“However, it’s always important to note that market share numbers aren’t what they seem,” Bleeker reports. “Not only is Apple’s average selling price two to three times as large as its key rivals’, the amazing part is that the lead is expanding. Thanks in part to this growing ASP advantage, when comparing Apple to its rivals, it managed to grow its market share when measured in terms of revenue, a far more important metric than the usual units measurement seen in market share studies.”
“Reports continue to flow in that the Android’s momentum has slowed in the wake of the iPhone 4’s release. Research which was first published by Asymco, showed slowing growth on Verizon’s Android-heavy smartphone activation count. In fact, AT&T-only shipments of iPhones were predicted to have outsold Verizon’s Android sales by a ‘factor of 2.5,'” Bleeker reports. “Given this information, it’s not surprising to see reports of Verizon not only redoubling its efforts to get the iPhone, but also willing to make price concessions to keep the phone off both T-Mobile’s and Sprint’s networks.”
Bleeker reports, “While this news has obvious implications toward the market share battles already discussed between Apple and Android, the more important point is pricing. Apple’s move to Verizon was largely seen as a blow to its pricing power, as AT&T is widely acknowledged to have cut Apple a sweetheart deal for exclusivity. However, if Verizon is desperate enough to make wide concessions of its own, the iPhone’s pricing level in the U.S. should hold up better than expected, with the added bonus of more phone buyers to sell to.”
More info, including charts, in the full article here.