Apple, Google, Samsung All Show Gains in U.S. Mobile Market

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Apple, Google, and Samsung all showed some kind of gains in the U.S. cellphone market in the three months ending in July, according to new data published by comScore. The firm released a report on U.S. carrier subscribers that showed Apple gained in total handsets and smartphone market share, while Samsung also gained in handsets. Google’s Android and Apple’s iPhone platforms gained smartphone share at the expense of all other competitors.

Apple is the fourth largest handset manufacturer in the U.S., according to comScore’s data. This category counts all mobile handsets, and not just smartphones, where Apple competes with its iPhone. Apple gains 1.2% of the market, to grow from 8.3% to 9.5%. Samsung grew from 24.5% to 25.5%, while LG stayed the same at 20.9%. Motorola lost share, as did Research In Motion.

The chart below shows the top five handset makers in the three months ending in April 2011 compared to the three months ending in July.

U.S. Handset Market Share

Chart by The Mac Observer from comScore data

The research firm said that 82.2 million subscribers are now using smartphones in the U.S., a 10% climb compared to the previous three month period. Not surprisingly, Google’s Android was the big winner in the new report, climbing from 37.5% of the smartphone market to 42.6%.

Apple’s iPhone was the only other gainer, as the company went from 26.8% to 27.5% of the market. RIM’s BlackBerry platform dropped 4.1% to 22.1%, while Microsoft and Symbian also lost share.

U.S. Smartphone Market Share

Chart by The Mac Observer from comScore data

In short, Android and iPhone are the only smartphone platforms that are showing any growth as past stalwarts continue to languish. At the same time, Apple is continuing its run as a major hardware player.

While slightly more than one in four handsets in the U.S. are Samsung devices, a little more than one in eleven are iPhones, and considering the reality that Samsung offers dozens of models and Apple offers two (iPhone 3Gs and the iPhone 4), it’s easy to understand why Apple rakes in the lion’s share of hardware profits.

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Comments

mhikl

Quote:” . . .  it?s easy to understand why Apple rakes in the lion?s share of hardware profits.”

I could here a Homer smacking of the lips as you wrote those words, Bryan.

Seems Samsung’s stratagem to copy the Apple way, lock, stock and barrel, pays off.

Good idea until the courts send this highwayman to the woodshed.

It’ll be a fine day when this comes about! Steve might even pose with a smile, though probably with a da Vinci turn.

(Mona, move over.)

Don’t feed troll Apple Haters, now.

JohnNZ

mhikl,

Apple had been nobody in mobile device before Iphone.  And do you think they could have MADE a phone without stealing ideas and coppying other’s patents.

Look! Apple made a great phone without any major technologies developed themselves.  They put existing technologies into devices in cool case.  That is all they doing.

Anyone still think Samsung copied Apples design? you are still looking at the manupulated images supplied in courts in Europe.  They are very different in both function wise and design wise.  Samsung functions better, Apple looks better.

Sorry to other readers, I am just responding to mhikle.  No, I am a Ipad2 lover.

wab95

Bryan:

Looking forward to seeing your revisit of this topic post iPhone 5 (or 4S?) release. Perhaps with your next graphic presentation, you can display one graph with total handset growth and another with smartphone handset growth (Apple being in both) - assuming you have those data.

d'monder

At what point do Microsoft and Symbian pull the plug?

Bosco (Brad Hutchings)

Cool, another troll hater to ruin the resident Mangina’s day! Welcome to the party JohnNZ. Hold your ground, because if you write something consistent with mhikl’s religion, he’ll sexually assault you with lavish praise. Heavy flow day for him…

mhikl

Don’t fall into their trap. Ignore the trolls and Apple Haters. Choose ignore member  instead, even the first timers.

Some are just fools who down’t have a clue what they are talking about. Check the anger.  It’s obvious.

Familiar trolls can do a double’s post. It’s been done before.

Bosco (Brad Hutchings)

Looking forward to seeing your revisit of this topic post iPhone 5 (or 4S?) release.

When we revisited it after the Verizon Unicorn, Android just continued its momentum. Why do you think it will be any different when Apple has one or two offerings and the Android ecosystem offers a plethora of form factors and feature sets more likely to match individual customer needs?

