In reply to the various people who think Google is just walking over Apple and Google is making big bonks of money with a safe profit scheme consider this:
-- Many Android phones are being loaded with Bing, Yahoo and Baidu. (Msft for example pays some OEMS and carriers more to load Bing. Verizon recently had a big Bing promotion, whether that affects Android phones is unclear)
-- Some phones are loaded with their own non Google Apps. Some of these phones are locked onto their own App stores. You can't even download apps from Google Android market.
-- People are opening their own App stores selling apps, music etc and cutting Google out.
Example:
Engadget on Moto Backflip:
"Yahoo has replaced Google as the default search provider throughout the phone. It's crazy: the home screen widget, the browser, everything's been programmed to use Yahoo.
t's filled to the brim with pre-loaded AT&T stuff: AllSport GPS, AT&T Maps, AT&T Music (which takes the place of the standard Music app), AT&T Navigator, AT&T Wi-Fi Hotspots, Mobile Banking, MobiTV, MusicID, Where, and YPmobile. We strongly prefer the approach of offering a special branded Android Market portal where you can download your carrier's recommended apps."
-- the Android OS is fractured. NEW devices like the Dell streak is coming out with Android 1.6 so are many of the cheap Chinese phones. Some of these phones are locked down or come with the carriers on crap ware apps.
This frustrates third party developers no end.
-- Android market share share numbers are often ONLY compared to iPhone and not IOS. IOS (iPhone, iPod Touch, iPad) is huge and there is no danger to developer loss.
-- Android numbers are boosted by Android being loaded onto a myriad of cheap phones. Some (like cheap ones in China) like I said doesn't even come with Google search or apps, some can't even run apps. (i.e Market share doesn't necessarily equal big opportunity for developers).
-- Google pays Apple to be on iOS.
-- Other companies like Apple are going into mobile advertising. IADs according to some is already making significant impact.
-- AND people don't get this too: if a consumer is looking at a Google ad on his mobile phone he's probably NOT looking at it on his laptop/desktop at the SAME time. Sum gain for Google in page-view earnings is ZERO. If someone buys 3 Apple devices: laptop, phone etc : Apple makes money on All of them.
-- Finally if Android is such a big freaking success THINK ABOUT THIS:
when Android was first announced 3 years ago Google was LARGER than Apple in market cap. Apple passed Google in 2009. Now with Android out for a few years Apple is 100 BILLION $ larger than Google (approx 289 to 170 b)! Big investors who hold most of Google and Apple stock don't seem to believe in Android's massive profit ability as some Google fans do.
Owning an Android is NOT an endorsement of its OS! I have a Droid X because Verizon basically gave it to me. That and I didn't want to leave what in my region is widely recognized (and based on my own experience) as a superior network. With the money I saved, I'm about 1/3 of the way to a new 64GB iPad! But the Droid has been an endless source of frustration. Despite updating to Froyo 2.2, it still won't sync with my corporate exchange server - and this is a known issue for Motorola! All of the apps I've gotten are free. I only buy apps for my iPod Touch, which I love. I only wish I had an iphone......and when my remaining 21 months of purgatory is over, that's what I'll be getting, Verizon or no Verizon.
I am not an analyst, so the image alone made me laugh.
"Fading"... let me guess, the metrics were run first, then the quadrants were defined to slant the meaning of study results.
I like Apple... but those drawings look totally bogus.
The link was provided so that you could obtain Dediu's rationale, but I'll save you the click:
Quote:
I chose to label the quadrants to indicate the possible categorization of the companies.
* Dominant: large market share and large profit share
* Star: low market share with large profit share
* Fading: high market share with low profit
* Marginal: low market share and low profit
...
This model is only an observation of the shifts in market power and is not conclusive about where share was gained or lost, however there is compelling symmetry which also matches the intuition of observers.
FYI, variants of the growth-share matrix (BCG Matrix) have been in use since '68 and not created by Dediu (a former Nokia manager) for purposes of obfuscating a bias.
"The total combined sales of all 63 Android phone models finally overtake the sales of the iPhone"
(Not sure of the number of Android phones there are out there but I thought I read somewhere that there were now 63 different models)
I doubt this survey counts all iOS devices verses all Android devices. It is not counting the iPod Touch or the iPad. It is also probably only looking at US sales and not Worldwide sales of both.
The link was provided so that you could obtain Dediu's rationale, but I'll save you the click:
FYI, variants of the growth-share matrix (BCG Matrix) have been in use since '68 and not created by Dediu (a former Nokia manager) for purposes of obfuscating a bias.
Thank you very much for your kind gesture and response. It was helpful since I grow weary of reading statistical studies that in the end are simply an exercise and yield nothing directly meaningful to ME. (and of course it's all about me)
You likely would agree that a growing segment could also pass through that "Fading" portion and thus came my amusement.
You probably know google gives android away for free. You might think android development still costs google money. Well, ceo eric schmidt tells newsweek's dan lyons that android phones already generate enough new ad revenue to cover google's costs.
In reply to the various people who think Google is just walking over Apple and Google is making big bonks of money with a safe profit scheme consider this:
-- Many Android phones are being loaded with Bing, Yahoo and Baidu. (Msft for example pays some OEMS and carriers more to load Bing. Verizon recently had a big Bing promotion, whether that affects Android phones is unclear)
-- Some phones are loaded with their own non Google Apps. Some of these phones are locked onto their own App stores. You can't even download apps from Google Android market.
-- People are opening their own App stores selling apps, music etc and cutting Google out.
Example:
Engadget on Moto Backflip:
"Yahoo has replaced Google as the default search provider throughout the phone. It's crazy: the home screen widget, the browser, everything's been programmed to use Yahoo.
t's filled to the brim with pre-loaded AT&T stuff: AllSport GPS, AT&T Maps, AT&T Music (which takes the place of the standard Music app), AT&T Navigator, AT&T Wi-Fi Hotspots, Mobile Banking, MobiTV, MusicID, Where, and YPmobile. We strongly prefer the approach of offering a special branded Android Market portal where you can download your carrier's recommended apps."
-- the Android OS is fractured. NEW devices like the Dell streak is coming out with Android 1.6 so are many of the cheap Chinese phones. Some of these phones are locked down or come with the carriers on crap ware apps.
This frustrates third party developers no end.
-- Android market share share numbers are often ONLY compared to iPhone and not IOS. IOS (iPhone, iPod Touch, iPad) is huge and there is no danger to developer loss.
-- Android numbers are boosted by Android being loaded onto a myriad of cheap phones. Some (like cheap ones in China) like I said doesn't even come with Google search or apps, some can't even run apps. (i.e Market share doesn't necessarily equal big opportunity for developers).
-- Google pays Apple to be on iOS.
-- Other companies like Apple are going into mobile advertising. IADs according to some is already making significant impact.
-- AND people don't get this too: if a consumer is looking at a Google ad on his mobile phone he's probably NOT looking at it on his laptop/desktop at the SAME time. Sum gain for Google in page-view earnings is ZERO. If someone buys 3 Apple devices: laptop, phone etc : Apple makes money on All of them.
-- Finally if Android is such a big freaking success THINK ABOUT THIS:
when Android was first announced 3 years ago Google was LARGER than Apple in market cap. Apple passed Google in 2009. Now with Android out for a few years Apple is 100 BILLION $ larger than Google (approx 289 to 170 b)! Big investors who hold most of Google and Apple stock don't seem to believe in Android's massive profit ability as some Google fans do.
Thank you very much for your kind gesture and response. It was helpful since I grow weary of reading statistical studies that in the end are simply an exercise and yield nothing directly meaningful to ME. (and of course it's all about me)
You likely would agree that a growing segment could also pass through that "Fading" portion and thus came my amusement.
As has been pointed out already, marketshare is a big incentive for developers and those who want to sell their products and services as it shows where the biggest potential audience is. We already know how that strategy turned out; OSX has an incredibly profitable niche, but it is still a niche, and for a lot of uses, a Windows machine is still required.
It wouldn't go amis for some people to at least consider that marketshare might be an important metric. Afterall, I can remember all too well the massive fanfare that was made as the iPhone quickly rose in the smartphone marketshare stakes. Why was it so incredibly important then, and so insignificant now? It stinks of sour grapes, that's what.
I had to help a friend the other day figure out something with his Droid. I have to say, the user interface is not anywhere near as polished as iOS. They may sell well, but no thanks, I'll stick with iPhone. Sort of like a Hyundai/BMW comparison. Some people just like to save a few bucks even though they often regret it later. Another friend just recently bought an iPhone after her G-1 phone died a month before her contract was up. She is so thrilled with her iPhone, especially compared to her experience with Android.
As has been pointed out already, marketshare is a big incentive for developers and those who want to sell their products and services as it shows where the biggest potential audience is.
But are those Android users as likely to purchase apps as iPhone users. If they bought the Android because it was cheaper or BOGO, they probably aren't the big spenders that developers are looking for to buy their wares.
In reply to the various people who think Google is just walking over Apple and Google is making big bonks of money with a safe profit scheme consider this:
-- Many Android phones are being loaded with Bing, Yahoo and Baidu. (Msft for example pays some OEMS and carriers more to load Bing. Verizon recently had a big Bing promotion, whether that affects Android phones is unclear)
-- Some phones are loaded with their own non Google Apps. Some of these phones are locked onto their own App stores. You can't even download apps from Google Android market.
-- People are opening their own App stores selling apps, music etc and cutting Google out.
Example:
Engadget on Moto Backflip:
"Yahoo has replaced Google as the default search provider throughout the phone. It's crazy: the home screen widget, the browser, everything's been programmed to use Yahoo.
t's filled to the brim with pre-loaded AT&T stuff: AllSport GPS, AT&T Maps, AT&T Music (which takes the place of the standard Music app), AT&T Navigator, AT&T Wi-Fi Hotspots, Mobile Banking, MobiTV, MusicID, Where, and YPmobile. We strongly prefer the approach of offering a special branded Android Market portal where you can download your carrier's recommended apps."
-- the Android OS is fractured. NEW devices like the Dell streak is coming out with Android 1.6 so are many of the cheap Chinese phones. Some of these phones are locked down or come with the carriers on crap ware apps.
This frustrates third party developers no end.
-- Android market share share numbers are often ONLY compared to iPhone and not IOS. IOS (iPhone, iPod Touch, iPad) is huge and there is no danger to developer loss.
-- Android numbers are boosted by Android being loaded onto a myriad of cheap phones. Some (like cheap ones in China) like I said doesn't even come with Google search or apps, some can't even run apps. (i.e Market share doesn't necessarily equal big opportunity for developers).
-- Google pays Apple to be on iOS.
-- Other companies like Apple are going into mobile advertising. IADs according to some is already making significant impact.
-- AND people don't get this too: if a consumer is looking at a Google ad on his mobile phone he's probably NOT looking at it on his laptop/desktop at the SAME time. Sum gain for Google in page-view earnings is ZERO. If someone buys 3 Apple devices: laptop, phone etc : Apple makes money on All of them.
-- Finally if Android is such a big freaking success THINK ABOUT THIS:
when Android was first announced 3 years ago Google was LARGER than Apple in market cap. Apple passed Google in 2009. Now with Android out for a few years Apple is 100 BILLION $ larger than Google (approx 289 to 170 b)! Big investors who hold most of Google and Apple stock don't seem to believe in Android's massive profit ability as some Google fans do.
Do you think you'd be making the same argument - that these marketshare numbers aren't important - if Apple's and Android's positions were reversed?
But are those Android users as likely to purchase apps as iPhone users. If they bought the Android because it was cheaper or BOGO, they probably aren't the big spenders that developers are looking for to buy their wares.
Google is poised to make more money on Android than most people think they will. Also take into account this is not a mature product line yet. Apple with the iPhone product offerring has been out longer.
I had to help a friend the other day figure out something with his Droid. I have to say, the user interface is not anywhere near as polished as iOS. They may sell well, but no thanks, I'll stick with iPhone. Sort of like a Hyundai/BMW comparison. Some people just like to save a few bucks even though they often regret it later. Another friend just recently bought an iPhone after her G-1 phone died a month before her contract was up. She is so thrilled with her iPhone, especially compared to her experience with Android.
The beauty of it is that people have a choice. For some, iOS is the unpolished OS with Android having the flexibility and customisation they desire. The biggest reason why Android is so attractive to many buyers is it comes in all shapes and sizes at a number of different price points. Just look at the Orange San Franciso. A 3.5" capacitive OLED 840x400 screen, 3mp auto-focus camera, 3G, wifi, 600Mhz processor and Android 2.1. Sounds like it might cost a fair bit, right? It's £99 on PAYG, a quarter of the price of an iPhone. This sort of device is exactly why Android popularity is on the rise so fast, to which Apple currently has no equal, and probably never will do unless they change their strategy radically.
Comments
-- Many Android phones are being loaded with Bing, Yahoo and Baidu. (Msft for example pays some OEMS and carriers more to load Bing. Verizon recently had a big Bing promotion, whether that affects Android phones is unclear)
-- Some phones are loaded with their own non Google Apps. Some of these phones are locked onto their own App stores. You can't even download apps from Google Android market.
