Print 37 comment(s) - last by michael2k.. on Dec 4 at 11:02 AM

Apple's iPhone is stealing market share from dominant smartphone makers like Nokia and Palm

If you ask the average person to name a smartphone, many of them will blurt out iPhone. Since the iPhone 3G launched the mobile device has become one of the most popular phones around.

New data was announced this week that shows the iPhone now holds 16.6% of the entire global smartphone market for the quarter ending in September. The top smartphone brand globally is Nokia with 43.6% of the market.

A year ago Nokia held a massive 63.6% of the smartphone market, the loss of slightly more than 20% of its market share is squarely due to the soaring popularity of the iPhone 3G. According to Electronista, analysts cite the iPhone 3G as the reason that the smartphone market hasn’t had a significant slowdown.

Smartphones from RIM and those running Windows Mobile saw slight downturns over the quarter. Microsoft's Windows mobile platform holds 17% of the smartphone market and Palm OS devices hold 10% of the market. Much of that is likely thanks to the low-cost Palm Centro that has been one of the best selling smartphones in America.

Analysts claim that the increasing popularity of the iPhone signals a wider preference for the business model used by Apple and Palm where they make their own operating systems and have control over the hardware.

Analyst Charlie Wolf from Needham said, "The Symbian operating system is generally considered to be less robust than Windows Mobile or the Palm OS. But Symbian was able to retain a huge lead over competing operating systems chiefly through Nokia’s endorsement and marketing muscle, especially in Europe, along with Microsoft’s difficulties in attracting major handset manufacturers."

Wolf doesn't feel that RIM's Blackberry Storm will gain traction and pose a significant challenge in the market. He cites high-profile mixed or negative reviews that show the Storm doesn’t challenge the iPhone and leaves traditional Blackberry users out.

Strangely, Electronista cites data showing that the iPhone is currently the second most popular smartphone in America behind the Blackberry. NPD released data in November that showed the iPhone was not only the most popular smartphone in America, but the best selling phone in the country overall.

It's interesting that while the popularity of the iPhone is undeniable, it still lacks some of the basic features that other phones offer. The iPhone has been criticized for its poorly performing camera that can't record video. The phone also lacks voice-dialing built-in, though some Apps for the device can fix that omission. Among the other missing features iPhone users wish for are copy and paste, the ability to synchronize iTunes over Wi-Fi, landscape view for the emails, and the ability to hide icons that aren't needed.

The iPhone also makes for an excellent gaming platform, though the iPod touch is faster by some accounts for gaming. Apple has also found itself in hot water over its advertising campaigns for the iPhone. The court proceedings center on ads that boast in a cheeky manner about the speed of the iPhone. Some consumers have claimed that the ads are misleading; Apple basically said in court documents that consumers who believe those ads are fools.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

Same Bat time, same Bat channel...
By austinag on 12/3/2008 11:58:39 AM , Rating: 2
I'd bet that next year at this same time, the iphone will have lost a lot of ground to the avalanche of new smartphone coming out.
I'm saving up for shinny new Nokia N97!

RE: Same Bat time, same Bat channel...
By Gzus666 on 12/3/2008 12:02:11 PM , Rating: 2
If it wasn't for the fact it has a resistive (ewww) touchscreen, I would be interested as well.

RE: Same Bat time, same Bat channel...
By austinag on 12/3/2008 12:23:15 PM , Rating: 2
Lay some knowledge on me: what's a resistive touchscreen? (what's bad about it in comparison to a regular touchscreen?)

By piroroadkill on 12/3/2008 12:25:58 PM , Rating: 2
It's a capacitive touchscreen, not resistive, as far as I know - it basically means you couldn't use a stylus/anything that's not your finger, very much like a laptop touchpad

By Clauzii on 12/3/2008 3:21:20 PM , Rating: 2
One of my friends iPhone screen has a big crack in the glass, ~2 inches long. Guess what, it still works. I don't know exactly how the iPhone screen is build, but i'd say it can take some :D

