A Billion Smartphones Sold In 2013 And No End In Sight

IDC: “While smartphone market growth remained strong in 2013, it should be noted that the era of double-digit annual growth has only a few years remaining.”

This is the phenomenon of a lifetime. It makes the ramping up of that other OS on x86 PCs seem positively tame. In fact, more than a billion smartphones shipped in 2013 and 430 million were less than $200. This is the era of the Small Cheap Computer. The Wintel ecosystem cannot survive here. Too much competition. Too low prices. No exclusivity… Chuckle.

See Android and iOS Continue to Dominate the Worldwide Smartphone Market with Android Shipments Just Shy of 800 Million in 2013.

About Robert Pogson

I am a retired teacher in Canada. I taught in the subject areas where I have worked for almost forty years: maths, physics, chemistry and computers. I love hunting, fishing, picking berries and mushrooms, too.
This entry was posted in technology and tagged , , , , , , . Bookmark the permalink.

21 Responses to A Billion Smartphones Sold In 2013 And No End In Sight

  1. oiaohm says:

    wolfgang
    you say, but 90 day cost of development go up more than 1 billion bucks after introduction of android. what else google doing with money? calendar? google plus? what do you think? none of that making them money either. waste of money.

    I already mentioned one project loon. Then you have the complete failed Nexus Q. Then there is work on server hardware alterations for support for using ARM in google structure. Then there is the hybred Redhat 7.3 and current day Debian. Yes Google creates their own internal Linux Distributions.

    Yes the list of projects in Google R&D department started after the release of Android is massive. Android is only 1 of 9 google Linux distributions known.

    Some like the redhat 7.3 to debian current hybred is attempt to get Google out of the fact large section of their cluster had gone end of life and was a massive security risk. Yes this happens around the time of the release of android.

    If you like it or not Google is very disorganised. Google is not what you call a financially affective beast.

  2. wolfgang says:

    …nothing to do with android…

    you say, but 90 day cost of development go up more than 1 billion bucks after introduction of android. what else google doing with money? calendar? google plus? what do you think? none of that making them money either. waste of money.

  3. oiaohm says:

    wolfgang funny enough most of google 5 billion+ r&d has nothing todo with Android.

    Android is over a billion dollar a year earner for Google. Google spends less than 200 million dollars a year in R&D, advertising and events around Android.

    Google is making more profit than blackberry or Windows phone from Android directly by certifications, Google play.

    Google Play is quite huge income.

    wolfgang sad reality is 90 percent of google R&D projects are items and bits of software you will never hear from again.
    http://www.google.com/loon/

    Odd ones like the chrome browser and android make google profit. How does the chrome browser make google profit the chrome store connected.

    Google free products are mostly funded.

  4. wolfgang says:

    …Most of what people do with any computer can be done with smartphones…

    lot of schnitzel and cabbage, I believe. social communications, light weight information retrieval, and phone calls done on phones. heavy lifting still requires real computer with big screen. write letter, fill out Medicaid forms, run spreadsheet, compile your kernel, etc., need real computer. even Canadian tradition of gathering in living room to read maps needs big screen.

    phone worst way ever to compute. connect charges for phone cost several time new computer cost every year. connect speed is scheiße as well. any time a lot to do on web everyone to go to computer. leave phone in pocket and wait for call or text. I have flip phone for calls and text. pay next to nothing for service. take nexus to wifi spot for mobile internet. free,

  5. wolfgang wrote, ” people not buying phones to use android, but to talk to friends. use internet on phone for convenience, but only when something needed to buy or find place to go or check messages. no more stuff sold, no more places visited, no more mail than if no android, I think.”

    Defy logic and facts if you wish. Most of what people do with any computer can be done with smartphones. I know several young people and they will not be without their smartphones. About the only thing they still fire up a legacy PC is to work on some big project, not everyday stuff. e.g. last night some family and visitors were in our living room/dining room. Half of them had smart phones and they used them multiple times for more than point to point voice communications. Only one operation required a big screen. On the multimedia PC in the living room we zoomed some Google maps. That was for many hours in the lives of a bunch of people. The legacy PC is now the minor player in the lives of many people just as in emerging markets many aren’t even tempted to buy a legacy PC because they are just too big and not portable.

    Wikimedia: 64% non-mobile 36% mobile. At the rate of shipments of small cheap computers versus the legacy lumps, it is clear that the number of legacy lumps is declining after decades of ~10% per annum increases. It looks like the legacy PCs are holding their own at work but not with consumers. With easier connection to monitors, keyboards and mice, that can change too.

