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Android Smartphones To Reach 1.1 Billion Units in 2013

By - Source: IHS | B 22 comments

By the end of next year, Google's Android will have been sold on more than twice the number of smartphones than Apple will have sold iPhones.

According to IHS, cumulative Android phone shipments will top 1 billion next year when the OS is forecast to be installed on 451 million phones that are predicted to be sold. That number is up from a forecast 357 million this year. In comparison, the iPhone will hit 527 million this year and will not arrive at 1 billion until 2015, IHS said. Meanwhile, Android is expected to approach top 2.2 billion in 2015, with annual shipments climbing to 599 million units.

“The Androids are taking over the world of smartphones,” said Daniel Gleeson, mobile analyst for IHS. “We expect the Android operating system to become the first to reach the milestone of 1 billion shipments during its lifetime. For Google, this accomplishment highlights the success of its growth strategy for Android, which is based on providing the operating system as an open-source platform to third-party smartphone brands free of charge. Google hopes to make significant revenues from mobile advertisements and other services. Such an open-source model means that Google offers handset makers the ability to customize Android easily, and by also eliminating licensing fees, is greatly encouraging adoption among smartphone handset manufacturers.”

In contrast, we should remember that, while Google relies on quickly rising shipment numbers to be able to exploit its advertising opportunity, Apple has a more diversified revenue opportunity and makes a killing on hardware sales. Rather than comparing Google and Apple (76 percent of the market goes to these two platforms in 2012, IHS said), the much more interesting question will be what is left for Microsoft, RIM, Linux, Bada and Mozilla. A forecast until 2016 may be a bit difficult to defend until we know what effect Windows Phone 8, Firefox OS and the new Blackberry will have. It is unlikely that the smartphone world will stand still.

 

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  • 13 Hide
    Thunderfox , September 13, 2012 12:32 AM
    They can't do that. Apple has patented the word Billion.
  • 11 Hide
    jay2tall , September 13, 2012 1:07 AM
    People generally like to be controlled. Apple is control, so a lot of people like it. Plus all that extra money you spend on Apple products, guess what? It all goes to marketing. And guess what works on a majority of people?
Other Comments
  • 13 Hide
    Thunderfox , September 13, 2012 12:32 AM
    They can't do that. Apple has patented the word Billion.
  • 3 Hide
    freggo , September 13, 2012 12:43 AM
    That's ok, it is mostly used in the USA.
    In Europe we use "Milliarde" instead !

    A Billion in Europe would be a USA Trillion !

  • 8 Hide
    freggo , September 13, 2012 12:45 AM
    clubsaucekillerA thousand different phones and they've only sold twice as many. "Taking over", what a joke.


    It shows that Android is made for specific customer needs (Customer first approach).
    Apple makes 'one fits all'. Lower cost manufacturing and warehousing but inflexible for the user. That's the "Corporate approach" !


  • 11 Hide
    jay2tall , September 13, 2012 1:07 AM
    People generally like to be controlled. Apple is control, so a lot of people like it. Plus all that extra money you spend on Apple products, guess what? It all goes to marketing. And guess what works on a majority of people?
  • 4 Hide
    dameon51 , September 13, 2012 1:31 AM
    otacon72If the iPhone doesn't take a customer first approach why has it sold almost as many units with 4 models compared to the dozens of Android models? I have no love for Apple but your logic is ridiculous.

    Branding
  • 3 Hide
    skyjogger , September 13, 2012 1:42 AM
    otacon72Actually $1B EU would be $1.29B US, your conversion is....slightly off.

    it has nothing to do with conversion, having 1billion at 1,000,000,000 is an American thing, that's only one thousand million a proper billion is one million million (1,000,000,000,000), it makes much more sense
  • 6 Hide
    blazorthon , September 13, 2012 2:53 AM
    otacon72If the iPhone doesn't take a customer first approach why has it sold almost as many units with 4 models compared to the dozens of Android models? I have no love for Apple but your logic is ridiculous.


    Marketing and fanboyism. Never underestimate the iSheep's gratuitous spending. Non-Apple fanboys are a minority within Apple's customers unlike with Android and Windows Phone where Windows Phone makers and Android makers have to rely on diversity to target the wider audiences of people who put at least a little thought into their purchase. Why do you think that Android managed to overtake iPhone even though it's been in serious competition for less time?
  • 2 Hide
    subaru41 , September 13, 2012 2:53 AM
    clubsaucekillerA thousand different phones and they've only sold twice as many. "Taking over", what a joke.

