-paid account, with Android there is no need to sign any 2-year contracts anymore. That is going to be a HUGE difference. Most of the worlds mobile phone users are on pre-paid and not on contracts.

ZippyD

That sounds good on paper Charbax but its not happening today and you seriously underestimate the political weight of the phone companies to hold onto their markets. My question is 4g really the standard its supposed to be in the future? If it is then I could see it happen. That’s why the market is different in the US vs. the rest of the world (they’ve settled on a standard we haven’t delivered one yet).

James

iPhone users are no more tricked into a contract for a subsidized phone than any other phone user on any other carrier, this includes Android phones. They are pretty much all subsidized which allows users to purchase smartphones that would otherwise be more expensive and less impulse buys and makes money for the carrier. That’s how it rolls in the US.

Apple allowed the purchase of unsubsidized phones (but still locked to AT&T), but the cost is considerably more. This isn’t any better or worse than Android.

Yuvamani

By now the entire world knows the new iPhone releases in June and also for the first time it’s specs. It’s really stupid to buy a phone which will be 100 dollars cheaper in June AND it will be outdated

Hence this data point was half expected.

But that said yoohoooo android. And @palm here’s more salt on your sprint exclusive wound.

Hipster

“Hence this data point was half expected.”

Spin harder.

Apple has been losing marketshare to Google for two straight quarters.

Google kicking Apple ass has nothing to do with ‘teh new iPhone’. Apple fanboys better pray that joke of a prototype everyone has now seen isn’t the real thing. It sure as hell is no Android killer.

rabidcb

You are looking at the competition from a user point of view. That view doesn’t matter to Apple or any other handset maker. When you say Google is kicking Apple’s ass, you better not be talking about profits, cause then you would be way off base and profits are the only thing that matters to ALL handset makers. You need to keep in mind that Apple has a well defined and robust ecosystem, gives them a huge advantage over any handset maker, they are built for the long haul. This is why Steve said Apple was years ahead of everyone, because for any handset maker to build the kind of ecosystem that will keep customers returnin, will take years. Look at the Motorola Droid, when this thing came out, it was marketed well and succeeded for a short period, now it has take a back seat to an HTC handset and cant maintain its status. Since Verizon ownes the Droid trademark, they are all slaves to Verizon. Only Google cares that they have market share because they get advert $$, hopefully from your pocket.

Mark

@rabidcb

And what happens when the iPhone is no longer the handset to have – you know, as happened with the Motorola RAZR and the Nokia N95 – and no-one wants one any more?

That’s kind of where fragmentation comes in handy and it’s also where a lot of tech commenters demonstrate why they don’t understand the phone market (hint: it’s not apps that sell phones).

rabidcb

Sure, we can do the what if this and what if that, but only time will tell. I don’t think Google or Apple will be losing money anytime soon. I can’t say that for the all the Android handset makers, its a race to the bottom for them. They’ll get cheaper and cheaper in hopes customers use thier devices. But they are chasing each other trying to vie for the Android market. I think HP did the right thing purhcasing Palm, they understand the formula to maintain revenues for the long haul.

Chris

I bought an Android to replace an iPhone 3G. So did my father, and he doesn’t know what multitasking is on windows let alone on a phone.

Like Blackberry which has slashed prices, Apple is soon going to be in a race to the bottom to maintain share or be forced to simply sell to the less than a million members of the Cult Of Jobs.

MikieV

“Apple has been losing marketshare to Google for two straight quarters.”

Funny how the article Kevin linked to, below, states: “Handset makers Apple and Motorola exhibited the largest growth in terms of smartphones sold and both gained in market share,…”

rabidcb

Android is a race to the bottom fellas. This is mirroring the PC industry. PC’s outsell Macs by a huge margin. Eventually, Androids will outsell iPhone by a huge margin. Does not Apple care? Sure, but not as much as they care about profits. In the PC industry, despite being outsold every year, Apple makes more profit than many of them combined. Same goes for the smart phone market, combine all the Android handset makers and compare their profits to Apple, they would trade places with Apple any day. Bottom line, all these handset makers are accountable to share holders, and this is where Apple is so far ahead, they are laughing at these numbers. Like I said, Android = race to the bottom.

Kevin C. Tofel

One difference in the PC market and the mobile market as it pertains to Google: PC makers don’t make money from users clicking ads on their PCs while that business model is core to Google’s revenue stream.

rabidcb

Yes, true, Google is the only one concerned that Android runs on as many mobile devices as is possible. HTC and Motorola could care less, they simply want to sell handsets no matter what OS runs on it. It is the handset makers that have to differentiate themselves from the pack. Look at the Incredible, correct me if I am wrong, the Incredible runs a proprietary UI. You see, eventually, they will all need to build walled gardens around their ecosystem to provide a user experience the consumer wants to return to.

