Google’s Android operating system accounted for 81.0% of all smartphone shipments with a total base of 211.6 million smartphone units shipped during third quarter, according to research firm IDC.
This is the first time that Android topped 80% in its short history. Despite high saturation rates in a number of mature markets, the overall smartphone space grew 39.9% year-over-year in the third quarter.
Also reaching a milestone was Microsoft's Windows Phone, which grew an amazing 156.0% year over year. Granted, volumes started from a small base of 3.7 million units a year ago and overall market share is still less than five percent. But Microsoft's efforts, with Nokia's support behind it, helped drive the platform into multiple tiers and price points.
"Android and Windows Phone continued to make significant strides in the third quarter. Despite their differences in market share, they both have one important factor behind their success: price," said Ramon Llamas, Research Manager with IDC's Mobile Phone team. "Both platforms have a selection of devices available at prices low enough to be affordable to the mass market, and it is the mass market that is driving the entire market forward."
Smartphone average selling prices (ASPs) have continued to decline as the appetite for more affordable devices grows. ASPs were down -12.5% in 3Q13, accounting for an average price of $317. At the same time, the market has seen a large influx of large-screen smartphones (5-7” screens), also known as phablets. Large-screen devices generally come with a higher selling price than smaller screen devices, due to the need for more powerful and expensive components. Phablet ASPs in 3Q13 were notably higher than the market average at $443. However, the 3Q13 ASP was down -22.8% from the $573 phablet ASP in 3Q12.
"Almost all successful Android vendors have added one or more 5-7-inch phablets to their product portfolios," said Ryan Reith, Program Director with IDC's Worldwide Quarterly Mobile Phone Tracker. "And Nokia’s recent announcement of the Lumia 1320 and 1520 put them in the category as well. In 3Q13, phablet shipments accounted for 21% of the smartphone market, up from just 3% a year ago. We believe the absence of a large-screen device may have contributed to Apple's inability to grow share in the third quarter."