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Tag: droid

  • NPD: Android Shakes Up U.S. Smartphone Market

    The Android OS continued to shake up the U.S. mobile phone market in the Q1 of 2010, moving past Apple to take the number-two position among smartphone operating systems, according to NPD.

    NPD’s wireless market research reveals that based on unit sales to consumers last quarter the Android operating system moved into second position at 28 percent behind RIM’s OS (36 percent) and ahead of Apple’s OS (21 percent).

    “As in the past, carrier distribution and promotion have played a crucial role in determining smartphone market share,” said Ross Rubin, executive director of industry analysis for NPD. “In order to compete with the iPhone, Verizon Wireless has expanded its buy-one-get-one offer beyond RIM devices to now include all of their smartphones.”

    Strong sales of the Droid, Droid Eris, and Blackberry Curve via these promotions helped keep Verizon Wireless’s smartphone sales on par with AT&T in Q1. According to NPD, smartphone sales at AT&T comprised nearly a third of the entire smartphone market (32 percent), followed by Verizon Wireless (30 percent), T-Mobile (17 percent) and Sprint (15 percent).

    “Recent previews of BlackBerry 6, the recently announced acquisition of Palm by HP, and the pending release of Windows Phone 7 demonstrates the industry’s willingness to make investments to address consumer demand for smartphones and other mobile devices,” Rubin said. “Carriers continue to offer attractive pricing for devices, but will need to present other data-plan options to attract more customers in the future.”

    The report also shows that the continued popularity of messaging phones and smartphones resulted in slightly higher prices for all mobile phones, despite an overall drop in the number of mobile phones purchased in the first quarter.

    The average selling price for all mobile phones in Q1 reached $88, which is a 5 percent increase from Q1 2009. Smartphone unit prices, by comparison, averaged $151 in Q1 2010, which is a 3 percent decrease over the previous year.

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  • U.S. Smartphone Market – Only the Strong Will Survive

    According to the recent Canalys Smartphone Analysis, the smart phone market continues to increase as a proportion of the overall mobile phone market in the US.

    Despite a drop in market growth to 6% in Q3 2009, down from 37% in Q2 2009, smart phones represented 26% of all mobile phones shipped in Q3 2009. This is up from 24% in Q2 2009 and will continue to rise in coming quarters.

    The top two smart phone vendors increased their combined market share in Q3 to 76.3%. Research in Motion (RIM) held 48.1% while Apple held 28.2%.

    “Despite what looks like a ‘closed shop’, with continued growth expected in the US smart phone market there is still plenty to play for, and new products are coming thick and fast from the competition,” the report says.

    Four other smartphone platforms in the US market today – Android, Symbian S60, webOS and Windows Mobile – represented only 23.7% of the market in Q3.

    Canalys claims the challenge for the handset vendors on the multivendor platforms is to “differentiate their products, especially as the market gets busier, while also providing competition to Apple and RIM and choice to the consumer.”

    Canalys also thinks that with an increasing number of Android and Windows Mobile devices launching, there can be little, by looking at the specifications, to choose between one and another on the same platform. “A key product differentiator will be seen in the software and the user interface. In short it is all about the user experience, particularly how the user organises their favourite applications, content, messages, people and places,” analysts say.

    Canalys says Verizon needs to fight back against the iPhone’s tremendous success and will be hoping the new Android devices (Motorola’s Droid and HTC’s Droid Eris) will “light up its somewhat uninspiring consumer device portfolio.” Demand for Android devices will be helped by the addition of Google Maps Navigation on Android 2.0.

    Analysts reminds us of the fact that AT&T is the only one of the big four US mobile operators not yet to range an Android device.

    RIM’s US device shipments were up 27.5% in Q3. Around 3.8 million net new subscriber accounts were added worldwide in its fiscal quarter and profits beat analyst expectations. According to Canalys estimates, RIM, with only the Storm, held a 2.2% share of US touch-screen smart phones in Q3 2009. As its entry-level and mid-range (mostly keyboard-based) devices increasingly come up against new touchscreen Android devices, buyers’ appetite for BlackBerry devices will be tested.

    The iPhone remains the leading consumer smart phone in the US. The response to the iPhone 3G S was ‘tremendous’ and ‘very surprising’ according to Apple, so much so that many international markets had limited supply for several weeks.

    Canalys says with each software release the iPhone gets more ‘CIO friendly’. According to Apple, the iPhone is being ‘deployed or piloted’ at more than 50% of Fortune 100 companies and is doing well in higher education institutions and government agencies, though increased device security will still be needed for broad deployment to be considered in government.

    The report shows that US smart phone share of HTC, the leading worldwide manufacturer of Android smart phones, supplying T-Mobile and Vodafone (in EMEA) as well as selling under the HTC brand, has hovered around the 5-7% mark for five quarters.

    “HTC devices are ranged by the big four US mobile operators. These relationships and the installed base of customers it has are crucial to HTC, and Microsoft. From being the first, HTC is now one of many Android device vendors,” says Canalys.

    According to the research group, Motorola “rose from the ashes” of the smart phone market recently with the announcement of the new Android-based smart phones, the CLIQ with T-Mobile and the Droid with Verizon.

