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RIM ties with Apple for US smartphone market share

Despite a lack of fanbois
Fri Mar 04 2011, 15:06

REPORTS of Apple's runaway success in the smartphone market have been greatly exaggerated, according to figures published by the industry watching firm Nielsen.

In its quarterly report of US smartphone share for the quarter ending January 2011, Nielsen puts Google's Android operating system in the lead with 29 per cent of the market, two per cent ahead of Apple's IOS. While that's no major surprise, Nielsen's figures that put Apple and Research in Motion (RIM) level pegging at 27 per cent pour cold water over Apple fanbois' delusions of grandeur.

Whereas Android's 29 per cent market share is split among a number of mobile phone manufacturers, Apple and RIM are the only firms that build the devices for their respective operating systems. For RIM, Nielsen's figures are a shot in the arm for the Canadian firm as it readies its Playbook tablet for launch.

While it would be wrong to say that RIM's Blackberry devices have lost their shine since Apple's Iphone turned up in 2007, it has certainly taken a back seat while the masses froth over Apple's shiny toys. These figures show that RIM is holding its own against Apple but, unlike the shiny toy maker, RIM doesn't enjoy quite the same fanatical following from consumers or the mainstream media.

HTC also made an impressive showing, having the largest share of Android and Windows Mobile and Windows Phone devices with 12 per cent of all Android devices made by HTC, two per cent more than Motorola. Add that to the seven per cent of Windows Mobile and Windows Phone devices HTC has sold, then the firm, which was a relative unknown three years ago, has done very well for itself.

As expected Nokia had a pitiful showing, with just two per cent of the smartphone share, thanks to its Symbian operating system. However it was Samsung that produced the final surprise in Nielsen's data, with just seven per cent of the total market, five per cent of which came from Android devices. Samsung did especially well in 2010 with its Galaxy S smartphone and the fact that it has just half the market share of Motorola is a bit of a shock.

What Nielsen's figures show is that while Apple has achieved considerable success with IOS, it's far from demolishing others in the US smartphone market. Different smartphone manufacturers might be carving up Andorid's market share, but if it continues to grow then firms such as HTC could end up with larger market shares than Apple very soon.

Apple CEO Steve Jobs may claim that 2010 was the year of the copycat devices but in truth it was the year that Apple, for the first time, saw significant competition and, not surprisingly, started to lose market share. µ

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Comments
Rim's troubles are over

I would probably be considered a rim fanboy, but not for the reasons you might think. RIM has been the sole architect for not only their devices but also their OS. That kind of innovation has to be admired.

I'm surprised RIM has held on to as much marketshare as it has with the performance of it's OS in the past. Whoever is making the decisions over at RIM lately is doing an awesome job.

The reviews of it's new Tablet are nothing short of glowing. and the plans RIM has for iphone style devices matched with the tablet OS will be amazing.

By the end of 2011 RIM will be well on its way to the top once again.

No I'm not drinking Kool aid. The tablet os is THAT good. Speed wise it will run circles around IOS and android. Flash, multitasking, battery life, graphics. all are there just ready to be plugged into a full toucscreen type device.

posted by : GroundZero, 06 March 2011 Complain about this comment
hilarious attempt at spin....talk about non-apple fanboy...

Yes, as other comments have noted, these numbers don't look good for RIM, and on the ground in Canada, anecdotally, things sound grim. I meet so many young people with BB's....not a ONE of them is enthusiastic about it. Many openly state they wanted an Iphone. (note...none wanted an Android phone either...)

RIM needs to hold on to their business market desperately, because their consumer value has dropped like a rock.

posted by : richard, 05 March 2011 Complain about this comment
Fanbois?

RIM fanboys are the most dedicated, hardcore fanboys there are. You have to be pretty hardcore to stick with a dinosaur for BB Messenger and...and not much else.

I can understand why the corporate world still uses them. I cannot understand why anyone looking for a personal phone would consider one.

posted by : Naterm, 05 March 2011 Complain about this comment
Competing for market share

While I love to bash the fruity cultists as much as the next person, you have to respect their market position. They are in the drivers seat pushing everyone else to improve. This is great for us as the customer as it has become a healthy market with continually improving devices.

RIM does indeed need to step up and improve both the hardware and software on their devices. I am most interested in QNX and the possibility of that OS being the new 7.0 for handheld devices. The software on my BB has been my biggest complaint in an otherwise great device.

I would love to migrate to a droid device but they need to stop competing solely on being the fastest MHz and the most bells and whistles and concentrate on real world use. Any device that can't get through a single day of use without being constantly recharged is not acceptable. They need more support at the core level. Working on stability and adding more core functionality (not everything should be a third party add-in) across all the varied devices is something that should really be a priority for Android.

posted by : djackson, 05 March 2011 Complain about this comment
And...

"And yes, HTC has 3.5% of the smart phone market (and it took them 2.5 years to get to that market share)."

Wrong. HTC has aprox. 20% of the US market.

posted by : jocaferro, 05 March 2011 Complain about this comment
About the iPhone:

I wanted to buy ab iPhone for my girlfriend for St. Valentines day but she said no way. She wanted a Samsung Wave 2.

I have a Wave 1 and she noticed how much better it works when compared to the iPhones her friends have.

Maybe the public is waking up?

posted by : too bad, 05 March 2011 Complain about this comment
Huh?

Let me get this straight:
Apple goes from 0% of the smart phone market to 27% in four years.
Rim which had most of the market prior to Apple entering with the iPhone is down to 27%
You do not have to be an Apple Fan Boy to be impressed by this.
And yes, HTC has 3.5% of the smart phone market (and it took them 2.5 years to get to that market share).

Since the article is about smart phone market share (not smart phone OS market share) it sounds like Apple and RIM are winning but Apple has been trending much better than RIM.

The article presents no evidence that the any current trends would have HTC passing Apple's market share 'very soon'. It would take a historically unprecedented ramp up of HTCs smart phone volume and a corresponding large drop in Apple's market share to close the gap between HTC and Apple in the next couple years.

I think Mr. Latif's dreams of Apple tucking its tail between its legs and disappearing from the smart phone market 'very soon' are not realistic.

posted by : Fred, 04 March 2011 Complain about this comment
Given that Nielsen's previous report

said that RIM had a 30% market share compared to Apple's 27% this isn't good news for RIM. Neither re hurting though, as the share of the US market taken by smart phones has been climbing steeply.

posted by : Steve T, 04 March 2011 Complain about this comment
RIM in Trouble

RIM's lack of fanbois is huge trouble for them. 18 Months ago, the incumbent RIM had 52% of the market. Now they have 27%. A year and a half from now, they could have 15%. Or less.

Note that Apple has only gained 4% from August 2009, but they are still gaining. And making money hand-over-fist.

posted by : AlleyGator, 04 March 2011 Complain about this comment
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