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The Blackberry Curve  (Source: Fay Observer)

The Apple iPhone  (Source: Apple)
Move over iPhone, there's a new leader in town

The iPhone is undeniably slick, with powerful hardware, good battery life, a capable music platform, and a thriving applications ecosystem.  But in terms of contract and cost of the phone, it remains pricey.  And its business applications and features still trail those of Research In Motion's Blackberry.

Those factors combined to sink the Apple iPhone to the second spot in smartphone sales after a strong 2008, which saw it take over the top spot.  The iPhone sold so well, that for part of last year, it was America's bestselling phone overall including traditional phones.

Moving into first place was the Blackberry Curve, which covers several Blackberry 83xx models according to Apple Inisider.  Coming in a close third was the Blackberry Storm, and the Blackberry Pearl took fourth (excluding the flip variety).  The fifth spot was occupied by T-Mobile's G1 phone, the first phone to feature Google's Android OS.

The trouncing that RIM laid on Apple and its other competitors grew the company's smart phone market share 15 percent to seize a commanding 50 percent of the market.  Palm, which is awaiting the release of the much-anticipated Pre, and Apple, meanwhile, saw their market shares sink 10 percent.

Market research firm NPD says that Blackberry pricing was made even sweeter by Verizon's aggressive "buy-one-get-one" promotion, which gave RIM the momentum it needed to dominate the sales charts.  Analyst Ross Rubin states, "The more familiar, and less expensive, Curve benefited from these giveaways and was able to leapfrog the iPhone, due to its broader availability on the four major U.S. national carriers."

Globally, smartphones now account for 23 percent of the cell phone market, rising 6 percent on a year to year basis.  Given the troubled financial state of many consumers, Mr. Rubin calls this a very good sign for smart phone makers and evidence that customers are continuing to "(migrate) toward Web-capable handsets and their supporting data plans to access more information and entertainment on the go."

RIM reported previously record sales of 7.8 million Blackberries in the year's first quarter, while Apple posted weaker sales of 3.79 million units. 

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RE: misleading...
By mondo1234 on 5/4/2009 7:55:18 PM , Rating: 2
But in terms of contract and cost of the phone, it remains pricey.

Agreed, I have to call BS on that also. As compared to what? Can you get any smartphone without a dataplan? The LG Dare (which isn't a smartphone) on Verizon is still $170 with a 2 year contract and its browser, playlists, and video sucks.

It is tough to compare a phone sold on one network vs one sold on multiple. I think if the future was limited on the phone, Verizon would not be in negotiations with Apple.

Verizon used to let you get a smart phone (but not the BB) without a data plan. As of last fall, that has changed and even Winmo's need a dataplan which I believe is the standard $30 per month.

RE: misleading...
By Tommyguns on 5/5/2009 3:48:47 AM , Rating: 2
I just switched to to ATT from VZW about 3 weeks ago. I got a free BB Bold, 450mins w/ rollover, txting and data plan for $5 less then i payed VZW for a a plain contract for 450mins with no txting on a u540 pos that costs me $79 even with the upgrade reimbursement.

ATT has bent over backwards for my needs, and their customer service has been fantastic. both store and call center.

Oh yeah, i can drop the data plan when ever i want and still use the Black berry. ATT allows you to modify your contract whenever you want. Every company but VZW dosnt cripple wifi on their phones. one major reason i switched.

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