iPhone 'faces rising challenge' from Android handsets

July 27, 2010
The Google Nexus One smartphone, seen here at its launch in Washington in January, uses the company's Android software. Apple's iPhone will likely dominate the high-end smartphone market in the next five years but faces strong competition from handsets using Google's Android platform, a research firm said Tuesday.

Apple's iPhone will likely dominate the high-end smartphone market in the next five years but faces strong competition from handsets using Google's Android platform, a research firm said Tuesday.

By 2015, total downloads in the Asia-Pacific are forecast to reach 5.30 billion, of which 597.15 million, or about 11 percent, will be for the iPhone, technology industry consultancy Ovum said.

Downloads of iPhone applications are estimated at 62.16 million in 2010, rising to 597 million downloads in 2015, Ovum said in an analysis released four days before the launch of the new-generation iPhone 4 in another 17 countries and cities worldwide on Friday.

The iPhone 4 is expected "to face much stiffer competition than its predecessors", Ovum principal analyst Adam Leach said in a statement.

"The rise of over the last two years has been phenomenal and is allowing manufacturers to create appealing alternatives to the iPhone, critically at cheaper prices," Leach said.

Handsets using the Android operating platform are more than just clones of the iconic iPhone, he said.

"The risk to Apple is that these devices offer greater freedom with available content and may prove more appealing, if it offers the right user and developer experience, than a device with Apple-approved content only," said Leach.

"This may ultimately be what puts the brakes on unlimited iPhone growth."

From July 30, customers can purchase the 4 in Australia, Austria, Belgium, Canada, Denmark, Finland, Hong Kong, Ireland, Italy, Luxembourg, Netherlands, Norway, New Zealand, Singapore, Spain, Sweden and Switzerland.

It will be available for purchase through Apple’s online store.

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DamienS
not rated yet Jul 27, 2010
I have no doubt that Android will outpace Apple's phone OS, as will handsets using Android, but Apple doesn't really care about that. It's after the highly profitable high-end of the market and it will continue to pursue this premium market niche where absolute numbers aren't what's important. Of course, it will need to improve its quality control & customer care if it doesn't want to turn customers away (as per the current antenna fiasco).
Rsonnist
not rated yet Jul 28, 2010
There are enough brainwashed appleheads out there to keep Apple on top for a long while. They would have to make some serious mistakes to lose their followers. Kudos to their marketing.

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