Apple's iOS, Google's Android account for record 92% of smartphone shipments

Posted:
in iPhone edited January 2014
The smartphone market is increasingly becoming a two-horse race between Google and Apple, with little room left for competitors outside of Android and iOS.

iPhone 5


The latest data from Strategy Analytics reveals that 70.1 percent of smartphones shipped in the fourth quarter of 2012 were Android devices, while 22 percent were iPhones. With the two platforms accounting for 92.1 percent of shipments, that left just 7.9 percent for all other operating systems, such as Windows Phone or BlackBerry.

"Combined together, Apple and Android accounted for a record 92 percent share of all smartphones shipped globally in the fourth quarter of 2012," said Scott Bicheno, senior analyst at Strategy Analytics. "The worldwide smartphone industry has effectively become a duopoly as consumer demand has polarized around mass-market Android models and premium Apple designs."

The research firm's data found that although Apple saw its sales grow 29 percent year over year, its market share was down slightly, from 24 percent a year ago to 22 percent in the fourth quarter of 2012.

Android, meanwhile, nearly doubled its shipments from 80.6 million units at the end of 2011 to 152.1 million in the holiday quarter of 2012. Android's share of the global market increased from an estimated 51 percent of shipments to 70 percent at the end of 2012.

In all, nearly a half-billion Android phones are said to have been shipped in calendar 2012. In comparison, Apple shipped 135.8 million iPhones in the same span.

"Android is clearly the undisputed volume leader of the smartphone industry at the present time," said Neil Mawston, executive director at Strategy Analytics. "Android?s challenge for 2013 will be to defend its leadership, not only against Apple, but also against an emerging wave of hungry challengers that includes Microsoft, Blackberry, Firefox and Tizen."
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Comments

  • Reply 1 of 119
    I wonder how many of this 70% would rather have an iPhone if they only could?

    Seems to me a hughe potential for Apple to grow beyond the wildest expectations.
  • Reply 2 of 119
    ifij775ifij775 Posts: 470member
    Apple will compete in the mid-to-high-end market while I don't expect much from those other players: Microsoft, Blackberry, Firefox and Tizen.
  • Reply 3 of 119
    If Apple release an iPhone 4 remade in plastic, available in multiple colors for $200 - $250, it would prove to be a strong contender in the developing markets. At its release, the iPhone 4 cost $188 to make (http://news.cnet.com/8301-31021_3-20009027-260.html). After 3 years, I would expect that cost to have fallen dramatically.
  • Reply 4 of 119
    dluxdlux Posts: 666member
    Seems to me a hughe potential for Apple to grow beyond the wildest expectations.
    Actually, Wall Streets wildest expectations have proven to be pretty wild indeed. They expect Apple to drop the price of everything to free to capture 110% of the marketshare while increasing profits 500% every two weeks, all while paying dividends and, well, simply handing cash over to Wall Street institutional traders just because.
  • Reply 5 of 119
    saareksaarek Posts: 1,523member


    The gulf between iOS and Android seems to keep widening. Both Apple & Google will continue to grow but I wonder how long it will be before Android has something like 90% Market share and Apple has 6% with everyone else making up the rest.


     


    Sure Apple will likely control the profit margins, but it’s going very much like the Mac vs PC era.

  • Reply 6 of 119
    melgrossmelgross Posts: 33,510member
    Someone is wrong somewhere. Some other company just estimated that Apple's worldwide iPhone marketshare ended the last quarter at 25.1%, an increase of 1.9% over the same quarter YOY. So who is right?
  • Reply 7 of 119
    saarek wrote: »
    [SIZE=10pt]The gulf between iOS and Android seems to keep widening.[/SIZE] Both Apple & Google will continue to grow but I wonder how long it will be before Android has something like 90% Market share and Apple has 6% with everyone else making up the rest.

    [SIZE=10pt]Sure Apple will likely control the profit margins, but it’s going very much like the Mac vs PC era.[/SIZE]

    So?
  • Reply 8 of 119
    jragostajragosta Posts: 10,473member
    saarek wrote: »
    [SIZE=10pt]The gulf between iOS and Android seems to keep widening.[/SIZE] Both Apple & Google will continue to grow but I wonder how long it will be before Android has something like 90% Market share and Apple has 6% with everyone else making up the rest.

    [SIZE=10pt]Sure Apple will likely control the profit margins, but it’s going very much like the Mac vs PC era.[/SIZE]

    No, it's not. Apple controls the profits. Apple's products are the solid winners when it comes to virtually every usage metric. Apple controls the show when it comes to developer profits.

    Keep in mind that Strategy Analytics is one of those companies that calls almost anything with a keypad a 'smartphone'. They 70/20 split is not even close to representative of Apple's position in smart phones. By most accounts, it's a lot more even when you don't count the phones that are nothing more than glorified feature phones.

    Not to mention, of course, the entire premise is flawed. Are these analysts totally incapable of understanding differentiation and segmentation? Apple isn't competing in the cheap-POS market and probably never will. Just as BMW or Mercedes don't compete in the cheap POS car market yet they're doing well. How is it that they can't comprehend such a simple concept?
  • Reply 9 of 119
    jragostajragosta Posts: 10,473member
    melgross wrote: »
    Someone is wrong somewhere. Some other company just estimated that Apple's worldwide iPhone marketshare ended the last quarter at 25.1%, an increase of 1.9% over the same quarter YOY. So who is right?

