Archive for September, 2010

Android Continues It's Clime In Mobile Marketshare

Android is steadily scaling the wall of almost every report we’ve seen lately, and the most recent report from the mobile ad network Millenial Media doesn’t show anything different for the smartphone OS made by search engine giant Google.

Since January, Android’s mobile ad consumption has increased almost 1000%, thanks to the slew of new handsets coming out from every nook, corner, and cranny. Millenial Media’s August report shows that iOS devices are the top dogs with a decent lead, but fell 7% from July, giving them a 48% share of the US market. Android happily lapped that up, and gained 7% in the month of August, giving the Google mobile operating system a total market share of 26%. As the months continue, and more handsets are released, along with the debut of Android tablets, we can expect this market share to only increase.

Much of Android’s success comes from one device. You guessed it, the Motorola Droid. Out of the top 20 phones in the report, the Droid grabbed the number 2 spot, only behind the iPhone. That said, the iPhone accounted for 27.67% of the market in the report, where the Droid stood at 9.44%. You’ll also find more Android devices filling up the top 20 handsets, including the Droid Incredible, the HTC MyTouch Magic (MyTouch 3G), G1, Cliq, and Hero. It’ll be interesting to see what phones make the list as time goes on, and how many Android handsets can make the cut.

So in the end, the report doesn’t tell us anything we don’t already know. The Android army is slowly catching up to iOS devices. And, keep in mind that we haven’t really even seen what the little green robot is going to do once the flood of upcoming tablets hit the market this holiday season and early next year. Also, Windows Phone 7 is right around the corner, and we’re wondering what Microsoft will do to other smartphone operating systems’ market shares.

In any case, iOS and Android are ruling the market in the US. Is it a little too late in the eyes of the consumer to welcome the newcomer, WP7? We don’t have much longer to wait to find out.

[Via: AndroidAndMe]

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BlackBerry Is Doomed?

BlackBerry is doomed, says another analyst.

For the past year, we’ve been arguing that Research In Motion (RIMM) is in trouble.

The smartphone leader is rapidly losing share to Apple and Google in the consumer market, which is where most of RIM’s growth comes from. Worse, the iPhone and Android have also recently begun making inroads in RIM’s core market–the enterprise.

Put those trends together, and RIM looks like the next Palm–a one-time smartphone leader who lost a step in the innovation game and was quickly rendered irrelevant (with predictable effects on the stock price).

We think that eventually Microsoft will buy RIM as a way of shoring up its own demolished mobile business, and the two companies’ strength in the enterprise market would certainly complement each other. But the trends that are driving iPhone and Android into the corporate market are also rapidly blurring the line between “consumer” and “enterprise.”

Even normally optimistic Wall Street has begun to throw in the towel on RIM. The latest analyst to do so, Bernstein’s Pierre Ferragu, cites several important factors:

The large enterprise market is saturated (i.e., no growth there)

The small-and-medium-sized enterprise market is more open to competition, and there is limited room for growth. Also, average selling prices will decline.

Companies are increasingly opening up and allowing employees to use the smartphone of their choice–and, increasingly, those smartphones are iPhones and Android phones. This has two benefits: It makes the employees happy AND it saves the companies money.

Here are some quotes from Ferragu, via John Paczkowski at All Things D:

“The market for corporate mobile e-mail is highly penetrated and saturated outside of SMEs (Small and Medium Enterprises)… Growth in the number of companies using mobile e-mail will be limited to the SME market, in which RIM is likely to suffer the most from competition. If there is still some growth in the number of users at companies already using mobile email, it is limited and we suspect it will turn into negligible value growth as it will go along with significant ASP decline.”

“…Despite the company’s overall dominance of the [enterprise] segment … 74 percent of companies with mobile e-mail have already adopted alternative platforms, including the iPhone and Android,” Ferragu explains. This phenomenon is very new: almost all these companies “opened-up” their systems in the last two years, half of them in the last 12 months. We expect these companies to progressively ramp up the installed based of non-Blackberry solutions and therefore expect increased pressure on RIM’s performance.”

“Enterprise satisfaction with RIM solutions is very high, and most managers surveyed said that they expected BlackBerry products to remain innovative and competitively featured… The issue boils down to cost and consumer preferences: employees want to be able to use their own phone, and allowing them to do so presents IT & Telecom managers with a way to substantially cut their operating costs.”

So what can RIM do to stop the decline? Not much, says Ferragu. It missed a step, and now the competition has blown right past.

Time for RIM to sell while it still can.

Author: Henry Blodget, Business Insider

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