jerdog · Aug 18, 2012 at 01:30 am

Android Continues to Dominate the Market, But Whose Marketshare are They Taking?

It is no secret that Android is dominating the marketplace, with the latest results from Gartner bearing this out. Android’s share of the smartphone market at the end of the 2Q 2012 was 64%, an increase of 47% over 2Q 2011. And with Google activating over 1,000,000 devices each day, this comes as no surprise. What is mildly surprising is that Apple’s market share grew only .6% (yes, you read that right) over the same time frame, topping out at a whopping 18.8%. With the iPhone 4, and its subsequent underwhelming successor Siri iPhone 4S, being released during that time frame, it’s a testament to Android’s popularity that Apple’s market growth was negligible at best. Gartner points to the upcoming release of the iPhone 5 as a reason for the slowdown, but I think there is more to the story than just that.

iOS fans may be starting to realize that the company will release a new device that offers marginal upgrades, knowing that many of their customers will participate in the Running of the Bulls if it means that they’ll get their hands on the next generation gadget. And coming to this realization, it could mean that they are sticking with their contracts instead of ponying up the unsubsidized price for a new device every 9-12 months. With economic conditions the way they are, I am sure that also plays into it as well. But it’s the story within the story that I believe is more telling.

In the image above, you will see the breakdown in mobile device sales to end users by operating system in 2Q 2012. If you’ll notice, there were two Operating Systems which experienced significant loss to their market share: Symbian and RIM. (I have provided a different table below for you to better see the shift.)  Of course, that may not come as much of a surprise if you’ve spent any amount of time paying attention to mobile device technology. You already know that Symbian and RIM have been on the downward slope for a while. However, what I don’t think is being noted anywhere is who is picking up the lost market share.

Operating System 2Q12 Market Share % 2Q11 Market Share % % Point Change
Android 64.1 43.4 20.7
iOS 18.8 18.2 0.6
Symbian 5.9 22.1 -16.2
Research in Motion 5.2 11.7 -6.5
Others 6.0 4.5 1.5

 

The combined loss in market share between the two is 22.7%, and if you add up the other operating systems, you’ll find that they all picked up the fallout. Of course, something else becomes most evident: According to the numbers, Symbian and RIM customers are choosing Android over iOS by a LARGE margin, essentially a 20:1 ratio. The other operating systems (Bada, Microsoft and Others) pick up the remainder of the spoils. That of course does not bode well for the Other operating systems as their available pool of customers to woo just got smaller. Is it any wonder that Apple has chosen to sue instead of create in order to slow the marketplace?

[Image credit: TalkAndroid.com]
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