Older iDevices Outsell New Android Devices, 1-on-1: Analyst

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News Posted: Wed, May 11 2011 9:27 AM
Although Android has clearly overtaken iOS in terms of smartphone uptake, it is partially because of the number of handsets and former factors that are available to customers. That also means that no one Android handset can match the iPhone, and that's made even more clear by an analyst's report which indicates that even previous-generation Apple iPad, iPhone 3GS often outsell new Android devices.

Canaccord Genuity technology analyst Michael Walkley stated the obvious in a Monday research note, saying that the iPhone 4 is "by far" the top selling single device at both AT&T and Verizon. However, he added the following:
"Interestingly, our April checks indicated continued strong demand for the iPhone 3GS at AT&T and iPad 1 at Verizon, as these older generation products with reduced prices often outsold new Android products. We believe this highlights Apple's significant competitive advantage, and these older products help Apple offer a tiered pricing strategy at key channels."
For example, while AT&T (Verizon does not have the iPhone 3GS) put the 3GS' price on a diet, slashing it to $49 after the Verizon iPhone was introduced, it apparently helped AT&T not just against the Verizon iPhone, but Android phones as well. Walkley's checks showed that the $49 iPhone 3GS outsold newer phones like the HTC Inspire and Motorola Atrix. [Of course, the Atrix was priced at a steep premium over the iPhone 3GS, so it's not really a fair comparison.]

Walkley also found that the iPad is by far the best selling tablet, which should be of no surprise to anyone. While competing products like Research in Motion's PlayBook or the Motorola Xoom have had "modest sales," a survey by Nielsen earlier this spring shows that the iPad has an 82 percent market share of tablets in the U.S. Still, remember that it took two years or so for Android to overtake iOS smartphone market share; there's no reason (yet) to believe the same won't happen with tablets.
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omegadraco replied on Wed, May 11 2011 11:54 AM

In honesty this is not really surprising since many people simply are looking at price when buying something like a cell phone. At $49 dollars the iPhone 3GS is one of the cheapest phones on the market period too by it is on an inferior network...

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HHGrrl replied on Wed, May 11 2011 10:57 PM

Given time, I would expect that Android-powered tablets will overtake iPads just like Android overtook iPhones. Still, you have to hand it to Apple for having such a great market share. Although I'd prefer an Android phone over the iPhone 3GS, the price for the 3GS is certainly appealing.

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