on apple platform, app developer makes money on both selling app and ad revenue while apple makes money on selling iphone mostly with additions from itunes' movie/music sale.
how about on driods? google is providing free andriod while htc/motorola etc makes hardware money. for andriod hardware manufacturers, all they have done so far is to match up in total volume with apple iphone. and let us assume they have equal share of total revenue, then in the end, i don't think any of them can make lots of money.
what about developer? if driod's apps are mostly free, then developer's revenue can only come through ad.
maybe google should move to a new direction. instead of open platform they pitched against apple they should emphasize user experiences. this also requires google to provide a cloud, similar to apple's itunes, to its users and enable developers to make more money. in the end, without developers' devotion to andriod platform, every one hurts.
In all fairness, all this chart shows is the spike in sales after the iphone 4 release. Sales always spike in the quarter after the year's new model is released.
That?s part of the what the article states: iPhone sales on AT&T are 2.5x higher than Android-based phone sales on Verizon. Of course there will be a spike, but if Android is doing so well on Verizon there should be a spike for each new model of Android-based phone that Verizon releases, or at least an accumulative increase for Android-based phones on Verizon. That doesn?t appear to be the case.
The original unlocked Droid sold well and competed well against the iPhone. ( I have one ) However, in traditional Google fashion, they release Froyo with so many major bugs that people ( myself included ) are getting tired of dealing with them and the fact that it can take up to six months to get a simple bug fix. One - Two months for Google to fix it. Then 1-2 months for the phone manufacturer to approve the update. Then two - three months for Verizon to approve it and send it out. My phone is rooted and I can get bug fixes faster by loading a hacked ROM. Otherwise I would have smashed the phone and went to a basic hand set a long time ago.
However, all newer Android phones on verizon are fairly locked down. With locked bootloaders the hacker community is not able to fix many of the bugs Google always releases like they did with the Original Droid. While not many iPhone users jailbreak their phone, a lot of Android have to root their phone just to be able to use many of the basic features after a Google bug riddled update. In my opinion, I think that the locked down and buggy nature of the new Androind phones is limiting their appeal.
Now, Android does have a few features that I like better than the iPhone.
1) Voice commands and text entry on Android is excellent. I use these features a lot. It sux on the iPhone.
2) Google maps and navigation is better on Android.
3) I have the option of using flash or not on Android. I know many people hate it, but the option is nice...
4) The file system in Android is very useful. In my work I often have to download files on my phone and transfer them to a computer when tethering is not practical. This is easy and clean on Android. It is a pain on my iPad and some time impossible depending of the file type. The iPhone needs some basic type of USB and WiFi file transfer. I think a dropbox approach is a very reasonable request. There is NO GOOD reason why I can download a file from the web and put it in a dropbox on my iPhone/iPad and use Wifi or USB to transfer it to a computer.
5) Wifi and USB teathering is free and works great on the Android phones. ( No you do not have to root the phone to do this. A one time purchase $10.00 app does it nicely )
6) You can charge the phone from any standard USB source. No special iAdapters/Cables require...
7) The Chrome to Phone App is incredibly useful. For those that do not know what it is, you can select any text or links in your Chrome or Firefox browser and send it to your phone. I love it to copy an address or technical note. Send it to the phone as text and past it into my Note app. If it is an address all I have to do it touch it in the note and it pops up Google navigation/map. I use this app several times a day... there are a couple of apps that kind of do the same thin on the iPhone/iPad, but are no where near as clean....
Other than that, I prefer the iPhone. It operates smoother and has less bugs and they get fixed faster when they do occur. It is far easier to put multimedia stuff on the iPhone. The user interface it simpler. The camera actually works. Every Android phone I have used has a very flaky camera app ( must be unstable in the core Android OS ). I get it to take a picture about 1/2 of the time when I want it to...
