4 Reasons Android Just Surpassed iPhone in Sales

By: Hillel Fuld

Is it just me or does Steve Jobs need to do some growing up? First there was the whole Flash saga and Jobs’ blog post attacking Adobe, I can’t put my finger on it, but something about his tone rubbed me the wrong way. Then there is his insistence on the whole closed thing despite recurring pleads from his customers, and now, there is this new drama about Android passing iPhone sales last quarter.

The story is that according to NPD Group, last quarter U.S smartphone sales were dominated by RIM with a whopping 36% of sales, followed by Android with 28%, after which Apple appears on the list with 21%. This of course made a lot of noise with Android passing iPhone sales for the first time ever. The noise then led to the predictable phenomenon of Apple fanboys popping up in every corner of the Web defending Apple with explanations of how this could have happened.

So far, no surprises, but then Apple itself issued a statement implying that there were some inaccuracies or more precisely that the study did not indicate the full picture.

According to the Reuters article “Apple said the NPD data didn’t provide a complete picture.”This is a very limited report on 150,000 U.S. consumers responding to an online survey and does not account for the more than 85 million iPhone and iPod touch customers worldwide,” said Apple spokeswoman Natalie Harrison.

She said the iPhone far outsells Android on a worldwide basis, and pointed to a report from IDC last week which showed the iPhone with a 16.1 percent global market share, behind No. 2 RIM and No. 1 Nokia.

“We had a record quarter with iPhone sales growing by 131 percent and with our new iPhone OS 4.0 software coming this summer, we see no signs of the competition catching up any time soon,” Harrison said.

So, to Apple and Mr. Jobs I say, there is good news and bad news. The bad news is the data is true, and Android did indeed outsell iPhones in the U.S last quarter, deal with it! The good news is, it is completely in your hands to change this reality. If you can get off your high horse, and do what’s best for consumers, this past quarter will be the last time Android will even appear anywhere close to iPhone in U.S sales. The problem? Chances are you will not listen to what we have all been saying for years and you will stick to your stubborn ways, which will ultimately lead to Android’s rise in popularity.

The Following is a list of reasons Android outsold iPhone for the first time last quarter:

  1. Exclusivity: When I asked on Twitter why people thought Android managed to sneak by iPhone in this past quarter, this was the most common answer I got. The Apple/AT&T exclusive contract that has been in place from the first day the iPhone was born has been something that prevented millions of U.S customers from buying iPhones. First, there are the people who have contracts with other providers, this exclusivity prevents them from getting an iPhone, but guess what, whichever provider they use is selling Android devices. Then there are the people who are willing to switch providers in order to get an iPhone. The fact that this contract is with AT&T, best known for its lack of good service and its increased rate of dropped calls, does not exactly have people running to sign AT&T contracts. So, there are those that will claim that Apple knew what it was doing when offering the iPhone exclusively with one provider, but why AT&T? So, what do you say, Apple? How about a Verizon iPhone? Or better yet, just unlock it already, this is 2010!
  2. Closed Platform: Sorry to bring this up again Steve, but c’mon! I understand you have created a masterpiece of a mobile ecosystem and for that I give you credit, but you gotta loosen the belt a little. Give consumers the option to choose how to use their iPhones. Whether it’s customization options, your app approval process (or should I say rejection process?), or just the ability to truly access the guts of my iPhone, people want mobile freedom. Now, don’t get me wrong, I understand that when you announced the iPhone, you were alone in this market of intuitive and advanced mobile platforms with extensive app stores, but you are not anymore. Android, specifically 2.1 and 2.2 are looking pretty darn impressive and 50,000 apps aint too shabby. Not to sound like Rocky’s wife in Rocky 4, but “You can’t win”. Open up your platform, even a little bit, and you will see your sales increase by leaps and bounds. Money back guarantee!
  3. Multiple Devices: From the very first time someone compared iPhone to Android in terms of exposure, I have been saying that there really is no comparison. While they are both mobile operating systems, the iPhone OS can be found on only one mobile phone (I said phone, not an iPod or iPad). Android, on the other hand, due to its open nature, is being adopted by manufacturers across the globe. There are new Android devices popping up daily, and the most recent ones leave the iPhone way behind when it comes to their specs. Phones like the Droid, Nexus, Incredible, and Desire with their huge screens, powerful processors, and modern operating systems, leave no reason for a person to buy an iPhone. So, I know this is kinda unlikely to happen, but to compete seriously with Android on a long term scale, Apple has to  introduce multiple phones or allow other Manufacturers to use the iPhone OS on their phones. Listen Steve, I never said it would be easy, but either take my advice or stop crying every time Android beats you at your own game.
  4. iPhone HD: This is one explanation given by all the fanboys to the recent slowdown in iPhone sales, and truth be told, this is a valid point. iPhone users are not buying new devices now because thanks to Gizmodo, they know what to expect in the next generation iPhone. I mean why would you buy an iPhone 3GS now, if you could buy an iPhone HD with a better screen, support for HD video recording, two cameras including an enhanced main camera, as well as many other goodies we saw in the infamous Gizmodo review. This might very well explain the recent data, but it in no way changes the points I made above, and even without the nearing iPhone HD announcement, chances are the numbers would not look drastically different. Android might not have passed iPhone this quarter but it would have happened next quarter or the one after that. Apple has to realize they cannot get away with this stuff anymore, and more people than you might think are not buying Apple products in order to make a statement about Apple’s closed policies.

In conclusion, Jobs himself had the nerve to talk about Adobe’s closed nature and how the future is “open”, so how it is that the iPhone still does not have a replaceable battery or a memory card slot? It is time for Apple to relax a little and trust their consumers with an open OS. If Apple changes its jail-like ways and gives users the freedom they deserve, it will be the last time we have to hear them whining about Android surpassing Apple sales and you can quote me on that.

Do you agree or do you think Apple is going to lose this battle no matter what? Please let us know in the comments.

Hillel is a tech blogger at TechN'Marketing as well as an active Twitter personality @hilzfuld. He writes for many other sites including Mashable, and works as the Marketing Manager of Inneractive , a company that specializes in monetizing mobile apps.

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