    “If the CLIQ and the Droid do anything like as well as the RAZR did it will give Motorola a solid base for 2010. Working on Android means that building its own app store need not be a top priority for Motorola.,” according to Canalys.

    They also think Nokia really needs a big hit in the US (“It has failed to get its most popular Nseries devices ranged by the leading US mobile operators and it has thus far failed to make a significant impression with its Ovi services in the US”), Palm needs the old volumes back (“Mobile operators must be convinced that they can profit from ranging Palm webOS devices. Palm needs their commitment”), and Samsung has lagged in smart phones, although it still leads the overall US mobile phone market and continues to roll out new handsets with all leading mobile operators at a “blistering pace.”

    Canalys notices that there are more vendors planning to launch smart phones in the US in the next few months: Dell, Kyocera Wireless, LG (Android handsets) and Acer (Android and Windows phones).

    “They will all be faced with the same challenges: getting their smart phones ranged by the mobile operators and capturing the imagination of consumers. The mobile operators can only range, subsidise and promote a certain number of devices. As Apple did, new entrants need to come up with something special, and that is no easy feat,” the report concludes.

  • Motorola Becomes a First-Mover Again

    “Android provides differentiation today, but may not tomorrow,” says recent Canalys report on Motorola’s market strategy.

    During its Q3 earnings call on 29 October, Motorola’s Co-CEO Sanjay Jha announced the company’s quarterly profit of $12 million, up from a $397 million loss a year ago.

    Canalys analysts state this was primarily driven by aggressive cost-cutting and the improvement was reflected in a stock price rise of more than 12%.

    Despite the overall positive result, the troubles faced by Motorola’s handset division continue. During the quarter it recorded sales of $1.7 billion, but made a loss of $183 million, shipping just 13.6 million devices.

    More positively, less than two months after announcing the CLIQ, Motorola introduced its second Android smart phone – the DROID – earlier in the week. The DROID is the first announced phone to support Android 2.0, with all the enhancements that brings.

    DROID will be available in the US exclusively from Verizon Wireless from 6 November. It will cost $199.99 with a new two-year contract after a $100 mail-in rebate.

    According to the report, Verizon is pitching the DROID aggressively against Apple’s iPhone and the device fills an important gap in the operator’s smart phone portfolio.

    “For Motorola, this partnership is an invaluable opportunity to rebuild its status within the handset market and draw attention to its Android-centric strategy,” it says.

    For the past year, Motorola has put significant effort into streamlining its platforms, having previously produced an array of smart phones on Windows Mobile, Symbian and various forms of Linux.

    The company aims to reduce its reliance on feature phones and will hope to be able to push Android down into higher volume, but more price-sensitive segments over time.

    Canalys claims the quick rollout of DROID following the CLIQ demonstrates that the company is moving in the right direction, having suffered from portfolio stagnation following the earlier tremendous success of the RAZR.

    Both the DROID and the CLIQ may do well in the US in the short term, but there can be no room for complacency. Over the coming months the market will see a huge influx of Android devices from top-tier handset brands as well as from vendors very focused on delivering devices to operators at lower cost.

    “For Motorola to maintain momentum it will need to be able to differentiate itself from the many other Android products that will be available in 2010, and it will need to do this on the international stage. China will be critical. Motorola has enjoyed success with its Linux devices there in the past and it will need to replicate this success and build upon it with its Android devices.”

    Analysts conclude that the company will also need to ensure that the devices it produces compete on quality as well as price, ensuring that a focus on getting Android into the middle-tier of the market does not result in compromises that lead to products that deliver an inferior user experience.

  • Google Enters Navigation Market

    It is now official and will completely change the mobile and PND navigation market. Google announced Google Maps Navigation for Android 2.0 devices.

    It comes with 3D views, turn-by-turn voice guidance and automatic rerouting, but unlike most navigation systems, the Navigation was built from the ground up to take advantage of the phone’s internet connection, as Google claims.

    The features possible because Google Navigation is connected to the internet are:
    • recent map and business data: phone automatically gets the most up-to-date maps and business listings from Google Maps — there is no need to buy map upgrades or update the device;
    • search by voice: searching destinations using google voice search (speak your destination instead of typing);
    • traffic view: live traffic data over the internet (a traffic indicator light in the corner of the screen glows green, yellow or red, depending on the current traffic conditions along the route);
    • search along route: searching for a specific business along the route (you can also turn on popular layers, such as gas stations, restaurants or parking);
    • satellite view: the same satellite imagery as Google Maps on the desktop;
    • Street View: shows the turn as you’ll see it, with the route overlaid (Navigation automatically switches to Street View as you approach your destination).

    There is also car dock mode available for certain devices – placing a phone in a car dock activates a special mode (new user interface with, e.g. much larger iconography) that makes it easy to use the device at arm’s length.

    The first phone to have Google Maps Navigation is Motorola’s Droid. It hits the U.S. market next week (Nov. 6th) for $199 on contract (after a $100 mail-in rebate) and will be available from Verizon with voice plan starting at $39 and a web and email plan for $29 per month.

    Like other Google Maps features, Navigation is free.

    Here is the official Google video