The shift in balance is being credited to strong promotional pushes by US carriers to drive Android device adoption, particularly in the face of the iPhone’s current exclusivity on AT&T.  ”In order to compete with the iPhone,” NPD analyst Ross Rubin explains, “Verizon Wireless has expanded its buy-one-get-one offer beyond RIM devices to now include all of their smartphones.”  This promotion saw particularly strong sales of the DROID, DROID Eris, and Blackberry Curve.

Nonetheless, AT&T’s smartphone sales alone accounted for 32-percent of the smartphone market in the US as a whole, ahead of Verizon’s 30-percent, T-Mobile’s 17-percent and Sprint’s 15-percent.  It’s possible that the situation may not change until Q3 2010, when the new iPhone HD is expected to make its sales debut.

Press Release:

Android Shakes Up U.S. Smartphone Market

First quarter 2010 information from The NPD Group’s Mobile Phone Track reveals a shift in the smartphone market, as Android OS edged out Apple’s OS for the number-two position behind RIM

PORT WASHINGTON, N.Y.–(BUSINESS WIRE)–The Android operating system (OS) continued to shake up the U.S. mobile phone market in the first quarter (Q1) of 2010, moving past Apple for to take the number-two position among smartphone operating systems, according to The NPD Group, a leading market research company. NPD’s wireless market research reveals that based on unit sales to consumers last quarter the Android operating system moved into second position at 28 percent behind RIM’s OS (36 percent) and ahead of Apple’s OS (21 percent).

“Recent previews of BlackBerry 6, the recently announced acquisition of Palm by HP, and the pending release of Windows Phone 7 demonstrates the industry’s willingness to make investments to address consumer demand for smartphones and other mobile devices”
“As in the past, carrier distribution and promotion have played a crucial role in determining smartphone market share,” said Ross Rubin, executive director of industry analysis for NPD. “In order to compete with the iPhone, Verizon Wireless has expanded its buy-one-get-one offer beyond RIM devices to now include all of their smartphones.”

Strong sales of the Droid, Droid Eris, and Blackberry Curve via these promotions helped keep Verizon Wireless’s smartphone sales on par with AT&T in Q1. According to NPD’s Mobile Phone Track, smartphone sales at AT&T comprised nearly a third of the entire smartphone market (32 percent), followed by Verizon Wireless (30 percent), T-Mobile (17 percent) and Sprint (15 percent).

“Recent previews of BlackBerry 6, the recently announced acquisition of Palm by HP, and the pending release of Windows Phone 7 demonstrates the industry’s willingness to make investments to address consumer demand for smartphones and other mobile devices,” Rubin said. “Carriers continue to offer attractive pricing for devices, but will need to present other data-plan options to attract more customers in the future.”

The continued popularity of messaging phones and smartphones resulted in slightly higher prices for all mobile phones, despite an overall drop in the number of mobile phones purchased in the first quarter. The average selling price for all mobile phones in Q1 reached $88, which is a 5 percent increase from Q1 2009. Smartphone unit prices, by comparison, averaged $151 in Q1 2010, which is a 3 percent decrease over the previous year.

Methodology: The NPD Group compiles and analyzes mobile device sales data based on more than 150,000 completed online consumer research surveys each month. Surveys are based on a nationally balanced and demographically-representative sample, and results are projected to represent the entire population of U.S. consumers. Note: Sales figures do not include corporate/enterprise mobile phone sales.

About The NPD Group, Inc.

The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us, visit http://www.npd.com/, or follow us Twitter at https://twitter.com/npdgroup.

Although this appears finally to be the authentic 2.1 update, the question of when exactly an official update will be rolling out is still hovering above our heads.  In the meantime, we’re waiting for a video to pop up anytime soon, as there’s only an image as of now to corroborate the update.  Check it out here.

[via Android Community]

Supposedly, the update cuts out the well-loved Sense UI, and there are user reports of data loss experience as well as Google account login issues.  Verizon gave the recent acknowledgment  that the Eris would be updated to a newer Android version set for Q1, but this is evidently not the most latest, workable version of the update.

We’re hoping the updated Android update for the Droid Eris won’t erase your data, let you login successfully back into your Google account, and, perhaps even slip back the Sense UI?

