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January 25, 2010 2:18 PM PST

Analysts predict bold growth for Google Android

by Marguerite Reardon

Google's Android is expected to take the smartphone market by storm in the next few years, growing faster than all its competitors, according to an IDC report published Monday.

Android is expected to be the fastest growing wireless operating system from now until 2013, when the software will be the second most used smartphone operating system throughout the world, the report said.

Today, the Symbian operating system, used mostly on Nokia phones, dominates the smartphone operating system market worldwide. BlackBerry maker Research In Motion holds the No.2 spot currently, with Apple in the No.3 spot globally.

The numbers differ in the U.S. market where Symbian has very little market share. In the U.S., RIM is currently the top smartphone operating system provider, and Apple is in the No. 2 spot. Microsoft is in the third position with its Windows Mobile operating system.

But by 2013, Android is expected to grow much faster than all its competitors, IDC says. And it will knock out RIM as the No. 2 operating system provider globally and bump Apple from its second place position in the U.S.

The shift in market share comes as more device makers release phones using the Android operating system. A handful of new phones using Android from Motorola, HTC, and Samsung were announced in 2009, but in 2010 manufacturers are expected to increase the number of Android devices and ramp up sales. Motorola has said it's planning at least 10 new Android devices in the first half of 2010.

IDC analyst Stephen Drake said the sheer volume of devices that are expected to come out using the Android OS will catapult its growth. One of the big advantages Android has over other operating systems, such as RIM's or Apple's Mac OS, is that it can be used on hardware from a wide base of manufacturers. RIM and Apple only use their operating system on devices they make.

"While there are a lot of operating systems on the market, there are not a lot of opportunities for device manufacturers that don't own their own software," Drake said.

Microsoft's Windows Mobile also caters to this market. But Drake believes that Android's growth will outpace growth of Windows Mobile, because Android is free, open-source software, whereas Windows Mobile requires a licensing fee. For this reason, Drake believes that handset makers will focus more on Android.

Windows Mobile is still a popular mobile operating system, and it already has a large installed base. But growth is stalling as manufacturers and consumers wait for the next version of the operating system, Windows Mobile 7.0. That said, Drake doesn't believe that manufacturers will abandon Windows Mobile. But they will be adding more Android devices to their device mix. As an example, Drake said that HTC, the biggest handset maker using Windows Mobile, is looking more at Android, as is Motorola, LG, and Samsung.

"The story isn't great for Windows Mobile," he said. "If you look at news cycle for smartphones over the past year, where was Microsoft? They need a splash with Windows Mobile 7. And they need to produce a device with a 'wow factor,' something in the superphone range."

Marguerite Reardon has been a CNET News reporter since 2004, covering cell phone services, broadband, citywide Wi-Fi, the Net neutrality debate, as well as the ongoing consolidation of the phone companies. E-mail Maggie.
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Add a Comment (Log in or register) (39 Comments)
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by aaanandhismini January 25, 2010 2:53 PM PST
Superphone?

Please, can't we let that one die. Really.
Reply to this comment
by slickuser January 25, 2010 4:50 PM PST
like Windoze. Walmart of operating systems for mass devices replacing Nokia
2 people like this comment
by MaLvaDo39 January 25, 2010 8:35 PM PST
Think iPods not Mac when anyone thinks of open vs closed systems and who will take the market.
by t8 January 26, 2010 1:08 AM PST
Not Walmart.

Android is based on a very efficient Linus kernel.

Should be likened to a lean mean machine of some kind.
by CupertinoBill January 25, 2010 3:01 PM PST
iPhone killer number what? 10, 11? Of course I totally respect IDC, whoever they are and would not argue with them. But I do wonder how all the varied androids are going to play well with others. Just sayin'
Reply to this comment
by gerrrg January 25, 2010 3:25 PM PST
"I do wonder how all the varied androids are going to play well with others."

You mean, how do developers create software that runs on different versions of an OS, just as they've been doing for WinXP, Win2000, Vista and Windows7?
6 people like this comment
by sparhawk2k--2008 January 25, 2010 3:45 PM PST
Or even more so that the different operating systems, how do all these different computers running WinXP play well with each other?

I'm more curious how the iPhone is going to deal with a fragmented market when they have to start introducing major hardware changes like adding a decent screen resolution. I can't imagine the 100k apps out there will handle that very well.
1 person likes this comment
by Random_Walk January 25, 2010 3:50 PM PST
I'm wondering about that myself, since there are already complaints over the newest Android-based devices, and growing vendor/carrier infighting:

http://www.pcworld.com/businesscenter/article/183470/android_developers_disgruntled_with_market.html
http://www.pcworld.com/article/186577/
http://www.developer.com/ws/article.phpr/3857796/An-Android-Developers-Top-10-Gripes.htm
2 people like this comment
by The_happy_switcher January 25, 2010 3:02 PM PST
Google should stick to the mediocre things they do already: Selling ads for search queries and pretend it's some rocket science engineering behind the whole process.
Reply to this comment 1 person likes this comment
by ywkhgqo January 25, 2010 3:19 PM PST
mediocre? They're number one for a reason. They have as much cash as apple does.
3 people like this comment
by AppleJihadHunter January 25, 2010 3:23 PM PST
and you're relying on Apple search engine? I bet Apple would direct all search queries to Apple's site.
2 people like this comment
by Perry_Clease January 25, 2010 3:54 PM PST
"and you're relying on Apple search engine? I bet Apple would direct all search queries to Apple's site."

Lose a lot at the poker tables do you?
by t8 January 26, 2010 1:09 AM PST
This is why you are not the CEO of Google.

Should Microsoft have stuck to Windows when they branched out with MS Office?
1 person likes this comment
by TEHKI January 25, 2010 3:08 PM PST
when will someone make an android phone with a ton of internal flash memory? applications cant be saved onto a little SD card.
[CNET editor's note: Offensive comment deleted.]
Reply to this comment
by ywkhgqo January 25, 2010 3:19 PM PST
i have over 100 applications on my droid and not even close to filling it up. It only saves the run files on the internal memory. Things like textures and general data are kept on the sd card
4 people like this comment
by Renegade Knight January 26, 2010 11:49 AM PST
Can you even put an SD Card into an iPhone?
by CDubber January 25, 2010 3:19 PM PST
"One of the big advantages Android has over other operating systems, such as RIM's or Apple's Mac OS, is that it can be used on hardware from a wide base of manufacturers. RIM and Apple only use their operating system on devices they make."

Yeah, that really worked well with Windows Mobile. *eyeroll*

When are these analysts (and companies) going to realize that the user experience is all that matters? Who cares if Android ships on a thousand different devices - if the user experience isn't great, the platform will fail. I think hardware/software integration is a big advantage in this market, and Apple and RIM will continue to do well, while Android continues to fragment while it battles Windows Mobile for 3rd place.
Reply to this comment 1 person likes this comment
by gerrrg January 25, 2010 3:34 PM PST
Sez someone that hasn't used an Android phone.
1 person likes this comment
by Milind Rao January 25, 2010 11:47 PM PST
User experience is certainly one factor and at the moment, the Android user experience is better than the iPhone user experience. Going back to the iPhone is frustrating now with the single button, single tasking app model. Hunting for the back button (placed at different locations in different apps), poor notification system, lack of widgets, scrolling through pages to locate applications and most of all, losing context and starting from scratch while switching between apps. The iPhone UI now looks like just one inefficient giant application launcher.

Another important factor is apps. And there are much more killer apps on the Android now than on the iPhone.

Google managed to take two advantages of the iPhone and leave the iPhone looking the worse for it.
2 people like this comment
by Renegade Knight January 26, 2010 11:53 AM PST
It is a big advantage. You clearly don't know why WinMo has lost share, why iPhone has gained share, and how Android straddles the utter lock down of the iPHone and the raw capablity (sorry guys, neither Android nor iPhone lets me do as mush as WinMo does) of WinMo.

MicroSoft could easily turn it around if they fix their interface and keep their ability to get mobile computing done that the iPhone doesn't let you do directly.
by orbital_bruiser January 29, 2010 7:36 PM PST
After using an Android Phone (Droid) I fully agree. Droid is not bad but it still feels clunky and un-refined and unless you worship Google Services, it is a RPITA to do some basic things (like calendar and contact sync).
by timothywmurray January 25, 2010 4:10 PM PST
The report was published in December 2009 the press release about the report was published Monday. Proper citations are important. Three years from now it will be much harder to to accurately identify the correct report as URLs change and links break.
Reply to this comment
by dennisheadley January 25, 2010 4:16 PM PST
I think this is an over-estimate of what Android will do. What have they sold so far, maybe 5 million phones between all the carriers and handsets combined? Really taking the world by storm. looking ahead I don't think they will have an easy time of it given:

1. Nokia seems to be finally waking up and doing something to get their smartphones back on track
2. Apple's exclusive with AT&T in the US coming to an end at some point and more carriers will mean a lot more sales in the US.
3. Palms made great strides with the WebOS phones in the year they have been out and now with more carriers and more phones they could be a break-out hit.
4. Microsoft may just pull their head out of their *** and make Windows Mobile 7 and/or a Zune based phone or something from HTC into something worth having.
5. RIM could come out with a great new design that........ok you go me there, RIM probably will lose their ranking at some point.
Reply to this comment
by Renegade Knight January 26, 2010 11:59 AM PST
1) Nokia - Good Call.
2) Good Call.
3) Palm dumbed down the interface (which people like) and removed capablity, and compatablity. Their big question is is the WebOS better enough to offset the problems? Maybe...if they get Rev 2 out and fix whatever it was that undewhealmed me when I really, really wanted to get a Pre.
4) If MicroSoft is lucky or smart, or both they will do exactly that. The problem isn't what you can do on a WinMo device it's the kludgy interface. Even the worst WinMo device does more than Android, Iphone, and now WebOS.
5) Rim, I'm with you on that one.

But: Android is being bought by the same kind of folks who buy iPhone. When a Soccor mom walks up and says, "I got a Droid!" when I fully expected her to say iPhone... Android has some mindshare that Apple normally has. Even if everone holds their sales, as the market grows Android can sop up the new users. Rim, Palm and WinMo are at risk. Apple only needs to make one Mistep. .
by ArtInvent February 15, 2010 12:43 PM PST
Frankly I think this article if anything is understating Android's market roll.

RIM is going down in flames. Maybe not next week, but . . . there's just no way they can milk push-mail to maintain dominance like they have in the past. It's important, but it can be equaled on other platforms and RIM has little else to recommend it and few hardware partners.

Frankly I thing Android will shoot up to No.1 and RIM will go to number 3. By the end of this year, certainly by 2012. Apple will continue on as a fairly solid no.2. Symbian will carry forward in the mid to lower tiers, but not the true smartphone arena. So their numbers will look good, but not for true smart phones. There's no reason for all manufacturers besides Nokia not to put Android on their lower tier phones as well to pump them up, while reserving the fastest and best hardware and cameras for their upper tier Android phones.

Win7 and Palm are simply too little, too small, too late.

Android is going to be massive. It's appeal is too broad across users, across manufacturers, and across carriers. Every other platform is starting to look like a niche market compared to that.
by H00L1GAN January 25, 2010 5:23 PM PST
RIM's going down in flames... at least in mass-market appeal. They've jumped on the touch screen bandwagon 2x now and fell on their face both times. They should stick to the form factor they are good at and market themselves to the business world (which they actually are pretty good at).
Nokia has some catching up to do, but I've been able to travel the world a bit and yes, their phones themslves are usually damn good quality. They won't go down without a fight, at least on the world stage... but in the U.S., unless they produce a sexy phone they are boned. Look how horrible the iPhone has worked on AT&T's network yet millions have flocked to it just because its cool.
Apple... ah Apple, they remind me of Verizon a few years back. They provide you a good product, but it's gonna be their set up at their price and that's just it. Frankly, that's the only reason iPhone landed on AT&T, neither Apple nor Verizon would let go of any control over a phone they're marketing. It seems Verizon has opened up some, but will Appple? Give the people want thay want Steve Jobs!
And finally Google... yes, they will win at whatever they are doing. They are Cyberdine and Android + Chrome OS is SkyNet... Beware! The Robacalypse is upon us!!!