Choose ignore member? instead, even the first timers.

Self-anointed conscience of the TMO comments board. Bryan, this clown is hurting your brand. Sorry dude.

JohnNZ

mhikl,

Are you refering me as a troll?  You seem to be locked with Apple and listening only what Apple says, whereas I am listening all sides and have my own opinion.  Now, who is a troll?  I think it is obvious.

Have you compared the acctual products from both?  I did and I chose Ipad2 over Samsung GT 10.1 due to its coolness.  They are different all around.

Sorry other readers, but I had to respond him.

wab95

Why do you think it will be any different when Apple has one or two offerings and the Android ecosystem offers a plethora of form factors and feature sets more likely to match individual customer needs?

Good question; I don’t. My interest is not about the comparison between iOS vs Android, but in the overall marketshare and profit share gains by the iOS platform.

I have said before, and I repeat that I believe Android is a good platform for providing access to the Internet for low and middle income countries, particularly on these inexpensive commodity handsets one finds throughout Asia. And many of these local manufacturers and service providers can tolerate those low margins that a larger concern cannot. I anticipate that Android’s global presence will increase.

It is Apple’s continued market share (and it will continue to gain market share as it has every quarter, particularly on the strength of its Asian expansion), and more importantly, profit share, that augers for further development of the iOS platform, and a richer user experience, which benefits both iOS and Android users.

Competition is a good thing.

Bryan Chaffin

At what point do Microsoft and Symbian pull the plug?

I appreciate the sentiment you’re expressing here, d’monder. Microsoft and Symbian are losing share, and fast.

That said, as a licensor, I think that at least Microsoft can make a tidy bit of the money with 5% of the market.


Also, remember these are U.S. numbers only. Nokia still has a big chunk of the global cell phone and smartphone market, even if it is also falling there, and MUCH faster than Microsoft’s.

Now, all that said, I imagine both companies are toast in this particular business. smile

Bosco (Brad Hutchings)

Right wab95. Except as Bryan points out, these are US numbers. iPhone has about peaked in US market share unless Apple changes to a competition-based approach that delivers variety and squeezes the (by definition) inefficient profits out of its iOS phone offerings.

While some see whole widget and vertical integration as a plus, many behave as if they are weary of it. In fact, a majority of US customers do now, as Android accounts for more than half of current sales. For example, by going with Android, users’ investments in apps are not tied to one of two carriers. Nor are they tied to one manufacturer. They can get a cheap phone, and if it’s not quite what they want, they can upgrade to a pricier phone. They can get phones off-contract on Virgin Mobile.

The strange thing about this diverse market segment labeled Android is that many of the quite affordable phones do not “suck” by any reasonable definition, and are beyond adequate, even *magical* for very normal non-geek, non-techie users. This fact is in sharp contrast from what Apple proponents say to justify the control-freak approach and large portion of the price directed to AAPL shareholders.

Bryan Chaffin

Right wab95. Except as Bryan points out, these are US numbers. iPhone has about peaked in US market share unless Apple changes to a competition-based approach that delivers variety and squeezes the (by definition) inefficient profits out of its iOS phone offerings.

Brad, this is sheer nonsense.  With record quarter after record quarter of iPhone sales, and quarter after quarter of market share gains, “iPhone has about peaked” is an absolute denial of reality.

When Apple’s iPhone sales fall year-over-year for more than two quarter, then you can make a sound argument that the iPhone has peaked.

And, as I have said over and over and over again: Google and Apple can both “win” without the other “losing.” Google wants ads everywhere, while Apple wants to sell hardware.  Apple can make almost every penny of hardware profits and it won’t affect Google’s goals.  Google can can a majority share and it won’t affect Apple’s goals.

It is so utterly basic and obvious, at least to me.

Indeed, this report was a particularly fine example of how neither company is even fighting in the same battle.

wab95

Indeed, this report was a particularly fine example of how neither company is even fighting in the same battle.