-- People are opening their own App stores selling apps, music etc and cutting Google out.
Example:
Engadget on Moto Backflip:
"Yahoo has replaced Google as the default search provider throughout the phone. It's crazy: the home screen widget, the browser, everything's been programmed to use Yahoo.
t's filled to the brim with pre-loaded AT&T stuff: AllSport GPS, AT&T Maps, AT&T Music (which takes the place of the standard Music app), AT&T Navigator, AT&T Wi-Fi Hotspots, Mobile Banking, MobiTV, MusicID, Where, and YPmobile. We strongly prefer the approach of offering a special branded Android Market portal where you can download your carrier's recommended apps."
-- the Android OS is fractured. NEW devices like the Dell streak is coming out with Android 1.6 so are many of the cheap Chinese phones. Some of these phones are locked down or come with the carriers on crap ware apps.
This frustrates third party developers no end.
-- Android market share share numbers are often ONLY compared to iPhone and not IOS. IOS (iPhone, iPod Touch, iPad) is huge and there is no danger to developer loss.
-- Android numbers are boosted by Android being loaded onto a myriad of cheap phones. Some (like cheap ones in China) like I said doesn't even come with Google search or apps, some can't even run apps. (i.e Market share doesn't necessarily equal big opportunity for developers).
-- Google pays Apple to be on iOS.
-- Other companies like Apple are going into mobile advertising. IADs according to some is already making significant impact.
-- AND people don't get this too: if a consumer is looking at a Google ad on his mobile phone he's probably NOT looking at it on his laptop/desktop at the SAME time. Sum gain for Google in page-view earnings is ZERO. If someone buys 3 Apple devices: laptop, phone etc : Apple makes money on All of them.
-- Finally if Android is such a big freaking success THINK ABOUT THIS:
when Android was first announced 3 years ago Google was LARGER than Apple in market cap. Apple passed Google in 2009. Now with Android out for a few years Apple is 100 BILLION $ larger than Google (approx 289 to 170 b)! Big investors who hold most of Google and Apple stock don't seem to believe in Android's massive profit ability as some Google fans do.
Android: bad copy of iOS, lowest-common-denominator across multiple hardware vendors.
But Android wasn't always a bad copy of iOS. It was originally a bad copy of BlackBerry OS.
Here's an image from Wikipedia of one of the first Android phones. Apple released iPhone
and it was back to the drawing board at Google.
So in one sense Android is the new Windows. Bad copy of Apple's software.
On the other hand, Windows makes tons of money for Microsoft through OEM
licenses. But Android makes zero $$$ for Google because they're dumping it on
the market for free. Google will need to ramp up AdMob and the carriers
will need to load up their Android phones with yet more spamware to make money.
I am not an analyst, so the image alone made me laugh.
"Fading"... let me guess, the metrics were run first, then the quadrants were defined to slant the meaning of study results.
I like Apple... but those drawings look totally bogus.
The link was provided so that you could obtain Dediu's rationale, but I'll save you the click:
I chose to label the quadrants to indicate the possible categorization of the companies.
* Dominant: large market share and large profit share
* Star: low market share with large profit share
* Fading: high market share with low profit
* Marginal: low market share and low profit
...
This model is only an observation of the shifts in market power and is not conclusive about where share was gained or lost, however there is compelling symmetry which also matches the intuition of observers.
FYI, variants of the growth-share matrix (BCG Matrix) have been in use since '68 and not created by Dediu (a former Nokia manager) for purposes of obfuscating a bias.
The data, released on Monday, covers a six-month period of U.S. that went through the August.
What the hell does this mean?
Why is the grammar so bad in AI articles?
"The total combined sales of all 63 Android phone models finally overtake the sales of the iPhone"
(Not sure of the number of Android phones there are out there but I thought I read somewhere that there were now 63 different models)
I doubt this survey counts all iOS devices verses all Android devices. It is not counting the iPod Touch or the iPad. It is also probably only looking at US sales and not Worldwide sales of both.
Not the issue.
Over here in UK, the picture is pretty similar and iPhone is on all networks.
problem for Apple is their greed and the total cost of ownership compared to a similar Android phone is far higher.
Same Carrier, same tariff, same data allowance.
Galaxy S = 24mths x £20 & free phone = TCO £480
iPhone 4 = 24mths x £30 plus £99 for phone = TCO £819
the S is arguably a better piece of hardware, certainly a better phone so why would people pay 70 or 80% for the inferior product?
this isn't a big mystery.
