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  (Source: Gartner)
Android makes up a quarter of all smartphone sales worldwide, Apple surpasses RIM

Yesterday, Gartner released its Q3 2010 mobile and smartphone sales data, and the results show particularly strong gains for Android-based devices and Apple's iPhone.

In the third quarter of 2010, worldwide mobile phone sales rose 35 percent over the same quarter last year, with a total of 417 million units sold. Smartphone sales continued their meteoric growth, with a 96 percent increase over the same period last year, accounting for 19.3 percent of all mobile phone sales in Q3.

“This quarter saw Apple and Android drive record smartphone sales. Apple's share of the smartphone market surpassed Research In Motion (RIM) in North America to put it second behind Android while Android volumes also grew rapidly making it the No. 2 operating system worldwide.” said Carolina Milanesi, VP of research at Gartner. The quarter marked the third consecutive double-digit increase in sales year-on-year.

In all, nearly 81 million smartphones were sold last quarter. Android made up slightly more than a quarter of all smartphone sales worldwide, with 20.5 million units sold, positioning it as the second-most popular operating system behind Symbian, which moved nearly 30 million units. In the same quarter last year, only 1.4 million Android-based devices were sold.

Android was particularly dominant in North America, where Gartner estimates it made up 75 to 80 percent of all of Verizon's smartphone sales. It was also bolstered by the launch of the multi-carrier Galaxy S line from Samsung. Gartner also noted that the OS's move into low- to mid-level devices helped it globally. This tactic could continue in the U.S. with Android's coming holiday spree.

Apple also did considerably well, thanks to the iPhone 4. Not only did Apple surpass RIM globally with almost 13.5 million units sold to RIM's 11.9 million -- putting it in third place behind Android -- it also jumped ahead of the Blackberry manufacturer in the important U.S. market. Apple is now second only to Android in the U.S., and third in Europe (still behind Nokia and Samsung).

“Smartphone OS providers have entered a period of accelerated platform evolution, stimulated by more regular product releases, new platform entrants and new device types,” said Roberta Cozza, principal research analyst at Gartner. “Any platform that fails to innovate quickly — either through a vibrant multi-player ecosystem or clear vision of a single controlling entity — will lose developers, manufacturers, potential partners and ultimately users.” (Perhaps a veiled reference to RIM?)

Rounding out total mobile market, Nokia held on to its top spot, moving 117.5 million units in the quarter, but saw a market share decline of 8.5 percentage points over the same period last year. This was mostly caused by components shortages that affected the stock of low-end devices, which forced consumers to buy higher-end one instead. This resulted in better-than-expected financial results for the Finnish mobile company. 

Samsung came in second globally, but was nearly 50 million units behind Nokia with a total of 71.7 million units (up 18.2 percent), and LG was even further behind with 27.5 million (down 6.6 percent). 

The most impressive feat in the mobile market was the appearance of Apple in the top five manufacturers. Its 13.5 million units landed it in fourth place, ahead of RIM. Gartner posits that it could have sold more, but was hampered by ongoing supply constraints. The firm also noted that enterprise adoption of the iPhone and iPad has grown, despite Apple's focus on individual consumers.

Looking forward, Gartner expects 2011 to be a big year for media tablets like Apple's iPad. It projects nearly 55 million tablet devices to be sold next year. It also predicts that it will be another big year for Apple, in general. “To a developer, the iPod Touch and iPhone (and to a lesser extent the iPad) are effectively the same device and a single market opportunity. While Android is increasingly available on media tablets and media players like the Galaxy Player, it lags far behind iOS's multi-device presence," Milanesi said. "Apple claims it is activating around 275,000 iOS devices per day on average — that's a compelling market for any developer. And developers' applications in turn attract users.”

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By MeesterNid on 11/11/2010 8:30:38 AM , Rating: 5
Well done, Google! It's awesome to see great engineering and vision getting their due!

Keep it up!

RE: Congrats!
By Mitch101 on 11/11/2010 9:29:59 AM , Rating: 4
Some interesting numbers to consider as Microsoft comes to the game.

