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iPhone takes lead in US share as Android ties BlackBerry

updated 10:25 am EST, Mon January 3, 2011

Nielsen shows iPhone in front, Google and RIM even

The iPhone has overtaken the BlackBerry as the top-selling smartphone in the US but is still facing stiff competition from Android, Nielsen revealed in new study data today. Apple passed RIM in September and is now estimated to have 28.6 percent of the American market to itself. RIM has now fallen enough that it had 26.1 percent as of November and was virtually even with Android, which climbed to 25.8 percent and is virtually guaranteed to have taken second place by the end of 2010.

Apple may nonetheless have reason to be concerned as it has yet to reverse Android's growth rate among the newest buyers. Among those who bought their phones in the six months of the study, 40.8 percent were Android users; the figure was a steep increase from 27.5 percent in June. Apple's adoption rate after the iPhone 4 has been virtually unchanged in that period and sits at 26.9 percent. Most of Google's caustic effect was again on the BlackBerry, as it dropped from 35 percent in June to just 19.2 percent in the fall.

The news is good for Google and shows a steady growth rate but could change significantly in 2011. Analysts and observers have warned that Verizon has grown overdependent on Android and is still seeing its overall smartphone sales drop even as Google has become more important. Apple is widely expected to launch a Verizon iPhone after CES and could not only inflate its own share but take away from Android for those customers who would otherwise have bought an iPhone but refused to switch to AT&T.

Only a handful of smartphone plans for Android are known so far but will mostly focus on dual-core phones like the LG Optimus 2X, Motorola Olympus and possibly the Samsung Stealth V.





By Electronista Staff
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Comments

  1. Eldernorm

    Fresh-Faced Recruit

    Joined: Sep 2007

    +6

    Lack of thought in reporting

    "Apple may nonetheless have reason to be concerned as it has yet to reverse Android's growth rate among the newest buyers."

    Why, oh why, do all the empty headed analysts declare that units moved is the ONLY thing to review.

    Android and RIM have been doing a buy one get one, two or three FREE. Please note that it is not free to build these units. If everyone sells the same thing at the same price, then market share is the winner.

    But if you need to make a profit on your sales to stay in business, then Apple is making more profit on its iPhones that the entire rest of the smart phone industry. Er, since when is losing money (or making so little its almost the same thing) a good thing.???????

    Just asking.
    en

  1. xmlaroux

    Fresh-Faced Recruit

    Joined: Oct 2010

    +6

    @Eldernorm

    Your saying that Google doesn't make any money when a phone is sold?

    I think everyone here underestimates how much money Google makes from searches...

    Yes, Apple cleans up on all hardware sales, and a ton of accessories around the phones...

    Google is blowing up ... get used to Android, it is not going anywhere. Neither is IOS. Both will make each other better... which is good for all of us.

    PS. Don't get emotional with all the market analysis stuff. Your way too into stuff that shouldn't matter to you personally.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    0

    Re: Lack of thought in reporting

    Why, oh why, do all the empty headed analysts declare that units moved is the ONLY thing to review.

    Because the article is about MARKET SHARE, not SALES, not REVENUE. Its about SHARE.

    Another question to ask might be "Why do empty-headed commenters always try to find fault in the article because it doesn't reflect the information they want it to reflect?"

    But if you need to make a profit on your sales to stay in business, then Apple is making more profit on its iPhones that the entire rest of the smart phone industry.

    According to whom? Because when iFixit announces how cheap an iPhone's components are, everyone starts shouting about how it's an unfair look, since it doesn't take into account so much stuff, like R&D. (Another one of those articles that always elicits the same type of empty-headed commenting). How much of Apple's margins go to helping ATT improve their network (as some story reported they were doing), let alone other tasks?

    And as so many people here like to argue, no one else spends their money or time on R&D. Plus all their phones are made of cheap plastic and components, not the high-quality pieces apple uses.

    As such, could they not be making the same profit selling two phones for the price of one?

    Er, since when is losing money (or making so little its almost the same thing) a good thing.???????

    Since companies realized if they sold 20,000 units and made $1 profit on each could make them more money then selling 7500 units and making $2 on each. It's not all about revenue per sale, but also total revenue, total costs, etc, etc, etc.

  1. iphonerulez

    Fresh-Faced Recruit

    Joined: Nov 2008

    0

    The analysts do talk like Apple is going down

    tubes due to Android devices. Since when does quantity necessarily equal profits. Nokia still has most of the world cellphone market share, but it's doing that by selling low end phones which gives them very low profits. Apple is making very good money and by even just catering to the high end, Apple will continue to make money and high profits.

    This nonsense of nobody wants to spend money on a brand name is ridiculous. Consumers are not going to stop buying Apple if Apple continues to provide quality products and good customer service. Consumers are not that stupid. So what if the number of Android devices pass iOS devices. Apple is the only company that makes iOS devices. Android devices are spread among dozens and dozens of companies in which some companies are thriving and others are not. Analysts keep talking as if Android OS is some big conglomerate taking over. It isn't. It's just made up of small tribes all working for themselves. Google gets no licensing fees, so how does that warrant bragging rights.

    Every penny made from an Apple device mostly ends up in Apple's pockets. Apple is still selling products as fast as it can make them, so why should Apple be worried. If Apple decides to build some different product, all the rest of the industry will probably have to follow them at a distance.

  1. Jonathan-Tanya

    Fresh-Faced Recruit

    Joined: Oct 2004

    -1

    more overstatement about Verizon

    first of all - Android is charging ahead on AT&T. From being a joke a year ago, to a million plus seller now.

    Yes, of course, Verizon is a big carrier that doesn't have iPhone as an option - it will help Apple to be on Verizon.

    But, meanwhile: AT&T becomes more dependent upon Android as it loses iPhone exclusivity.

    And meanwhile - and more importantly - the high end adopters have already bought smartphones.

    The major growth in 2011 comes from converting feature phone/non-contract users to smartphones. This is an area where Apple isn't going to be in 2011 - as far as we know now, they have no plans to enter this market.

    So Android is exclusive (with RIM haha)...in the growth area of non-contract. Android has no competition on AT&T prepaid, Verizon prepaid, Sprint, T-mobile, and the prepaid carriers, like Cricket and MetroCall.

    It's great to have the growth market to yourself, while apple pins all its hopes on one move.

  1. Jonathan-Tanya

    Fresh-Faced Recruit

    Joined: Oct 2004

    0

    @Eldernorm, aka mr. "just asking"

    It's all about numbers. You get a hundred million customers today, find a way to monetize it later.

    The point is, we are in the early days of smartphones - it's a long term view here, but you don't want to wash out - uhm, kind of like Microsoft did, like Palm has mostly done - like RIM is in danger of doing.

    This is a market where you can have a billion customers - I believe pretty much all cellphones will be smartphones someday. So you want to be in that market - right now its mostly about numbers.

    Later it will be about profits, big profits.

  1. wrenchy

    Forum Regular

    Joined: Nov 2009

    0

    @Eldernorm


    Every time someone uses an Android Phone, Google makes money. Every time someone uses an iPhone on the internet, Google makes money. Every time someone uses an iPad on the internet, Google makes money.

    Maybe Google isn't so stupid after all.

    Oh yeah, and when was market share ever important? To the dime-a-dozen analysts maybe. Just keep using what you like and have fun!

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