Canalys: Android will double competitors’ growth rate in 2011

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According to a new report from research firm Canalys, Android is poised to grow at more than twice the rate of its closest competitors in 2011. The firm says Google’s Android OS will not be held back by fragmentation or the Verizon iPhone as its market share continues to explode globally. “The growth of Android has been phenomenal, but so too has the number of related devices launched with different hardware and software specifications,” said Canalys Principal Analyst Chris Jones in a statement. “This has led to the market perception of it as a fragmented platform, though we believe that growth will continue as the pace of Android OS upgrades slows.” According to Canalys’ numbers for the third quarter of 2010, Android owned 25.1% of the worldwide smartphone market, having shipped 20 million units in the quarter. Android was behind only Symbian, which held its lead with 37% of the market. Hit the break for Canalys’ full press release.

Canalys predicts Android will grow more than twice the rate of major competitors in 2011

-Fragmentation will not limit Android growth

Palo Alto, Singapore and Reading (UK) – Thursday, 13 January 2011
For immediate release

Canalys today announced its projection that Android will continue to grow at more than twice the rate of its major smart phone competitors in 2011, despite market concerns over platform fragmentation and the arrival of the iPhone 4 on Verizon in the US. According to Canalys Q3 2010 estimates, the Google-backed platform already claims a 25% share of the worldwide smart phone market, with over 20 million shipments of Android-based worldwide.[1]

‘The growth of Android has been phenomenal, but so too has the number of related devices launched with different hardware and software specifications,’ said Canalys Principal Analyst Chris Jones. ‘This has led to the market perception of it as a fragmented platform, though we believe that growth will continue as the pace of Android OS upgrades slows.’

Since the launch of the original Android platform in September 2008, many versions have followed. Gingerbread (Android 2.3) is already Google’s eighth update, with its forthcoming Honeycomb (Android 3.0) pad-focused release set to appear on devices in coming months. The platform’s rapid evolution has required increased resources from both device vendors and application developers to support the operating system.

‘The need to differentiate has pushed vendors to create customized user interface overlays for their Android devices,’ said Jones. ‘As additional investment is required to ensure compatibility with each operating system upgrade, this has hampered vendors’ efforts to stay up-to-date with the latest Android iteration on current devices.

‘Fragmentation affects all OS platforms, though it is particularly visible with Android due to the fast pace of upgrades that has characterized its growth,’ said Jones. ‘The problem has been less pronounced on competitive platforms, such as Apple’s iOS, as devices have been able to support the iOS 4 upgrades since the iPhone 3G. Nokia has also sought to minimize its fragmentation issues by utilizing the cross-platform Qt framework.’

Vendors working on Android have leveraged the open source platform to push prices down and bring smart phones to the mass market. As a result, Android shipments grew more than 1,000% through the first three quarters of 2010 over the same period in 2009.[2]

The platform has benefited established vendors, such as Samsung and HTC, but also enabled PC vendors, such as Acer, to enter the market with a broad product range spanning smart phones and pads.

‘Vendors are trying to differentiate further on the hardware front, with faster and more powerful processors, as well as larger screen sizes,’ said Canalys Senior Analyst Daryl Chiam. ‘Last week, LG announced the first smart phone to support a dual-core processor, while Acer and Samsung showcased smart phones with screen sizes of 4.8″ and 4.5″ respectively.’

‘With Android’s momentum expected to stay strong, the installed base of Android-based smart phones and pads will rapidly increase – good news for developers,’ said Chiam. ‘To be successful, developers must be prepared to cater to the abilities of the different device categories, tweaking the user experience of their applications accordingly. This additional effort is well worth the potential benefit of broader application distribution.’

‘To support developers, Google must also make substantial enhancements to the Android Market, including the ability to detect device platforms, highlighting the applications suitable for each, which would improve the user experience and increase the number of downloads,’ said Chiam.

[1] and [2] Canalys worldwide smart phone shipment estimates, Q3 2010. See table at end of press release.

61 Comments
  • Anonymous

    More BOGO sales?

    • Anonymous

      But isn’t the all mighty iphone for $49 a better deal? You can get 4 iphones for the price you’d pay for bogo.

      • Anonymous

        *crickets*

      • Anonymous

        and how long in the device life was it before said device hit $49?

      • Anonymous

        Does that matter? It is still being sold, and has the newest version of the
        OS. Some people prefer it, over the iphone 4. The point is, at $49, a lot of
        people will jump on it.

    • FriarTuck

      That’s how I got your mom.

  • Anonymous

    Are they underestimating the power of the iPhone on Verizon?!!?

    • http://twitter.com/ChazClout ChazClout

      I bet it will hardly sell outside of the U.S.

      /S ;)

    • matt

      are you underestimating that nobody cares at this point?

    • Anonymous

      Are you over estimating it?

    • Anonymous

      This is world wide not Verizon.. And I dont know too many people running to get an outdated phone from last year.. Im sure it will be a best seller but there is no “power” behind this phone. It will be casual buyers like the people who bought the, still to this day great, 3GS last year.

    • http://twitter.com/zc456 Zenon Tigerpaw

      I hope your being sarcastic.

  • http://pulse.yahoo.com/_GP2WYAHXS6CRUREISWBGPUSUGE Michael

    Something that is Blackberry, nor Apple?

    checking URL…..

    Yep BGR…..

    wow. impressive.

    Now that the snide comment is out of the way. I think Android will grow. To to say by “double” then the next closest guy. That’s a bit of a stretch. Phone per Phone, nothing will compete with Apple,

    • Anonymous

      No one phone can compete with iphone because of all the choices. It isn’t a negative on Android at all. If one OS only comes in yellow, and the other comes in multiple colors, obviously more yellow ones will sell. That doesn’t mean the yellow one is better, it’s just statistics.

  • Bringit

    In other related news, McDonalds sold 19 billion burgers.

    • Anonymous

      That’s a lot of meat..

      • http://twitter.com/mfg68 Matt Galo

        “Meat”.

      • Pdf

        He he, he said meat…

    • Anonymous

      I wonder how many were identical with no option of variety…

    • http://twitter.com/starnovsky Stan Tarnovsky

      And Microsoft sold a few hundred millions Windows 7 licenses. That’s a better comparison.

  • Anonymous

    I am somewhat dubious of Canalys estimates in general. I was at their Canalys Navigation Forum in 2007. When one of their analyst was asked about their previous year prediction on market share growth for navigation devices being famously wrong he calmly replied, “yes, that was wrong” and nonchalantly moved on.

  • Scott

    I, for one, can say that with the new Android phones already shown at CES and more to be seen at MWC next month, other OSes are really going to have to shine in the hardware department. I am eagerly awaiting the release of the Atrix, which will be replacing my iPhone. I have become impressed with Android as it’s been updated over the past year, along with the great hardware that the manufactures are pumping out.

    • Anonymous

      It’s good Android is being updated, seeing as how the devices themselves are not. Be very careful, and make sure the phone you buy does everything you’ll need it to do for the next two years, since you won’t be seeing any updates until you, well, buy a new device.

      • http://twitter.com/ChazClout ChazClout

        How is that true?

      • Steve Hillshire

        Hmm, my D1 has seen many updates since I purchased it and many new features to boot. I’d be careful what you say when you do not know…

  • Warhed230

    A true test to android, but this article is talking about GLOBAL market shares….

  • http://twitter.com/ChazClout ChazClout

    Will be strange to see it breathing down Symbians neck.

  • Anonymous

    People don’t really give a shit about Android In reality it’s just that carriers didn’t have anything else to offer. Android will lose a lot of market share this year and WP7 will pick a big chunck of that up. WP7 is looking pretty solid and smooth and Apple should be worry, it’s also adding a bunch a really cool and good apps. Everytime OEMs hold up on android updates developers lose money and that pissing a bunch of good developers off.

    • http://twitter.com/ChazClout ChazClout

      Where were all the Wp7 phones at CES?
      It seems to me that Oems are quite happy to provide Android powered hardware and there are a steady stream of good apps on and headed to Android.

    • Anonymous

      Are you bipolar? Just the other day, you said you wanted the bionic, and wanted to jump on Lte. A few days before that, you were talking shit about Lte. You really do talk out both sides of your ass.

    • Anonymous

      Developers will get used to it or they can leave.. The Market and Online Dev Community are strong enough to keep up with hardware and OS growth..

  • Itsjustmee

    android will benefit from fragmentation
    because instead of just one company spending ad dollars promoting the OS
    many companies are spending ad dollars promoting it
    and
    fragmentation means important features for consumers
    choice in formats
    lower cost options for people who dont need all the bells and whistles
    more frequent updates
    more free software due to larger user base
    did i say CHOICE?
    some people are happy with whatever Steve Jobs decides is right for them
    for others, that’s not an option, it’s prison

    • Anonymous

      Hey stop making sense, your messin up my distortion field..

  • Max

    Meanwhile, RIM(job) numbers dropping like turds from a pig. Market share plummetting. Overall numbers still high, percentage share dropping year over year. Focusing on India and other road-defecating countries with 1995 Curves and low-power devices that stay charged for weeks from any outlet in Outer Mongolia. Neglecting core market to keep cost down, R&D cost down, ride declining popularity. The Beanie Baby of the smartphone market ala 1995.

    • Jayhammy

      Wow. That was harsh! LOL

  • Anonymous

    “Vendors working on Android have leveraged the open source platform to push prices down and bring smart phones to the mass market.”

    One, its not open source. Two, they have pushed prices down, which is why Apple is making more money from mobile devices than Android OEMs collectively.

    • http://twitter.com/ChazClout ChazClout

      They are still making money either way. Look at how HTC are doing and how Motorola have been dragged from the gutter.

      Anyway, as a consumer, why would I applaud the amount of profit a company makes off of me?

      • Anonymous

        Exactly! I don’t understand why the ifools brag about apple’s profit.

      • Anonymous

        Lmao these guys talk like they are executives or significant shareholders.. Ill make it plain.. If Apple makes so much more money off of iPhones than Android phones why are they not adding features that people want? Personally I want my companies to profit as little off of me as possible, while still innovating, providing support, and a high-end experience; the extra money should be used on development not hipster commercials..

