Will Android Devices Soon Serve More Ads Than Apple's iOS?

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Includes: AAPL, BBRY, GOOG
by: Reggie Middleton

Android is slated to soon surpass iOS for the amount of ad impressions served according to data found in the latest inMobi report, the 3rd largest mobile ad network behind Google’s (NASDAQ:GOOG) Ad Mob and Apple’s (NASDAQ:AAPL) iAd. According to inMobi, their report is based on one of the most extensive analysis performed in the industry, covering mobile consumers in over 115 countries around the world. See Reggie Middleton Takes The Challenge To Goldman Sach’s Apple Proclamation One Step Farther, Apple’s Closed System Risks Failure! and Android Now Outselling iOS? Explaining the Game of Chess That Google Plays in the Smart Phone Space for my take on the strategic moves Google is utilizing in its competition with Apple. In the meantime, the highlights from the inMobi report include:

1. Smartphones

  • Smartphone inventory has increased 57% (over 600 million impressions) in the past 90 days.
  • Gains are driven mainly by Android which gained 8.7 share points to become a solid #2 OS in the US market at 19.2% share.
  • Android devices represent five of the top 10 devices in the US mobile advertising ecosystem.
  • The top four highest growth devices were Android phones from four different manufacturers on three different continents.

2. Android Operating System Leads Smartphone Sales

  • Smartphone share gains were driven mainly by the Android operating system (+8.7 share pts).
  • While Android OS (19.2%) climbed into a close number two share position relative to Apple iOS (24.6%), modest gains were also posted by RIM (RIMM) OS and Symbian OS.
  • These gains negatively impacted Apple iOS which lost -2.9 share points in the past 90 days.
  • While Apple is facing increasing competition on all fronts, its pending availability on Verizon (NYSE:VZ) will provide a huge boost to its already dominant position.

3. iPhone Holds its Position as New Players Enter the Market

  • The iPhone is the single most dominant device in the US mobile ecosystem.
  • The iPhone single handedly accounts for 21.9% of all US ad impressions.

Android gained 8.7% in market share while Apple lost 2.4%. What is amazing is that Android is able to gain market share so quickly and in such huge steps despite the fact that the market itself is growing so quickly, thus lifting all boats, even RIMMS, Nokia’s (NYSE:NOK) and Microsoft's (NASDAQ:MSFT).

Unbelieveably, individual hardware vendors who weren’t even on the radar a year ago are now riding Android to tail Apple, with Samsung coming close to matching Apple’s available impressions, and this is without the benefit of a dedicated tablet OS (Gingerbread is due to launch and compete with the iPad in three months). Samsung has just gained 2% points and may overcome Apple in two reporting periods if the Verizon deal doesn’t give Apple a significant boost against Android.

I urge all readers to peruse our online Mobile OS model, for we clearly forecast these developmments many months ago.


Readers may also reference the enitre Mobile Computing Wars Series here.



Disclosure: I am long GOOG.