Windows Phone 7 OS off to a slow start in Q4

PORT WASHINGTON, USA: As the first Windows Phone 7 models hit stores during the fourth quarter (Q4) of 2010, the Android smartphone operating system (OS) significantly increased its market-share lead by 9 percentage points, since the prior quarter, to reach 53 percent of the U.S. consumer smartphone market.

According to The NPD Group, a market research company, Apple iOS share declined 4 percentage points to comprise 19 percent of unit sales in Q4; RIM OS fell 2 points to tie Apple’s 19 percent; Windows Mobile, Microsoft’s legacy OS, fell 3 points to 4 percent, as the new Windows Phone 7 OS debuted at 2 percent; and Palm’s WebOS held at 2 percent.

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"With its mid-quarter launch Windows Phone 7 entered the epicenter of competition between iOS and Android at AT&T. Both competitors offer mature feature sets and large app libraries," said Ross Rubin, executive director of industry analysis for NPD.

Rubin added, "Microsoft has made the case for Windows Phone 7's differentiation and improved integration. Now, the company must close the feature gap, offer more exclusive capabilities, work with partners to deliver hardware with better differentiation, and leverage its extensive experience in driving developer communities to increase its app offerings."

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Despite buy-one-get-one promotions at both AT&T and T-Mobile, the Windows Phone 7 OS claimed less market share than its predecessor, Windows Mobile, for which handsets are still available at all four major U.S. carriers said the press release.

Windows Phone 7 also entered the market with lower share than either Android or webOS at their debuts, according to NPD's Mobile Phone Track.

"At CES there were announcements from several handset providers of the intent to use the Android OS to bring new capabilities to market, including dual-core processors, 4G network speeds, and larger displays that seek to expand on the success of handsets like the Motorola Droid X and HTC EVO 4G,” Rubin said.

Rubin further added, “Android will encounter greater competition this year, however, as Apple's iPhone 4 -- the best-selling handset in the U.S. -- debuts on Verizon Wireless."