Smartphone Prices Plunge

Telecom & Wireless

Published: August 4, 2010 2:32 pm

Last Updated: August 5, 2010 6:23 am

The press from the new NPD survey has focused on the ascent of the Google NASDAQ: GOOG) Android operating system to first place in the April to June quarter based on US sales. Research In Motion’s (NAQDAQ: RIMM) BlackBerry operating system fell into second.

The survey results say “Android accounted for 33 percent of all smartphones purchased in Q2, ahead of RIM (28 percent) and Apple (22 percent).”

The frightening data point about smartphone market trends is that the average price paid for these handsets dropped 9% to $143 from the second quarter of last year. This almost certainly a sign of intense competition among phone makers and cellular carriers. It has to make Wall St. wonder what the future margins will be for companies like RIM and Motorola. Apple may be more immune to this problem because its brand tends to allow it to hold and raise prices.The NPD research also showed that among the most popular Android-powered phones sold in the quarter were: Motorola Droid, 2. HTC Droid Incredible, 3. HTC EVO 4G 4. HTC Hero and 5. HTC Droid Eris.

The market share by carrier for the period: “Verizon Wireless has maintained its lead among top carriers for the last three quarters comprising a third (33 percent) of the units sold in the U.S. mobile phone market in Q2, followed by AT&T (25 percent), Sprint (12 percent), and T-Mobile (11 percent).”

Douglas A. McIntyre

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