    Fundamentally, it comes down to what you consider a 'smart phone'. Some people include glorified feature phones and others include only high end smart phones.

    As always, the answer you get is determined by the way you ask the question.
  • Reply 10 of 119
    rogifanrogifan Posts: 10,669member
    zoffdino wrote: »
    If Apple release an iPhone 4 remade in plastic, available in multiple colors for $200 - $250, it would prove to be a strong contender in the developing markets. At its release, the iPhone 4 cost $188 to make (http://news.cnet.com/8301-31021_3-20009027-260.html). After 3 years, I would expect that cost to have fallen dramatically.
    No, no and no. Didn't you hear Cook say on the investor call that Apple won't chase revenue for the sake of it? Android might have 70% market share but only one company has real profits - Samsung. I don't think Apple wants to give up profits for market share.
  • Reply 11 of 119
    2 horse race....?

    only on a wacky Apple site.

    Everywhere else it WAS a one horse race.
  • Reply 12 of 119
    macrulezmacrulez Posts: 2,455member


    deleted

  • Reply 13 of 119
    gatorguygatorguy Posts: 24,213member

    Quote:

    Originally Posted by jragosta View Post

    Keep in mind that Strategy Analytics is one of those companies that calls almost anything with a keypad a 'smartphone'. They 70/20 split is not even close to representative of Apple's position in smart phones. By most accounts, it's a lot more even when you don't count the phones that are nothing more than glorified feature phones.


    If the 70-20 split is not even close to representative, what is the correct figure? How much is "a lot more"? How does Strategy Analytics  definition of a smartphone differ from others? You seem to be on a roll with different assertions this morning, but a bit lacking on support for them so far.


     


    As you're typically quick to ask others, "where's the proof" for what you're claiming?

  • Reply 14 of 119
    tbelltbell Posts: 3,146member
    rogifan wrote: »
    No, no and no. Didn't you hear Cook say on the investor call that Apple won't chase revenue for the sake of it? Android might have 70% market share but only one company has real profits - Samsung. I don't think Apple wants to give up profits for market share.

    I don't get your point. If a phone costs Apple $188 to make, and it sells it for $250 that is about a 30 percent profit margin. The original poster pointed out that was the original build cost for the iPhone 4 and presumably the build cost is less now, so margins would be higher if Apple came out with a phone based on the iPhone 4 internals.

    Further Cook also said Apple will look at all markets. Apple wants a big presence in China. To do so, it needs a cheaper phone to strike a deal with China Mobile. Samsung has free reign there.
  • Reply 15 of 119

    Quote:

    Originally Posted by anantksundaram View Post





    So?




    Well, I for one don't want to find out if there is a tipping point where the proliferation of Android devices increases to the point where it compels developers to build for Android first, or, worst case scenario, where it marginalizes Apple even more causing a huge decrease in profits.


     


    I'm not saying that there is a tipping point but the danger is definitely there and, as we've seen with the Mac, it's a long climb back.


     


    [please know that I am mainly concerned about the Asian market]

  • Reply 16 of 119
    matrix07matrix07 Posts: 1,993member
    tbell wrote: »
    I don't get your point. If a phone costs Apple $188 to make, and it sells it for $250 that is about a 30 percent profit margin. The original poster pointed out that was the original build cost for the iPhone 4 and presumably the build cost is less now, so margins would be higher if Apple came out with a phone based on the iPhone 4 internals.

    Further Cook also said Apple will look at all markets. Apple wants a big presence in China. To do so, it needs a cheaper phone to strike a deal with China Mobile. Samsung has free reign there.

    Cook better concentrates his effort on software that seemed to be less wowed these days than building cheap iPhones for cheap customers, if he's sincere about "building the best product" like he said.
  • Reply 17 of 119


    I'm needing a little help wrapping my head around this one. I don't know much about the android ecosystem so please excuse my ignorance. Google makes android, OEM's build their phones and then put their flavor of Android on it. Can these different flavors all purchase Apps from the same online store or do they require an OEM specific store?

  • Reply 18 of 119
    nelsonxnelsonx Posts: 278member

    Quote:

    Originally Posted by saarek View Post


    The gulf between iOS and Android seems to keep widening. Both Apple & Google will continue to grow but I wonder how long it will be before Android has something like 90% Market share and Apple has 6% with everyone else making up the rest.


     


    Sure Apple will likely control the profit margins, but it’s going very much like the Mac vs PC era.



    This is how things looks right now. The biggest danger is that if Apple fall to 6% developers will stop creating the best apps for iOS. I don't know how was the software situation when Microsoft defeated Apple in the '90. Anyway Apple is not yet defeated. If they give up the greedy margin, start making a lot of phones, modernize the iOS, start including all the cutting edge advancements in the iPhones, take more wild bets like Google is doing with their glasses and self driving cars, they could still win.

  • Reply 19 of 119
    macrulezmacrulez Posts: 2,455member


    deleted

  • Reply 20 of 119
    nelsonxnelsonx Posts: 278member

    Quote:

    Originally Posted by sagan_student View Post


    I'm needing a little help wrapping my head around this one. I don't know much about the android ecosystem so please excuse my ignorance. Google makes android, OEM's build their phones and then put their flavor of Android on it. Can these different flavors all purchase Apps from the same online store or do they require an OEM specific store?



    They all purchase Apps from Google Play, which is the Google store for apps. Check https://play.google.com/store

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