RE: Same Bat time, same Bat channel...
By silversound on 12/3/2008 12:54:48 PM , Rating: 2
N97 is too thick and heavy, the white one looks good, iphone's screen already a bit too small to browse internet, N97 is even smaller, good try nokia for a 700 iphone killer though

RE: Same Bat time, same Bat channel...
By micha90210 on 12/3/2008 1:43:17 PM , Rating: 3
iPhone3G - N97
Width: 12.3 - 15.9/18.2 at camera area
Weight: 133g - 150g
Display: 3.5" - 3.5"
Res: 480x320 - 640x360
Camera: 2MP - 5MP
Capacity: 8GB/16GB - 32GB/48GB
Talk Time:300min(3G) - 320min(3G)

RE: Same Bat time, same Bat channel...
By michael2k on 12/3/2008 2:16:29 PM , Rating: 2
You don't think by the time the N97 is released next year that Apple won't have a 32GB/64GB iPhone? And with other additional features?

RE: Same Bat time, same Bat channel...
By othercents on 12/3/2008 2:53:14 PM , Rating: 2
I don't think Apple is looking to increase the iPhone size past the 16GB mark, but if they do I doubt it would be larger than 32GB which is the current iPod Touch size. Other than processor and memory size there isn't much more to do with the iPhone other than software updates and size reduction. Maybe fix the 3G issue with a new piece of hardware, but then they will need to agree that it is broken first.

I personally would love a 64GB version since I exclusively use the iPhone for my music and I don't have an iPod or any other device for music. The overall package for the iPhone is much better than any other phone available. I like the G1, but there are not as many apps available for it. It is good to be first to market.

Maybe once the exclusive contract with ATT is up Apple will start producing the phone for other carriers. Doing this could significantly increase their market share.


By michael2k on 12/3/2008 5:06:39 PM , Rating: 2
If they stop increasing the capacity of the iPhone, they'll have to drop the price (due to competition and falling component prices).

In other words, by this time next year, 64GB of flash will cost the same as 16GB today...

So if Apple doesn't adopt 64GB, they will actually be spending more per GB than they do now!

It's essentially the reason why Apple has increased capacity of the iPod despite the fact that most users don't have more than 12GB of music (or so). What Apple might do is release an iPhone Nano with only 16GB of flash, just like the iPod Nano.

RE: Same Bat time, same Bat channel...
By Hare on 12/3/2008 2:35:38 PM , Rating: 4
You forgot to mention the friggin hardware qwerty keyboard :|

RE: Same Bat time, same Bat channel...
By michael2k on 12/3/2008 1:05:56 PM , Rating: 4
I wouldn't make that bet. What's different now than in 2001 after Apple released the iPod?

The manufacturers may be more saavy, but not that much more or Apple would never have had to release an iPhone in the first place.

In case your history is lacking, Apple's iPod was released in 2001; their next closest competitor, Creative Labs, didn't release a similarly sized and featured product until 2004.

Apple released the iPhone in 2007, and now it's 2008 with nary a real challenger (the Storm and G1 have had mixed reviews, unlike the iPhone, and as someone else mentioned the N97 uses a resistive touchscreen). Microsoft won't have a solution until late 2009, so no WinMo phone will be able to enter the fray until then. The fact that Nokia is losing marketshare is not good.

Of course I'll be modded down as a fanboy, but the point stands: The iPhone is popular, growing faster than rivals, and unmatched (for now). If anyone matches the iPhone, it will be the old 2007 model (the Storm doesn't even have WiFi!), and if they catch up to the current iPhone, Apple will release a new model with additional features and capabilities (of course, like cut and paste and voice dial and video, but also other features the competitors won't imagine).

RE: Same Bat time, same Bat channel...
By mondo1234 on 12/3/2008 2:24:12 PM , Rating: 2
"There's no chance that the iPhone is going to get any significant market share. No chance," said Ballmer

Ballmer said wouldnt happen and I believe him.
All Hail Ballmer

By othercents on 12/3/2008 3:13:42 PM , Rating: 2
So 16.6% isn't significant? Darn I wish I had 16.6% of the market share.


By kelmon on 12/4/2008 7:04:38 AM , Rating: 2
What I want to know is, why isn't that the quote at the end of this article?

