Android Shakes Up U.S. Smartphone Market


The Android operating system (OS)
continued to shake up the U.S. mobile phone market in the first quarter (Q1)
of 2010 moving past Apple for to take the number-two position among
smartphone operating systems, according to The NPD Group, a leading market
research company. NPD's wireless market research reveals that based on unit
sales to consumers last quarter the Android operating system moved into
second position at 28 percent behind RIM's OS (36 percent) and ahead of
Apple's OS (21 percent).

"As in the past, carrier distribution and promotion have played a crucial
role in determining smartphone market share," said Ross Rubin, executive
director of industry analysis for NPD. "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."

Strong sales of the Droid, Droid Eris, and Blackberry Curve via these
promotions helped keep Verizon Wireless's smartphone sales on par with AT&T
in Q1. According to NPD's Mobile Phone Track, smartphone sales at AT&T
comprised nearly a third of the entire smartphone market (32 percent),
followed by Verizon Wireless (30 percent), T-Mobile (17 percent) and Sprint
(15 percent).

"Recent previews of BlackBerry 6, the recently announced acquisition of Palm
by HP, and the pending release of Windows Phone 7 demonstrates the
industry's willingness to make investments to address consumer demand for
smartphones and other mobile devices," Rubin said. "Carriers continue to
offer attractive pricing for devices, but will need to present other
data-plan options to attract more customers in the future."

The continued popularity of messaging phones and smartphones resulted in
slightly higher prices for all mobile phones, despite an overall drop in the
number of mobile phones purchased in the first quarter. The average selling
price for all mobile phones in Q1 reached $88, which is a 5 percent increase
from Q1 2009. Smartphone unit prices, by comparison, averaged $151 in Q1
2010, which is a 3 percent decrease over the previous year.

Methodology: The NPD Group compiles and analyzes mobile device sales data
based on more than 150,000 completed online consumer research surveys each
month. Surveys are based on a nationally balanced and
demographically-representative sample, and results are projected to
represent the entire population of U.S. consumers. Note: Sales figures do
not include corporate/enterprise mobile phone sales.

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