Smartphone Prices Plunge

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By Douglas A. McIntyre Updated Published
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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

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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