RE: Same Bat time, same Bat channel...
By sgtdisturbed47 on 12/3/08, Rating: 0
By othercents on 12/3/2008 3:22:22 PM , Rating: 2
meaningful features

Meaningful to who? Email, Text, Phone, Music, Internet, other applications.... What else are you expecting it to do? Granted cut and paste is a hassle, but not enough to ruin Apple's market share. There are many people wanting to get an iPhone, but won't until it is on another service other than ATT.

beyond media and mediocre internet browsing

Mediocre?? Compared to what? Sidekick, Blackbery, Palm, and Nokia have worst internet. The G1 is the only one that comes close and I can't use that because it doesn't have push email. I have never owned an iPod, but the iPhone also takes care of my music and gaming fetish.

few of them are actually loyal to it and a lot end up either switching back

Really? I didn't switch back and I was running a blackjack and prior to that a Blackberry. The one thing that those don't have is the internet browsing capabilities that the iPhone has that I needed.

The numbers don't lie. 16.6% of market share and still growing. This is based on current registered phones with the phone carriers not based on what was purchased. If everyone was switching back then those numbers would be far worse.


RE: Same Bat time, same Bat channel...
By Freddo on 12/3/2008 3:28:35 PM , Rating: 2
I think it's likely the iPhone lost a lot of ground in this following quarter already.

The iPhone 3G sold extremly well the 3rd quarter this year because it was released that quarter (July 11th), in plenty of countries that didn't have iPhone before.

Now the people who wants to have an iPhone, have an iPhone. And they have no reason to buy another one.

By michael2k on 12/3/2008 4:59:34 PM , Rating: 2
You know, people have been saying that four six years now about the iPod.

And the only thing that killed iPod sales? iPhone sales.

There are plenty of people who don't have iPhones; in fact, over 70% of people :)

Nokia and Palm?
By amanojaku on 12/3/2008 11:59:48 AM , Rating: 1
I wonder how much of their lost market share is due to the iPhone. I haven't seen anyone use phones from either company for years, and this is before the iPhone came out. In my experience Nokia phones were largely mediocre; there wasn't anything wrong with them, but they just didn't wow me (or anyone else I knew.) I never used a Palm, but I heard numerous complaints about stability, usability, etc... particularly with the Treos.

RE: Nokia and Palm?
By akugami on 12/3/2008 12:17:51 PM , Rating: 2
The problem with Nokia (and other phone vendors) in America is some of the better or more diverse models do not get subsidized with phone plans. That means no cheap "free" or "$50 to $100 with plan" phones. Nokia phones are not bad and I used to have an N80 phone. I actually prefer Nokia brand phones over most other phones. The N95, while large, was certainly a very solid phone in terms of features as is some of the other "N" series phones.

The most intriguing phone from Nokia is going to be their new flagship N97. It will have a touchscreen similar in size to the iPhone as well as contain a slider with QWERTY keyboard. I actually think this might be the first real challenger to the iPhone in terms of popularity buzz. It's slated for the first half of 2009, which in Nokia speak is second half of 2009.

The iPhone has a lot going for it. That is without question. I find it fantastic as an ebook reader using Stanza. Compared to my old N80 it is a much better web browser, not to mention the battery life is much much much better on the iPhone. There are plenty of free apps, some quite useful such as Evernote and the aforementioned Stanza.

The problem is all the maddening lack of features. Features which should be implemented in software. This is especially true in a corporate environment which makes Windows Mobile and RIM phones more suited for that environment.

RE: Nokia and Palm?
By michael2k on 12/3/2008 1:09:42 PM , Rating: 2
Apple has traditionally been good about adding features in software, so that is merely an issue of time and resources.

RE: Nokia and Palm?
By Myg on 12/4/2008 6:34:25 AM , Rating: 2
I must say; its great to see that all the money Apple has spent on advertising has paid off.

RE: Nokia and Palm?
By michael2k on 12/4/2008 10:54:56 AM , Rating: 2
Oh come off it. The ported AAC, ALE, and limited contact support all the way back to their original iPods. They released the 2.x firmware update for the original iPhone and made it available to the iPod touch.

