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.
Who knows? I'd find it difficult to swallow the notion that only people who have bought an expensive phone are willing to part with 99p to buy an app. The price of the apps is so relatively negligable in comparison to the price of the device that I can't see even value shoppers deliberating over the cost of the apps and whether they should buy them or not.
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?
I don't even understand the premise of your question. The argument does not hold if positions are reversed because:
Android market share as I've stated does NOT necessarily equal Google profits ( as the phones can be locked down to their apps, come with Bing, Yahoo or Baidu and private app stores are opening etc) BUT every increase in iOS market share directly equals Apple profit. (Google pays Apple to run Google on iOS, and Apple is selling iADs as well, plus apps, music, movies etc via iTune so Apple's profit is also continuous with every iOS device sold. Apple makes money off every app etc but Google doesn't as you can buy apps off a non Google store).
If the market share numbers were reversed Apple would easily increase it's 39-49% of the worldwide phone (smart and dumb) profits.
(note that Palm has already gone under -- bought by HP -- because it's not making money. LG and NOKIA two of the biggest phone makers have recently fired their CEOS due to failure in the mobile market. Ballmer of Msft has his bonus cut due to failure in KIN phones. Rim shares are down 40% from peak - Apple is at highest ever. All these companies are being impacted by Apple taking profits)
Sort of like a Hyundai/BMW comparison. Some people just like to save a few bucks even though they often regret it later. .
This is PURE Apple fanboy nonsense. I use an iPhone because I prefer it. It's my personal choice. But it's not a "BMW" anymore than the Android phones are "Hyundais"... The Droid Incredible is a nice phone. PERIOD. It's not "Clunky", it's not "Junky", and it's not "Crappy"... My iPhone is a nice phone. PERIOD. - but it's not "oh so elegant", it's not "delicious" , and it's not "magical"...
Apple makes nice products across the board, but I don't need to repeat a bunch of fanboyisms to either show the superiority of my phone or knock down the other guys..
It's time we all came down from our high horses. The iPhone is a great product, so is the Mac - - - - And as much as you guys don't want to admit it, any computer or device without an Apple Logo on it isn't total junk.
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.
"Sort of like a Hyundai/BMW comparison"
While I own both and I would agree with you I still like iOS better the Hyundai/BMW comparision doesn't apply in this case. Buying HTC or MOTO hardware cost exactly the same as buying an iPhone 4. The contracts with Verzion and Sprint (more so Verizon) are the same when compared to ATT. So the cost of ownership is the same with an Android phone.
This isn't the case where the "poor people" can't afford to get an iPhone so they have to settle for an Android phone. Clearly many of them like Android better because the cost is the same.
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 thing is with your friend who switched from the G1 is that she switched from the G1. It's the grandaddy of the Android phones so to use that as an example (to how great the iPhone is over Android) is misleading. Of course she would be more happy with an iPhone. It would hold more weight if she had switched from a Droid X.
Let's think about this. Look at the data and yes Android appears to be gaining, but when you think that there are half a dozen or so phone makers with a dozen or two devices this doesn't look great for any one Android phone maker. They are comparing two enclosed Phone Environments to a segments group. Look at it that way and any given Android phone maker is getting an average or 5% or less of market share and the fact that each Android install is different based on the manufacturer and carrier, what do you have? Crap.
This is the old quantity over quality issue. Let them have more Android phones out there, you will have great ones and you will have garbage ones. Not a great comparison to two more controlled environments that are consistent.
FIne, people are buying a lot of Android phones, but many may be just trying to find something like the iPhone on their carrier. Then there are those that hate Apple. Then there are the clueless that get suckered by salespeople. You get what you pay for in this case and more people buying it doesn't make it the best.
apple's ace in the hole is on target. when it is finished all the wannabees will have to run for the hills.
with the addition of the last acre of land, in north carolina, the stage is set. it's coming soon and apple is the only company around that has the foresight to foster this project.
as good as the apple stores are, this is in a different dimension.
If anybody is confused by Nielsen, their methodology is to apparently ask what phone you bought in the last 6 months, every month. This is a form of question which would bias a previous selected phone, and increases fromthe iPhone 4 would show up in later months. The question contains previous momentum.
( of course the iOs share should include tablets and iPod touches, as mobile devices).
In any case the installed base of iOs on the iPhone is 28% and RIM is at 31%, Android at 18%.
If Apple moves ti different carriers Android will see dust. 28% is extraordinary given the limitations in the US.
And windows 7 will take more share from Android, not Apple, the Apple haters have moved already.
Good, now the real fight can begin. I doubt Steve wants iPhone to be 5% of smartphone market, and will not let the new Microsoft solidify its positions. I would expect a more frequent hardware launch schedule as well as a "pro" model some time soon. And of course we will see a sprint and t-mobile version of the iPhone some time in early 2011, with VZWireless possible in the summer of 2011.
By 2012 I think apple will have about 30% of the market, Google 50-55% and the rest will split the crums.
"The total combined sales of all 63 Android phone models finally overtake the sales of the iPhone"
How about "The total combined sales of Android phones (63 models, 6 different manufacturers, 10 carriers) finally overtake the sales of the iPhone (1 model, 1 manufacturer, 1)".
Numbers are only a guess so don't get all bent. If they are wrong, use the correct numbers. Same idea.
Good, now the real fight can begin. I doubt Steve wants iPhone to be 5% of smartphone market, and will not let the new Microsoft solidify its positions. I would expect a more frequent hardware launch schedule as well as a "pro" model some time soon. And of course we will see a sprint and t-mobile version of the iPhone some time in early 2011, with VZWireless possible in the summer of 2011.
By 2012 I think apple will have about 30% of the market, Google 50-55% and the rest will split the crums.
Naw. I would say iOs = 40% on mutiple carriers, a mere 12% in market share with a much larger share of the market open to them.
Nielsen reported android at 9% in June, can we trust their methodology?
Let's think about this. Look at the data and yes Android appears to be gaining, but when you think that there are half a dozen or so phone makers with a dozen or two devices this doesn't look great for any one Android phone maker. They are comparing two enclosed Phone Environments to a segments group. Look at it that way and any given Android phone maker is getting an average or 5% or less of market share and the fact that each Android install is different based on the manufacturer and carrier, what do you have? Crap.
This is the old quantity over quality issue. Let them have more Android phones out there, you will have great ones and you will have garbage ones. Not a great comparison to two more controlled environments that are consistent.
FIne, people are buying a lot of Android phones, but many may be just trying to find something like the iPhone on their carrier. Then there are those that hate Apple. Then there are the clueless that get suckered by salespeople. You get what you pay for in this case and more people buying it doesn't make it the best.
The best for who? For all the people who are buying these Android devices, they are the best for them. You can't say about any Android user that the best device for them is the iPhone, because if it was, they would have picked it! I can't understand why so many people fail to grasp the notion that for a lot of people, the iPhone is not the best choice. This information just shows that that is true. It doesn't mean it's not the best device for you or anyone else that owns one, but it is certainly not the best device for everyone.
I don't even understand the premise of your question. The argument does not hold if positions are reversed because:
Android market share as I've stated does NOT necessarily equal Google profits ( as the phones can be locked down to their apps, come with Bing, Yahoo or Baidu and private app stores are opening etc) BUT every increase in iOS market share directly equals Apple profit. (Google pays Apple to run Google on iOS, and Apple is selling iADs as well, plus apps, music, movies etc via iTune so Apple's profit is also continuous with every iOS device sold. Apple makes money off every app etc but Google doesn't as you can buy apps off a non Google store).
If the market share numbers were reversed Apple would easily increase it's 39-49% of the worldwide phone (smart and dumb) profits.
(note that Palm has already gone under -- bought by HP -- because it's not making money. LG and NOKIA two of the biggest phone makers have recently fired their CEOS due to failure in the mobile market. Ballmer of Msft has his bonus cut due to failure in KIN phones. Rim shares are down 40% from peak - Apple is at highest ever. All these companies are being impacted by Apple taking profits)
I own BOTH Google and Apple shares.
This whole post assumes that consumers give a rats ass about profits, which I can assure they don't. Incidently, each extra Android device on the market is an additional revenue stream for Google through the sale of products, services and advertising.
Comments
IPhone is only 2% of worldwide cell phone market share,
With that 2% Apple is making 39-48% (Cannacord & Asymco numbers) of total worldwide phone (smart and dumb) profits.