The comparison to current Android and iPhone activations, which reportedly hits about 200,000 and 270,000, respectively, every day. Of course, it's a little unfair to compare daily sales of a new and unknown product such as Windows Phone 7 to the daily performance of widely distributed and well-known devices like the iPhone and Android phones.

A better indicator would be to see how long it takes for Microsoft to reach one million handsets sold in the U.S. -- a milestone that many companies like to crow about.

Google Phone Launch
Ultimately the G1 sold one million devices in its first six months. That means T-Mobile was selling, on average, about 167,000 G1 handsets every month for the first six months. Or Roughtly 5700 devices a day.

Apple Phone Launch
Apple's iPhone sales for the first day were far more impressive than the G1. Apple announced that it had sold 270,000 iPhones 30 hours after the device went on sale on June 29, 2007. The company later announced in September that it had sold one million iPhones in its first 74 days of availability. So that means Apple sold, again on average, about 13,500 devices every day in the device's first 74 days.

Before you draw conclusions the point Im trying to make is Blackberry is in some serious trouble as I see both Apple and Android taking a bite out of Blackberry but I see Microsoft taking a major chunk of Blackberry with their Sharepoint and Exchange integration as Mobile 7 will make a very good corporate device.

RE: Congrats!
By bill4 on 11/11/2010 11:17:17 AM , Rating: 2
In what world is iPhone activating more devices daily than Android? No stats I've seen back that up...all reputable stats put Android sales way ahead of iPhone for some time now.

RE: Congrats!
By theapparition on 11/11/2010 12:10:11 PM , Rating: 2
Because he (and Steve Jobs) are talking about iOS activations, which include iPad and Ipod Touch.

Latest reputable info I saw had US daily activations of 200k for Android and 60k for iPhone.

RE: Congrats!
By Mitch101 on 11/11/2010 12:28:42 PM , Rating: 2
The article is basically saying that Windows 7 first day sales of 40,000 are actually very good and is no indication that the phone is failing at launch. A true measure would be how quickly it sells a million phones which will determine how well the phone/platform is being adopted by consumers. The article goes on to show stats of how well a new platform such as the droid and iPhone did when they were launched as a comparison to reach their first million.

Manufacturers would never produce a million phones for a launch day on an unproven platform. If the phone didnt sell they would be stuck with a massive inventory of devices which is probably why the HTC device is pretty identical on the Droid/Mobile 7 just in case. This is also the reason there were shortages of the device because only so many were made to reduce risk now that the demand is there for the device manufacturers will ramp up production and the more people use and talk about the Mobile 7 platform as being as good as it is it will increase in sales.

If Microsoft sells one million phones in under 74 days they will have beaten the original iPhone adoption rate. Doubtful but possible. But even making it to one million in 6 months turned out well for Droid.

But the overall fact/point I was trying to make is when was the last time we saw this much excitement around a blackberry device launch once iPhone, Droid, and Now Mobile 7 have arrived. And with Microsoft having integrated Exchange/Outlook and Sharepoint abilities they have the potential to take a good portion of the corporate workspace while being a part of the consumer market. Watch for Microsoft LYNC too. Lots of corporate surprises are coming from Microsoft not just x-box games.

The term there can be only one doesnt really apply. I think we will see Droid, iPhone, and Mobile 7 and I believe Blackberry will slowly become the minority like Palm over the next two years. I see Windows Mobile 7 taking the #3 spot very fast once more people try the device and its recommended by their friends. I doubt 95% of facebook wants multitasking 3rd party apps.

I like Blackberry very much I'm an admin/engineer for the product but eliminating blackberry servers/licenses is a bonus to corporations. Dell is doing it right now. More will follow as the seed has been planted.

RE: Congrats!
By ResStellarum on 11/11/2010 4:33:21 PM , Rating: 1
I think there's a fundamental flaw in your Windows Phone 7 launch comparison to the G1.

1. WP7 is multi-country, multi-carrier, multi-phone on launch. Google's android was launched on a single carrier (t-mobile) in the US only initially. The UK followed soon after. WP7 went live in multiple countries (in europe and others) within a few short days.