I really hope that the iPhone comes to Verizon in January. My droid is on it's last leg, ( Cracked glass and it went swimming ). I DO NOT want to buy one of the newer locked down Android phones. To me it kills the whole openness argument of the Android concept. I can't really use AT&T as my main phone for many reasons, so I will be forced to go to an Android phone after the first of the year if the iPhone is not available.
In my opinion the combination of: Google's buggy code, the phone manufactures sticking their stupid user interfaces in the android phones, Verizon tenancy to lock down the phones and stick their crapware in them, will kill Android as fast as it gained market share. It is sad too because the Android OS could offer an incredible phone experience if it was allowed to mature without so many people screwing with it....
That?s part of the what the article states: iPhone sales on AT&T are 2.5x higher than Android-based phone sales on Verizon. Of course there will be a spike, but if Android is doing so well on Verizon there should be a spike for each new model of Android-based phone that Verizon releases, or at least an accumulative increase for Android-based phones on Verizon. That doesn?t appear to be the case.
OK, so what would have happened if they did not sell Android phones, with RIMM RIP, they would be toast.
In fact anyone who does not have an iPhone needs Android just to stay alive!!!!
One day more companies will carry Apple, however its a 2 horse race, and if that's the case regardless of who is king 2nd place is great, and everyone else is gone.
Does RIM really belong here? Most of Androids perceived collective loses are present because RIM is in the chart. Still the iPhone is going strong. The big deal is really the iPhone's high retain rate in my opinion. You don't want to see a market shrinking if you are developing solutions around a platform. It doesn't give you confidence in the platform. The iPhone feels like it will remain king in the enterprise (where this is particularly important) for a long time. It is now becoming obvious that longevity is more important then ubiquity in the enterprise market and Apple has the upper hand. Windows had both longevity and ubiquity (in the multi-provider sense, not the it is everywhere sense) in the desktop market. I think that the former is the more important ingredient that hasn't received the recognition it deserved the past decades. When your not talking about servers... Apple has a history of continually supporting a small line of products.
"An analysis of Verizon Wireless smartphone sales over the past year indicates why the carrier is suddenly demonstrating interest in Apple's iPad and iPhone"
I wouldn't say Verizon's interest in the iPhone is sudden at all. Rumors of a Verizon iPhone have been going now for almost a year if not longer.
And Android based phones are no slouch compared to the iPhone. The only reason Verizon is working on a deal with Apple is name recognition. People will buy big names regardless of needs, features, value, etc. - just ask any advertising agency.
I have an iPhone 4, and I owned the first Android phone available. I like them both, but get real; Android sales are not disappointing, but additional iPhone sales would be better.
I own a new iPhone 4 for only one reason, Radio Shack offered a great discount last week. Before last week I was set on moving to an Android based phone.
Oh, that's nuts! They didn't buy Allitel because they wanted the extra 11 million subscribers? Then why? You don't think that size was a consideration?
Verizon also didn't buy Alltel the first time around. Remember Alltel shopped around for a buyer, the private equity people bought it --- then the junk bond market collapsed and the PE firms had to resell Alltel to Verizon.
Cingular bought AT&T in 2004 --- and Verizon NEVER expanded their prepaid and MVNO offerings just to reclaim the number 1 crown.
What this article shows to me more than anything else is that ATT is toast without iPhone exclusivity.
I'm not going to question the data, just how it was presented. Yes, it's interesting to see how many motorola's sold compared to palm, or how many net units sold, but Verizon could care less about that.
From a carrier perspective, the only thing they care about when it comes to smartphones is new smartphone subscribers.
What I mean is that for a carrier:
Customer going from Motorola to HTC= $0 in extra revenue
Customer going from feature phone to ANY smartphone=$30 in extra revenue
Or to use the iphone: If ATT sells 5 million iphones in a quarter this is GREAT for apple. But for ATT what are the number of users who never had a smartphone before who picked one up?
I'm not doubting that the number could still be in apple's favor. In all likelyhood it is, especially if you ONLY consider Q3 numbers. Remember that most customers are locked into a 2 year contract, so customers who jumped on the original storm at launch are JUST starting to get their upgrades in these past few months. There are people chomping at the bit for ANY smartphone that can't get it yet.
