ANDROID TO CAPTURE 4% OF SMARTPHONE MARKET

Buoyed by Google's brand, the first Android handset from T-Mobile and
HTC is expected to sell 400,000 units by the end of the year,
according to one research group.

By Marin Perez
InformationWeek
September 19, 2008 01:26 PM

Google's Android operating system is expected to capture 4% of the
U.S. smartphone market during the fourth quarter of 2008, according to
research group Strategy Analytics.

The estimate comes as the first Android handset, tentatively known as
the Dream, is set to be unveiled Sept. 23 by T-Mobile. Although the
details aren't confirmed, FCC filings show the HTC handset will have a
large touch screen that flips out to reveal a QWERTY keyboard, Wi-Fi,
and Bluetooth capabilities.

Strategy Analytics said 10.5 million smartphones will be sold in the
United States during the fiscal fourth quarter, and the Android
smartphone will sell 400,000 units during that time frame. By
comparison, Apple's iPhone 3G sold 1 million units worldwide in its
launch weekend, with industry analysts estimating the majority of
those sales were in the U.S. market.

"Android is a relative late entrant and it will join an increasingly
crowded market alongside BlackBerry, Microsoft, Apple, Palm, Symbian,
and LiMo," said Neil Mawston, Strategy Analytics' director of wireless
device strategies, in a statement.

Google's brand will be a strong driver of adoption, the research group
said, but the biggest issue will be the carrier subsidy. Part of the
latest iPhone's success is because of the relatively inexpensive price
point, and The Wall Street Journal said the first Android handset is
expected to debut for $199.

"Longer-term success will, of course, rest on Android vendor ability
to create designs with wow factor and an intuitive user-interface,"
said Chris Ambrosio, Strategy Analytics' executive director, in a
statement. "Google will do its part to drive growth, and we expect
Android will eventually offer a compelling range of mobile
applications emphasizing Google's online assets, such as advertising,
mapping and search."

While sales comparisons of the Dream and iPhone 3G are inevitable,
Android is expected to be a on a slate of different handsets in the
coming years, with one expected fromSprint (NYSE: S) in the first half
of 2009.

Copyright 2008 United Business Media LLC

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