Smartphones and Cell Phones

Matthew Miller

Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

By Matthew Miller | January 18, 2012, 8:02am PST

Summary: You may be seeing a lot of people looking at their smartphones on your daily commute and according to a recent Nielsen survey over 46% of U.S. mobile consumers now have smartphones.

I purchased an iPhone 4S on Verizon the day it launched and even after taking a look at the latest Android device, the Galaxy Nexus, I still prefer the Apple iPhone 4S. Nielsen just posted survey results that shows the iPhone 4S was a very popular purchase at the end of 2011 and the gap between iOS and Android is narrowing.

The Nielsen report shows that by the end of 2011 46% of U.S. mobile consumers had smartphones and that number continues strong growth. 60% of those who purchased a new device in the last three months chose a smartphone over a feature phone. My wife’s aunt bought her first smartphone last week and it was the Verizon iPhone 4S. Looking at the Nielsen charts, you can see that Android remains the most popular with iOS gaining a bit while RIM is seeing serious declines. Windows Phone 7, my personal favorite on T-Mobile, just can’t seem to gain any market share yet and hopefully 2012 is the year they start making some headway.

Android is a powerful mobile operating system and I enjoy it for the widgets, custom keyboards, and ability to try out different ROMs. However, for day-to-day usage I still prefer my iPhone 4S for its ease of use and well designed applications. I honestly thought the iPhone would top out and flatten given that the iPhone 4 has been out for quite some time, but I think the improvements in the 4S and the launch on Sprint have helped. I know quite a few Sprint customers who purchased an iPhone 4S for Christmas and know I would get one for my wife if the iPhone would ever come to T-Mobile.

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

jamesbourdeaux Updated - 23rd Jan

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Can't wait to read the responses to this one:)

James Quinn 18th Jan

Pagan jim

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

Stephen-B 18th Jan

That will only last till the best phone available hits the shelves. I'm talking about the Nokia Lumia 900. It is the best phone ever made!

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

Fletchguy 18th Jan

@Stephen-B
Except it uses crappy windows panel metro UI. If Microsoft would dump those panels metro ui which turns most people off as its just not very good looking or user friendly they might get a small percentage of people to come over but with that panel ui its a wrap people just don't like the look or feel of it and it is showing in the windows 8 beta tests that people hate it.

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

danbi 18th Jan

@Stephen-B

Nokia would have been better to stay away from Windows Phone...

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

Stephen-B 19th Jan

@danbi You're so wrong on that one. Within 18 months Windows Phone 7 will take its rightful place as the number 1 phone OS. The others will be fighting for table scraps.

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

lorin@... 19th Jan

@Stephen-B

You're funny! happy

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

Johnny Vegas 18th Jan

I think this gap closing is just a temporary blip from the 4s introduction. From now until the 5 intro iphone will receed again. And thats with ics being a total and complete disappointment for both phones and tablets. Its like both ios and android are opening the door for WP right when Nokia came knocking.

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

piousmonk 18th Jan

@Johnny Vegas

The reality is, with almost 50% of consumers now on smart phones, you just aren't going to see massive shifts like you did for the last few years. You'll see things more like what Apple did in the last few months. A strong quarter due to a new hardware/OS release combined with the holiday shopping season. But going forward, this is how companies need to make their gains.

I heard a sports talk show guy talking about a college basketball team. He said that for about 3-4 minutes a half, that team dominates, going on a 12-2 type run. The rest of the half, they may increase their lead a point here or there, but they kill you with a couple runs, not a steady increase in their lead throughout the game.

That's the state of the smart phone market now as it's become a little more mature. Apple's 4th quarter did some damage (increasing to 37% from 30% is pretty significant). It doesn't look like Android's gotten the same bang out of ICS yet.

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

Stephen-B 18th Jan

@piousmonk By this tie next year Crapple Iphones will have less than 10% marketshare, and the developers will all be defecting to the Microsoft ecosystem. With in 18 months Windows Phone 7 will have more marketshare than the current leaders combined. This will happen because the best hardware in the world (Nokia) is combined with the best OS ever written(Windows Phone 7). THat is too powerful a combination not to win in the short term.

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You know I've heard this kind of stuff before with regards

James Quinn 18th Jan

@Stephen-B ... to Apple's i devices and you know I've yet to see it pan out. Now I'm not anti MS phone OS mind you as I feel competition is good for everyone and I hope MS is a success but that does not mean it will or has to be number one to be so. Nor do I car if Android remains in the lead market share wise in the phone space as long as Apple keeps raking in the green I'm certain eventually people of all persuasions will admit Apple's success like it or not:)

Pagan jim

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

Stephen-B 18th Jan

@jim Mark the calander, as this is where Crapple starts their final slide into irrelevancy. People will see beyond the lies and FUD Crapple is famous for. I can't think of a single company that is more anti-consumer than Crapple...

