Industry trends show Google’s Android phones growing while Apple’s iPhone sales stall

Samsung Galaxy S, android phone coming in June

The excitement over Apple’s iPad shipping on Saturday has not disguised industry insider speculation that Apple’s iPhone sales have stalled. Worse yet for Apple are indications that developers are more interested in shipping Google Android applications than new iPhone apps.

The benefit for consumers is more choice, more innovation and competition on price and carrier service.

A story last weekend in Ars Technica pointed to a study that disclosed web traffic on the Android system had grown to equal the iPhone.  Apple’s market share of 3G web traffic peaked last June with the shipment of the iPhone 3Gs. Android phones started from zero in October 2008 and now match Apple at 40% market share each.

Speculation on the reasons is varied. It’s not that iPhone users are dissatisfied. 77% of iPhone users are happy with their phones while the best any Android phone manufacturer gets is 41% for HTC.

iPhone users like their phones and hate their carriers. AT&T, the exclusive US carrier, is universally held in low esteem for 3G service. Rogers had exclusivity in Canada but again delivers poor to no services.  Of three iPhone’s I know, one has great 3G service on Telus while the other two have spotty service on Rogers. My own iPhone on Rogers would be useless if I didn’t use Wi-Fi. Rogers are trying to improve it but we grow impatient.

Google’s Android phone operating system is used by many manufacturers from Google’s own HTC-built Nexus One, to Samsung, LG, Motorola, Sharp and others. Google’s Android operating system is open to any manufacturer while Apple’s OS is a closed shop. Manufacturers and developers like open standards. Apple can ruin your business plan if they decide to cut you from their roster of suppliers. That is not an intelligent business model for anyone.

Apple’s closed shop mentality allows them to think inside the box and not support widely popular standards like Adobe Flash. Flash is used by more than 80% of the videos on the web but neither the iPhone nor the iPad support it.  Can Apple determine video standards on the web with their devices? That’s highly unlikely so they create space for competitors to jump in offering compatible and competitive devices.

When Android equipped iPad competitors ship starting in June, they will have all the things Apple forgot to include like a video camera and Flash support. Android phones already have forward facing video cameras which Apple is rumored to be adding when they update the line in June 2010.

Applications drive sales and customer satisfaction of smart phones and Google has the long term advantage here. Google is everywhere and Apple is not. Google has Google Maps, Street View and all the connected pieces of proximity computing.  Eventually, you will be able to use an Android equipped phone to find out what’s on sale or for supper at businesses as you whiz by, purchase things, make reservations, and pay. Google has the links since they dominate internet advertising. Google has a vision to make the Android OS very useful in everyday life.

Application developers are the key to delivering both Apple’s and Google’s long term success. Last year all the developer buzz was going Apple’s way. Now that Android is on the rise in sales and users, developers are willing to develop for both platforms. The numbers talk. If Android continues to grow at the expense of Apple, more and better applications will be available for Android.

Smart phones are a consumer driven item. Buzz about what’s hot and what works for you drive sales to new products. Retail sales and service plan bundles can tip the balance at the point-of-purchase.  3-year service contracts keep people from changing quickly along the $600 price tag of the phones.  We are in transition from cell phones to smart phones. The market winner has yet to be determined.

I love my Apple iPhone 3Gs but I’m checking out the Android phones. The next purchase is anyone’s guess.

With story from ComputerWorld.