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Gartner: Apple's iOS lost smartphone share to Android in Q3 2011

post #1 of 85
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With a limited number of iPhone models taking on a plethora of Android-powered handsets from multiple manufacturers, Apple's iOS actually lost market share in the worldwide smartphone market last quarter despite growing sales, according to the latest sales data from Gartner.

Sales of 17.3 million iPhones to end users in the third quarter of 2011 garnered iOS a 15 percent market share, making Apple's smartphone platform the third-largest worldwide. But that percentage was down from the third quarter of 2010, when Gartner says iOS represented 16.6 percent of smartphones sold.

Apple's apparent 1.6 percent loss came at the hands of Android, which saw huge year over year growth. Google's mobile operating system was estimated to power 60.5 million units sold in the third quarter of 2011, good for 52.5 percent of all smartphones sold in the three-month period.

That was well up from the 20.5 million Android-powered smartphones sold in the third quarter of 2011, according to Gartner, when the platform accounted for a 25.3 percent market share.

In fact, Android's growth was so explosive that nearly every other smartphone maker saw market share losses, even though companies like Apple saw a significant year over year increase in actual units sold. Nokia's Symbian remained the No. 2 worldwide smartphone platform in the third quarter of 2011, but its 16.9 percent share was down significantly from the market-leading 36.3 percent it held during the same period in 2010.

Research in Motion also saw its platform fall from 15.4 percent share in 2010 to 11 percent in 2011, while Microsoft dropped from 2.7 percent a year ago to 1.5 percent in the third quarter of 2011. Only Samsung's Bada platform saw year over year growth, going from 1.1 percent in 2010 to 2.2 percent in 2011.



"Android benefited from more mass-market offerings, a weaker competitive environment and the lack of exciting new products on alternative operating systems such as Windows Phone 7 and RIM," said Roberta Cozza, principal research analyst at Gartner. "Apple's iOS market share suffered from delayed purchases as consumers waited for the new iPhone. Continued pressure is impacting RIM's performance, and its smartphone share reached its lowest point so far in the U.S. market, where it dropped to 10 percent."

Of course, market share only tells part of the story, as Apple has been consistently shown to dominate profits in the mobile industry. One study from earlier this month found that with just 4 percent share of the total mobile phone market, Apple's iPhone rakes in 52 percent of total mobile profits.
post #2 of 85
"Apple's apparent 1.6 percent loss came at the hands of Android, which saw huge year over year growth."

This would imply that Apple lost total users to Android, which I don't think is the case. I think the case is that as a partof the whole smartphone market (which increased), Android made up a far larger chunk of those new users than Apple did.

Not surprising since most people, even those that don't read tech blogs, knew a new iPhone was "overdue" by prior year standards.
post #3 of 85
Android might never have gotten "off the ground" in the first place had the iPhone had been multi carrier from day one.
post #4 of 85
Gartner: yes, yes, we already know this.

How many ways are we going to hear echos of the same fact, i.e. consumers delayed purchase of the iPhone in calendar Q3, in anticipation of the new version in calendar Q4?

Let's see what these organizations all say in January and February, when they are 2 months late with what we already know: this Q's surprise will be commensurate with last Q's disappointment.

Thompson
post #5 of 85
Quote:
Originally Posted by Obama View Post

Android might never have gotten "off the ground" in the first place had the iPhone had been multi carrier from day one.

I doubt it. Android sells a lot simply because it is an OS available on multiple phones. You might as well compare the number of bullets fired from a sniper versus a machine gun.
post #6 of 85
Quote:
Originally Posted by Obama View Post

Android might never have gotten "off the ground" in the first place had the iPhone had been multi carrier from day one.

I don't think Apple is losing any sleep over a comparison between their market share and the COMBINED market share of a bunch of devices that happen to share the "Android" name but very little else. It's really quite an arbitrary sum, considering the fact that "Android" is not 100% compatible across hardware lines like Microsoft's OS was.

The iPhone 4, 4S, and 3GS are still the most popular single models in the US, and together they capture 50% of the handset industry profits. Basically, Apple just gave a clinic on how to enter a cutthroat, highly competitive business and still maintain margins, quality, and brand power. It was unprecedented and superbly executed.

Thompson
post #7 of 85
Quote:
Originally Posted by starbird View Post

"Apple's apparent 1.6 percent loss came at the hands of Android, which saw huge year over year growth."

This would imply that Apple lost total users to Android, which I don't think is the case. I think the case is that as a partof the whole smartphone market (which increased), Android made up a far larger chunk of those new users than Apple did.

Not surprising since most people, even those that don't read tech blogs, knew a new iPhone was "overdue" by prior year standards.

