Can Any Device Compete with the iPhone?

Ever since the Apple iPhone (News - Alert) launched, market watchers have been looking for the device that can 'compete with the iPhone.' In some sense, the expression simply means other devices that are comparable to the iPhone in physical dimensions: touchscreen, ease of use and so forth.

 

In one important sense, though, some of us might argue there is no way to compete with the iPhone. As it seems to have done ever since the iPod, in personal devices (Apple (News - Alert) TV is not 'personal'), Apple has a cult following. Even when other devices might mimic features and capabilities relatively well--even surpassing Apple devices--they do not have the emotional bond Apple seems to evoke in people.

 

But how do devices that broadly offer similar user interface and features stack up against the iPhone? It's tough to say, at the moment. Many expect Android (News - Alert) devices to present the strongest challenge yet. But Android is an operating system, representing many different devices and approaches, so the analogy is not quite apt.

 

Still, taking Android and comparing it to Apple, one can not a couple of interesting trends from the first quarter of 2010.

 

According to Nielsen, between the fourth quarter of 2009 and the first quarter of this year, Android and iPhone each grew their market share by two percent in the U.S. market, while BlackBerry (News - Alert) lost a similar percentage.

 

Research in Motion remained ahead, with 35 percent total market share, after iPhone with 28 percent and Android with nine percent.

 

It is noteworthy that Android users tend to be younger than Apple users, with 55 percent under the age of 34, while just 47 percent of iPhone users fall within the same demographic. That might be important in the future as the 18 to 30 user demographic plays a key role in driving adoption of smartphones, Nielsen argues.

 

Although Android and iPhone users both skew male (Android users show a 54/46 gender split compared to iPhone's 55/45), there are some differences. Android users are slightly less wealthy and less educated.

 

Perhaps what sets iPhone and Android apart from the rest of the field of smartphones is operating system loyalty. About 80 percent of iPhone users want their next device to run iPhone operating system while 70 percent of Android users want another Android device.

 

This is in stark comparison to other major smartphone players, Nielsen reports. only 47 percent of Blackberry users want another Blackberry and just 34 percent of Windows Mobile users want another Windows Mobile device.

 

Among Android and iPhone users who would like to switch operating systems, the rate at which Android users would like to try iPhone is twice as high as that of iPhone users who would try Android.

However, since iPhone penetration is three times that of Android, more iPhone consumers are willing to try Android.

 

Finally, usage profiles for Android and iPhone are more like each other than the rest of the smartphone market. Apple iPhone customers are more likely to have downloaded a game or played online, but Android users appear to be using their phones for a wide range of activities as well.

 

Android users were more likely to engage in file-transfer activities like downloading ringtones, pictures, wallpaper and uploads, for example.

 

Many Android devices now outstrip the iPhone in terms of hardware, offer a similar user interface and are priced equivalent to the iPhone, with a carrier subsidy. So will Android and other devices begin to satisfy much of the demand for devices that are easier to use, based on touchscreens, and visually pleasing? Of course.

 

What those devices probably won't do, though, is dispalce the Apple cult following. In that sense, there are no devices that will compete with the iPhone. But there will be many new devices that compete well in the overall smartphone category. And that's a distinction worth noting.

 

Similarly, there are likely to be many devices in the tablet category that will satisfy the need for highly-portable touchscreen content consumption. But those devices might not compete directly with the iPad, which is likely to retain its unusual cult status.