2. WP7 has a half a billion advertising budget, which of course means adverts/events everywhere. The carriers did do some advertising for the Android phones, but nowhere near the scale as WP7

3. Microsoft already has a customer base with Win Mobile, and those owners are likely to upgrade. Google had no previous establish base.

4. Microsoft linked WP7 to existing lock-in products, most notably Xbox Live, and MS Office. Google has linked some of their more popular products with Android, most notably, YouTube, GoogleMaps, and Gmail, however, almost every other phone out there has the same apps/functionality, so it doesn't really benefit from lock-in such as in the case of WP7.

In summary, of course the launch will be compared with Android, but you have to keep in mind, that WP7 has many advantages in its launch over that of Android. Still, it will be interesting to see how it does with all support and money behind it.

RE: Congrats!
By Gondorff on 11/14/2010 10:11:43 AM , Rating: 1
You are ignoring or mis-characterizing a few points, I think.

A) The market is far more saturated with alternatives than when either the iPhone or the G1 came out. These phones had no real competitors (besides each other), especially in terms of user experience. WP7 is not going to draw people away from iOS and Android, like they were able to draw consumers from their dumb-phones. It is a smaller market, so it will take more time for adoption to really show.

B) Your point that there is an established customer base with Windows Mobile is totally wrong. WP7 completely starts from scratch, and its product philosophy is further from WM6 than Android is. There is also no added value for a WM6 customer to go to WP7. Neither apps, nor anything else carry over. There can be no assumptions of carryover from existing WM users.

C) All the reports that I have been hearing include the one or two _good_ WP7 phones selling out, while the crappier ones (LG, HTC Surround) are left in the stores. The numbers are clearly limited by a supply shortage, yet it isn't being reported as such since there are still WP7 phones left in stores. But once the Samsung phones and some of the others ramp up their production, the numbers will pick up again.

D) I am no market analyst, but it seems to me that watching launch day statistics will mainly give you an idea of how many fanboys there are for a product, and not a good picture of the future market for it. Give it some time to sink in. Android never had quite so many drooling fanboys as Apple has always been able to muster for launch day, but it has still surpassed Apple in new sales.

RE: Congrats!
By MrTeal on 11/12/2010 9:49:47 AM , Rating: 2
He didn't say iPhone is activating more devices than Android. He said that in the period of selling their first million units, iPhone sold more per day than the Google G1. G1 != Android.

RE: Congrats!
By diskoman69 on 11/12/2010 12:34:58 AM , Rating: 2
What I don't get is where you draw the conclusion that Android & Apple are taking a bite out of RIM. Looking at the sales data, RIM's sales were up by 40% year-over-year ! That is really saying something, considering that they really only had one newer phone during the quarter (Torch). RIM is actually doing very well in sales. The problem is that Android and Apple both are doing even better.

The smartphone market as a whole is expanding, and the growth is in the everyday consumer market which is not RIM's core market. Apple & Android both are both focusing on features and user experience (with Android manufacturers further focusing on driving downmarket), whereas RIM seems to be focusing on midrange phones. While this may be a stall tactic to give them time to polish off their QNX-based OS, they are still continuing to sell very well on price and overseas.

I don't see most businesses leaving RIM due to the security that only their solution provides (that's why several countries have been threatening them of late), but the question should be can RIM drive enough consumer sales to keep mindshare until they are ready to launch QNX-based phones sometime next year?

RE: Congrats!
By LuckyBubba on 11/11/10, Rating: -1
This is another majorly Apple biased article
By bill4 on 11/11/2010 11:28:08 AM , Rating: 1
Yesterday, Gartner released its Q3 2010 mobile and smartphone sales data, and the results show particularly strong gains for Android-based devices and Apple's iPhone.

Oh really? The included table shows Android going from 3.5% of sales in 3Q09 to 25.5% in 3Q10. Spectacular gains. So what of Apple? Contrary to the article prose, we see iPhone dropping from 17.1 to 16.7 share from 3Q09 to 3Q10.

The article appears to be talking about Apples good results only in terms of USA sales, for which no chart is posted. The article dose not make it clear that Apple is thoroughly being dominated by Android's ascent worldwide though. Or that Apple is beating Rim, while maintaining stagnant at best share.

Bottom line, Android posted something on the lines of a 600% share increase, while Apple declined. This was presented in the article as equally great news for both companies. Nonsense.

RE: This is another majorly Apple biased article
By MozeeToby on 11/11/2010 12:04:47 PM , Rating: 2
Apple sold more phones this year than last year, therefore they had gains, but their gains didn't keep up with the pace that the market is growing, so their market share dropped. I would agree with you that it wasn't a good year for Apple, but this was really the first year that they've had direct competition in the consumer (non-business) market; nearly maintaining your market share when a huge new competitor enters the market is actually quite an accomplishment.

I think the next year will be the year that decides it, if Apple's share continues to drop, especially if it goes below 15%, they are in some serious trouble. Success in the smart phone market has become about attracting app developers as much as anything, and if there are 2x as many Android devices as Apple, they're going to have trouble attracting the developers they need. It's not impossible (but not particularly likely) that they could lose critical mass within the next year and see their sales drop massively.

By Shadowself on 11/11/2010 2:18:18 PM , Rating: 2
Saying that if iOS sales drop below 15% that Apple is in trouble is asinine. Apple existed even when their Mac OS sales were under 1%. And you may recall that Apple's *original* goal was to have 1% or more of the smartphone market.

Additionally, as mentioned in the article, for the most part an app written for iOS plays on all the iOS devices without any specific restrictions (you can tailor an app to the iPad though so it won't play well on the other iOS devices).

Conversely for Android the handset manufaturers are allowed to tailor the OS to their device. Thus in order to get the items to play well across these multiple Android implementations the developer has to make sure that the app is tested on all the devices he intends to support. (Sure, the developer could write the app to the safest, lowest common denominator, but may be too restrictive for a great number of developers.)

So even if iOS drops to 10% that 10% may be easier to develop for (and more cost/reward effective to develop for) rather than 10 different Android implementations that total 30%.

RE: This is another majorly Apple biased article
By Tony Swash on 11/11/2010 2:45:55 PM , Rating: 1
I think the next year will be the year that decides it, if Apple's share continues to drop, especially if it goes below 15%, they are in some serious trouble.

Why would they be in trouble? A constant or even slowly falling share of a rapidly growing market will mean that Apple continues to take the lions share of profits in the phone business.

Success in the smart phone market has become about attracting app developers as much as anything, and if there are 2x as many Android devices as Apple, they're going to have trouble attracting the developers they need. It's not impossible (but not particularly likely) that they could lose critical mass within the next year and see their sales drop massively.

That's all a bit of fantasy I am afraid. App developers are attracted to the App Store because they can make a lot more money than in the Android Market and that is not because there are more iOS devices than Android devices. Plus Apple have assembled a truly powerful and unique value chain for its customers (apps, films, music, books, Apple store support etc) that will be very hard to beat.

The notion that we are seeing some sort of a rerun of the Mac versus Windows battle and that that means Apple will lose again is false. The current situation around the new phone (and broader mobile) market is very, very different and Apple is a very different company than back then when it was run by a bunch of bozos in suits.

By jharper12 on 11/12/2010 11:23:58 PM , Rating: 2
That's not the point. Everyone knows Apple makes all of their money by having high margins. The point is, if market share is declining then perhaps valuation should be adjusted. Having a P/E > 20 has rarely been a sustainable feat. There's a chart on wikipedia that shows in the long term how true that really is, check it out. Apple has a share price > $300, because people expect them to continue to innovate and dominate for the foreseeable future. Simply continuing to innovate and remain highly profitable isn't enough for that share price, they must continue to dominate to command such a premium. This always happens though, as soon as people point out the competition, Apple investors point to the high margins, "we don't have to win in sales, we win in margins," yes well, for such a high stock price you really have to win in both.

RE: This is another majorly Apple biased article
By LuckyBubba on 11/11/2010 1:38:35 PM , Rating: 1
I'm sorry, but I had no idea google made a phone and is it possible the numbers are off because doesn't samsung and LG use the droid operating system?
I don't believe google is in second or in any position because of the fact there is no phone that I know of; the comparison would be best if they compared operating system users and another for hardware.
I'm not saying the article is wrong, just saying I don't understand the numbers.