    So you are saying if Apple sold two new phones there sales would double? you are making no sense. If Apple had several models tow choose from it doesn't necessarily mean they will sell more phones. Maybe should you should go back to school and learn about economics - supply and demand.
  • -7 Hide
    clubsaucekiller , September 13, 2012 3:17 AM
    blazorthonMarketing and fanboyism. Never underestimate the iSheep's gratuitous spending. Non-Apple fanboys are a minority within Apple's customers unlike with Android and Windows Phone where Windows Phone makers and Android makers have to rely on diversity to target the wider audiences of people who put at least a little thought into their purchase. Why do you think that Android managed to overtake iPhone even though it's been in serious competition for less time?

    The people who buy Galaxy SIII's and that latest Android flavor of the month "flagship" are in the minority. Most people who buy Android phones are the ones who put zero thought into their purchase and only look at the price. The inferior quality inherent in Android phones is what allows drastic undercutting.
  • 8 Hide
    blazorthon , September 13, 2012 3:21 AM
    clubsaucekillerThe people who buy Galaxy SIII's and that latest Android flavor of the month "flagship" are in the minority. Most people who buy Android phones are the ones who put zero thought into their purchase and only look at the price. The inferior quality inherent in Android phones is what allows drastic undercutting.


    Looking at the price is putting more thought into it than most iPhone purchases get.
  • -9 Hide
    clubsaucekiller , September 13, 2012 3:27 AM
    blazorthonLooking at the price is putting more thought into it than most iPhone purchases get.

    That is exactly why the iPhone has sold so well. No need to put any thought into an iPhone purchase as you know you'll be getting a stable, quality phone - a stark contrast to the endless sea of Android shitphones out there selling for pennies.
  • 3 Hide
    Anonymous , September 13, 2012 3:39 AM

    Actually there is no surprise Apple will not be getting number #1 spot in market share. There are simply more vendors selling Android phones at various market price points that draws the customers away from Apple. Apple target itself as a company that sells premium product, and as such, they will never have mass market appeal in the long run and will be in a niche market. Sort of like Mercedes will be in a niche market while other car model will dominate the market share. The lawsuit tactics will not defeat this simple market behavior. In the long run, the threat to Apple is other vendors will have an advantage in economy of scale and Apple may find it harder and harder to deliver quality product with a price premium, especially when they have pissed off their suppliers.

    If Apple wants to become #1 player in market share, they will have to start:
    (1) mending their relationship with the suppliers
    (2) draw in allies by licensing their phone design to other vendors, yes, that means Apple clones, revenue should come from Appstore, or
    (3) stop concentrate on premium segment only and start selling low-end models to compete in all market segments, or
    (4) quickly deliver the next new device as phone and tablet market is quickly becoming saturated, maybe TV or camera, try to be a Sony that make all kinds of premium electronics gadgets instead of locking itself in only a few products.

    (2) will be unlikely as it requires a complete change of business focus, which means Apple must act like Google or Microsoft or Amazon. (3) has the risk of cheapen the brand name. In the long run, (4) maybe the only viable option, which will also mean Apple will never become #1 in market share but can still earn healthy profits. The biggest mistake Apple has made so far is to offend suppliers, and try to fight their way to top using lawsuits. Those tactics will give them a few victories here and there but will never work out in the long run.

    The market is indeed being saturated quickly, considering there is currently about 7 billion people in the world, and a large percentage of them are too poor to own such devices.
  • 5 Hide
    jrodil , September 13, 2012 3:47 AM
    clubsaucekillerThat is exactly why the iPhone has sold so well. No need to put any thought into an iPhone purchase as you know you'll be getting a stable, quality phone - a stark contrast to the endless sea of Android shitphones out there selling for pennies.


    Yeah, no thought to put into it because the iphone of tomorrow is still just like the same iphone of 5 years ago... you don't need to evolve how to use it... you just pay them again and again for getting the same old manipulative iphone "experience" of you can only do what they let you do with it... right?
  • 6 Hide
    jerm1027 , September 13, 2012 5:29 AM
    clubsaucekillerThat is exactly why the iPhone has sold so well. No need to put any thought into an iPhone purchase as you know you'll be getting a stable, quality phone - a stark contrast to the endless sea of Android shitphones out there selling for pennies.


