A new report from marketing research firm Chitika suggests that Verizon's Android marketshare has been eroding lately, and that AT&T and the budget carriers (like US Cellular, & Virgin Mobile) are to blame. Verizon used to hold a commanding 50% share of the Android market, but in just the last five months they have dropped considerably to 40%. AT&T has almost tripled their marketshare in that time-frame, up from 3.5% to 9%. The budget carriers together used to make up 3%, and now they hover near 8.5%.

Reading between the lines of this report doesn't make it look as bad for Verizon as it initially appears. Keep in mind that during this time the Android market has been exploding and so some of the market erosion from Verizon is simply increased competition. Furthermore, the budget carriers tend to carry much less expensive Android devices, which is another important factor to consider, especially since you can't really call Verizon's plans "budget friendly." Verizon can sit fairly comfortably at the high-end of the market for a while, but if this trend continues, they will need to start getting competitive again.

Source: AndroidPolice and Chitika