By theapparition on 11/11/2010 2:28:36 PM , Rating: 1
I don't believe google is in second or in any position because of the fact there is no phone that I know of

Google has a branded phone, it's called the Nexus One. Sure, HTC makes it, but it was made to Google's specs. You could also say that Apple doesn't make any handsets either, call them Foxconn instead.

the comparison would be best if they compared operating system users and another for hardware.

Uh, take a look at the chart. It only breaks down sales by Smartphone OS.

A full quarter of worldwide sales of smartphones have a Google OS on them (Android).

Do you see any manufacturers at all on that chart?

Phone Sales
By hiscross on 11/11/10, Rating: 0
RE: Phone Sales
By Boze on 11/11/2010 3:13:40 PM , Rating: 3
Apple's iPhone out sells Google phone.

Not according to this chart... I'm not the world's smartest guy but I'm pretty sure I'm reading this correctly.

The last time I checked, 20,500,000 is greater than 13,484,400.

Consumers are starting to see the value inherent in the Android platform, along with the (very amazing) new Android smartphones that are coming out. I have a Galaxy S with Verizon as my carrier and people - disproportionately women - comment on how much sleeker it is than their iPhone. A few have commented that they'd rather have my phone than their iPhone 4.

I also don't understand how you can call the Nexus One a 100% failure... from what I understand, Google essentially considered it a "tech demo" of what was possible with Android.

I don't know if Google has any interest with the MP3 player market, but that's a market that Apple better hope Google never tries to push, because with Android adoption going through the stratosphere, it won't take long before people say to themselves, "Well, I've already got an Android phone, and an Android tablet, both of which I like (or love). I might as well get an Android MP3 player..."

RE: Phone Sales
By retrospooty on 11/11/2010 8:37:41 PM , Rating: 2
" I'm not the world's smartest guy but I'm pretty sure I'm reading this correctly. The last time I checked, 20,500,000 is greater than 13,484,400."

LOL... you are correct. 20,500,000 is greater than 13,484,400.

I think Hiscross's math is as bad as his science ;)

RE: Phone Sales
By diskoman69 on 11/12/2010 12:45:41 AM , Rating: 2
There are already Android-based media players on the market. I know Creative has a couple (the new Zen Touch2 and last year's Zii EGG) and I believe Archos has another. Just like the OS needed time to mature on phones (compare a Galaxy S or MyTouch 4g to a G1), give it another year or so to see how things go on the PMP front.

Don't forget about the Chrome OS and Google TV. Instead of consumers thinking Android phone, tablet, etc. just replace "Android" with "Google" and add TV, laptop, etc. They're taking over!

RE: Phone Sales
By hiscross on 11/12/2010 4:12:05 PM , Rating: 2
For those who attend EOSL I said Phones, like a real hand held device made by Google (NexusOne). Sure, there more Android operating system phones than the iPhone, but Not handsets made by Google. The english word for what I just wrote is comprehend.

LOL so wrong
By kattanna on 11/11/2010 11:09:45 AM , Rating: 2
man.. the pic included with this article is soo wrong LOL

RE: LOL so wrong
By KayDat on 11/11/2010 12:03:09 PM , Rating: 2
RE: LOL so wrong
By kattanna on 11/11/2010 4:00:55 PM , Rating: 2
LOL i knew i shouldnt have clicked that link, yet i did. and im very sorry about that


RE: LOL so wrong
By AssBall on 11/11/2010 4:11:13 PM , Rating: 2
Yeah I LoLed but come on its on the front page. Still laughing actually.

Very Nice!
By SunAngel on 11/11/10, Rating: -1
RE: Very Nice!
By tehbrosta on 11/11/2010 2:15:40 PM , Rating: 2
You Sir, have no idea what you are talking about.

RE: Very Nice!
By retrospooty on 11/11/2010 8:38:41 PM , Rating: 2
I second that.

RE: Very Nice!
By lolmuly on 11/14/2010 12:57:48 PM , Rating: 2
shininess and newness of android? wha? o.o

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