^this

Also I swear similar click-baiting articles have been posted before.

Call me when the Q4 numbers are in (which will show a large growth iOS and a slower growth for Android)
post #8 of 85
Quote:
Apple's apparent 1.6 percent loss came at the hands of Android, which saw huge year over year growth. Google's mobile operating system was estimated to power 60.5 million units sold in the third quarter of 2011, good for 52.5 percent of all smartphones sold in the three-month period.

They keyword here is "estimated". Apple numbers are actual sale figures while Androids are estimates since Android OEM never disclose their Android handsets sales figures. I don't think anyone will dispute the fact that Android is selling more than iPhones. But I find it hard to believe that Android OEM are not making enough profit even with their 3.5x more handset sale than the leading smartphone (iPhone).
post #9 of 85
There you go again, starting off with excuses. Even if Apple made a 'plethora' of devices, they still wouldn't match sales of android devices.
post #10 of 85
They lost market share and yet somehow they still manage to make billions of dollars...whatever will they do?
post #11 of 85
Considering the lack of any new iOS powered handsets in Q3, Apple did well IMO.

Android (as an OS) has some stiff competition with Nokia finally jumping on the WP7 train and Apple's seemingly dominating 4s pushing things forward for iOS.

Quote:
Originally Posted by AbsoluteDesignz View Post

Call me when the Q4 numbers are in (which will show a large growth iOS and a slower growth for Android)

Q3 is what it is. It shouldn't be dismissed just because it was a loss in Q3 for Apple.
Apple decided to delay their traditional summer release and this was the result.
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post #12 of 85
Seems some people still don't understand that Apple doesn't give a crap about market share. Apple is a business; it's out to make money. As long as Apple continues to mop the floor with the rest of the industry as far as profits go, there is absolutely no reason for them to care that there are more Android handsets out there than there are iPhones.
post #13 of 85
Quote:
Originally Posted by bstring View Post

There you go again, starting off with excuses. Even if Apple made a 'plethora' of devices, they still wouldn't match sales of android devices.

And Android devices will never make as much money as an iPhone so who wins there?
post #14 of 85
Quote:
Originally Posted by thompr View Post

I don't think Apple is losing any sleep over a comparison between their market share and the COMBINED market share of a bunch of devices that happen to share the "Android" name but very little else. It's really quite an arbitrary sum, considering the fact that "Android" is not 100% compatible across hardware lines like Microsoft's OS was.

The iPhone 4, 4S, and 3GS are still the most popular single models in the US, and together they capture 50% of the handset industry profits. Basically, Apple just gave a clinic on how to enter a cutthroat, highly competitive business and still maintain margins, quality, and brand power. It was unprecedented and superbly executed.

Thompson

Yes, exactly. The overall market is growing rapidly and Apple has a very sizeable chunk of that market, with millions of happy customers and a rude portion of the profits. The fact that there are more android driven devices is not really a problem. On the contrary, I imagine it plays into Apple's hands as they sell more and more devices.

No-one at Apple is loosing sleep over this though I am sure they are aware. Which is as it should be.
post #15 of 85
Prediction: this thread will end in picturez. Either picturez of devicez or picturez or screenz.

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #16 of 85
Quote:
Originally Posted by j1h15233 View Post

They lost market share and yet somehow they still manage to make billions of dollars...whatever will they do?

They already did it. They lowered the ASP with the FreeGS to improve market share. It will work very, very well.
post #17 of 85
Quote:
Originally Posted by Obama View Post

Android might never have gotten "off the ground" in the first place had the iPhone had been multi carrier from day one.

+1 However, Apple would never have gotten the lucrative deal it had and the cash influx it got had it not gotten the the carrier exclusivity that brought it subscription subsidies from AT&T.

I think, in time, the Android market will settle down. People will grow tired of the lack of having to upgrade their phone to keep up with the latest OS releases and having little to no actual support from their phone OEM. Also, they'll tire of waiting 11 months from the time an OS is released by Google until the time it's actually upgraded on their phone, if it gets an upgrade at all. Developers will also come to the same conclusion Adobe has, that developing for Android takes entirely too many resources to develop for different OS releases on various hardware and applications will reduce over time. Eventually, people will see the value of the iPhone model and decide to pitch the wannabe Android clones and get the real deal. Of course, they'll always be diehards that resist out of sheer ignorance.
post #18 of 85
How did Apple's profits do in that time frame?
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post #19 of 85
Quote:
Originally Posted by MacDevil View Post

Seems some people still don't understand that Apple doesn't give a crap about market share. Apple is a business; it's out to make money. As long as Apple continues to mop the floor with the rest of the industry as far as profits go, there is absolutely no reason for them to care that there are more Android handsets out there than there are iPhones.


