Friday, January 27, 2012

Do the Latest iPhone Figures Show a Fragmented Android Market?

by Holly Shoemaker

Today I blogged about how Verizon and AT&T sold more iPhones than Android smartphones during their fourth quarters of 2011. Does this mean manufacturers of Android devices have oversaturated the market? As consumers, do we have too many choices?

It is a daunting task for many to keep up with the latest devices and apps. This made me think that Apple may provide a more streamlined approach. Consumers know what they will receive with Apple’s products. Android phones are not created equal. I own an Android phone, but I see why people remain loyal to Apple. Even with upgrades, people identify with the design of the company’s products and its operating system. With Android, you may run Gingerbread, Ice Cream Sandwich, the latest Android 4.0 operating system, or an older version. Some people may not even realize that.

Open-source technology has its benefits, but it also creates competition and confusion for some consumers. It takes time to conduct your research when you decide to purchase any smartphone. From this standpoint, some people take the stance that Apple has a long track record and the options do not seem as complicated or time consuming to research.

Concluding Thoughts

Better education and a clearer distinction regarding Android products would help consumers. With Apple, potential and existing customers may just go into an Apple Store for advice and clarification. This is where the Android Market needs improvement. When consumers go into a cell phone carrier, you will not have the same experience – it will depend on the knowledge of the sales staff. Perhaps manufacturers need to do a better job explaining why their Android devices are better than others.

iPhone Puts AT&T Against Verizon or Does It?

by Holly Shoemaker

Verizon and AT&T failed to meet expectations and reported some disappointing figures for their fourth-quarter results for 2011. However, their reported figures show the smartphone industry has no signs of slowing down.

Smartphone Numbers at a Glance for Q4 2011

  • AT&T sold 9.4 million smartphones. Of the 9.4 million sold, 7.6 of them, or over 80 percent of them were iPhones. This provided some good news for AT&T who posted a hefty loss because of its failed acquisition of T-Mobile. This is also good news for Apple as AT&T said the iPhone 4S connected with customers.
  • Verizon sold 7.7 million smartphones. Out of this total, the carrier sold about 4.3 million iPhones. This is more good news for Apple as the iPhone outsold Android smartphones by over 50 percent.

Concluding Thoughts

Many reports have concluded that AT&T has, at the moment, won the smartphone battle with Verizon when it comes to people purchasing smartphones via carriers, especially iPhones. Many reports fail to discuss how AT&T has sold iPhones longer than Verizon. Verizon started selling the iPhone 4 in Feb. 2011. Consumers also have the ability to purchase an iPhone 3GS for little to no cost from AT&T.

Sprint will publish its Q4 2011 results in February. The carrier has said it expects to lose money on the iPhone for the next few years. More to come…