What does matter for Verizon is that the % of users who have smartphones has increased sharply since the original Droid launched, which means a lot higher Data ARPU. Which handset maker has the biggest piece of the smartphone pie doesn't really concern them. The size of the smartphone pie does.
Oh, that's nuts! They didn't buy Allitel because they wanted the extra 11 million subscribers? Then why? You don't think that size was a consideration?
They actually largely purchased them because Alltel's 3g coverage nicely complimented their own. the added consumers were a plus, but just like the Nextel buyout. The big ticket items were spectrum and coverage.
That?s part of the what the article states: iPhone sales on AT&T are 2.5x higher than Android-based phone sales on Verizon. Of course there will be a spike, but if Android is doing so well on Verizon there should be a spike for each new model of Android-based phone that Verizon releases, or at least an accumulative increase for Android-based phones on Verizon. That doesn?t appear to be the case.
The problem is that the study try to imply that Verizon is in trouble because iphone is a high ARPU item.
But AT&T's ARPU went down in the same period and Verizon Wireless' ARPU went up in the same period.
Wow - "AT&T now selling 2.5 times as many iPhones as Verizon is Android models". Comparing apples and orangutans. DED really spinning the stats there. Spin doctor is spinning like a top.
The only way you can make this comparison is if Verizon had Android exclusively. That way everyone who wanted android would switch to verizon the way everyone who wants the iphone switched to at&t.
Wow - "AT&T now selling 2.5 times as many iPhones as Verizon is Android models". Comparing apples and orangutans. DED really spinning the stats there. Spin doctor is spinning like a top.
I'm grateful for articles like this... it helps me find the people I want on my ignore list.
I have an iPhone 4, and I owned the first Android phone available. I like them both, but get real; Android sales are not disappointing, but additional iPhone sales would be better.
I own a new iPhone 4 for only one reason, Radio Shack offered a great discount last week. Before last week I was set on moving to an Android based phone.
What a piece of crap article that was.
Give me a break, you had the first Android phone and liked it? Compared to an iPhone? You're not very demanding apparently...
Good info. Charts are a little deceptive, but it is pretty clear that Verizon's smart phone subscriber base is flat, RIM lost 45 points, and Android gained 35 points. AT&T has added or converted more smartphone users.
...All of this with Verizon pouring lots of money into advertising and creating a brand for Android.
Comments
20 posts already, and the Android trolls have not arrived yet! Are all in their caves?
Shhh.... do not molest the trolls... they are huddled around the fire hungering for troll-bait.
how about on driods? google is providing free andriod while htc/motorola etc makes hardware money. for andriod hardware manufacturers, all they have done so far is to match up in total volume with apple iphone. and let us assume they have equal share of total revenue, then in the end, i don't think any of them can make lots of money.
what about developer? if driod's apps are mostly free, then developer's revenue can only come through ad.
maybe google should move to a new direction. instead of open platform they pitched against apple they should emphasize user experiences. this also requires google to provide a cloud, similar to apple's itunes, to its users and enable developers to make more money. in the end, without developers' devotion to andriod platform, every one hurts.
In all fairness, all this chart shows is the spike in sales after the iphone 4 release. Sales always spike in the quarter after the year's new model is released.
That?s part of the what the article states: iPhone sales on AT&T are 2.5x higher than Android-based phone sales on Verizon. Of course there will be a spike, but if Android is doing so well on Verizon there should be a spike for each new model of Android-based phone that Verizon releases, or at least an accumulative increase for Android-based phones on Verizon. That doesn?t appear to be the case.