  6. wolfgang says:

    …more people using the Internet because of android…

    very interesting idea, but hard to swallow. people not buying phones to use android, but to talk to friends. use internet on phone for convenience, but only when something needed to buy or find place to go or check messages. no more stuff sold, no more places visited, no more mail than if no android, I think.

    people use google because it is best place to find answers or do personal business. operating system on phone does not matter. people use google even with windows. likely more google done on windows than anything else, even combined. google exist because of windows in every house.

    if phones not have android, phones have something else like blackberry or Symbian or apple or even windows. just as many phones no matter what. just as much google no matter what.

  7. wolfgang, not getting the picture wrote, “how much for android, which seems like biggest deal at google?”

    Get this. Google doesn’t need to earn a cent from Android/Linux to make the investment worthwhile. They just need more people using the Internet and Google’s web services and ads from more client devices. That’s the whole story of Android/Linux. It’s not about selling licences or taxing installations. It’s about doubling the number of users in a few short years rather than waiting for Wintel to ramp up the numbers a few percent per annum. Wintel was holding Google back. Now Google is making tons of money in Asia, Africa and South America where Wintel was not thriving because Wintel devices were too big/energy-hungry/expensive. In 2005 when I rebuilt Beast, a good desktop PC was at least $500 but more likely $700 and some paid $1000. Google came around and facilitated a good OS for small cheap computers and now the ASP is less than $200, affordable by billions more people, giving Google a huge rate of growth. Google can’t quite give away the hardware for $0 but they are not far off. There are lots of sub-$100 smartphones popular in the emerging markets. Google is not being generous like Santa Claus. They are a business making tons of money, yet wolfgang doesn’t get it. What’s with that? He sounds like Ballmer around 2000 questioning Google’s business plan.

    Gralla (2010): “Google’s third quarter results, announced yesterday, was spectacular on all fronts. But what may have been the brightest spot is its soaring revenue from Android, which if extrapolated over an entire year, would already reach $1 billion. Microsoft’s Steve Ballmer, who once said Google had no business plan for Android, is undoubtedly not a happy man today.
    Google’s total revenue for the third quarter was $7.29 billion, up 23% compared to a year ago. Net income was up 32% over the previous quarter. “

  8. wolfgang says:

    …not read the news…
    so I read your news and see where google gets thousands from hundreds of device makers to test compliance of android. big whoopee. I also see where Microsoft charges billions to just a few and doesn’t annoy them, figuring that oem has enough on the line to ensure that products with windows work.

    google spending 5 billion euros on r&d in year and what are they getting? how much for android, which seems like biggest deal at google? hard to get that back at thousands at a time. ya really only Samsung making lot of money selling android. they probably doing their own thing too, not even giving thousands to google. competitors anyway and nexus better than galaxy.

  9. wolfgang says:

    …all digital software seems to become free….

    very interesting…but not really true. many things easy to get for free or else get free clone of not free program. almost all easy enough to steal for free if only used personally. money is made by selling to people who are willing to pay in order to get heard when more features needed. takes a long time to build up business. Microsoft office been in business for over 20 years and companies with money don’t want to rock the boat. companies without money and desperate might take chance on cloneware, but they not very interesting to Microsoft anyway. As long as Microsoft making a lot of euros (15,000,000,000 per year) selling windows to world. make almost as much selling office to world. why care about pikers?

  10. oiaohm says:

    http://www.theguardian.com/technology/2014/jan/23/how-google-controls-androids-open-source
    wolfgang
    –sounds like more quatsch to me. how much pay? and open source peoples all against DRM, too. how does that fit–

    This is a case of a person who does not read the news.

    Reality here Android is not a full open source platform. open source people against drm really where is this coming from. Open source people have a dislike of DRM but are not 100 percent against. Steam from valve that is a form of drm is not attacked that much by open source people. This is a case of grouping two different pools of users into one. The normal group fully anti-drm are also fully anti-copyright as well. FOSS developers want sane copyright so more moderate about DRM.

    The reality we know that certified testing locations have to pay Google a fee. Google is very closed lip about how much they are making. Claiming Google is making zero is false.

    Yes the pay rate that google is getting is a few cents a device but it does stack up.

  11. Mats Hagglund says:

    Everyone should read this book:
    Chris Andersson – Free: The Future Of Radical Price.

    http://en.wikipedia.org/wiki/Free:_The_Future_of_a_Radical_Price

    Controversial book but looks like Andersson got it mostly right. Sooner or later all digital software seems to become free. The nature of digital software, the nature of science and hunger for more innovations are changing our culture from the past time ” there ain’t free lunch” to free software.