Update: A youtube video sourced from Android Forums has just surfaced, and Sense UI is indeed alive and well on the Eris.

[Droid Life via Android Community]

Distribution of the OTA update began at midnight ET, and it’s not something you’ll receive without knowing about it: your DROID Eris will ask you to confirm the download and the installation.  Verizon reckon the roll-out will take around a week to get to everybody, so if you don’t wake up to an update alert then don’t start worrying.

• While on a call and the device is in screensaver mode, pressing the End key now takes the device out of screensaver mode, and a second press will end the call.
• On-call mute and speakerphone icon functionality is enhanced.
• Upgraded functionality after activation eliminates the delay users were experiencing in receiving their first call.
• Device now switches effectively from 1x mode to 3G.
• Device no longer requires users to reselect a default email after power-cycling.
• Improved picture messaging functionality allows messages from LG phones to be opened.

If true, that bodes reasonably well for the HTC Hero – whether the original European version or the CDMA handset currently available on the Sprint network in the US – which shares the same underlying hardware and software with the DROID Eris.  HTC have previously promised an Android 2.0 update to the Hero but have given no timescale for the release; it’s been speculated more recently that the company have in fact been working on Android 2.1.

There’s also a microSD slot – Verizon are popping in an 8GB card as standard – and both GPS and a digital compass.  The browser gets Flash Lite for in-page video streaming and there’s all the usual Gmail, Google Maps and other standard Android applications.  No Google Maps Navigation, however, as the DROID Eris – unlike the Motorola DROID – doesn’t come with Android 2.0.

As we’ve already heard, it’s the pricing that makes the HTC DROID Eris something of a bargain.  Verizon have priced at it at $99.99 (after a $100 mail-in rebate) and presuming a new, two-year agreement.

Press Release:

BRING AN ANDROID HOME FOR THE HOLIDAYS WITH DROID ERIS BY HTC, EXCLUSIVELY FROM VERIZON WIRELESS

DROID ERIS by HTC Debuts with Verizon Wireless with HTC Sense Experience and an Ultra-Attractive $99.99 Price

BASKING RIDGE, N.J., and BELLEVUE, Wash. – Beginning Nov. 6, DROID ERIS™ by HTC will invade Verizon Wireless Communications Stores across the United States, bringing the power of the Android™ platform and the Verizon Wireless network together. DROID ERIS by HTC combines the popular Android platform with HTC Sense™, a user experience from HTC that makes it easy for customers to stay close to one another and create an individualized mobile experience tailored specifically to their needs.
DROID ERIS by HTC offers customers the opportunity to customize a seven-panel wide home screen with a wide variety of widgets designed to bring the most important information to the surface. DROID ERIS by HTC also includes the innovative “Scenes” feature, which allows customers to create multiple home screens, each with different widgets and shortcuts, to transform DROID ERIS by HTC from a “work” phone to a “play” phone with just a touch of a finger.
DROID ERIS by HTC also organizes interactions by person, which makes it possible to access text messages, e-mails, phone calls and even Flickr streams and Facebook updates from a single contact card.
The unique HTC Sense experience found on DROID ERIS by HTC is supported by an array of the latest mobile features, including:
• 3.2 inch capacitive touch screen and trackball interface
• 5.0 megapixel auto focus camera
• Expandable memory with pre-installed 8 GB microSD™ card (up to 16 GB supported)
• Supports USB mass storage
• Bluetooth®, Wi-Fi and 3.5 mm headset connectivity
• Integrated GPS and a digital compass with a sensor that enables the phone to know what direction it is facing
• Smart dialer for simplified dialing by name, number or initials
• Full HTML browser with Flash Lite capabilities
• Seamless compatibility with Google services like Google Maps, Gmail, Google Search and more

DROID ERIS by HTC will be available in Verizon Wireless Communications Stores and online at www.verizonwireless.com on Friday, Nov. 6, for $99.99 after a $100 mail-in rebate with a new two-year customer agreement on a voice plan with an e-mail feature or e-mail plan. Customers will receive the mail-in rebate in the form of a debit card; upon receipt, customers may use the card as cash anywhere debit cards are accepted.
For more information about Verizon Wireless products and services, visit a Verizon Wireless Communications Store, call 1-800-2 JOIN IN or go to www.verizonwireless.com.