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

mrxxxman 18th Jan

@piousmonk You realize ICS is only out on one phone so far, right? And even that phone, Nexus, only shipped in December. And there is only one tablet officially running ICS as well, the Transformer Prime. That also shipped late December. 2012 however will be the year of ICS.

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

piousmonk 18th Jan

@Stephen-B

I'll tell you what, give me your e-mail address and if Apple's less than 10% marketshare on Jan 18, 2013, I'll buy you your Nokia/WP7 phone as soon as you're eligible for renewal.

I'm not saying your utopian Nokia/WP7 phone won't be a hit, but in order for your claims to come true, iPhone and Android users would have to be jumping ship left and right AND paying full price for your precious phone, which just is about as far from reality as you can get.

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Or not.....

James Quinn 18th Jan

@Stephen-B ... Time will tell and I'm fairly certain your wishes are not going to come true. But here's a wish of my own that MS does gain market share in the phone space over the next year. Still with everything I know about Apple and it's products both current and past I doubt that a sudden dislike of said products is going to occur anytime soon at least. Oh and calling names like Crapple does not add anything to your arguments if anything it takes away from them and makes you look smallish.

Pagan jim

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

Stephen-B Updated - 18th Jan

@piousmonk I'm not going to wait till renewal time. I'm going to get a new phone from AT&T, as I'm currently on Verizon, Sprint, and T-Mobile. I will move to AT&T to show my undying support for Windows Phone7

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

dave@... 20th Jan

@Stepheb B There are many problems with your assertion. For one, the Nokia Lumia 900 just isn't that good. Its comparable to some mid-range Android phones, butpalesnext to the iPhone 4S (aside from its LTE support) and the half dozen leadiing Androids, all with LTE, faster hardware, more memory, better, full 720p screens, etc.

Both Android and iOS have a proven repeat business, too. And given Mictosoft's late entry onto consumer mobile, they're going to have to turn Android and iOS users to gain significant share. There simply isn't enoigh share left among RIM, WinMo, Symbian, etc. to grow WinPhone. Unless they can sell to dumb phone users at an unusually high rate.

And in fact, that was MS's campaign for the first year or so, which got them 1.4% share... not even a match for WinMo, a dead OS. And last quarter, they gauned 0.1%, while Apple and Android continued to grow by significant percentags.

I'm on Android, love the Galaxy Nexus, and Win7Phone would be a hardware, software, and app downgrade od epic proportions. This isn't the 90s, the Nokia you see today is the shell left after many rounds of layoffs. They can't even try to compete with Apple (workd's most valuable tech company), Samsung (world's second largest semiconductor manufacturer and largest OLED display maker) or Google+ Mororola. Not to mention the others: HTC, LG, Asus, Sony, etc

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

arie.klerk@... 18th Jan

Funny to see that the photos in the article are iPhone 4...

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

mrxxxman 18th Jan

The fact remains that the market share for Android has only gone up. That hasn't been the case for Apple. The increase in sales has probably more to do with two things. First, new iPhone 4S markets like China and second, the low-end $99 iPhone 4. Not a ringing endorsement of iPhone 4S.

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Have sales from China even shown up yet?

James Quinn 18th Jan

@mrxxxman... Did I not read on ZDnet only a few days ago that Apple closed it's stores due to demand/crowds waiting for the iPhone? If so they have not sold many or any in China as of yet and if they have I doubt any would be counted in a current report. As for the low end iPhone 4 selling for 99 bucks well do you use the same argument against Android based devices going for get two pay for one only price? If it's good for the goose I'm told it's good for the gander after all:)

Pagan jim

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

rpollard@... 18th Jan

@mrxxxman
Wrong, as Pagam Jim pointed out. Hate mongers dream up statistics and rationale. But, there is nothing rational about your reasons. Especially, since you didn't hear about the LACK of sales in China. Try and make up some other excuse. Come on, you can do better than that.

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

piousmonk 19th Jan

@mrxxxman

Quite honestly, no, I didn't realize that ICS was only on one phone. By the way the Android fanbase has been frothing at the mouth over it, I would have sworn it was on more phones now. But, therein lies the problem w/ Android. The ******** fanbase views every new OS version as the greatest thing since sliced bread, but even after it's released, adoption is slow because there are dozens of Android models still available that run older versions (and may never see the new version, short of rooting). Google can't market ICS because they've left the upgrade process in the hands of the carriers and OEMs.

