Linked by Thom Holwerda on Tue 4th Dec 2012 09:50 UTC
PDAs, Cellphones, Wireless "For a seventh consecutive month, the Samsung Galaxy S III is the most popular smartphone in the United Kingdom. The data compiled by uSwitch is based on live searches, pre-orders, as well as postpaid sales. Curiously, Apple's current smartphone flagship is not even second. The iPhone 5 is outperformed by its predecessor, whose lower price and improved contract offers helped it remain appealing. The Samsung Galaxy S II completes the quartet at the top. The rest of the top ten smartphones is entirely an Android party. It includes the Google Nexus 4, who entered the rankings a solid fifth. The second half of the top ten includes the Samsung Galaxy Ace, Samsung Galaxy Note 2, Sony Xperia U, HTC One X, as well as the Samsung Galaxy Ace 2." This is getting ridiculous, and it's not good for the market. For the love of Fiona, people, buy something that's not Android. I don't want to live in an Android-dominated smartphone world.
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RE[4]: Obviously
by galvanash on Wed 5th Dec 2012 06:14 UTC in reply to "RE[3]: Obviously"
galvanash
Member since:
2006-01-25

It's Google's strategy, really. Make smartphones super-cheap. It's working, and sadly, I don't think the market benefits from it.


US non-contract pricing

Galaxy S3 - $699
Galaxy Note II - $799
HTC One S - $649
Droid RAZR MAXX - $799
iPhone 5 - $699

I think that global sales figures skew peoples view of reality when talking about Android being "cheap"...

China represents a full 27% of the global smartphone market by volume, but close to 70% of the phones sold there are from Chinese vendors you probably never heard of making ultra cheap Android knockoffs. This certainly makes Android look cheap because it skews the global sales charts dramatically. There are a few other Asian countries with very similar markets - they cheap phones sell well, but they are not from major global manufacturers and barely qualify as being called smartphones.

If you ignore China things look VERY different. The most popular priceband of smartphones globally is actually $450+ dollars (the highest priceband that IDC tracks)... That priceband makes up close to 45% of global volumes according to IDC... IF you leave out China.

In short Android phones simply are not cheap if you are talking about Western Europe and the US. There are certainly some cheap phones, but most people don't buy them... Android pricing is roughly comparable with Apple pricing, in some cases higher - even with contract discounts. The Note II goes for $299 with contract from AT&T, and that is a pretty popular model in the states.

The Nexus 4 is fairly cheap, but it is targeted at non-contract buyers primarily, and as such it simply won't get anywhere near the volume of other flagship models sold with contract discounts. The reality is in the States and most of Western Europe people buy phones under contract. Until that stops happening "cheap" Android phones don't have a prayer of making a big dent in those markets.

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