PXLated

Agree – Android is not monolithic and fragmentation will only become more distinct. Will not matter that the underlying system is open, everything on top will be closed.
I can hear the open-source fanboys crying already :-)

MB

Fragmentation is going to continue to be a growing problem for Google. Look at the Android Marketplace for example. Yes they claim to have 50,000-60,000 apps,however, if I bought an Incredible I can only purchase a subset of those apps since all won’t run on my version of Android.

It’s also a problem for developers as they will need to support multiple versions of android for their apps.

On the iPhone developers don’t have that problem since they know the upgrade cycle is annual and apple phases out older versions. Apple has also made it easy for developers to create and manage iPad versions of their apps.

Unfortunately for Google, their fragmentation problem is just beginning as more manufacturers start using Android and as they further customize it to differentiate their products from their competitors who are also running Android.

PXLated

Will be interesting to see what they “try” to come up with. Can’t see the individual mfgs going along with Google though – To be successful, they can’t be a Gateway or Dell controlled by Microsoft.

Nikhlesh

Isn’t fragmentation going to be a problem with iPhone OS also now? We have upcoming OS 4.0 which runs on 3GS, partially on 3G and does not support 2G. There are quite a few 2Gs out there and large developers will need to factor them in.

If fragmentation can happen with a single vendor, single hardware family, closed systems then Google can definitely not be singled out.

PXLated

Nikhlesh… there’s fragmentation which affects even newly shipping phones and then hardware obsolescence which only affects older, out of date models. Not the same at all in my mind. Fragmentation divides the current market and makes it difficult for devs to program for. Obsolescence is just expected. So, no, I don’t think you can compare the two.
Some fragmentation from a devs perspective might be considered between the iPod, iPhone and iPad though I would think.

Robert

I was trying to decide between the iPhone and the Motorola Droid. When I saw that I could get the droid for $20 bucks on a new contract with Verizon thru Amazon.com I was sold. There are very few apps I need that are not available on Android Market (Netflix and Pizza Hut come to mind) but for the most part, the apps I need are there. And I have insurance on the phone which I would NOT be able to have with the iPhone.

I am happy with my Droid and I can certainly see why it is doing so well.

Daniyal

The biggest hit to the Iphone is yet to come. A few guys have been able to dual boot android on an Iphone.
Once people start doing that and use the android they will start shifting to it a lot more.

Yacko

The average consumer is not going to jailbreak their iPhone no matter how easy.

TizzyD

I’m not sure if there is oxygen on your planet, based on that comment. I have both; I’ve used both. I find Android to be a geeked version of iPhone OS 2, that is, a lot of cool features slapped together with little consistency. Consistency often means limiting choice. But if I had an iPhone that could boot Android, I would still use the iPhone. It’s just simply more polished.

FreeRange

And of course you are talking about the techtards, you know, the ones that love to dig into the tech and jailbreak etc. But the overwhelming majority, let me repeat, the overwhelming majority of people want to be insulated from the technology. They want incredibley easy to use, functional devices that are state of the art and deliver tremendous added value. Only Apple does this. Look what Apple has accomplished virtually overnight in this industry. Before your user manual was 10x the size of your phone and it was virtually impossible to figure out how to use all its features and functions. Apple will continue to be a dominant player, no matter what the techtards think.

CR

Not being an Apple fan, this is great news! The 92.9 million Verison subscribers are obviously happy with their carrier!

Paul

I m with Verizon, just waiting for the contract to expire so I can switch to AT&T just to get an Iphone.

Cathie

Me, too…..which is sad because I love Verizon, and really don’t want to go with AT&T. Hopefully the reports of a Verizon iPhone coming out this summer are true.

Lisa

If you switch to ATT you will be sorry. I have sprint and I switched and ATT was so bad I switched back, I tried it again a year later thinking they might have fixed there bad service, I dropped so many calls I had to switch back again. I will wait till sprnt comes out with an iphone or I will get the android that will be out in June or July. It is supossed to be as good or better then the iphone.

Gokul Selvaraj

yea whatever!! or it could be the case that consumers are actually finding Android better than a frigging iphone.. what with multi-tasking/folders and no steve jobs controlling your lives… you may actually at least want to cite the most plausible reason for android outselling the iphone in your article as a probable explanation!! un-frigging-beleievable

frazman

Actually, the most ‘plausible reason’ for Android ‘outselling’ the iPhone is that huge numbers of them aren’t even sold–they’re given away as BOGO…which is a nice way to get market share, not so nice if you are in business to make money.

Relwal

Someone is paying the $70/month for 24 months to Verizon for each of those handsets. And Verizon is buying the handsets. So what.

ZippyD

Sorry Gokul,
You’d be hard pressed to find 1 out of 10 customers who care one bit about multitasking/folders, Steve Jobs controlling their lives and whatever other Engadget/Gizmodo (hey whats the processor speed!) Uber geek specs.

Gokul

Haha, i thought the same before this report was released. I too thought there were just too many people who didnt care about being ripped off and willing submitted to Jobs’ whims. But apparently not so, 28% who do care vs 21% who do not according to the NPD report(not 1 out of 10 zippyd)

Bobboy

Are you serious? You must be seriously out of touch with 99% of people that use these phones. No one cares about multi-tasking? Ha!

EJ

Apple’s crazy if they stay exclusive to AT&T for another day – the money they’d give up in exclusivity sweetness is nothing in light of all the marketshare they’re sacrificing.

Brian McConnell

I would have bought an iPhone a long time ago, if I did not have to use AT&T. I didn’t want to deal with jailbreaking the phone, and risk it turning into a doorstop. They should have done their deal with T-Mobile to begin with.

Constable Odo

Android is doing very well, but only individual manufacturers of Android handsets are making any money. Google isn’t making a dime from Android market share. At least not yet, anyway. It would have to leverage mobile ad clicks to make any revenue but that isn’t going too well yet. Mobile market share doesn’t have much value if there isn’t much money to be made from it. If the iPhone ever gets released on Verizon, the iPhone would be pulling so much revenue it would be almost unbelievable. Let Android market share crush iPhone market share. Apple just has to continue making money as usual and it will do more than fine.

Kevin C. Tofel

I’m in general agreement on the revenue angle, but it’s worth noting that on their last earnings call Google said they’re making money on the Nexus One sales. But I think you’re right – we’re just getting started with revenues from the mobile ad market.

Bregalad

Hasn’t Verizon stopped selling the Nexus One? It doesn’t look like that phone has a future even though the OS clearly does.

Kevin C. Tofel

Verizon never sold the Nexus One – no carrier does as it’s sold directly from Google. The Incredible is extremely similar to the Nexus One, so Verizon chose to sell that and not work a wholesale partner deal with Google on the Nexus One.

EJ

I don’t see the relevance – Google is unconcerned with making money (directly) off of Android. They just wanted to ensure a competitive landscape existed for mobile internet devices, which they’ve definitely done. The more we search, the more money they make. With Apple waiting 3 years and counting to expand beyond ATT, the move looks smarter by the day. Even if Apple expands to every U.S. network this summer and crushes the Android handsets, Google might consider their investment more than worthwhile for putting seriously net ready phones in people’s hands a year or two before Jobs wanted to.

gbp

+1, Egg Zag Tlee ,
Giving people net ready phones a year or two before iPhone is the key , it will create loyalty (read fans) and slowly increase revenue in mobile advertising space. By the time iPhone is available on Verizon/Sprint/TMobile folks already have comparable Android phone (not to belittle the options Android gives; the keyboard, touchscreen, expandable memory and removable battery to name few) It will be a tough sell for Apple to convert these folks. Apple surely will miss couple of millions of sales on each carrier ( which totals into ‘millions’ if you count HTC + Samsung + Sony + LG + Moto on Verizon + Sprint + T Mo ) as a result.

Ask if any of the 2 million Droid users to buy an iPhone, then you know what I mean.

FreeRange

ROFLOL – “[google] just wanted to ensure a competitive landscape existed for mobile internet devices…” are you that naive or just plain stupid?

Bob

Google is not a traditional software company like Microsoft who look to make money out of licensing, Google wants to own the platform and encourage more handset vendors and more buyers to come on to their platform willingly. For such a broad vision, spending around 100 million dollars per year on android is a pittance. Google roughly generates 2.5 billion dollars positive cash flow every quarter. Google thinks owning the best platform is the key to the future revenues, not selling licenses.

iFonePhag

I hate Apple. But it would also be wise to point out Q1 is right before they announce the newest model of Iphone. So you average Apple Cult Member would have already bought their 3GS last June and aren’t buying in Jan – Mar. Also Q1 doesn’t include a gift holiday. Either way I hope Apple burns in hell.

FreeRange

What are you 12 years old? Seriously, get some professional help.

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