Sounds like Stockholm Syndrome to me: how does it benefit you as a customer that Apple charges higher margins than other companies?
Here in Australia it's Galaxy S Free on $A59 24 month contract.
iPhone 4 16GB free on $59 24 month contract.
The Galaxy S has 16GB of "internal SD" memory.
I wonder why people making comparisons involving Apple products always use the highest priced model, bias perhaps?
The 7" Galaxy Tab costs MORE than a 10" base model iPad.
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.
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.
Who knows? I'd find it difficult to swallow the notion that only people who have bought an expensive phone are willing to part with 99p to buy an app. The price of the apps is so relatively negligable in comparison to the price of the device that I can't see even value shoppers deliberating over the cost of the apps and whether they should buy them or not.
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?
I don't even understand the premise of your question. The argument does not hold if positions are reversed because:
Android market share as I've stated does NOT necessarily equal Google profits ( as the phones can be locked down to their apps, come with Bing, Yahoo or Baidu and private app stores are opening etc) BUT every increase in iOS market share directly equals Apple profit. (Google pays Apple to run Google on iOS, and Apple is selling iADs as well, plus apps, music, movies etc via iTune so Apple's profit is also continuous with every iOS device sold. Apple makes money off every app etc but Google doesn't as you can buy apps off a non Google store).
If the market share numbers were reversed Apple would easily increase it's 39-49% of the worldwide phone (smart and dumb) profits.
(note that Palm has already gone under -- bought by HP -- because it's not making money. LG and NOKIA two of the biggest phone makers have recently fired their CEOS due to failure in the mobile market. Ballmer of Msft has his bonus cut due to failure in KIN phones. Rim shares are down 40% from peak - Apple is at highest ever. All these companies are being impacted by Apple taking profits)
I own BOTH Google and Apple shares.
Sort of like a Hyundai/BMW comparison. Some people just like to save a few bucks even though they often regret it later. .
This is PURE Apple fanboy nonsense. I use an iPhone because I prefer it. It's my personal choice. But it's not a "BMW" anymore than the Android phones are "Hyundais"... The Droid Incredible is a nice phone. PERIOD. It's not "Clunky", it's not "Junky", and it's not "Crappy"... My iPhone is a nice phone. PERIOD. - but it's not "oh so elegant", it's not "delicious" , and it's not "magical"...
Apple makes nice products across the board, but I don't need to repeat a bunch of fanboyisms to either show the superiority of my phone or knock down the other guys..
It's time we all came down from our high horses. The iPhone is a great product, so is the Mac - - - - And as much as you guys don't want to admit it, any computer or device without an Apple Logo on it isn't total junk.
Apple doesn't do BOGO. Many Android units are moved as part of a BOGO. It should be surprising that it took Android so LONG to surpass iOS in numbers.
Please share with us:
1. What percentage of the first year's total cost of the phone+service do BOGO deals comprise?
2. What percentage of Android-powered phones have been BOGOs?
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.
"Sort of like a Hyundai/BMW comparison"
While I own both and I would agree with you I still like iOS better the Hyundai/BMW comparision doesn't apply in this case. Buying HTC or MOTO hardware cost exactly the same as buying an iPhone 4. The contracts with Verzion and Sprint (more so Verizon) are the same when compared to ATT. So the cost of ownership is the same with an Android phone.
This isn't the case where the "poor people" can't afford to get an iPhone so they have to settle for an Android phone. Clearly many of them like Android better because the cost is the same.
It's amazing how much violent agreement we have going on here.
zero....z-e-r-o....zero.
You know, your replies make me think of this:
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 thing is with your friend who switched from the G1 is that she switched from the G1. It's the grandaddy of the Android phones so to use that as an example (to how great the iPhone is over Android) is misleading. Of course she would be more happy with an iPhone. It would hold more weight if she had switched from a Droid X.
This is the old quantity over quality issue. Let them have more Android phones out there, you will have great ones and you will have garbage ones. Not a great comparison to two more controlled environments that are consistent.
FIne, people are buying a lot of Android phones, but many may be just trying to find something like the iPhone on their carrier. Then there are those that hate Apple. Then there are the clueless that get suckered by salespeople. You get what you pay for in this case and more people buying it doesn't make it the best.
with the addition of the last acre of land, in north carolina, the stage is set. it's coming soon and apple is the only company around that has the foresight to foster this project.
as good as the apple stores are, this is in a different dimension.
( of course the iOs share should include tablets and iPod touches, as mobile devices).
In any case the installed base of iOs on the iPhone is 28% and RIM is at 31%, Android at 18%.
If Apple moves ti different carriers Android will see dust. 28% is extraordinary given the limitations in the US.
And windows 7 will take more share from Android, not Apple, the Apple haters have moved already.
By 2012 I think apple will have about 30% of the market, Google 50-55% and the rest will split the crums.
This article heading should be changed to.
"The total combined sales of all 63 Android phone models finally overtake the sales of the iPhone"
How about "The total combined sales of Android phones (63 models, 6 different manufacturers, 10 carriers) finally overtake the sales of the iPhone (1 model, 1 manufacturer, 1)".
Numbers are only a guess so don't get all bent. If they are wrong, use the correct numbers. Same idea.
problem for Apple is their greed and the total cost of ownership compared to a similar Android phone is far higher.
Galaxy S = 24mths x £20 & free phone = TCO £480
iPhone 4 = 24mths x £30 plus £99 for phone = TCO £819
The £10 difference for the plan is the carrier, not Apple.
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.
I think you're right to a point.
But one has to remember, those profits, will only happen as long, as there is a healthy marketshare.
Good, now the real fight can begin. I doubt Steve wants iPhone to be 5% of smartphone market, and will not let the new Microsoft solidify its positions. I would expect a more frequent hardware launch schedule as well as a "pro" model some time soon. And of course we will see a sprint and t-mobile version of the iPhone some time in early 2011, with VZWireless possible in the summer of 2011.
By 2012 I think apple will have about 30% of the market, Google 50-55% and the rest will split the crums.
Naw. I would say iOs = 40% on mutiple carriers, a mere 12% in market share with a much larger share of the market open to them.
Nielsen reported android at 9% in June, can we trust their methodology?
Let's think about this. Look at the data and yes Android appears to be gaining, but when you think that there are half a dozen or so phone makers with a dozen or two devices this doesn't look great for any one Android phone maker. They are comparing two enclosed Phone Environments to a segments group. Look at it that way and any given Android phone maker is getting an average or 5% or less of market share and the fact that each Android install is different based on the manufacturer and carrier, what do you have? Crap.
This is the old quantity over quality issue. Let them have more Android phones out there, you will have great ones and you will have garbage ones. Not a great comparison to two more controlled environments that are consistent.
FIne, people are buying a lot of Android phones, but many may be just trying to find something like the iPhone on their carrier. Then there are those that hate Apple. Then there are the clueless that get suckered by salespeople. You get what you pay for in this case and more people buying it doesn't make it the best.
The best for who? For all the people who are buying these Android devices, they are the best for them. You can't say about any Android user that the best device for them is the iPhone, because if it was, they would have picked it! I can't understand why so many people fail to grasp the notion that for a lot of people, the iPhone is not the best choice. This information just shows that that is true. It doesn't mean it's not the best device for you or anyone else that owns one, but it is certainly not the best device for everyone.
I don't even understand the premise of your question. The argument does not hold if positions are reversed because:
Android market share as I've stated does NOT necessarily equal Google profits ( as the phones can be locked down to their apps, come with Bing, Yahoo or Baidu and private app stores are opening etc) BUT every increase in iOS market share directly equals Apple profit. (Google pays Apple to run Google on iOS, and Apple is selling iADs as well, plus apps, music, movies etc via iTune so Apple's profit is also continuous with every iOS device sold. Apple makes money off every app etc but Google doesn't as you can buy apps off a non Google store).
If the market share numbers were reversed Apple would easily increase it's 39-49% of the worldwide phone (smart and dumb) profits.
(note that Palm has already gone under -- bought by HP -- because it's not making money. LG and NOKIA two of the biggest phone makers have recently fired their CEOS due to failure in the mobile market. Ballmer of Msft has his bonus cut due to failure in KIN phones. Rim shares are down 40% from peak - Apple is at highest ever. All these companies are being impacted by Apple taking profits)
I own BOTH Google and Apple shares.
This whole post assumes that consumers give a rats ass about profits, which I can assure they don't. Incidently, each extra Android device on the market is an additional revenue stream for Google through the sale of products, services and advertising.