Google Android Phenomenon Continues (SCOR, MOT, RIMM, NOK, GOOG, AAPL, MSFT)

Research firm comScore, Inc. (NASDAQ: SCOR) has released its October report on the US mobile phone industry. The top device maker is Samsung, with 24.2% of the market, up 1.1% since the last survey in July. LG Electronics, Motorola Corp. (NYSE: MOT), Research in Motion Ltd. (NASDAQ: RIMM), and Nokia Corp. (NYSE: NOK) follow with 21%, 17.7%, 9.3%, and 7.1% shares, respectively.

 
The more interesting data comes from the research into smartphone platforms (operating systems). About 61 million US citizens owned a smartphone in October, representing about 1 in 4 of all mobile subscribers. The leading smartphone platform still belongs to RIM, whose Blackberry holds 35.8% share of the smartphone market. In second place is Apple Inc. (NASDAQ: AAPL), with 24.6% of the market.

 
RIM’s share has fallen -3.5% since July, and Apple’s share has risen 0.8%. The big gainer though is Google Inc. (NASDAQ: GOOG). Google’s Android operating system has gained 6.5% more of the market since July, finishing October with 23.5% of the total smartphone market.

 
Since the RIM platform is headed in the wrong direction and the growth in iPhone use has slowed to a trickle, it’s a virtual certainty that the next comScore survey will have Google passing Apple and threatening RIM.

 
The comScore report is consistent with what’s been happening in the market for months now. Android usage is picking up speed.
In July, Android platforms grew by 4%, down slightly from 5.2% growth in comScore’s April report. Since April, which reported platform usage through February 2010, Microsoft Corp. (NASDAQ: MSFT) has declined from 15.1% of the market to 9.7% share, well behind Android.

 
Apple’s 25.4% share in April has declined to this report’s 24.6%, and RIM’s share has dropped from 42.1% to 35.8%. Android’s share has bloomed from 9% in April to 23.5%.

 
Exactly how Google is making money on the adoption of Android remains somewhat mysterious, but the company’s CEO said some time ago that Google was earning about $1 billion in revenue from Android. That number is only going to go up.

 
Paul Ausick