We Want More Nexus 4 vs. iPhone 5 - Android at Stake: Analysis

The world's relationship with Android may hinge on how many more Nexus 4-like products Google can produce, according to our analysis of the recent sales figures in the United States from the top carriers.

iPhones Sales High

Smartphone sales for the top carriers, Verizon Wireless and AT&T were predominantly iPhones.  AT&T's report showed 84% of smartphone sales as Apple's products and Verizon Wireless showed 62.4% of its smartphone sales as  iPhone 4, 4S and 5.

Yes, worldwide Samsung is leading the pack for Android and other operating systems smartphones.  In the United States, however, the remaining smartphone buyers are not high tech cutting edge savvy nerds but regular non-technologically advanced people who want something easy to use and probably don't bother doing a lot of research in the smartphone marketplace.

The smartphone-newbies walk into a store and don't know the difference between iOS and Android, get overwhelmed and just go by the past five years of seeing iPhones in the world, including seeing small children using them.

Analysts have noted that there has been a huge increase in iPhone 4 sales because there is no payment up front (0r 99 cents) for a contract when you buy the iPhone 4 from the major carriers.  AT&T and Verizon both launched sharing plans that simplify the monthly costs of the smartphones and other devices, per month, making the smartphone and tablet decision more like buying a house, based on monthly cost rather than over all pricing.

What's the Real Deal with Smartphones, iPhone & Android Prepaid Cheaper Deals?

The next wave of smartphone owners who have been holding out, are those who are bargain hunters and bean counters who realized that data plans add a lot of heft to bills when  not monitored.  They also realized the cost of the major carriers subsidizing the device itself, make the overall cost higher.

For prepaid and lower cost options the biggest hurdle to jump is paying for the device up front.

StraightTalk and Walmart teamed to offer the iPhone 4s and 5.  Straight Talk  sells the unlocked iPhone 4 8GB  for $449 and 16GB for $649  financing the iPhone 4 and iPhone 5 for $25 a month with a Walmart credit card. These prices for budget minded people seem way too high. Because people are not looking at the monthly cost but see the $649 and compared that to say a month's rent and say to themselves that's too much for a smartphone (we'll figure out the entire price per month later).

Over Black Friday, in 2012,  MetroPCS for a very brief time through and a few retailers offered the Samsung Galaxy S III for $299. This caused an explosion of sales and a sellout. Very quickly the price went back up to $399 for the $499 device.

The Nexus 4 Price is Right

The Nexus 4 priced at $299 or $349 with no subsidies, state of the art software,  excellent reviews and high-end features hit the absolute sweet spot in the smartphone pricing arena. The Nexus 4 was named one of the best smartphones of 2012 and received excellent reviews.  Yes the  Nexus 4 is hot item (see video tips) if you can get one.

Sometimes you can buy a two-year-old iPhone 4 used for around $210 or even a refurbished one for $299 from retailers like CowBoom but then you have go through the machinations of trying to figure out a carrier or a plan that will work.  Buyers also have to deal with the different kinds of SIM cards(nano/ micro) that it Apple puts in its iPhones making it difficult to just swap out a SIM from another phone.

Unlocking Law Changes

Then on top of finding a good carrier for any smartphone, people have to deal with the latest laws that make it illegal to unlock phones. Although more than likely, iPhone unlockers will not get in trouble, there are still some people who have consciences.

Navigating the wireless maze has never been easy but if someone is shopping for an unlocked device it gets even crazier. Google with the Nexus 4 simplified the process, buy the phone and then your own your own.

Back to the Android, the major concern all reviewers have with Android is that it complicated and difficult for new smarpthone owners to learn.  In fact, even iPhone has its own learning curve according to Amplified Analytics, iPhone owners jumped off the Apple ship to go to Windows Phone simplicity that gets excellent customer satisfaction.

Through our own analytics, over Black Friday and the holiday buying season, we saw the biggest surge in Boost Mobile Black Friday sales ever for  lower cost non-contract smartphones. The MetroPCS discount on one of its best models fueled even more sales. We also notice intense interest in the Nexus 4 whenever there was an article on the topic.

Smart People Want More Smartphone Choices

Over time, people get more educated about smartphones, how much data they use, what they want on their home screens and how they access their choices .  They will be ready to make a change towards an unlocked device when the process gets easier.

If Google keeps putting out Nexus 4 bargains compared  to other smartphones, Android will continue gain market share in the U.S.  The problem now, however is that after many excuses, Google and LG can't keep up with the demand for the Nexus 4, giving competitors time to come up with a competitive device.  Google Play and ads on Google Search gives buyers access to the world of unlocked buying. The other option such a T-Mobile with a contract sells out often, too.

Recently, there were rumors about the Motorola X, a super unlocked smartphone that would work with Verizon Wireless and sell for around the same price as the Nexus 4.  It could have been wishful thinking but it also shows the what smartphone uses want in an unlocked smartphones.

If given a motivation of saving over a thousand dollars a year on cellular service, customers may sky dive off the big carriers wing, but they will need a product cheaper and more compelling than the iPhone.

Yes, we want more Nexus 4 and other compelling devices to leave larger carriers, but until then it seems easier for most to pay large sums of money every month to have an iPhone for which they probably only use two functions, email and web.

There are also those who believe that a smartphone is unnecessary.  While attending a party last night, a friend did not take out his vintage Motorola flip phone in front of young people.  He didn't want to seem old.  Maybe everyone is buying smartphones so they look hip even if they can't afford or use it features.

What's your opinion? Please leave it in the comments below.