Many commentators were surprised today when market research firm NPD Group released data showing that, despite the continued popularity of the iPhone, the Apple (AAPL) OS slipped to third place in smartphone sales, behind BlackBerry and the surging Android platform, from Google Inc. (GOOG).
Based on online consumer surveys, the NPD study found BlackBerry still No. 1, with 36 percent of the market. Android, the open-source platform now sold on devices offered by all four of the major U.S. carriers, came in second at 28 percent, while Apple slipped to No. 3, with 21 percent.
NPD executive director of industry analysis Ross Rubin said that, as always, marketing plays at least as big a role as deep technology and slick user interfaces. “In order to compete with the iPhone, Verizon Wireless has expanded its buy-one-get-one offer beyond RIM devices to now include all of their smartphones,” remarked Rubin, in a statement.
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| What, me worry? |
The NPD study measures sales, not total installed base, and there are flaws with the online-survey model that leave the conclusions in some doubt. Nevertheless, the results cast a shadow on what has been a remarkable three years for the Cupertino, Calif. maker of consumer electronics, since the iPhone’s introduction in June of 2007. Along with Apple CEO Steve Jobs’ refusal to consider allowing Flash-based applications on the iPhone, the new sales figures raise a question: How long can a device that runs on a closed platform, and that is sold in the U.S. by only a single carrier, continue to take the market by storm when faced with a multi-carrier, multi-device, fully open system like Android?
The HP-Palm Challenge
Wall Street certainly loves what Apple has done: Until last week’s broad sell-off, Apple’s share price was up 24 percent since the beginning of the year. (Apple stock had gained almost 8 percent in late-day trading today.) And equities analysts fell over themselves boosting Apple’s share price when the company reported its quarterly earnings, last month.
“Apple continues to show both impressive growth and profitability,” wrote Deutsche Bank analyst Chris Whitmore, according to Tech Trader Daily, “and is well positioned to benefit from the confluence of three major product refreshes beginning in the June quarter, namely: iPad, Macs and iPhone refresh expected this summer.”
