A 2011-through-October review of the US smartphone market from The NPD Group’s “Mobile Phone Track” and “Smartphone Track” services reveals that the market share of Google’s Android mobile OS grew to 53%, while that of Apple’s iOS grew to reach 29%. Former market leader RIM’s BlackBerry mobile OS market share fell to 11%, a falling trend line followed by other former market leaders. RIM and its lagging peers “have made critical business decisions this past year in a quest to shore up their U.S. smartphone businesses,” however, NPD researchers report.
“The competitive landscape for smartphones, which has been reshaped by Apple and Google, has ultimately forced every major handset provider through a major transition,” said Ross Rubin, executive director, Connected Intelligence for The NPD Group. “For many of them, 2012 will be a critical year in assessing how effective their responses have been.”
In its research note, NPD reviews three key 2011 smartphone market developments whose effects are sure to carry forward into 2012.
1. Google Acquires Motorola
Motorola’s share of US smartphone handsets fell from a peak of 36% in 4Q 2006 to as low as 1% by 3Q 2009. They’ve been rebounding since, rising to 16% in 4Q 2010 before falling back to 12% in 3Q ‘11.
Google announced its intention to acquire Motorola Mobility back in August, a transaction that may be delayed past January 10, which was when the European Commission originally expected to issue a final antitrust ruling.
According to Rubin, “Android has helped Motorola climb back into the smartphone market; now, though, Google will seek to use Motorola’s patent pool to help protect other Android licensees,” according to Rubin.
2. The Fall of RIM
Once loved by users, the tiny keypads and small screens of RIM’s BlackBerry smartphones were made awkward and limiting with Apple’s industry-leading shift to touchscreens and larger screen sizes with the iPhone. RIM saw its US smartphone market share fall from 50% in 2Q 2006 to 8% by 3Q 2011. RIM’s made some “incremental improvements” as it prepares to release its next-generation platform, including release of the BlackBerry 7 mobile OS, Rubin notes; however, it’s got a lot of catching up to do. RIM now ranks fifth among smartphone OEMs, behind Apple, HTC, Samsung and Motorola.
3. Nokia does Windows
Nokia is another former market leader that has its work cut out for it as it tries to close the gap between its smartphone sales and those for Google Android smartphones and Apple’s iOS mobile devices. For its part, Microsoft continues to try to break into the top tier of the US market.
While Microsoft’s previous generation Windows Mobile OS reached a peak US smartphone sales market share of 50% in 2Q 2007, Windows Phone 7 hasn’t captured more than 2% since its launch in 4Q 2010.
The two made a big splash this year with Nokia agreeing to use the Window Phone mobile OS on its smartphones, but “Nokia and Microsoft must build from almost nothing to carve out success between the consistency of the iPhone and the flexibility of Android,” according to Rubin.
A 2011-through October-review of the U.S. smartphone market from The NPD Group’s “Mobile Phone Track” and “Smartphone Track” services reveals that the market share of Google’s Android mobile OS grew to 53%, while that of Apple’s iOS grew to reach 29%. Former market leader RIM’s BlackBerry mobile OS market share fell to 11%, a falling trend line followed by other former market leaders. RIM and its lagging peers “have made critical business decisions this past year in a quest to shore up their U.S. smartphone businesses,” however, NPD researchers report.
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