More unboxing shots plus some first impressions after the cut

According to the unnamed unboxer, the HTC DROID Eris actually comes in thinner and lighter than the Sprint HTC Hero it shares the same specifications with.  They also reckon it feels much better in the hand than Sprint’s version, and “is generally the best Android device beside the Motorola DROID” that they’ve used.

If the rumors are to be believed, the HTC DROID Eris will go on sale alongside the Motorola DROID tomorrow, priced at a bargain $99 with a new two-year contract.  If our review of the Moto DROID hasn’t pushed you over into the sliding keyboard camp then maybe the touchscreen-only Eris (at half the price, mind) will do the trick.

“Overall” their source explains, the DROID Eris feels “the same as the Sprint Hero but for some reason it seems faster, slightly thinner and taller.”  Under HTC Sense there’s Android 1.5, but there’s no reason not to assume that HTC’s upcoming Android 2.0 upgrade for the Hero won’t find a place on the Eris too.

The expectation is that the Verizon DROID Eris by HTC will arrive on November 6th alongside the Verizon DROID by Motorola.  Pricing is believed to be $99.99 following the usual rebates and assuming a new, two-year agreement, making it a bargain compared to what Sprint are charging for the HTC Hero.

Meanwhile phoneArena’s sources have provided them with some new images of the DROID Eris, which confirm the 5-megapixel camera and WiFi.  There’s no flash, but the camera does have autofocus; previous rumors have tipped the handset for a launch on November 6th, alongside the Motorola DROID.

In case you haven’t noticed, the Eris specs line up perfectly with what’s on offer with the HTC Hero, the company’s current wunderfone.  That handset is selling for $180 on Sprint right now (again, with agreement), making it something of a bargain on Verizon.

They’ve heard that the smartphone will use the same 528MHz Qualcomm processor as other models in HTC’s Android range, as well as run Android 1.5.  It looks like our predictions that the Eris would be Verizon’s version of the HTC Hero could be true, as those specs certainly line-up with what’s available on Sprint and in Europe.

The Verizon Droid Eris by HTC is expected to arrive on November 6th, and we’re led to believe that it won’t make an appearance at today’s Verizon event.  Instead that will be monopolized by the Verizon Droid by Motorola, which looks to be an altogether more interesting handset.

Droid feedback, plus news on AT&T’s Droid and a whole Droid army after the cut

There’s also a multimedia mode, which like the weather station dock is triggered by a magnet held to a certain position on the Droid’s body; BGR are predicting a car cradle/dock which take advantage of that, though right now only the charging dock is confirmed to launch alongside the Droid.  As for battery life – quoted at 6.5hrs use, or 270hrs standby by Moto themselves – it’s the “best … out of any Android device we’ve ever tested” which comes as pretty high praise.  BGR are excited about the official launch model, and frankly so are we.

Meanwhile, while the Verizon Droid may be a CDMA-only device, according to an FCC listing unearthed by one of MobileCrunch‘s tipsters there’s an AT&T-friendly version of the smartphone in the works.  The AT&T Droid will support WCDMA 850/1900/2100 and quadband GSM, making it ideal for Canadian carrier Rogers, too; this come on the heels of a European UMTS 3G version spotted previously.

The range explosion shouldn’t come as a surprise, however, according to Engadget’s “trusted source”.  They’re claiming that Droid isn’t a single device but a brand name for Verizon’s entire range of Android-based smartphones; while the Motorola Droid “may” be known solely as Droid, it’ll be followed on November 6th by the HTC Droid Eris, the phone previously known as the HTC Desire.  According to the preliminary specs on gdgt (which are yet to be confirmed) the Droid Eris will have a 3.2-inch capacitive touchscreen, 5-megapixel autofocus camera and support EVDO Rev.A.  In fact, it sounds a lot like Verizon’s own version of the HTC Hero.

Verizon are holding an event on October 28th to announce the Motorola Droid, and SlashGear will be there to bring you all the details.  Android 2.0 looks like it could really help change the smartphone market.