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Amidst Growing Smartphone Market, iPhone Lost Market Share. Android To Blame?

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Despite witnessing significant growth in the sale of Smartphones, Apple Inc.’s iPhone actually lost market share.

Even after having sold 26 Million iPhones between April – June 2012, iPhone’s market share fell by almost 2% from 18.8% to 16.9%. Apple & Samsung are currently the market leaders when it comes to smartphone segment. In fact, Apple’s leadership has proven its might even in the stronghold of Blackberry manufacturer Research In Motion’s (RIM) hometown Canada.

What could have gone wrong? The Cupertino based company has always managed to cram its phones with the latest & best hardware. In fact, screens with Retina Display were an industry first for a long time, until they started appearing in other devices. Owing to the policy of offering nothing but the best, Apple managed to garner a huge fan following. Apple had successfully roped in the early adopters of latest technology, while other companies had to be satisfied with late buyers & fence-sitters.

However, the Android Operating System & the impressive hardware that many companies like Samsung have jointly offered, has surely put a dent in the aura that iPhone & iOS had managed to create. Besides, being open source, Android has found its way into every price segment. One can find an Android based device at almost all imaginable price points including ultra-affordable Aakash right up to costlier phones. Apple on the other hand allows use of iOS only in the devices it manufactures. Additionally, iPhones are not exactly cheap. This partiality has helped Google’s OS achieve an impressive 106% Year on Year (YoY) growth & the internet search giant could garner industry leading 68.1% market share. In 2011, Google commanded only 46.9%.

Unsurprisingly, Apple’s iPhone sales usually dip every time rumors about its next iteration gain weight. As Apple is about to release iPhone 5, people could be simply waiting for it to come out. What do you think?

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