Microsoft (NASDAQ: MSFT) has been in the mobile software business for over a decade. Its Windows Mobile operating system has never done well. That may be because the Nokia Symbian OS has dominated the industry. But, the rise of new operating systems has made Microsoft’s position in the field even worse.

New research from Gartner shows that during the first quarter Google’s Android, which is less than two-years-old, had 9.6% of the global smartphone market. Microsoft had only 6.8%. The traditional leader, Symbian, kept its top spot with 44% of the market. Smartphone stalwart Research in Motion (NASDAQ: RIMM) was second with 19%.The frightening part of the survey, at least for the long-time incumbents is that Apple’s piece of the market rose from 11% in the same period last year to 15% in the first quarter of 2010. Android’s growth was even more impressive–less than 2% to nearly 10%.

The data shows how radically different the emerging smartphone business is from PCs. Microsoft still has 90% of the operating system share in the PC sector and is similarly dominant in servers. Apple and Android are not in the server sector. But, smartphone decisions are made almost entirely by the consumers, who has put ease of use and features above longevity.

Apple and Android got to their positions in very different ways. Android is an open source software system which allows programmers and hardware companies to make alterations and add features to Android-powered phones. This has rapidly pushed up adoption as handset companies from China’s HTC to America’s Motorola (NYSE: MOT) have turned to the Google product.

Apple’s OS, however, is a completely closed system. Developers can make applications for the iPhone, and that has become a huge business. But, the core operating system of the handset and its source code, are kept inside the Apple lockbox.

Microsoft’s mobile software has many features like the Windows Operating System. But, smartphones do not have the processing power of computers. Microsoft has been slow to strip functions from it mobile product so that it is more “smartphone” friendly.

Microsoft has lost the mobile OS market. It took years to build its software but only a few quarters to see it pushed to the back of the pack.

Company	1Q10 Units	1Q10 Market Share (%)	1Q09 Units	1Q09 Market Share (%)
Symbian	24,069.8	44.3	17,825.3	48.8
Research In Motion	10,552.6	19.4	7,533.6	20.6
iPhone OS	8,359.7	15.4	3,848.1	10.5
Android	5,214.7	9.6	575.3	1.6
Microsoft Windows Mobile	3,706.0	6.8	3,738.7
Linux	1,993.9	3.7	2,540.5	7.0
Other OSs	404.8	0.7	445.9	1.2
Total	54,301.4	100.0	36,507.4	100.0

Source: Gartner (May 2010)

Company	1Q10 Units	1Q10 Market Share (%)	1Q09 Units	1Q09 Market Share (%)
Nokia	110,105.6	35.0	97,398.2	36.2
Samsung	64,897.1	20.6	51,385.4	19.1
LG	27,190.1	8.6	26,546.9	9.9
RIM	10,552.5	3.4	7,233.5	2.7
Sony Ericsson	9,865.6	3.1	14,470.3	5.4
Motorola	9,574.5	3.0	16,587.3	6.2
Apple	8,359.7	2.7	3,938.8	1.5
ZTE	5,375.4	1.7	3,369.6	1.3
G-Five	4,345.0	1.4
Huawei	3,970.0	1.3	3,217.9	1.2
Others	60,418.1	19.2	44,972.2	16.5
Total	314,653.50	100.0	269,120.10	100.0

Source: Gartner (May 2010)

Douglas A. McIntyre

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