iPhone Use Almost Equal With Android: Neilsen

Neilsen market share for the iPhoneAs the iPhone 5 release approaches, a new Neilsen survey finds that iPhone usage in the U.S. is now

only 5% behind the entire Android army of smartphones.

Apple detractors have often remarked that Apple’s bark is bigger than its bite; that the buzz surrounding the iPhone is much bigger than

those who actually own an iPhone. Kind of like a controversial book that everyone talks about, but few actually read.

Of course, that supposition is clearly wrong: Apple has gone on to become the richest, most successful business in the world, and they’ve

been on a winning streak for quite some time now. A new Neilsen survey, however, is now quantifying this sense, revealing that the

singular iPhone and its various iterations are nearly even with all of Androidom in the United States.

According to Apple Insider: “sales of Apple’s iPhone accounted for 43 percent of all new smartphone purchases over the past three months,

a 6 percent increase from the period ending in December, while Android’s share fell nearly 4 percent to cover 48 percent of activations.”

That is an astounding reversal of market share.

Neilsen’s other study finds that, over the past three months, Apple has significantly cut into RIM’s market share: while Android has

remained steady, Apple’s market share has bumped up, while RIM has fallen sharply (see the infographic above).

I have commented on this blog several times about how odd it is that we compare the iPhone to Android, as it is really an “apples to

oranges” comparison (no pun intended). How could it ever be fair to compare one device’s sales and popularity to an entire horde of

competing devices? If anything, the iPhone should only be held against it most obvious singular Android competitors, such as the Samsung

Galaxy S series.

And yet, we now see that, in spite of just one iPhone release a year, Apple has managed to pull nearly even with Google’s army of

Androids. Their plan was clearly to expand and conquer, by giving manufacturers the Android OS as a means of always staying ahead of

Apple in features and innovation. But what the Android partners have failed to do is come even remotely close to the quality, reliability, and

buzz that the iPhone franchise enjoys.

It is worth noting, however, that Google still makes a fair share of money from the iPhone, and in this way, it is invested in its success,

hedging its loss in market share. Jonny Evans at Computerworld explains: “Based on data provided by Google as part of a settlement offer

with Oracle, The Guardian asserts that Android devices generated less than $550m in revenues between 2008 and the end of 2011, but,

tellingly, its deal with Apple generated four times as much cash,” thanks to iOS’ use of Maps and Google Search.

This may be yet another reason why I think Apple is quickly and effectively getting into the search business with Siri: don’t be surprised if

over the next few years they look to roll out an alternative to Google Search, as well as Google monetizing products, such as AdWords.

In the meantime, Google will continue to make money on both ends of the smartphone spectrum, as the iPhone edges ever closer to

eclipsing Android.


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