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In-Stat: Google Nexus One Among the Biggest Mobile Announcements of 2010
January 5, 2010 |Estimated reading time: 2 minutes
SCOTTSDALE, AZ — Google is expected to announce today the most anticipated phone since the advent of the iPhone. The announcement would be timed to preempt many of the significant announcements planned for this week’s annual Consumer Electronics Show (CES) in Las Vegas. In-Stat market researchers examine the launch and its impact on the cellular handset manufacturing industry.
The Android-based phone, “Nexus One,” is based on Google’s open source mobile OS that has received strong support from manufacturers such as Motorola and HTC, and operators such as Verizon and T-Mobile. In releasing its own Android handset, Google steps into the device manufacturing fray to produce an unencumbered vision of what Google would like a mobile device to be. Visit Google's Website for Nexus One Here.
Market researcher, In-Stat (http://email.in-stat.com/cgi-bin4/DM/y/hBWcC0N2EnE0K560DHgg0Es) believes the stakes are high. Gone are the days when the basis of competition was solely defined by hardware. Software is becoming the key in determining the user experience. Even within the software stack, however, the focus is shifting from the OS to the software and even more importantly, the applications. In fact, the new focus on enabling third party applications ratchets up the importance of the competitive mobile OS landscape. If the growing army of professional and amateur software developers develop or port applications to a particular OS, the success of the handset platform and opportunity for the carrier could be high. If, however, a particular OS does not garner developer support, then the result could be disastrous.
The building market momentum behind Android is unmistakable. “In-Stat believes new OSs such as Android will cut away at Symbian’s market share,” says Allen Nogee, In-Stat analyst. “Although there are relatively few open source OS-based smartphones in the market today, the open source OS momentum is difficult to ignore. After years of hype, it is easy to see that 2010 will be the year of Android.”
The total smartphone market in 2014 will be 412 million units. In-Stat’s research predicts the number of smartphone-devices for which developers can create native applications will increase rapidly in the coming five years. By 2013, In-Stat projects nearly 30% of smartphones representing over 100 million unit shipments will be based on an Operating System that supports app stores. Verizon introduced Android phones in 2009 with a major marketing blitz. In-Stat assesses that Verizon has given up on the prospect of selling the iPhone anytime soon, and it’s likely that AT&T and Apple will extend their exclusive iPhone agreement at least another year. Verizon, looking toward LTE, needs to get its ducks in a row not next year but now. The variety of mobile devices is exploding, making the mobile OS and mobile applications opportunity broader than just smartphones. The total available market (TAM) for Internet-connected devices is projected to grow at a 22.3% compound annual growth rate (CAGR) through 2013.