It is easier to make more money with popular products. Additionally, a robust third-party ecosystem is vitally important to Apple.

For these reasons and more, Apple cares very much about market share.
post #20 of 85
No, market share does matter. Mind you, this is not a case of Android edging out Apple by slim margin. There were three times as many Android devices sold; 60 million vs 20 million. It's a different strategy and it seems to be working. It doesn't mean Apple's strategy is bad, just different.

Every time Android adoption is shown to be accelerating, people make excuses about how it's short lived, but it keeps growing and leaving Apple further behind in market share.

What does Apple's profit do for users? I'm not sure. Frankly, I think they could tack an extra 50% onto the price every product and earn much more.


Quote:
Originally Posted by MacDevil View Post

Seems some people still don't understand that Apple doesn't give a crap about market share. Apple is a business; it's out to make money. As long as Apple continues to mop the floor with the rest of the industry as far as profits go, there is absolutely no reason for them to care that there are more Android handsets out there than there are iPhones.
post #21 of 85
EDITTED: inadvertent duplicate
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post #22 of 85
Quote:
Originally Posted by j1h15233 View Post

And Android devices will never make as much money as an iPhone so who wins there?

Um. . . The Android smartphone manufacturers who otherwise would have been shut out the market for all intents. Apple wasn't going to license their OS.

A little profit is better than none, and producers like Samsung actually seem to do quite well, with the smartphone business a lucrative part of their business according to various financial sources.
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post #23 of 85
It's amazing to think that even being third, Apple has largest profit from iPhone.
Apple had me at scrolling
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post #24 of 85
Quote:
Originally Posted by thompr View Post

I don't think Apple is losing any sleep over a comparison between their market share and the COMBINED market share of a bunch of devices that happen to share the "Android" name but very little else.

This kind of spin is nauseating.

It's early 80s Mac vs PC all over again. Who cares if the COMBINED market share of a bunch of PCs that happen to share the "DOS" OS is higher, right?

The iPhone had zero chance of being the dominant mobile platform. But make no mistake, marketshare is important. Marketshare is what relegated Mac to niche status for decades.
post #25 of 85
Android already won marketshare. We can stop trying to deny that. How can you beat a platform or OS thats given away to any manufacturer? You can't. Google back stabbed Apple/Steve Jobs, and has now beaten the iPhone/iOS market share for OS and devices. Thats basically what it comes down to.
post #26 of 85
Quote:
Originally Posted by bstring View Post

No, market share does matter. Mind you, this is not a case of Android edging out Apple by slim margin. There were three times as many Android devices sold; 60 million vs 20 million. It's a different strategy and it seems to be working. It doesn't mean Apple's strategy is bad, just different.

Every time Android adoption is shown to be accelerating, people make excuses about how it's short lived, but it keeps growing and leaving Apple further behind in market share.

What does Apple's profit do for users? I'm not sure. Frankly, I think they could tack an extra 50% onto every product and earn much more.

Why tack an extra 50%?! Apple smartphone profit accounts for 50% of the industry profits and is expected to account for 70% next year. As a customer if a company is making profit that gives me confidence that my investment in their ecosystem (by buying their products and services) will not go under any time soon. Furthermore, a company making profit will invest more in improving their products and services.
post #27 of 85
Android just seems to be getting marketshare from the messy "old world" of smart phones.

Apple doesn't seem to be getting hurt by Android as much.
post #28 of 85
Irony of ironies, most mobile surfing is done on the iPhones so did I miss something.
post #29 of 85
Quote:
Originally Posted by Gatorguy View Post

Um. . . The Android smartphone manufacturers who otherwise would have been shut out the market for all intents. Apple wasn't going to license their OS.

A little profit is better than none, and producers like Samsung actually seem to do quite well, with the smartphone business a lucrative part of their business according to various financial sources.

You obviously didn't understand my comment.
post #30 of 85
Quote:
Originally Posted by ConradJoe View Post

It is easier to make more money with popular products. Additionally, a robust third-party ecosystem is vitally important to Apple.

For these reasons and more, Apple cares very much about market share.

Market share has nothing to do with this. Apple already has the most popular products and that's why people make third party accessories for the phones. It's not because Apple leads in market share because that's never been true. It's because the money is with Apple and in Apple.
post #31 of 85
Quote:
Originally Posted by bstring View Post

No, market share does matter. Mind you, this is not a case of Android edging out Apple by slim margin. There were three times as many Android devices sold; 60 million vs 20 million. It's a different strategy and it seems to be working. It doesn't mean Apple's strategy is bad, just different.

