Google Android: Making the world a better place to sell iPhones

An analysis of the eight largest mobile vendors’ average selling prices posted overnight Monday by Asymco’s Horace Dediu suggests that Google’s Android phone OS isn’t driving down smartphone prices, nor is it putting pressure on Apple’s iOS-powered iPhones.

Philip Elmer-DeWitt reports for Fortune, “Apple’s average iPhone prices have actually gone up since Android was introduced, and although there has been some price erosion among the other top vendors, it is surprisingly small. ‘Android,’ according to Dediu, ‘is expanding the market without crushing pricing.'”

“According the Dediu, the smartphone market is growing so rapidly (90% per year), that there is limited direct competition between smartphones and a lot of competition between smartphones and so-called feature phones,” P.E.D. reports. “It’s the feature phone makers who are having to slash their prices to compete.”

Full article here.


  1. Apple started a snowball rolling and now it is starting to gain an unstoppable size. If Apple had nor broken the mold for smartphones; Android what not exist, rim would be puttering with mail, and Microsoft would still be drunk on the corner.

    Again, Apple makes the wheels of innovation turn with smoking fury! Feel bad for health issues of the runners up!

  2. See I don’t see RIM’s Blackberries as smart phones and I don’t think most people view the the Blackberry as a smart phone either. I think if you did a survey of people that use cell phones you find that most of them view Blackberry’s as high-end feature phones that the main feature is Blackberry RIM powered push email to the phone. Because RIM is seen and is for the most part a Feature phone maker I think they should be removed from the list of smart phone makers.

  3. Saw a very deceptive commercial for an Android Evo phone. They showed review quotes as carefully edited as movie poster quotes. One actually said it was better than the iPhone. While never true at any point, I recall the review was an old one from right before the iPh4 came out. Are they desperate or what?

  4. Horace is right, but Elmer-DeWitt is wrong. He said, “Apple’s average iPhone prices have actually gone up since Android was introduced”

    That’s not what Dediu is showing. iPhone ASPs have stayed relatively stable between $600 and $660. It’s iPhone sales growth that has raised overall smartphone ASPs. DeWitt read the chart wrong.

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