    Funny how when I was showing off my Epic 4G and Evo 4G, I made iPhone 4S users envious. The Android software is very flexible and has more inherent functionality. Between widgets, native tethering, the ability to install apps outside of the walled garden, overclocking, undervolting, theming, there is just a lot more you can do. And ADB allows even more functions. The hardware side offers choice. The Epic 4G had a better screen quality, physical keyboard for texting/gaming, Evo's larger screen, the kick stand, HDMI output, removable batteries on both, expandable storage, and of course 4G. And mind you, the two phones I'm talking about are generations old and, more or less, discontinued.

    Of course there are some less-than-stellar Android devices, but where can you get an iPhone for $150 brand new without a contract? No-contract iPhones are upwards of $650, and even then, the budget Android phones have practical features the iPhone doesn't, such as expandable storage, removable battery, widgets, and of course durability. If I had $5 for every cracked iPhone I've seen...

    To the unbiased person, knowledgeable person there is no comparison: Android will win every time. The question is, which Android device?
  • -7 Hide
    clubsaucekiller , September 13, 2012 5:40 AM
    jerm1027Funny how when I was showing off my Epic 4G and Evo 4G, I made iPhone 4S users envious.

    I suppose a crowd gathered and cheered, only to carry you off on their shoulders? Your phones are a joke and so are you.
  • 0 Hide
    in_the_loop , September 13, 2012 2:12 PM
    Quote:
    IHS said. Meanwhile, Android is expected to approach top 2.2 billion in 2015


    That seems very unlikely!
    Right now the total number of internet users in the world is around 2.2 billions, http://www.internetworldstats.com/stats.htm ,
    and it isn't growing that much anymore. Perhaps it will be around 2.5 billions in 2015.
    Will 2.2 billions of these internet users also use an android phone or tablet?
    I suspect the growth will flatten out long before 2 billions.
    Don't get me wrong, I love the android OS, but it won't grow forever.
  • 0 Hide
    blazorthon , September 13, 2012 3:02 PM
    clubsaucekillerThat is exactly why the iPhone has sold so well. No need to put any thought into an iPhone purchase as you know you'll be getting a stable, quality phone - a stark contrast to the endless sea of Android shitphones out there selling for pennies.


    Which phone has the most reported exploding batteries and such? Oh yeah, one of Apple's iPhones. Which phone OS has the most free apps for any given task? Android. Which one had LTE and such for years, even on many of the low end phones? Android. Which one had top-quality cameras for years? Android. Which one had the OS maker trying to make it illegal to root the device? Apple. What is it called when you do it on an Apple device? Jailbreaking. Gee, jailbreaking, I wonder why they call it that.

    I'm not saying that iPhones are necessarily crap and that Androids are perfect, they are decent phones and Androids are not perfect, but iPhones are also not perfect; iPhones are just somewhat more idiot proofed. Whether or not iPhones are stable usually isn't the issue, but quality? No, they are not. Given their prices, iPhones are more comparable to lower end Androids in far too many ways. The hardware and more is usually not nearly top-end (although Apple has been improving that a little lately, still not nearly the best except maybe in graphics) and there are many more things to go on about against both sides, so I'll stop ranting there.

    Also, I've owned several Android phones from low end to high end and as of yet, although some have some problems, I wouldn't call any of them ***, although maybe I'm a little biased in that if there is a problem, I can usually fix it much more easily than even the average Android user (better than the average iPhone user, granted often not by much).
  • 2 Hide
    freggo , September 13, 2012 4:14 PM
    otacon72If the iPhone doesn't take a customer first approach why has it sold almost as many units with 4 models compared to the dozens of Android models? I have no love for Apple but your logic is ridiculous.


    Every A/V professional will tell you that Betamax and Video2000 where superior to VHS.
    Yet still, the public championed VHS.

    Windows vs. Linux. A point could be made that Linux is 'better'; yet Windows rules.

    Just because something sells in huge quantities (McDonalds, "Frosted" Flakes) does not mean it is the superior product !

  • 1 Hide
    freggo , September 13, 2012 4:21 PM
    otacon72Actually $1B EU would be $1.29B US, your conversion is....slightly off.


    I meant it in the mathematical sense, not currency. (i.e. long and short scale notation).

    Most European countries use the long scale.
    Curious thing is that English speaking countries and the US use the short scale; and share this preference with the Arabic-speaking countries :-)

    Took me a while to switch; just the foot vs meter thing is still driving me insane.
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