Could you supply a reference?
The only one I have says that the Free Galaxy S lists at £30 a month.
Doomed, I tell you, doomed.
This fascination with market share (by definition, a zero-sum game) is just silly. I know it generates page views, but let's be serious.
What counts is selling stuff at a profit.
Totally correct.
What the hell does this mean?
Why is the grammar so bad in AI articles?
More of a typo / editing error than a grammar error IMHO.
The link was provided so that you could obtain Dediu's rationale, but I'll save you the click:
FYI, variants of the growth-share matrix (BCG Matrix) have been in use since '68 and not created by Dediu (a former Nokia manager) for purposes of obfuscating a bias.
Thank you very much for your kind gesture and response. It was helpful since I grow weary of reading statistical studies that in the end are simply an exercise and yield nothing directly meaningful to ME. (and of course it's all about me)
You likely would agree that a growing segment could also pass through that "Fading" portion and thus came my amusement.
re-posted due to blindness...
try researching before spouting utter tosh..
You probably know google gives android away for free. You might think android development still costs google money. Well, ceo eric schmidt tells newsweek's dan lyons that android phones already generate enough new ad revenue to cover google's costs.
http://gizmodo.com/5655462/in-case-y...le-makes-money
zero....z-e-r-o....zero.
In reply to the various people who think Google is just walking over Apple and Google is making big bonks of money with a safe profit scheme consider this:
-- Many Android phones are being loaded with Bing, Yahoo and Baidu. (Msft for example pays some OEMS and carriers more to load Bing. Verizon recently had a big Bing promotion, whether that affects Android phones is unclear)
-- Some phones are loaded with their own non Google Apps. Some of these phones are locked onto their own App stores. You can't even download apps from Google Android market.
-- People are opening their own App stores selling apps, music etc and cutting Google out.
Example:
Engadget on Moto Backflip:
"Yahoo has replaced Google as the default search provider throughout the phone. It's crazy: the home screen widget, the browser, everything's been programmed to use Yahoo.
t's filled to the brim with pre-loaded AT&T stuff: AllSport GPS, AT&T Maps, AT&T Music (which takes the place of the standard Music app), AT&T Navigator, AT&T Wi-Fi Hotspots, Mobile Banking, MobiTV, MusicID, Where, and YPmobile. We strongly prefer the approach of offering a special branded Android Market portal where you can download your carrier's recommended apps."
-- the Android OS is fractured. NEW devices like the Dell streak is coming out with Android 1.6 so are many of the cheap Chinese phones. Some of these phones are locked down or come with the carriers on crap ware apps.
This frustrates third party developers no end.
-- Android market share share numbers are often ONLY compared to iPhone and not IOS. IOS (iPhone, iPod Touch, iPad) is huge and there is no danger to developer loss.
-- Android numbers are boosted by Android being loaded onto a myriad of cheap phones. Some (like cheap ones in China) like I said doesn't even come with Google search or apps, some can't even run apps. (i.e Market share doesn't necessarily equal big opportunity for developers).
-- Google pays Apple to be on iOS.
-- Other companies like Apple are going into mobile advertising. IADs according to some is already making significant impact.
-- AND people don't get this too: if a consumer is looking at a Google ad on his mobile phone he's probably NOT looking at it on his laptop/desktop at the SAME time. Sum gain for Google in page-view earnings is ZERO. If someone buys 3 Apple devices: laptop, phone etc : Apple makes money on All of them.
-- Finally if Android is such a big freaking success THINK ABOUT THIS:
when Android was first announced 3 years ago Google was LARGER than Apple in market cap. Apple passed Google in 2009. Now with Android out for a few years Apple is 100 BILLION $ larger than Google (approx 289 to 170 b)! Big investors who hold most of Google and Apple stock don't seem to believe in Android's massive profit ability as some Google fans do.
You're right GOOGLE IS DOOMED!!!!
Thank you very much for your kind gesture and response. It was helpful since I grow weary of reading statistical studies that in the end are simply an exercise and yield nothing directly meaningful to ME. (and of course it's all about me)
You likely would agree that a growing segment could also pass through that "Fading" portion and thus came my amusement.
You're welcome.
Skepticism is warranted.
It wouldn't go amis for some people to at least consider that marketshare might be an important metric. Afterall, I can remember all too well the massive fanfare that was made as the iPhone quickly rose in the smartphone marketshare stakes. Why was it so incredibly important then, and so insignificant now? It stinks of sour grapes, that's what.