What makes you think, barring CPU or performance/hardware limits, they won't continue to do the same, moving forward, with future iPhones?

RE: Nokia and Palm?
By Hare on 12/3/2008 2:33:33 PM , Rating: 2
Nokia has around 40% global market share. The US carriers just havent picked up too many Nokia models. I mean take a look at the Nokia E71, it's an awesome phone compared to blackberries etc, but how many americans even know what it is?

The US is the only place where finding a nice Nokia device is a problem... And the only place where people still buy Motorola devices for some strange reason...

Other carriers
By MScrip on 12/3/2008 6:16:49 PM , Rating: 2
Imagine the marketshare if Apple released the iPhone on other carriers in the US.

I would love an iPhone on Verizon's EVDO network!

RE: Other carriers
By michael2k on 12/4/2008 10:57:12 AM , Rating: 2
Notreally market share
By noirsoft on 12/3/2008 6:57:58 PM , Rating: 2
If you look at the original article, they aren't actually talking about market share. They are talking about shares of the quarterly sales. The graphs bear this out, as the quarter-to-quarter changes are much more volatile than would be possible if it meant actual market share. The iPhone would have had to go from 0 to 25% market share in one year, then down to < 10% six months later. Did all those iPhones stop working? No, this is clearly sales data and not market share data. The uptick in iPhone sales is due to the 3g model, and, just like with the original model, will trend back down after the intitial rush.

Feature for feature, WinMo, Nokia and Blackberry phones have done everything the iPhone does for years now, and in many cases better. After the initial rush, once peoople are buying on features and not Apple-fanboyism, things will go back to normal.

RE: Notreally market share
By michael2k on 12/4/2008 11:02:02 AM , Rating: 2
Um, that is how you define marketshare. Quarterly marketshare, to be precise.

The other thing you don't take into account is that Apple will refresh the iPhone, generating another uptick in sales, and what you believe never happened with the original iPod; why do you think the world is different today than in 2001?

No, I think the iPhone is going to make a lasting mark.

Which brings up the question...
By retrospooty on 12/3/2008 11:54:45 AM , Rating: 2
What recession?

stop calling
By raphd on 12/3/2008 2:34:35 PM , Rating: 2
stop calling this a smart phone.

Bold vs. Iphone
By deeznuts on 12/3/2008 2:41:56 PM , Rating: 2
I'm debating the bold vs. an iphone. I'm launching a business, and I have no affinity for Apple (actually a tiny bit resistant ... hey I'm contrarian that way). I know the Blackberry is email, business, corporate etc., but I do like to surf, and since my business is a one person shop, setup my email through google apps.

Still torn.

On fools they thrive.....
By crystal clear on 12/4/2008 2:03:55 AM , Rating: 2
Apple basically said in court documents that consumers who believe those ads are fools.

.....and anybody here believe this/these foolish iPhone article/s are even greater fools (about marketshare etc).

.....ofcourse the greatest fools are those who buy the iPhones - but Apple will dare not say that because of/on fools they make a lot of money.

"Every fool has a place to fill in the world, and is important in some respect, whether he chooses to be so or not."

Cue 3, 2, 1 ....
By on 12/3/08, Rating: -1
RE: Cue 3, 2, 1 ....
By ksherman on 12/3/2008 12:07:21 PM , Rating: 1
Wow, someone spends too much time on Digg

RE: Cue 3, 2, 1 ....
By BruceLeet on 12/3/2008 2:01:51 PM , Rating: 4
Nope, somebody spends too much time indoors .

RE: Cue 3, 2, 1 ....
By on 12/3/2008 3:21:42 PM , Rating: 1
And Mr.Bruce Leet doesn't?

"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
Related Articles

Latest Headlines
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM

Most Popular ArticlesAre you ready for this ? HyperDrive Aircraft
September 24, 2016, 9:29 AM
Leaked – Samsung S8 is a Dream and a Dream 2
September 25, 2016, 8:00 AM
Yahoo Hacked - Change Your Passwords and Security Info ASAP!
September 23, 2016, 5:45 AM
A is for Apples
September 23, 2016, 5:32 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki