The iPhone may have revolutionized the smartphone market, but as other competitors launch their own web friendly phones, Apple's Jesus phone is starting to have to fight for market dominance. And while other phones may not have seeped into consumer consciousness in the same way yet, that doesn't mean they wont.
According to Crowd Sicence's brand loyalty survey, 1/3 of Blackberry users are willing to switch to Google's Android operating system when they purchase a smarphone. But there's still the matter of whether Google's online stategy can compete with AT&T and other carriers' sales strengths.
Google's gotten some flack for its decision to sell the Nexus One solely through its website. Cutting out the middleman of phone carriers may seem like a noble cause to some, but sales didn't prove it to be an efficient sales mechanism in 2009. Goldman Sachs recently downgraded its revenue prospects for the year and ZDNET has declared Google's online only retail strategy a failure. But the phone's not dead yet. According to Crowd Science, Google is not far behind Apple when it comes to brand loyalty among Blackberry users — who are likely to be big smartphone purchasers this year.
Nearly 40% of Blackberry users prefer Apple’s iPhone as their next smartphone purchase, but a third of them would also switch to the Android operating system, according to the company's second smartphone brand loyalty survey.
Crowd Science asked 1,140 respondents about their smartphone brand loyalty. 44% didn't use a smartphone. 17% were iPhone users, 15% were Blackberry owners, followed by Nokia (10%), Windows Mobile (4%), Android (3%) and Palm (2%).
Of existing smartphone users, many remain loyal to their current brand. About 90% of Android and iPhone users plan to stick with their brands when purchasing their next smartphone.
If Google can find the right marketing mix, they could go far towards closing the gap between Android phones and the iPhone in 2010.
Goldman Sachs has flipped its predictions on Nexus One. Originally, the company predicted about 3.5 million Nexus Ones would be sold by the end of 2010. But now the firm thinks only 1 million will be sold this year. According to Electronista:
"That's not a lot of phones in the scheme of things as Verizon reportedly sold more than a half-million Motorola Droids in its first month. (And it follows a rather suspect prediction of just 20,000 Nexus Ones sold in the first month.)"
But that could change with more aggressive marketing could turn around sales projections. According to Goldman:
"We assume that Google rolls out a second Nexus handset, markets it more aggressively, and makes it available offline, and therefore forecast that Google sells 2 million handsets per year in 2011 and future years."