App developers reap benefits of tablet, smartphone mania
— -- Tablet computer makers and app developers will ring in the new year with fatter wallets as their year-end holiday sales shatter records.
About 6.8 million tablets and smartphones using the two most-popular operating systems — Apple's iOS or Google's Android — were activated on Christmas Day, according Flurry Analytics, a firm that analyzes smartphone and app activity.
That's more than double last year's Christmas Day sales, when 2.8 million devices were activated. Forrester Research estimates Apple sold 8 million iPads to U.S. consumers this quarter, while Amazon sold 5 million Kindle Fires.
Andy Rubin, Google's senior vice president in charge of Android, tweeted this week that 3.7 million Android devices were activated on either Christmas Eve or Christmas Day vs. 700,000 on Dec. 20.
Since Apple's App Store exploded onto tech lovers' consciousness over three years ago, Christmas holidays have been kind to smartphone and tablet makers as well as app developers.
A confluence of better products and consumers' increasing familiarity kicked holiday sales this year into higher gear. "This year was insane," says Peter Farago of Flurry Analytics. "We've seen holiday spikes like this in the last few Christmases. But the spike keeps getting bigger. The surprise was that the pop was so big, which means there has been a pent-up demand."
Verizon Wireless and Sprint joined AT&T this year in offering iPhones. Smartphone makers using Android released more-intuitive models. Apple had two blockbuster launches with its iPad 2 and iPhone 4S, inviting new owners while lowering prices for previous models.
Timed for the gift-giving season, Amazon and Barnes & Noble both introduced Android-based tablets — the Kindle Fire and Nook Tablet — giving consumers familiar brand options for tablets under $250. "Amazon and Barnes & Noble brought tablets into the mainstream," says Sarah Rotman Epps, an analyst at Forrester Research. "Consumers may not even know that they're buying (an) Android (device)."
With so many new devices, users are flocking to app stores. A quarter of a billion apps were downloaded on Christmas Day at Apple's App Store and Google's Android Market vs. 85 million on Christmas Day 2010, Flurry says.
Lila Ibrahim, an event planner in Washington, D.C., received an iPad 2 for Christmas from her boyfriend after becoming glued to his and, thus, dropping him an easy gift hint.
She's already bought a book with it. "It was a perfect gift. Maybe he just wanted his iPad back," she says.
The tablet market's growth will continue unabated next year, Epps says. Forrester estimates tablet sales will grow to 36 million in 2012 in the U.S. from 25 million this year.
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