1 more thing... Oh Great Google! I, your humble servant, beseech you! Please deliver unto me the Nexus One. Let all be integrated into the Googleverse and praise you message...
1001010010110012!!!
Reply to this comment
by SactoGuy018 January 25, 2010 5:29 PM PST
I think Android will "come of age" when many of its features will end up on a tablet computer running Chrome OS. And that tablet computer could seriously cut into Apple's tablet computer sales because Google will offer generous licensing terms (like free!) for Chrome OS.
Reply to this comment 1 person likes this comment
by Harlan879 January 25, 2010 5:38 PM PST
Here's what the press release says about WebOS: "Palm's webOS, despite growing steadily, will capture limited market share due to limited deployment and availability of devices across multiple carriers." I wonder if that's optimistic. They have great technology, better in some ways than Android, but they somehow managed to drop the ball in terms of growth and adoption.
Reply to this comment
by Yelonde January 25, 2010 5:44 PM PST
Yea, seriously, what is happening to palm? I haven't heard of their super-innovative phone for a while now.
by Renegade Knight January 26, 2010 12:00 PM PST
Palm does need to get more agressive. They took one step in the right direction. Time to follow through or buy stock and have it delivered so you can frame it when the company dies.
by DBdweeb January 25, 2010 7:42 PM PST
History shows that while closed systems may establish a technology platform, wide spread adoption of open systems becomes disruptive and eventually wins. Nothing has changed that. This may seem like an oversimplification but as long as there's free trade it's an economic reality.
Reply to this comment 1 person likes this comment
by orbital_bruiser January 29, 2010 7:44 PM PST
It has happened once or twice in history. Like MP3... Opps. I forgot about Linux.... Opps. Windows (very closed software. open hardware).... Opps.
by AndroidFTW January 25, 2010 9:00 PM PST
Semi-open/open wins in the end.
Just look at Windows vs Mac OS
Remember AOL ? Walled gardens don`t last.
Reply to this comment
by MyMobiSafe January 25, 2010 9:05 PM PST
As so many mobile app developers are turning away from Apple due to the exhaustive vetting process, many are looking to the Android Market as their next great opportunity. From a mobile security perspective, this makes services like MyMobiSafe Verified look much more attractive. With upwards of 10K apps per week already hitting the market, it is no wonder developers are looking to tap into the harbinger of Android mania that is sweeping the world. Now that a third party verified credential is in place, this mitigates the huge security hurdle that Google?s open position with Android has struggled with to date.
Reply to this comment
by orbital_bruiser January 29, 2010 7:51 PM PST
Odd. I know many developers turning away from the Market Place (no money) and going to the App Store. And 10K apps per week going into the Market Place?
by t8 January 26, 2010 1:11 AM PST
One good thing about all this is that Microsoft is not a big player in this market.
This will play well for consumers.
Reply to this comment
by cloudmatt January 26, 2010 6:08 AM PST
Wow who busted out the hater-aid? It's a well duh situation that android based phones are going to have a booming year. MS, RIM and Palm have a fairly solid footing in an enterprise setting but aren't exactly iPhone/android fun. Symbian is a great platform back in the day and some of their current sets do have some serious chops but nokia is #1 because $20 bucks gets you the phone and 10 dollars of prepaid minutes. I'm not going to dis the iPhone it's a good phone and has clearly shown it's the current yardstick just as the razor and the startec before it. But you see I'm of the unwashed non-Mac masses I don't have iTunes nor do I want it. It's a great distribution portal but i don't like drm and I'd rather manage my own files. Android is perfect for guys like me, It's productive enough for most all of my work tasks(still ironing out pop3 issues), fun enough that I have a hard time putting it down and the open carrier/unlocked handset of the nexus one is a game changer to the big wireless companies.

Put all that together with the possible shipment stopping of the legal maelstrom going on right now and android phones will pick up what apple, RIM and nokia might loose. I doubt that android will take down nokia but a unified cross manufacturer smartphone os(I know just about every android phone thus far has had a slightly different os with manufacturers tweaks) has a real chance of bringing a change to cellphone service equivalent to the break up of bell for landlines.
Reply to this comment
by mdkidangath January 26, 2010 7:12 AM PST
You have not mentioned Maemo, the OS of N900 of Nokia.
Reply to this comment
by youfootwo January 27, 2010 7:39 AM PST
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http://www.android.com/market/free.html#app=mycoupons
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About Signal Strength

Marguerite Reardon has been covering the telecom beat for more than a decade and knows more about wireless and IP networking than she cares to admit. She has been a senior writer for CNET News since 2003, covering all things wireless and broadband related from iPhone launches to major telephone company mergers to IPTV developments. She often appears as an expert on news networks, including CNBC, MSNBC, NPR, and the BBC. Maggie loves visiting CNET's headquarters in San Francisco, but she's an East Coaster at heart, living and working in Manhattan.

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