As for your theory on Apple's market share rise, I don't think it's that simple. Certainly the additional pricing tiers provided by the iPhone 4 and the 3GS have helped compete with the freebie, 2-for-1 and cheap Android phones. It's created an entry into a new market segment where Apple didn't play much before. If you think the continued success of the iPhone 4 (throw in the 3GS too) isn't a ringing endorsement of the 4S, what type of endorsement is it of Android when a customer chooses a 1 or 2 year old iPhone model over a brand new Android model? Better yet, what do all the Android sales of freebies, 2-for-1s and sub-$100 models running older versions of Android say about the premium ($199+) models that the likes of Samsung, HTC and Moto line up against the iPhone 4S?

Also, don't overlook the impact of Sprint carrying the iPhone or the fact that Verizon customers have now had a year to allow their eligibility to come around. All the Android fans are quick to dispute the impact of Apple adding other carriers to the fold (arguing that all the Verizon/Sprint iPhone activations are just existing iPhone users switching carriers), but reality tells a different story.

As for China, I agree with Pagan jim, China's numbers aren't likely to be much of a factor in this survey.

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

AS147 18th Jan

Are you serious with this piece of errrr journalism?
What you and your relative purchased and think has
almost zero value and to base any of the article in this
much less make it a major component in my opinion is
just plain big headed. I have to say that as you purchased
a particular device and then talk about its increasing
market share gives this story an air of an iadvert.
I appreciate your stated preference for another platform
but it didn't come across as believable to me so the feeling
of bias remained. The only fact worthy in this story is the statistics
so all I can is it must have been a quiet day in the office.

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Trying different ROM's

Mdwannabe 18th Jan

Please tell me you are not rooting your "Droid" phone, that is not supposed to be done! Next thing you know, you will tell us you tried "Tethering" it. Your a very bad boy, just ask Verizon.
I have no opinion in this fight. I have a Droid, my wife has an iPhone.
We are both happy with what they provide; they do what we need them too. Wife likes hers, I like mine.
If your going to root a Droid, than Jailbreak the iPhone and let us know what the differences are.
One over the other? Let the buyers answer the question. Ultimately I don't care, use what you want/like. One BETTER than the other?, only the user knows for sure.

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

warboat 18th Jan

@Mdwannabe
rooting and jailbreaking are not comparable. You do not need to root Android to install apps outside of the marketplace. When you do root Android, your phone does not become outcasted and you can still receive updates. Not so with iOS - you're in or you're out.

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

piousmonk 19th Jan

@warboat

One other difference is, it seems you pretty much HAVE to root your Android to get updates, or at least get them in a timely manner.

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

dave@... 20th Jan

@Mdwannabe Android devices ship with the root account disabled primarily as a security measure. True, some manufacrurers lock this down, others don't. Enablingroot login is a natural possibility on any Linux systen... very different than jailbreaking an iPhone , even if it sometimes is done for similar resilts.

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Another way to view the data is ...

daboochmeister 19th Jan

... that even with a new phone launch, massive advertising, a "gee whiz" feature in Siri, huge amounts of media attention with the passing of Steve Jobs, and drastically lowering the price on past models, iOS is STILL behind Android in phone sales, even in their hottest sales month where people splurge like crazy, December.

Statistics - like a lamppost to a drunk, most commonly used for support rather than light.

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RE: Consumers choosing smartphones with iPhone 4S helping close the Android-iOS gap

rlp1963 Updated - 20th Jan

I am waiting till the end of this year to see if Win 7 or ICS really improves. I have never owned an Iphone or Ipad, all my smartphones have been Android but I am seriously considering switching because there is always some issue with my Android phones. It is cool has tons of ability but it is and always has been buggy. I ordered a Transformer Prime for Christmas and canceled that order 3 days ago because of all the issues it is having plus the fact that they have already announced the new Prime before I had even gotten the new Prime. ICS had better fix the issues by the end of this year or I will be off the Android band wagon and maybe have to eat crow for switching to I-whatever after refusing to for so long. The bottom line is it has to stinkin work all the time and smoothly. No shutting down or freezing up and no pathetic, never works, GPS like the Samsung Galaxy S phone Fascinate with Verizon. And the reviews so far on the tablets with ICS are not good, many of the issues they had before are still not fixed.