Does the Verizon iPhone hurt Google Android?

January 28, 2011

Verizon was one of (if not the) biggest seller of Android-powered cell phones over the last year or so. Now that Verizon is able to sell the Apple iPhone, does that spell bad news for Android phone makers?

Over the last year or so, the number of available Android phones has shot up significantly. There are now well over 100 Android-powered smartphones on the market from seven or more manufacturers. That numbers game explains some of why Android has been catching up to Apple’s numbers over the last several month: it’s pretty easy to do when the odds are 100-plus to one in your favor. That is not to say that Android is not a good option; it is. Still, many people would prefer to have the original hot-ticket handset, which is to say the iPhone, if they only did not have to go to AT&T to get it.

Now that the iPhone is available from Verizon, at least some of those Android phone makers are seeing a lot of darkness at the end of the tunnel. Motorola, one of Verizon’s major Android players, has already predicted that their sales will be well down for this quarter simply because they will lose Android sales to the new star at Verizon, the iPhone 4. They went so far as to announce their worries to the press and saw their share price fall 7 percent as a result. Motorola Mobile CEO Sanjay Jha actually predicted that their sales would be down and that it was because of the Verizon iPhone.

There is no question that the iPhone has been far outselling any of the Android phones on the market as of today, and it is likely that will continue to be the case with Apple adding Verizon as a partner. Google’s Android operating system itself, on the back of the 100+ handsets that use it, is making significant inroads when compared to iOS4, the Apple iPhone and iPad OS. Still, it seems that having the iPhone available at Verizon is going to steal sales from Android phone manufacturers, and that would mean reducing the number of Android phones sold overall.

It is clear that this one instance of partnership, Apple with Verizon, is having some truly far-reaching effects in the smartphone marketplace. Having a CDMA iPhone will have much the same effect via other carriers across the world. When the iPhone 5 appears in June, it could well be a world-phone, capable of both GSM and CDMA and usable on almost all 3G wireless networks in the world. If the current trend continues with other as it has Motorola, there are tough times ahead for Android smartphones.

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5 Responses to “Does the Verizon iPhone hurt Google Android?”

  1. Jake:

    Huh? Android phones “catching up” to iPhones. “iPhones outselling Android phones”? Where have you been? For the last 5 quarters in a row, Android phones have been outselling iPhones. In most quarters by a margin two to one. In fact, in practically one year, from some reports, Android phones now equal the installed base of iPhones.

    Very possible that this quarter, iPhones might beat Android phones on Verizon, but it’s unlikely to last and it’s unlikely to even beat total Android phones this quarter worldwide.

  2. Ratnok:

    The author REALLY needs to catch up current events. Android does not sell 100 plus models in the the US. Android does not even currently sell 30 models in the US. (some of those phones are discontinued and a few are actually tablets).

    Also, Android has been outselling the iphone since the summer of 2010.

    The Apple currently sells 3 models, not one.

    Android sells over 300,000 phones a day. Iphone sells only 155,000 per day.

    If you don’t know what you’re talking about then why are you writing?

  3. Ratnok:

    Oh, and by the way, the expectations are that Verizon will sell 12,000,000 iphones this year. That equates to 17,000 a day. Even if Apple beats expectations by 100%, and EVERY iphone sale is at the expense of an Android sale (which is impossible given how much people love Android and 4g) and every sale is a new customer and not just an At&t convert, and assuming NO sales growth for Android overseas (again, impossible), that would give the iphone 188,000 per day versus 267,000 for Android.

    I know you guys are huge Apple promoters, but come on now. You guys are smarter than the what is represented in this article.

  4. FDR:

    Give us a break, blorgers. Even if we (somehow) manage to forgive the blatant iPhone fanboyism, this article still reads like a 9th grade book report in a sub-par school district.

    Sure, you Appleholics can play around with statistics. Go ahead – pick just one of the many Android handset and then boldly proclaim that iPhone outsells it, a gazillion-to-one. Or, if you’re really desperate to boost Apple’s profile, combine all iOS products in a big, glorious pile…even the ones that aren’t really phones.

    Still, manipulating the numbers won’t change the basic fact that Android is growing at a pace that Apple can’t match. Look at any sales-chart from any source and you’ll see the same thing: iOS’ market-share is rising, slowly but steadily, while Android’s sales are shooting upward like a 747 heading for cruising altitude.

    As to Verizon’s iPhone, of course that will cannibalize some Android sales. But the lost sales will come mainly from Verizon’s customer-vase, not the other carriers’…very few people are eligible to switch, in any given quarter. And no matter how many sales are lost, overall Android is still growing at a pace Apple can’t match.

  5. Hollis Bennett:

    Awesome got a great mobile contract with Virgin mobile!! Just got accepted and though i’d post here…thanks!!

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