Android Plays Big Role in Upgrades from Feature to Smartphones

By Gary Kim July 11, 2012
Though observers might complain that Android as an operating system is so fragmented that it is hard to tell what its market share actually means, Android continues to take share around the world.

The latest data from Kantar Worldpanel ComTech shows that for the first time Android has taken at least half of smartphone sales in Great Britain, Germany, France, Italy, Spain, the United States and Australia.

Android's share now ranges from 49.6 percent in Italy to 84.1 percent in Spain, Kantar says. And there is one important angle to that adoption process that has revenue implications for mobile service providers.


As it turns out, much of the Android adoption is being driven by users who are upgrading from feature phones to smartphones for the first time. That, in turn, is important because such upgrades normally entail an increase in average revenue per user, as customers buy data plans.

You might also say the Android trend therefore is troubling for suppliers, such as Nokia, that traditionally have done very well in the lower end of the market. As the whole market transitions to a smartphone driven pattern, rival suppliers selling Android devices might well be in a very-good position to supplant the traditional Nokia advantage in lower-cost devices, as well as the appeal of Research in Motion devices. 

“We are seeing much of the Android sales growth being driven by consumers trading up from feature phones to smartphones,” saya Dominic Sunnebo, Kantar Worldpanel ComTech consumer insight director.

“Our data shows that Android has a higher share of those consumers spending under £50 on buying their handset across the vast majority of countries we cover,” he says.

In markets like the United Kindgom, smartphone penetration in the prepay market also is increasing, with Android handsets such as the Samsung Galaxy Ace and Y performing well, especially attracting younger first time owners, a group who have traditionally been loyal to BlackBerry. 

Kantar also says smartphone buyers, “are much more loyal to their brand of handset and carrier than  feature phone consumers, highlighting the importance of capturing feature phone owners when they are starting to look to change their handset.“

So, smartphone adoption clearly is helpful to mobile service providers for several reasons, including higher average revenue per user and greater loyalty. Android might be helpful because it encourages users to upgrade to smartphones.


Edited by Brooke Neuman

Contributing Editor

SHARE THIS ARTICLE
Related Articles

Nevada: Silver State to Tech Center

By: Doug Mohney    4/24/2015

Silver was the primary mineral mined in Nevada when it was admitted to the union in 1864, earning it the slogan of "The Silver State." Times changed, …

Read More

Comcast, Telecoms Need to Clean Up Their Own Houses

By: Doug Mohney    4/24/2015

Big telecom mergers just don't fly these days, but it took Comcast 14 months and at least $237 million spent in 2014 to figure it out it couldn't buy …

Read More

Creating a Smarter Network Infrastructure for the Connected World

By: TMCnet Special Guest    4/24/2015

The need to be connected to the 'smarter world' is ever increasing with the rise in the number of mobile devices. LTE is now a global reality for mill…

Read More

Major League Baseball's Sports Analytics Deliver Next-Gen Stats

By: Bob Wallace    4/24/2015

Get your next-gen stats here! Major League Baseball Advanced Media (MBLAM) this week launched "next-generation" stats league-wide that it hopes will c…

Read More

My Neighbor and Your Enterprise Data Privacy: They're Not as Unrelated as You Think

By: TMCnet Special Guest    4/23/2015

If you give your house key to your neighbor, he has the opportunity to snoop around through your vinyl album collection. That has lessons for enterpri…

Read More