Google Android outsells Apple iPhone in Q1 of 2010

From the article:

Smartphones based on Google’s Android mobile operating system have outsold Apple’s iPhone in the U.S. during the first quarter of 2010, according to a report by research firm The NPD Group. The data places Android, with 28 percent of the smartphone market, in second place behind RIM’s Blackberry smartphone market share of 36 percent. Apple now sits in third place with 21 percent.

NPD points to a Verizon buy-one-get-one-free promotion for all of its smartphones as a major factor in the first quarter numbers. Verizon saw strong sales for the Motorola Droid and Droid Eris Android phones, as well as the Blackberry Curve, thanks to its promotional offer. Verizon launched a $100 million marketing campaign for the Droid when it hit the market in November 2009, which likely attributed to strong sales in the first quarter as well.

While these numbers do not take into account the Droid Incredible (which looks to be the nicest Android-based handset yet), you should also keep in mind that they don’t account for the many people likely holding out on buying an iPhone now due to the almost certain release of the next iteration which will be available some time this quarter. I think even with the new iPhone, however, we’ll continue to see Android gaining market share… and the reason is fairly simple: If you want an iPhone you can get one made by exactly one vendor, and then use it only on mobile carriers blessed by that one vendor (yes, you can jailbreak your phone, but that’s far outside the technical knowhow of the average user and still doesn’t give you carte blanche in choosing a carrier). With Android, on the other hand, you have an Open mobile OS that any handset manufacturer is welcome to use and any carrier is welcome to support. You can buy an unsubsidized phone right from Google, or choose a subsidized option via the carrier of your choice (and I’m not aware of a major mobile carrier that doesn’t have some kind of Android option at this point). You can even buy myriad Android devices that are not mobile phones, from tablets and set-top boxes to cars and home appliances. As time goes on, it’s very difficult to imagine that this openness and product lineup replete with options will not become an even larger advantage, despite the very polished product that Apple is putting out. I’d like to think Apple has learned the repercussions of being too closed, but it seems they may be doomed to repeat the mistakes they made in the late 80′s.

Does that mean Android will blow past Apple in overall market share? Nope; whether that will happen remains to be seen. How the myriad versions and releases of Android play out over the next 24 months or so is going to have a huge impact on its long term success. I’m already seeing reports of some incompatibility issues and if that passes a certain threshold, many app developers will simply stop making Android apps (or will relegate them to second tier releases) which have a huge negative impact on the Android ecosystem and the mobile carriers willingness to support Android. I think Google understands this, but whether or not they’re able to avoid it is a question only time will answer.

Additional Reading:
* NPD Press Release
* Is Android Really Outselling Apple?
* Android market share over iPhone not as impressive as it looks
* Is Android the new Microsoft for Apple?

–jeremy

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