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Monday, August 22, 2011
As Android Solidifies Lead, Google Acquisition Has Potential to
Revitalize Flagging Motorola
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According to The NPD Group, Google's Android operating system (OS) continued to dominate U.S. smartphone market share, accounting for 52 percent of units sold in the second quarter (Q2) of 2011.
Like Android, Apple's iPhone OS (iOS) experienced slight quarterly
gain rising to 29 percent in Q2; however, BlackBerry OS share fell
to 11 percent, as Windows Phone 7, Windows Mobile, and webOS held
steady at less than five percent of the market each.
"Google's acquisition of Motorola shifts the balance of power in the
handset-patent conflict between Google and its operating system
competitors," said Ross Rubin, executive director of industry
analysis for NPD. "Android's momentum has made for a large pie that
is attractive to Motorola's Android rivals, even if they must
compete with their operating system developer."
Motorola's overall mobile phone market share declined 3 percentage
points, from 12 percent in Q2 2010 to 9 percent in Q2 2011. The
company's share of the smartphone market also declined from 15
percent to 12 percent. Motorola's year-over-year unit share of
Android OS sales halved from 44 percent in Q2 of last year to 22
percent in Q2 of 2011, as Samsung and LG both experienced
substantial gains.
"Much as it did in the feature phone market in the RAZR era,
Motorola is experiencing increased competition from Samsung and LG
in the smartphone market," Rubin said. "Closer ties to the heart of
Android can help inspire new paths to differentiation."
Beyond the four largest national carriers, Motorola can also make up
ground in the rapidly growing pre-paid smartphone market. Based on
the latest information from NPD's "Mobile Phone Track," one in five
new handsets acquired in Q2 was on a prepaid plan, and carriers
offering prepaid mobile phones continued to grow their smartphone
portfolios. In Q2 2010 just 8 percent of prepaid phones were
smartphones, but in Q2 2011 that number jumped to 22 percent.
"Android is also leading the charge in the rapidly growing prepaid
smartphone market," Rubin said. "This was once a key segment for
Motorola that the company has an opportunity to reclaim as prepaid
carriers build their smartphone portfolios." |
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