Agreed. Indeed, I’ve argued similarly with respect to other apparent ‘conflicts’, notably about the continued Apple vs MS paradigm a few pundits continue to drone about, despite the very different business models and skill sets of these two companies.

I further believe that none of these companies are above forming alliances and partnerships, at any moment, should they view it in their best interests. Supporters and even ‘fans’ of these companies/platforms should maintain an equanimous and pragmatic world view. You never know who your new ‘best friends’ are going to be.

But most importantly, where there is competition, however direct or indirect, it’s good for the companies, good for their products and services, and very good for the consumer.

skipaq

Indeed, this report was a particularly fine example of how neither company is even fighting in the same battle.

I would agree that the profit model for each company is not the same. However, this statement isn’t totally accurate of what is at stake. Apple needs to sell hardware to grow profits. Google needs to sell hardware to get the eyeballs to grow profits. What other reason would Google have in buying a hardware business? They know what is at stake and are rightly trying to protect it.

I wish to make myself clear. I prefer that both platforms (wish at least one other would too) enjoy success because competition is good. I prefer that Apple does better because that is my choice. It is a fact that everyone likes to have their choice validated in some way.

Bosco (Brad Hutchings)

Market share, Bryan. Market share. The size of the market will continue to grow, but the percentage of the pie has peaked for Apple. The millions of the Verizon Unicorns sold could only help Apple tread market-share water. The next unicorn won’t improve market share either.

As I’ve been saying for nearly two years, Apple is repeating its mistake of the early 1990s. It pretends that market share doesn’t matter for attracting the best software because its users buy more. Then at some point, even that fails to attract the best software. Then the competing platform, with all its flaws and inferiorities to Apple perfection, somehow becomes a good enough compromise for most to adopt. I bought the Apple narrative as the PC market unfolded in the 90s. It’s the same deal with phones, and time to recognize that the whole widget model is a path to a niche. Perhaps that niche is profitable for awhile, but as de facto standards emerge, it’s hard to keep customers in the incompatible niche.

RonMacGuy

Are you refering me as a troll?

No, JohnNZ, mhikl (and a few others, myself included), have issues with Bosco here.  You see, Bosco likes to drop outlandish comments just to get a rise out of us, and enjoys the ensuing arguing.  Then, when his outlandish comments are proven wrong, he cowards and hides until he makes his next outlandish comment.  So, mhikl is trying to warn people not to fall into his trap.  A lot of us have him on ignore now.

Your comments about Apple copying others in order to make a phone, and the manipulated images evidence, have been beaten to a dead pulp recently on other articles at TMO.  So, touchy subject, but you are entitled to your opinion, as are others here.  I just hope you are man enough to admit you are wrong, if you are proven wrong, unlike others who are more troll-like in nature.

Personally, I have no idea how much innovation Apple had in making the first iPhone vs. how much they copied or how much they properly licensed.  I am sure it was a combination of the three.  Unfortunately, copying IP without licensing is probably a business decision that all companies make based on cost, likelihood of lawsuits, risks/opportunities, etc.  Only time and further lawsuits will tell.

Most of us here look forward to discussion and debate on all things technology, so I hope you stick around.

RonMacGuy

Wow, interesting reading!! Seeing Bryan’s, wab95’s, and skipaq’s responses really makes me want to “Show Ignored Comment By: Bosco” - must…resist… Must…ignore…the…troll!!

Bryan, if Bosco is talking about the iPhone “peaking” it’s because according to his grand prediction last year iPhone will be at 10% of US smart phone market share by Nov 2011. So, it must “peak” now for the decline to happen in the next 3 months. See? Makes sense to me!!

Darn it, I just read Bryan’s quote of some Bosco garbage.  Guess I need to comment on it now!!

