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Sales of Android-Based Devices Top Apple's iPhone

Sales of Android-based smartphones have surged past Apple's iPhone sales to take the number-two spot in the market, behind Research In Motion. NPD Group reports Android sales held 28 percent of the market, compared to 21 percent for Apple and 36 percent for RIM. Verizon's buy-one-get-one promotion helped fuel the strong Android growth. 

  Apple is no longer on top when it comes to sales of its iPhone. Open-source Android-based smartphones have surpassed iPhone sales.
After enjoying strong growth in last year's fourth quarter, Android moved past Apple in this year's first quarter to take the number-two position in smartphone operating systems, according to a report by NPD Group.

Based on unit sales of devices to consumers, the Android operating system  held 28 percent of the market, ahead of Apple's 21 percent. Research In Motion's BlackBerry operating system still sits at number one with 36 percent.

Being in the number-two slot isn't too shabby for an operating system that launched two years ago and had to go up against OS heavy hitters that include BlackBerry, Symbian, Windows  Mobile, and of course the iPhone, said analysts.

"We had seen Android grow very strong in the fourth quarter and the two operating systems were neck in neck," said Ross Rubin, executive director of industry analysis for NPD. "We knew that AT&T was going to be supporting Android in 2010 (with its Dell Aero and Motorola Backflip phones), so it was not much of a surprise."

Driving Sales

While the operating systems are created by the phone makers, it's the carriers who drive sales with marketing and promotions. And there were a few factors in Android's push past the Apple iPhone OS.

"One of the things that led to strong growth is the Verizon  Wireless buy-one-get-one deal, which effectively lowered the price," Rubin said.

AT&T's sales comprised nearly one-third of the entire smartphone market with 32 percent, followed by Verizon with 30 percent, T-Mobile with 17 percent, and Sprint with 15 percent.

"Strong sales of the Droid, Droid Eris, and BlackBerry Curve via these promotions helped keep Verizon Wireless' smartphone sales on par with AT&T in Q1," Rubin said. "On the Android side, we have had some strong handsets in the pipeline."

Included in that pipeline is Verizon's Droid Incredible smartphone; Sprint's HTC EVO, the first 4G handset to be launched in the U.S.; and Samsung's Galaxy S phone, debuted at the International CTIA Wireless 2010 conference .

More Data-Plan Options

Because messaging phones and smartphones continue to be popular among consumers, carriers will need to do more than offer attractive prices for the smartphones, Rubin said. Carriers will need to provide better data -plan options in order to attract more customers and better compete with rival companies.

Rubin expects continued growth for Android because of its distribution within the four largest U.S. wireless  carriers. Apple, on the other hand, may not see as much.

"Apple, of course, has shown a revision of its OS and has traditionally launched a new device during the summer and may well spur sales or attract new customers, but it will still be confined to AT&T in the U.S.," he said.