But Google’s success in becoming a leading mobile software player was tempered by the news on Monday that Google lost a key partner in a related effort to redefine the cell phone industry by selling phones directly to consumers through its website.

A Sprint representative said on Monday the company would no longer support the Nexus One, the sleek touchscreen smartphone developed by Google and HTC and sold directly on the Google website.

Smartphones featuring Google’s Android operating system accounted for 28 percent of U.S. smartphone unit sales in the first quarter, according to NPD Group, behind top-ranked Research in Motion Ltd, maker of the Blackberry phone, which had a 36 percent share of the market.

Smartphones, which allow consumers to surf the Web, send email and run specialized applications on wide, color screens, are increasingly replacing no-frills cell phones for many U.S. consumers.

The devices have become a prime battleground for a variety of technology companies seeking to ensure a good position in the evolving market.

Last month, Hewlett-Packard Co said it would pay $1.2 billion to acquire Palm Inc, which sells two smartphone models based on its WebOS operating system. Microsoft Corp, whose Windows operating system is used in the majority of the world’s PCs, unveiled a pair of smartphones last month and recently launched a revamped version of its mobile operating system.

Apple has sold more than 51 million iPhones since it launched the device to wide acclaim in 2007 and the company says more than 200,000 apps are available for the phone.

In the first quarter, Apple’s iPhone, which is available exclusively on the AT&T wireless network in the United States, dropped to third place as its share of the smartphone operating system market remained flat quarter-over-quarter at 21 percent.

Unlike Apple, Google offers its Android software to other phone-makers. In April, Google said a dozen vendors currently offer 34 different devices that feature the Android software.

NPD analyst Ross Rubin said the strong showing of Android phones during the first quarter owed to promotions by Verizon Wireless, which he said has expanded its buy-one-get-one offer. Verizon Wireless is a venture of Verizon Communications Inc and Vodafone Group Plc.

“As in the past, carrier distribution and promotion have played a crucial role in determining smartphone market share,” Rubin said in a statement.

While the Android operating system is gaining momentum in the market, Google has had less luck with its Nexus One phone, the Android-based device it designed in close collaboration with HTC. Google sells directly to consumers from its website.

Sprint said the Nexus One would not be available on its wireless network because of the upcoming availability of the HTC EVO 4G phone, which also runs Google’s Android software and is compatible with the next-generation high-speed networks Sprint offers in certain markets.

Sprint’s decision to drop support for the Nexus One comes a few weeks after Google acknowledged a version of the phone that runs on the Verizon Wireless network was being scrapped. Google initially promised a version of the Nexus One for Verizon Wireless in the Spring.

In a report earlier this year, analytics firm Flurry estimated Google sold roughly 135,000 Nexus One phones in its first 74 days on the market, compared with the 1 million iPhones Apple sold in the same time frame when it released the device in 2007.

Resource:
Yahoo News

Android-powered smartphones accounted for 28 percent of US consumer sales in the first three months of the year compared with 21 percent for the iPhone, NPD said.

Canada’s Research in Motion, maker of the popular Blackberry, retained the top spot with 36 percent of US smartphone sales in the quarter, NPD said.

Strong sales of Motorola’s Android-powered Droid and HTC’s Android-based Droid Eris were cited as among the reasons for Android’s surge past Apple.

Google makes its open-source Android software available to handset manufacturers and also sells its own smartphone, the Nexus One.

“As in the past, carrier distribution and promotion have played a crucial role in determining smartphone market share,” said Ross Rubin, NPD’s executive director of industry analysis.

According to NPD, smartphone sales at AT&T, the exclusive US carrier for the iPhone, comprised 32 percent of the smartphone market in the quarter, followed by Verizon Wireless (30 percent), T-Mobile (17 percent) and Sprint (15 percent).

NPD also said the average selling price for all mobile phones was 88 dollars in the first quarter, five percent higher than a year ago. Smartphone prices on the other hand decreased three percent over the previous year to 151 dollars.

The NPD findings are based on the results of online consumer research surveys conducted each month. The sales figures do not include corporate or enterprise mobile phone sales.

Apple has sold more than 50 million iPhones since introducing the device in 2007.

Resource:
Yahoo News

Microsoft said Wednesday that it has reached an agreement that will give HTC Corp., a Taiwanese company that is a major maker of Android phones, the rights to use technology covered by Microsoft’s patents in those phone. Financial terms were not disclosed.

The deal comes a month after Apple sued HTC and accused the company of violating patents related to the iPhone.

HTC, which has said it will defend itself against Apple’s claims, is a key partner for Google in its expansion into mobile services. Android has intensified the competition between Google and companies such as Apple and Microsoft.

But Apple and Microsoft are dealing with HTC, not Google, because the device maker, not the maker of software that runs on it, historically has been the focus for settling intellectual-property disputes.

HTC started out as a maker of phones based on Microsoft’s Windows Mobile software, but as that operating system has lost favor among buyers, it’s focused more efforts on Android.

Microsoft did not say what technology is covered in the licensing agreement with HTC. Technology analyst Rob Enderle of Enderle Group said it is unlikely there’s any overlap with the patents Apple is suing over. Microsoft and Apple have licensed each other’s patents, and Enderle said if there were any question of overlapping patents around “multitouch” or other smart phone technologies, it would have been hashed out already.

That means the deal between Microsoft and HTC for Android phones wouldn’t likely give HTC any extra protection against the lawsuit Apple filed. But HTC is also expected to produce phones for Microsoft’s next mobile system, Windows Phone 7, which is set to reach consumers before the holidays. Wednesday’s licensing deal with Microsoft would protect HTC against another Apple lawsuit over a Windows phone, Enderle said.

Both the Apple lawsuit and HTC’s deal with Microsoft may make Android less attractive to other device makers. Part of Android’s appeal to companies such as Motorola Inc. and Samsung Electronics Co. was its price: free. Enderle called the legal battle and the licensing fees “hidden costs” to choosing to make Android phones.

“The Apple suit was the first wake-up call,” Enderle said.

Apple’s lawsuit claims HTC infringes on 20 iPhone patents. It’s not clear whether Apple approached HTC with a licensing offer before filing its lawsuit. Apple spokesman Steve Dowling said he had no further details.

Resource:
http://news.yahoo.com/s/ap/20100428/ap_on_hi_te/us_microsoft_htc_patents