“unless Apple changes to a competition-based approach that delivers variety and squeezes the (by definition) inefficient profits out of its iOS phone offerings…”

Hmm, so let’s see. iPod - has variety I guess, but not a lot - mostly just different colors. Not sure what Bosco means by “inefficient profits” (I would think all profit is efficient!!) - maybe he meant obscene profits. Hmm, so Apple’s iPod model has and is maintaining huge market share with not much variety and obscene profits. iPad - hmm, same situation. iPhone - well, not so much, given the bargain-basement “buy one get one free” android offerings and outright copying of iOS and iPhone protected technology, but still growing market share with approaching 2-3 year old hardware. Still best selling individual cell phones at both AT&T AND Verizon. So, Bosco, can you explain this? How did Apple go from 26.8% to 27.5% quarter-over-quarter? Premium pricing (still succeeding during and immediately after a recession), obscene profits, no discounts, 2-3 year-old hardware (still selling the 3GS, which outperforms EVERY SINGLE android offering and is only outsold at AT&T by the iPhone 4), no memory card expansion capability or replaceable battery, and (here’s the tough one that Bosco can’t deal with) a severely closed OS “walled garden” compared to the wonderfully open android OS?

OK, JohnNZ, here’s the fun part. Watch as Bosco ignores me!! See? Good, healthy discussion with valid points addressing his past predictions, and he absolutely positively can’t respond! Has no clue how to respond. He has spent years predicting the end of Apple due to their overbearing insensitive snobbish (continue with insults) CEO with a closed garden ecosystem that can’t compete with the wonderfully open, unfragmented, buggy, and malware-filled (immaterial, since only idiots would ever fall into the malware trap) android. Every month that Apple continues to grow and succeed is a month where Bosco goes crazy trying to understand what is wrong with the universe!!

I love TMO!!

grin

Bosco (Brad Hutchings)

@JohnNZ: Ron has a tendency to make disagreements inappropriately personal, ascribing motives, misinterpreting behavior as routine as going on a frigging vacation, etc.

As a manager of a $60M engineering budget (so he claims), he spends much of his time tracking my predictions so that when many of them come to pass, like Android phones passing iPhones in market share, he can spin on indefinitely about how I was wrong about the profits resulting from Apple customers paying too high a premium for products that aren’t incrementally as good as their price might indicate. Now, he’ll get all “we so excited” that I acknowledged him.

Anyway, welcome to the party, pal.

RonMacGuy

Hmm, didn’t think I was “inappropriately” personal here. Just focusing on your past predictions isn’t inappropriately personal in my opinion, but I may be wrong. I love how Bosco accuses me of being personal and then goes on to insult my job responsibility. Oh well.

As always Bosco (by the way, how have you been? How are the dogs?) thinks I spend “much of my time” tracking his predictions. As I’ve said before, it takes very little time to save a few e-mails. Regardless, I give you full credit on the ones that come to pass, Bosco. No problem there. Yes, you are right on many occasions, and I respect you for that. Seriously. On many occasions I have complimented you on your technical knowledge, of which most of it far surpasses my own (I’m just a finance guy). Being flat out honest here.

I am excited not that you acknowledged me but that it does appear that you sort of admit to being wrong. Well, at least I am reading it as such.

“...he can spin on indefinitely about how I was wrong…” Very good. My respect for you has actually grown a bit. Thank you. Problem is, what you are saying you are wrong about doesn’t quite make sense. You are wrong about market share predictions of both iPhones and iPads by end of 2011. I don’t think I am tracking any Bosco predictions about being wrong about Apple profits. Sorry, but you confused me there.

As for “products that aren’t incrementally as good as their price might indicate” this gets back to what keeps you up at night - if products aren’t as good as their prices might indicate, then why are people still going nuts over them? Why is market share continuing to rise along with the never-ending tide of buy-one-get-one-free androids? Where is the mass exodus from Apple iPhones and iPads. Surely you must see that your comment about “as good as” is just an opinion that is not shared by tens of millions of people. Tens of millions of people are buying 2-3 year old technology at a price premium for the express reason that they think it IS as good as it’s price indicates. But hey, baby steps here…

Hey Mhikl, Bosco responded to me!! Whoo hoo!! I think I just peed my pants a little!! grin

RonMacGuy

One correction made in my last post - I said, “Why is market share continuing to rise against the never-ending tide of buy-one-get-one-free androids?”

Meant to say, “Why is market share continuing to rise along with the never-ending tide of buy-one-get-one-free androids?”

Wasn’t trying to imply that iPhone was growing market share in comparison to android. Corrected above.

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