Every time Android adoption is shown to be accelerating, people make excuses about how it's short lived, but it keeps growing and leaving Apple further behind in market share.

What does Apple's profit do for users? I'm not sure. Frankly, I think they could tack an extra 50% onto the price every product and earn much more.

Apple's profit pays for stuff like OS updates for three-year old devices, and new stuff like iCloud and Siri.

Market share is good, but you have to be profitable at the same time- that is the difference between Android and Windows.
post #32 of 85
Quote:
Originally Posted by AdamC View Post

Irony of ironies, most mobile surfing is done on the iPhones so did I miss something.

Data hogs?
post #33 of 85
Quote:
Originally Posted by bstring View Post

There you go again, starting off with excuses. Even if Apple made a 'plethora' of devices, they still wouldn't match sales of android devices.

Nor will BMW ever outsell Ford.
post #34 of 85
Quote:
Originally Posted by bstring View Post

No, market share does matter. Mind you, this is not a case of Android edging out Apple by slim margin. There were three times as many Android devices sold; 60 million vs 20 million. It's a different strategy and it seems to be working. It doesn't mean Apple's strategy is bad, just different.

Every time Android adoption is shown to be accelerating, people make excuses about how it's short lived, but it keeps growing and leaving Apple further behind in market share.

What does Apple's profit do for users? I'm not sure. Frankly, I think they could tack an extra 50% onto the price every product and earn much more.

Ok, market share does matter to an extent. But then you have to include iPad and iPod touch because those devices use the same iOS software. But fandroids will exclude them because Android is non existent on those other device categories.
post #35 of 85
Quote:
Originally Posted by bstring View Post

There you go again, starting off with excuses. Even if Apple made a 'plethora' of devices, they still wouldn't match sales of android devices.

Add the iPads and iPod touches to apple's tally and see where we're at.
post #36 of 85
Quote:
Originally Posted by Asherian View Post

This kind of spin is nauseating.

It's early 80s Mac vs PC all over again. Who cares if the COMBINED market share of a bunch of PCs that happen to share the "DOS" OS is higher, right?

The iPhone had zero chance of being the dominant mobile platform. But make no mistake, marketshare is important. Marketshare is what relegated Mac to niche status for decades.

As much as I hate wasting my breath debating this, no, it is not the same.
Android on phones has succeeded because the carriers have had incentives to push Android down the unwitting throats of their customers via BOGOs, kickbacks, etc. The driving force has been carrier desire to sign up accounts (and then ignore updates for the phones for 2 years.)
This will not play out in tablets, where the actual device and experience are what matter, and carriers are out of the picture for all practical purposes (Is anyone really getting 3G tablets?). Android will get some traction via Kindle Fire, but not in a way that will benefit Google, since Amazon is bypassing all Google services and ads potential.

Finally, Windows dominated applications, therefore dominated hardware sales (for their vendors.) The watchword for Android users is 'cheap and free'. That means that developer focus will always be on iOS first.
post #37 of 85
Apple may make double or triple the revenue, but marketshare can dictate software releases. Look at what Netflix has just released first. It's not released for iOS first, but Android. So once again, we are slowly becoming 2nd class citizens. Much like Windows and Mac.


http://techcrunch.com/2011/11/15/net...n-a-few-weeks/
post #38 of 85
Quote:
Originally Posted by AbsoluteDesignz View Post

^this

Also I swear similar click-baiting articles have been posted before.

Call me when the Q4 numbers are in (which will show a large growth iOS and a slower growth for Android)

Talk about click baiting...
ApoleInsider will post the opposite news within 24 hrs, exclaiming some survey shows that iOS gained marketshare against Android. 24-hours. It's been done before!

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #39 of 85
Quote:
Originally Posted by slapppy View Post

Apple may make double or triple the revenue, but marketshare can dictate software releases. Look at what Netflix has just released first. It's not released for iOS first, but Android. So once again, we are slowly becoming 2nd class citizens. Much like Windows and Mac.


http://techcrunch.com/2011/11/15/net...n-a-few-weeks/

But that example completely ruins your marketshare argument. Netflix released a new app for Android tablets. The iPad has 80+% of the tablet market. If marketshare were the driving factor, shouldn't Netflix have released an update for the iPad first?

Of course, with all the "brilliant" business decisions Netflix has made lately, I'm not suppressed they decided to update for Android first...
post #40 of 85
Quote:
Originally Posted by bstring View Post

There you go again, starting off with excuses. Even if Apple made a 'plethora' of devices, they still wouldn't match sales of android devices.

With Apple currently offering 3GS, 4, and 4S in their iPhone lineup, covering five price points ($0, $99, $199, $299, $399), I wonder if that can qualify as "plethora of devices" now.
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