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Edition: U.S. Article Comments (7) Save Email Print Reprints Most Popular Most Shared Gordon Brown to quit in bid to keep Labour in power | Video 4:13pm EDT WRAPUP 5-U.S. Gulf oil spill spreads west toward Texas 09 May 2010 Gulf slick spreads west, BP tries another cover | Video 3:21pm EDT Oil spill slows Alabama island tourism to trickle 8:01am EDT WRAPUP 5-US Gulf slick spreads west, BP tries another cover 3:19pm EDT "Shock and awe" euro rescue lifts global markets | Video 3:40pm EDT BP says oil spill costs $350 million so far, shares hit 11:15am EDT Stocks fly on trillion-dollar EU rescue plan | Video 4:41pm EDT Risk assets rally after huge EU-IMF rescue plan | Video 1:02pm EDT Food-stamp tally nears 40 million, sets record 07 May 2010 The Science of Success 27 Apr 2010 Food-stamp tally nears 40 million, sets record 07 May 2010 Oil spill slows Alabama island tourism to trickle 8:01am EDT WRAPUP 5-U.S. Gulf oil spill spreads west toward Texas 09 May 2010 Fannie Mae seeks $8.4 billion from govt after loss 3:42pm EDT "Shock and awe" euro rescue lifts global markets | Video 3:40pm EDT Philippine polls deliver decisive win for Aquino | Video 3:40pm EDT Gulf slick spreads west, BP tries another cover | Video 3:21pm EDT Google's Android takes No 2 spot from iPhone 12:55pm EDT Is OJ as good a source of vitamin D as supplements? 07 May 2010 Google's Android takes No 2 spot from iPhone Alexei Oreskovic SAN FRANCISCO Mon May 10, 2010 12:55pm EDT Related News Corrected: Verizon kicks off sales of Microsoft's Kin Wed, May 5 2010 RPT-Verizon kicks off sales of Microsoft's Kin Wed, May 5 2010 Verizon kicks off sales of Microsoft's Kin Wed, May 5 2010 HP-Palm deal fresh blow to Asian smartphone laggards Thu, Apr 29 2010 HP-Palm deal fresh blow to Asian smartphone laggards Thu, Apr 29 2010 A T-Mobile G1 Google phone running Android is shown photographed in Encinitas, California January 20, 2010. Credit: Reuters/Mike Blake SAN FRANCISCO (Reuters) - Google Inc displaced iPhone maker Apple Inc to become the second most popular provider of smartphone software in the United States during the first quarter, the latest sign of the increasing competition in the fast-growing mobile market. Technology | Media Smartphones featuring Google's Android operating system accounted for 28 percent of U.S. smartphone unit sales in the first quarter according to NPD Group, behind top-ranked Research in Motion, maker of the Blackberry phone, which had a 36 percent share of the market. Smartphones, which allow consumers to surf the web, send email and run specialized applications on wide, color screens, are increasingly replacing no-frills cell phones for many U.S. consumers. The devices have become a prime battleground for a variety of tech companies seeking to ensure a good position in the evolving market. Last month, Hewlett-Packard Co. said it would pay $1.2 billion to acquire Palm Inc, which sells two smartphone models based on its WebOS operating system. Microsoft Corp, whose Windows operating system is used in the majority of the world's PCs, unveiled a pair of smartphones last month and recently launched a revamped version of its mobile operating system. Apple has sold more than 51 million iPhones since it launched the device to wide acclaim in 2007, and the company says that more than 200,000 apps are available for the phone. In the first quarter, Apple's iPhone which is available exclusively on the AT&T wireless network in the United States, dropped to third place as its share of the smartphone operating system market remained flat quarter-over-quarter at 21 percent share. Unlike Apple, Google offers its Android software to other phone-makers. In April, Google said that a dozen vendors currently offer 34 different devices that feature the Android software. NPD analyst Ross Rubin said the strong showing of Android phones during the first quarter owed to promotions by Verizon Wireless, which he said has expanded its buy-one-get-one offer. Verizon Wireless is a venture of Verizon Communications and Vodafone Group Plc. "As in the past, carrier distribution and promotion have played a crucial role in determining smartphone market share," said Rubin in a statement. While the Android operating system is gaining momentum in the market, Google has had less luck with its Nexus One phone, the Android-based device that it designed in close collaboration with HTC. Google sells directly to consumers from its website. In a report earlier this year, analytics firm Flurry estimated that Google sold roughly 135,000 Nexus One phones in its first 74 days on the market, compared with the 1 million iPhones that Apple sold in the same time frame when it initially released the device in 2007. (Reporting by Alexei Oreskovic; Editing by Steve Orlofsky) Technology Media Comments See All Comments (7) | Post Comment May 10, 2010 2:33pm EDT Did they include new ipad data in this survey? Many wireless costumers use data only connections to communicate with coworkers and family never using a phone at all. Hestoninaz Report As Abusive May 10, 2010 2:36pm EDT This article is pointless. Android is on a lot of phones for different phone manufacturers, for better or for worse. Apple software is only on its own phones. Even Google would not celebrate this news. davext Report As Abusive May 10, 2010 2:48pm EDT Google would celebrate it because they made Android it’s not about the phones but the software regardless if either one sucks or not i have an iphone but it’s interesting to see this outcome i guess that’s because of the stupid contract obligation with crappy AT&T luckily my phone is unlocked. merkobmerkin Report As Abusive May 10, 2010 3:28pm EDT Why wouldn’t Google celebrate that it’s software is reaching more people than the iPhone? And the reason that no one bought that Nexus One is because no one knows it exists. I have yet to see any kind of advertisement for it. VIOLIST Report As Abusive May 10, 2010 3:42pm EDT The iPad will never qualify, because it is not a “smartphone” … a device needs telephony capabilities to qualify, and the iPad does not do telephony. Apple knows the rules. If they want bigger numbers, they will release their product to be manufactured and distributed by a wider range of vendors. Apple has chosen not to do this, because they prefer to completely control the user experience, and they do not trust the various manufacturers and distributors to toe the line and offer “The Apple Experience(TM)” in a way that Apple feels comfortable with. As a result, Apple will always lose market share. At the bottom of it all, they don’t want to expand. They want to remain an “elite” product line, and expanding their offerings to include “everyone else”, like Google has done with Android and Microsoft has done with its mobile platform, dilutes their “elitist” brand. Stupidscript Report As Abusive May 10, 2010 4:06pm EDT I think that we all should thanks Mr. Steve Jobs for these results. He keeps treating us (developers) like sh!t and developers will eventually dump his stupid devices and goes to other systems. And the users will go to the device that gives them wider selection of application. I know that Apple App Store has more apps than the Google Market Place, but I don’t think that will last for long. Just have a look at the growth rates of both of them and you will see what I mean. SweetSniff Report As Abusive May 10, 2010 4:29pm EDT i own a nexus one and LOVE IT! greyghost Report As Abusive See All Comments (7) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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