    Those who are still believing in old – let’s say “capitalist” – basic ideas that you should give nothing for free are actually just Neanderthals of our time. They and their old, tired ideas will be wiped out.

  12. wolfgang says:

    …Google gets paid for every Android device certified to access DRM content on Android …

    sounds like more quatsch to me. how much pay? and open source peoples all against DRM, too. how does that fit?

  13. oiaohm says:

    wolfgang Google gets paid for every Android device certified to access DRM content on Android as well as a percentage from Google Play.

    Yes google is making way more income from Android than what its spending.

    There is a nice write up how Google gets paid for Android. Yes the OS is free but the access.

    Its wishful thinking on the Microsoft side that Google is not making a profit.

    Long term plans for Android will see Linux Mainline kernel and Android kernel be the same. Things in android change as the Linux kernel change to support the features a phone requires.

    ChromeOS is even more funny. ChromeOS starts inside google in Google spider for its search engine. Same with highly secure web browser called chrome.

    This is what is so funny about google. Most of their income is linked to there search engine work.

  14. wolfgang wrote, “google spending a lot of deutchmarks on android development and stock holders will show some care”.

    Let’s see. ~1billion Android/Linux devices X a tiny bit of revenue = a lot of revenue. What’s the cost of adding a layer to Linux? A few $million per annum? Chuckle. Google is laughing all the way to the bank. Google makes most of its money on clicks. It gets clicks from ads and search. The more people access the Internet, the more money Google makes. It’s not rocket-science… Google is making way more revenue than they would have if they relied on Wintel to make clients. End of story.

    Google’s revenue is doubling every three years. Income is doubling every four years. They increased revenue $9 billion in 2013 over 2012. Cost of that revenue increased only $2.6billion. That’s pretty healthy performance. Don’t worry about them or their shareholders.

  15. wolfgang says:

    …who cares…

    Microsoft, I think, cares about how much they make from windows on pc. consumer may not care, but google spending a lot of deutchmarks on android development and stock holders will show some care, I think. if not helping google stock, then will eventually stop. maybe then consumer care, too.

  16. kurkosdr says:

    ” can’t take license share to bank. money share is what counts. Microsoft brings home benjamins by the box car load from selling licenses for pc. how much money going to google for android? not so much.”
    Who cares how much Microsoft makes from licenses? As long as Android is strategically important for Google and they keep investing lots of R&D on it, keeping it on the top spot, why should I, as a consumer care who much Google makes from Android?

  17. wolfgang says:

    …W8 license share = 10.5%…

    very interesting but stupid way to look at business. can’t take license share to bank. money share is what counts. Microsoft brings home benjamins by the box car load from selling licenses for pc. how much money going to google for android? not so much.

  18. Mats Hagglund says:

    http://www.theinquirer.net/inquirer/news/2329063/windows-8-sales-are-down-millions-on-windows-7

    They sold 200 M Windows 8-licenses during the last 15 months giving 13.3 M/month. At the same time the average figures of smartphones, tablets and pc were

    -84 million smartphones
    -19 million tablets
    -24 million pc
    ————————
    127 million

    W8-license market share: 13.3/127 x 100% = 10.5%

    I don’t know did they sell any other licenses than W8. What we know is that not all enterprizes installed those W8 licenses.

    (Annual figures of 2013: 1009 million smartphones, 227 million tablets and some 285 million pc(?))

  19. wolfgang says:

    …very interesting…

    Bill Gates on the outside looking in it seems. Good thing for him he made so much hay while the sun was shining! Ballmer, too. More money than King Farouk to tide them over now.

  20. Mats Hagglund says:

    BlackBerry is almost dead and Windows is hanging on the ropes. There seems to be only two boxers left. My forecast: Linux will dominate soon over 90% of mobiles (smartphone/tablets) and there will be battle mostly between different Linux distributions there. And the reason is: it’s much more easier and cheaper to create apps for flexible Linux systems than for those others.

    Another part of evolution of IT.

  21. Bob Parker says:

    In Chiang Mai Thailand it’s full steam ahead for Android. In my social circles, mostly Thai, it’s about a clean sweep for Android. There is a fair amount of Samsung but most of the hardware is iMobile, a local brand. There is some iDevices, mainly among the US folks with whom I meet weekly. Even with those folks it’s split almost 50|50 between Android|iWhatever with other brands < 1%. The smarter Thais in my circles give Android smart things to their kids from about 6 yo up.

Leave a Reply

Your email address will not be published. Required fields are marked *