The original unlocked Droid sold well and competed well against the iPhone. ( I have one ) However, in traditional Google fashion, they release Froyo with so many major bugs that people ( myself included ) are getting tired of dealing with them and the fact that it can take up to six months to get a simple bug fix. One - Two months for Google to fix it. Then 1-2 months for the phone manufacturer to approve the update. Then two - three months for Verizon to approve it and send it out. My phone is rooted and I can get bug fixes faster by loading a hacked ROM. Otherwise I would have smashed the phone and went to a basic hand set a long time ago.
However, all newer Android phones on verizon are fairly locked down. With locked bootloaders the hacker community is not able to fix many of the bugs Google always releases like they did with the Original Droid. While not many iPhone users jailbreak their phone, a lot of Android have to root their phone just to be able to use many of the basic features after a Google bug riddled update. In my opinion, I think that the locked down and buggy nature of the new Androind phones is limiting their appeal.
Now, Android does have a few features that I like better than the iPhone.
1) Voice commands and text entry on Android is excellent. I use these features a lot. It sux on the iPhone.
2) Google maps and navigation is better on Android.
3) I have the option of using flash or not on Android. I know many people hate it, but the option is nice...
4) The file system in Android is very useful. In my work I often have to download files on my phone and transfer them to a computer when tethering is not practical. This is easy and clean on Android. It is a pain on my iPad and some time impossible depending of the file type. The iPhone needs some basic type of USB and WiFi file transfer. I think a dropbox approach is a very reasonable request. There is NO GOOD reason why I can download a file from the web and put it in a dropbox on my iPhone/iPad and use Wifi or USB to transfer it to a computer.
5) Wifi and USB teathering is free and works great on the Android phones. ( No you do not have to root the phone to do this. A one time purchase $10.00 app does it nicely )
6) You can charge the phone from any standard USB source. No special iAdapters/Cables require...
7) The Chrome to Phone App is incredibly useful. For those that do not know what it is, you can select any text or links in your Chrome or Firefox browser and send it to your phone. I love it to copy an address or technical note. Send it to the phone as text and past it into my Note app. If it is an address all I have to do it touch it in the note and it pops up Google navigation/map. I use this app several times a day... there are a couple of apps that kind of do the same thin on the iPhone/iPad, but are no where near as clean....
Other than that, I prefer the iPhone. It operates smoother and has less bugs and they get fixed faster when they do occur. It is far easier to put multimedia stuff on the iPhone. The user interface it simpler. The camera actually works. Every Android phone I have used has a very flaky camera app ( must be unstable in the core Android OS ). I get it to take a picture about 1/2 of the time when I want it to...
I really hope that the iPhone comes to Verizon in January. My droid is on it's last leg, ( Cracked glass and it went swimming ). I DO NOT want to buy one of the newer locked down Android phones. To me it kills the whole openness argument of the Android concept. I can't really use AT&T as my main phone for many reasons, so I will be forced to go to an Android phone after the first of the year if the iPhone is not available.
In my opinion the combination of: Google's buggy code, the phone manufactures sticking their stupid user interfaces in the android phones, Verizon tenancy to lock down the phones and stick their crapware in them, will kill Android as fast as it gained market share. It is sad too because the Android OS could offer an incredible phone experience if it was allowed to mature without so many people screwing with it....
That?s part of the what the article states: iPhone sales on AT&T are 2.5x higher than Android-based phone sales on Verizon. Of course there will be a spike, but if Android is doing so well on Verizon there should be a spike for each new model of Android-based phone that Verizon releases, or at least an accumulative increase for Android-based phones on Verizon. That doesn?t appear to be the case.
OK, so what would have happened if they did not sell Android phones, with RIMM RIP, they would be toast.
In fact anyone who does not have an iPhone needs Android just to stay alive!!!!
One day more companies will carry Apple, however its a 2 horse race, and if that's the case regardless of who is king 2nd place is great, and everyone else is gone.
Tom
I wouldn't say Verizon's interest in the iPhone is sudden at all. Rumors of a Verizon iPhone have been going now for almost a year if not longer.
And Android based phones are no slouch compared to the iPhone. The only reason Verizon is working on a deal with Apple is name recognition. People will buy big names regardless of needs, features, value, etc. - just ask any advertising agency.
I have an iPhone 4, and I owned the first Android phone available. I like them both, but get real; Android sales are not disappointing, but additional iPhone sales would be better.
I own a new iPhone 4 for only one reason, Radio Shack offered a great discount last week. Before last week I was set on moving to an Android based phone.
What a piece of crap article that was.
Well, ...
Thanks for a calm, balanced critique.
Oh, that's nuts! They didn't buy Allitel because they wanted the extra 11 million subscribers? Then why? You don't think that size was a consideration?
Verizon also didn't buy Alltel the first time around. Remember Alltel shopped around for a buyer, the private equity people bought it --- then the junk bond market collapsed and the PE firms had to resell Alltel to Verizon.
Cingular bought AT&T in 2004 --- and Verizon NEVER expanded their prepaid and MVNO offerings just to reclaim the number 1 crown.
I'm not going to question the data, just how it was presented. Yes, it's interesting to see how many motorola's sold compared to palm, or how many net units sold, but Verizon could care less about that.
From a carrier perspective, the only thing they care about when it comes to smartphones is new smartphone subscribers.
What I mean is that for a carrier:
Customer going from Motorola to HTC= $0 in extra revenue
Customer going from feature phone to ANY smartphone=$30 in extra revenue
Or to use the iphone: If ATT sells 5 million iphones in a quarter this is GREAT for apple. But for ATT what are the number of users who never had a smartphone before who picked one up?
I'm not doubting that the number could still be in apple's favor. In all likelyhood it is, especially if you ONLY consider Q3 numbers. Remember that most customers are locked into a 2 year contract, so customers who jumped on the original storm at launch are JUST starting to get their upgrades in these past few months. There are people chomping at the bit for ANY smartphone that can't get it yet.
What does matter for Verizon is that the % of users who have smartphones has increased sharply since the original Droid launched, which means a lot higher Data ARPU. Which handset maker has the biggest piece of the smartphone pie doesn't really concern them. The size of the smartphone pie does.
Oh, that's nuts! They didn't buy Allitel because they wanted the extra 11 million subscribers? Then why? You don't think that size was a consideration?
They actually largely purchased them because Alltel's 3g coverage nicely complimented their own. the added consumers were a plus, but just like the Nextel buyout. The big ticket items were spectrum and coverage.
That?s part of the what the article states: iPhone sales on AT&T are 2.5x higher than Android-based phone sales on Verizon. Of course there will be a spike, but if Android is doing so well on Verizon there should be a spike for each new model of Android-based phone that Verizon releases, or at least an accumulative increase for Android-based phones on Verizon. That doesn?t appear to be the case.
The problem is that the study try to imply that Verizon is in trouble because iphone is a high ARPU item.
But AT&T's ARPU went down in the same period and Verizon Wireless' ARPU went up in the same period.
Wow - "AT&T now selling 2.5 times as many iPhones as Verizon is Android models". Comparing apples and orangutans. DED really spinning the stats there. Spin doctor is spinning like a top.
I'm grateful for articles like this... it helps me find the people I want on my ignore list.
Verizon NEVER cared about losing the number 1 crown when Cingular Wireless bought AT&T Wireless.
Verizon NEVER expanded their prepaid or MVNO offerings so that they could catch Cingular Wireless.
Verizon just concentrated on postpaid net adds and not cared a single day on losing the number 1 crown.
And you know this because?...
The "Island of Misfit Toys" of course!
I have an iPhone 4, and I owned the first Android phone available. I like them both, but get real; Android sales are not disappointing, but additional iPhone sales would be better.
I own a new iPhone 4 for only one reason, Radio Shack offered a great discount last week. Before last week I was set on moving to an Android based phone.
What a piece of crap article that was.
Give me a break, you had the first Android phone and liked it? Compared to an iPhone? You're not very demanding apparently...
...All of this with Verizon pouring lots of money into advertising and creating a brand for Android.