As has been pointed out already, marketshare is a big incentive for developers and those who want to sell their products and services as it shows where the biggest potential audience is.
But are those Android users as likely to purchase apps as iPhone users. If they bought the Android because it was cheaper or BOGO, they probably aren't the big spenders that developers are looking for to buy their wares.
In reply to the various people who think Google is just walking over Apple and Google is making big bonks of money with a safe profit scheme consider this:
-- Many Android phones are being loaded with Bing, Yahoo and Baidu. (Msft for example pays some OEMS and carriers more to load Bing. Verizon recently had a big Bing promotion, whether that affects Android phones is unclear)
-- Some phones are loaded with their own non Google Apps. Some of these phones are locked onto their own App stores. You can't even download apps from Google Android market.
-- People are opening their own App stores selling apps, music etc and cutting Google out.
Example:
Engadget on Moto Backflip:
"Yahoo has replaced Google as the default search provider throughout the phone. It's crazy: the home screen widget, the browser, everything's been programmed to use Yahoo.
t's filled to the brim with pre-loaded AT&T stuff: AllSport GPS, AT&T Maps, AT&T Music (which takes the place of the standard Music app), AT&T Navigator, AT&T Wi-Fi Hotspots, Mobile Banking, MobiTV, MusicID, Where, and YPmobile. We strongly prefer the approach of offering a special branded Android Market portal where you can download your carrier's recommended apps."
-- the Android OS is fractured. NEW devices like the Dell streak is coming out with Android 1.6 so are many of the cheap Chinese phones. Some of these phones are locked down or come with the carriers on crap ware apps.
This frustrates third party developers no end.
-- Android market share share numbers are often ONLY compared to iPhone and not IOS. IOS (iPhone, iPod Touch, iPad) is huge and there is no danger to developer loss.
-- Android numbers are boosted by Android being loaded onto a myriad of cheap phones. Some (like cheap ones in China) like I said doesn't even come with Google search or apps, some can't even run apps. (i.e Market share doesn't necessarily equal big opportunity for developers).
-- Google pays Apple to be on iOS.
-- Other companies like Apple are going into mobile advertising. IADs according to some is already making significant impact.
-- AND people don't get this too: if a consumer is looking at a Google ad on his mobile phone he's probably NOT looking at it on his laptop/desktop at the SAME time. Sum gain for Google in page-view earnings is ZERO. If someone buys 3 Apple devices: laptop, phone etc : Apple makes money on All of them.
-- Finally if Android is such a big freaking success THINK ABOUT THIS:
when Android was first announced 3 years ago Google was LARGER than Apple in market cap. Apple passed Google in 2009. Now with Android out for a few years Apple is 100 BILLION $ larger than Google (approx 289 to 170 b)! Big investors who hold most of Google and Apple stock don't seem to believe in Android's massive profit ability as some Google fans do.
Do you think you'd be making the same argument - that these marketshare numbers aren't important - if Apple's and Android's positions were reversed?
But are those Android users as likely to purchase apps as iPhone users. If they bought the Android because it was cheaper or BOGO, they probably aren't the big spenders that developers are looking for to buy their wares.
Google is poised to make more money on Android than most people think they will. Also take into account this is not a mature product line yet. Apple with the iPhone product offerring has been out longer.
Checkout this write up in Newsweek http://www.newsweek.com/2010/10/03/h...computing.html
I had to help a friend the other day figure out something with his Droid. I have to say, the user interface is not anywhere near as polished as iOS. They may sell well, but no thanks, I'll stick with iPhone. Sort of like a Hyundai/BMW comparison. Some people just like to save a few bucks even though they often regret it later. Another friend just recently bought an iPhone after her G-1 phone died a month before her contract was up. She is so thrilled with her iPhone, especially compared to her experience with Android.
The beauty of it is that people have a choice. For some, iOS is the unpolished OS with Android having the flexibility and customisation they desire. The biggest reason why Android is so attractive to many buyers is it comes in all shapes and sizes at a number of different price points. Just look at the Orange San Franciso. A 3.5" capacitive OLED 840x400 screen, 3mp auto-focus camera, 3G, wifi, 600Mhz processor and Android 2.1. Sounds like it might cost a fair bit, right? It's £99 on PAYG, a quarter of the price of an iPhone. This sort of device is exactly why Android popularity is on the rise so fast, to which Apple currently has no equal, and probably never will do unless they change their strategy radically.