      • Goofan (aka Apple Hater)

        I agree. All companies should be like Google that makes profits out of OUR PERSONAL information, NOT US! You, like the rest of the Goofan (aka Apple Hater) nation knows this. The STUPID iSheep don’t have the intellectual capacity to grasp this.

      • Goofan (aka Apple Hater)

        And you are also right, that NO AMERICAN company should make profits, only Taiwanese and Chinese, etc etc.

      • http://twitter.com/ChazClout ChazClout

        Where did i say that? I mentioned Motorola (an American company) and this very article is about Google which is…… An amarican company.

    • http://twitter.com/zc456 Zenon Tigerpaw

      It’s licensed under Apache. It IS open source. If it wasn’t, you wouldn’t see hackers putting on such devices as the HD2 or the iPhone.

  • GinaDee

    Verizon will have add a short bump to iOS in the short term for all those foaming at the mouth to use a product that’s been out for almost a year already.

    Verizon will also commodicize the iPhone so that people start to see so much of it that it starts to lose its luster even within the “average consumer,” community.

    Companies like Moto will capitalize on this by advertisting their new power house phones (think Atrix) as the most powerful phone on earth.

    The iPhone will then start to push more into 3rd rate countries where they still will murder eachother (or their tribal leaders) for the chance to get one similar to the way some parts of the world still pine for the RAZR.

    • AndroidWins

      LOL, I just had to comment on this. Very funny, but very true.

  • Anonymous

    I don’t see how — it’s not exactly the developers preferred device when it comes to making money.

    I’d think any relevant source of market projection would be embarrassed to put forth such predictions, especially with the advent of WP7 >and< multi-carrier iPhone availability in the states.

    Canalys who?

    • Anonymous

      Android went from 0-26% marketshare in one year. The Android market is growing at a faster rate than Apple’s app store…over 200,000 now…in just over a year. Apple didn’t even have an app store their first year. WP7who. That shit was dead on arrival.

  • Daniel

    Still too far away from Symbian, and with MeeGo coming soon that means Android will still be in 2nd place on mobile devices… but it’s a good OS…

  • Anonymous

    I want whatever that dude is smoking. iPhone won’t make Android go away but it will put a hefty den’t in it’s US sales, which is where most of the Android gains have been.

    • Anonymous

      Android gains have been worldwide….where Android and ios are on the same carriers.

    • Jayhammy

      Agreed with Tim242: Android is now #2 worldwide, second only to Symbian, which is definitely on the decline. The U.S. is the only country where it’s not been offered on multiple carriers. Sure, the rush will be on once it first arrives at Verizon, but with the slew of better-than-iPhone Android devices coming out, people will soon say, iWhat?

  • StevenGlansburg

    Apple articles get 50+ posts while android get a fraction and assclowns wonder why BGR puts so many apple stories….idiots.

    • Anonymous

      Spoken like a true assclown!

    • http://www.youtube.com/watch?v=WiQmQhA-OrM Walter Sobchak

      Good to have you back buddy. Did you pull glansburg back out in honor of the vzw iPhone?

  • http://pulse.yahoo.com/_EZJ6EW7PYHT4TOC2NWA62NQV6Y teco221

    I think Android will sell a lot of units this year because even my employees are getting Android. But question is “Do they know how to use it?” Answer is “No” and I asked “Why did you get it?” Because this is only smart phone they sell, no iPhone. I can only reply “Oh, well look at this app I just got last night!”

    • Anonymous

      Android Market has over 200,000 apps. There are only a few quality apps we lack…and they are coming soon.

  • Anonymous

    Market Share means everything, really.

    All the Market Share in the world cant save you when you are racing to the bottom on price to get someone to buy your Version of an Android Phone versus another Manufacturer’s Version of an Android phone. You are always going to be competing and the only thing different you can offer is price.

    One company keeps all of the money in house with regard to their phones. It is not an Android manufacturer and it isn’t Google.

    It takes profits to stay in business, not market share.

    • http://www.youtube.com/watch?v=WiQmQhA-OrM Walter Sobchak

      Wouldn’t it be a better use of your time to go teach business school classes at a college, rather than troll android posts all day long?

    • Anonymous

      Isn’t the iphone fo $49 a better deal than bogo? You can get 4 iphones for the price of bogo. Manufacturers get paid full price for the phones. It’s the carriers that take a hit…and they’re not hurting! If you think google is going out of business, you are crazy. I don’t know why you ifools worry about apple profit, because it isn’t your profit. Google is a much larger company than Apple, and they profit more than apple. You’re delusional if you think narketshare isn’t important. Go take your meds.

  • Anonymous

    Who pays these morlock felchers to predict this wonderfully obvious shit?

    ‘Cause I can knock out this level of thought between bed and breakfast, with a hangover – and I wouldn’t mind getting a paycheck for lunch.

  • Anonymous

    false metric. they should compare Android growth to iOS growth, not “iOS smartphone” (iPhone) growth as they do here.

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