Monday, January 2, 2012

Chrome Concludes 2011 With Record Growth, IE Dips Below 40%


Chrome ended 2011 with 42.50% market share gain for the year and the highest monthly market share growth in its history, according to data released by StatCounter. Microsoft’s Internet Explorer was the only browser to lose market share, but slightly slowed its losses over 2010. Firefox had a tough year with a loss that more than quadrupled over 2010.

Data: StatCounter versus Net Applications
Both analytics firms typically show the same trend in their charts, but publish substantially different market share estimates. Due to the greater data set and more substantial background how the data is collected, we use StatCounter’s data for our analysis. Please keep in mind that there are numerous browsers stats collection services, all of which publish different numbers. Take the exact numbers with a grain of salt, but the general trend is usually similar or the same across all those services.

Both StatCounter and Net Applications still list IE as the leading browser, with 38.65% and 51.87% share, respectively. In both cases, IE share declined substantially over November. Chrome now stands at 27.27% at StatCounter and at 19.11% at Net Applications, Both numbers reflect considerable gains. Firefox dropped to 21.83% in Net Applications’ charts, but was about flat in StatCounter’s estimate with 25.27%. Both Safari and Opera remain insignificant in the greater picture of the browser landscape and their impact on market penetration.


1. IE
IE market share fell from 40.63% to 38.65%, which was the first drop below 40% in more than 13 years for the browser as far as we are aware and the sharpest loss in absolute points in 24 months – and highest loss for IE on a percentage basis in the history of the browser, based on StatCounter data. Contributing to the stronger than average loss was the ending of an advertising campaign that pushed IE higher in November as well as a holiday season that generally favors Firefox and Chrome as the more popular browsers for home users. For the entire year, IE lost 7.35 points, which is an improvement over the 8.31 point loss for 2010. While Microsoft is far from halting IE’s decline, it appears as if the company may have gone through a valley and may be able to have an opportunity contain the drop in market share this year.

According to Net Applications, IE9 has a little over 25% market share on Windows 7 PCs worldwide and surpassed IE8 share on Windows 7 with almost 35% in December. However, IE9 does not play a leading role across all operating systems and has only 11.48% market share in Net Applications’ charts and 12.09% in StatCounter’s version. For Microsoft, however, adoption of IE9 in Windows 7 is critical globally and will enable the company to build a much stronger position with its browser when Windows 8 is released and a silent update process is rolled out for the browser in the coming months. For HTML5 developers, Chrome is the more significant browser at this time, as it trumps IE9 market share in both NetApplications’ and StatCounter’s charts, if all operating systems are considered.


2. Chrome
Chrome and Firefox user bases remind me somewhat of the rivalry between AMD and Intel or Nvidia and ATI a few years ago. There is quite a bit of dynamic going on and there is little doubt that the enthusiasm for these browsers drives the development in a similar way as it drove the passion for processors and graphics cards. With Chrome approaching Firefox share in NetApplications’ data and now being 2 points ahead of Firefox in StatCounter’s estimate, we are now clearly in the two-horse race we predicted one year ago. Chrome carries the mindshare, is supported by powerful advertising on the web and on the TV, and features a rock solid development process that delivers new browser versions like Toyota is cranking out new Corollas. It’s a perfect machine that can, conceivably, only fail if Google screws up. Chrome gained 11.59 points of market share in 2011, which is more than the 8.81 points it gained in 2010 and more the 4.07 points it gained in 2009, according to StatCounter. At this time, the market share gains are still accelerating, as Chrome gained 6.62 points in the second half of 2011 alone. That increase is likely to continue as Chrome is now trending toward 28% share in StatCounter’s charts.

3. Firefox
Firefox had a difficult year that began with a delayed rollout of Firefox 4, the introduction of a rapid release cycle that is not yet working as Mozilla imagined it and Google and Microsoft are playing a much rougher game that has caught Firefox in the center of the firing line. At 25.27% share, Firefox lost 5.41 points or 21.4% of its market share over the past 12 months. The released data indicates that all of that share went to Google’s Chrome, which is, at this time, a one-way street, as Firefox does not offer a simple way to import bookmarks and browsing data from Chrome. Firefox lost market share in 10 out of 12 months, but showed stabilization of market share in December. We don’t know if that was a blip, as Firefox dropped to as low as 24% over the past few days in StatCounter’s charts.

2012 Forecast


The browser landscape can change quickly, but we also know that substantially changes in the market trend are unlikely to incur immediately. Trends evolve and either worsen or improve for a particular developer over a period of 6 to 8 months. Based on the historic data as well as product roadmaps we currently have available we believe that browser presences will continue the 2011 trend.

1. IE will continue to drop and fall below Chrome in August or September 2012 in StatCounter’s charts. IE’s losses will soften an stabilize when the silent update process is rolled out and Windows 8 is introduced and achieves at least moderate success. If Windows 8 fails, IE is likely to enter another phase of decline and could fall near 30% market share by the end of 2012.

2. Chrome will continue to climb and meet IE at about 34% share. Chrome’s success will increasingly rely on advertising as well as a success of Chrome OS. If Windows 8 has a successful launch and Microsoft is able to market IE9 and IE10 along with it, Chrome could hit a limit for market share growth at about 36%. This estimate is based on a continued trend of 2011.

3. Firefox is the interesting variable in this game that could either impact Chrome or IE growth. In a best case scenario, Mozilla will be able to leverage its newfound wealth from Google, hire developers and streamline its rapid release process and avoid further feature delays and roll out Boot2Gecko on time. If that is the case, we believe that Mozilla has a good case to slow down the decline, stabilize at about 22 – 23%market share and grow from there. In a worst case, the delays will continue and accelerate as Microsoft and Google are going after more market share and Mozilla could find itself below 20% share by the end of this year.

Wolfgang Gruener in Business Products on January 01

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