iPhone 3G now the second best-selling US mobile handset

[AppleInsider]

In a little over a year, Apple's iPhone has grown to become the second best-selling mobile handset in the United States, according to NPD.

A report issued by the market research firm Monday claims the touch-screen handset now trails only Motorola's RAZR V3 on the US sales charts. It also cited a surge in sales immediately following the introduction of the iPhone 3G that has helped the device garner a 17 percent share of the overall US smartphone market.

More specifically, NPD said the iPhone 3G was the No. 1 US smartphone based on units sales from June through August, outselling the Blackberry Curve, Blackberry Pearl, and Palm Centro.

Of those customers who purchased an iPhone during those months, 30 percent switched from other mobile carriers to join AT&T, according to the firm. That compares to 23 percent of consumers who switched carriers during the same time period for other reasons.

Nearly half of iPhone switchers (47 percent) made the jump to AT&T from rival Verizon Wireless, while 24 percent switched from T-Mobile. Another 19 percent are reported to have switched from Sprint.

"The launch of the lower-priced iPhone 3G was a boon to overall consumer smartphone sales," said Ross Rubin, director of industry analysis for The NPD Group. "While the original iPhone also helped win customers for AT&T, the faster network speeds of the iPhone 3G has proven more appealing to customers that already had access to a 3G network."

The average price of a smartphone sold between June and August was reportedly $174, down 26 percent from the average $236 price tag during the same period last year.

Also on Monday, two independent Apple analysts issued a report suggesting that Apple has more than surpassed its self-imposed goal of selling more than 10 million iPhones during the 2008 calendar year.

[ View this article at AppleInsider.com ]

[Lafe]

Originally Posted by AppleInsider

Nearly half of iPhone switchers (47 percent) made the jump to AT&T from rival Verizon Wireless, while 24 percent switched from T-Mobile. Another 19 percent are reported to have switched from Sprint.

AT&T, please take some of the extra money you're making now from these
switchers, and get 3G into more areas!

Mr. On-EDGE (and millions like me)

[samab]

Canalys analysts reported that Apple had 28% of the US smartphone market in 2007 christmas quarter --- obviously that was crap because half of them were immediately exported overseas (so they don't actually belong to the US market share).

One disturbing trend is that AT&T used to get 40% of their iphone subscribers from other carriers jumping ships --- now it's only 30%.

[djpadz]

Originally Posted by samab

One disturbing trend is that AT&T used to get 40% of their iphone subscribers from other carriers jumping ships --- now it's only 30%.

I'm not sure I agree with this being "disturbing." When the iPhone first came out, a lot of people switched to AT&T from whatever carrier they had, so they could get the iPhone (I'm one, among those who came over from Verizon). When the 3g came out, many of those who had 2g iPhones upgraded, which would weight the numbers toward non-switchers. The fact that it's still 30% in the face of such a large installed base is actually pretty promising.

(That is, unless I missed the point of your post, and you meant that you are disturbed by the fact that lots of people are still coming to AT&T for the iPhone )

[iVlad]

I want Apple to sell 10 million more, so they doubled their expectations.

[solipsism]

Originally Posted by djpadz

I'm not sure I agree with this being "disturbing." When the iPhone first came out, a lot of people switched to AT&T from whatever carrier they had, so they could get the iPhone (I'm one, among those who came over from Verizon). When the 3g came out, many of those who had 2g iPhones upgraded, which would weight the numbers toward non-switchers. The fact that it's still 30% in the face of such a large installed base is actually pretty promising.

(That is, unless I missed the point of your post, and you meant that you are disturbed by the fact that lots of people are still coming to AT&T for the iPhone )

The percentage may be lower, but the sheer number of switchers due to the iPhone is significantly higher than the original launch. The first 30 hours (the last 30 hours of Apple's Q3) they sold a reported 270k. In Apple's Q4 they sold a reported 1.4M. That is about 1.7M units. If 40% were switchers that means that 680k from other carriers. If these new estimates are accurate, even on the low end, then 30% would mean that over 2M new customers were had from the other carriers.

That is significant, but I look forward to the actual reported numbers as to how the various carriers faired overall for the quarter. i'd wager that Verizon added more customers than it lost.

[Ireland]

Originally Posted by AppleInsider

Also on Monday, two independent Apple analysts issued a report suggesting that Apple has more than surpassed its self-imposed goal of selling more than 10 million iPhones during the 2008 calendar year.

[ View this article at AppleInsider.com ]

For the record this actual goal was from when the first iPhone went on sale until the end of calendar year 2008. So, 10 million for a year and a half.

Like I said; they'll hit 27 million by Macworld. Total since iPhone began.

[solipsism]

Originally Posted by Ireland

For the record this actual goal was from when the first iPhone went on sale until the end of calendar year 2008. So; 10 million for a year and a half.

Oh no! Not this discussion again. At this point i would that it doesn't matter if it's 10M for 2007 and 2008 combined, just 2008, or 1% of the number of phones sold for the respective duration, as it looks like the iPhone will clear all of them... but we still need actual numbers from Apple before we can be certain.

PS: When do they release Q4 results?

[bloggerblog]

Originally Posted by AppleInsider

... 30 percent switched from other mobile carriers to join AT&T, according to the firm. That compares to 23 percent of consumers who switched carriers during the same time period for other reasons.

I visited a major AT&T store in DC and was told that the iPhone "does not support tethering" while many other phones, such as the phone he was carrying, "supported tethering". I snapped right back and said that the iPhone did have an app that allowed for tethering but AT&T pulled it, he got a little embarrassed but still insisted that the iPhone does not support tethering, and that AT&T could not control the features in Apple devices, what a nerve!!

Anyway, AT&T apparently has a connection called 3G Plus which allows up to 3Mbps, but when I checked on AT&T's website all they had was Mobile TV Plus!! The same guy told me that this connection allows for much faster browsing because the same connection that brings the TV channels also provide faster internet.

Whatever it is, AT&T needs to return the favor to all those switchers and improve their network to virtually eliminate dropped calls and improve 3G coverage.

[solipsism]

Originally Posted by bloggerblog

I visited a major AT&T store in DC and was told that the iPhone "does not support tethering" while many other phones, such as the phone he was carrying, "supported tethering". I snapped right back and said that the iPhone did have an app that allowed for tethering but AT&T pulled it, he got a little embarrassed but still insisted that the iPhone does not support tethering, and that AT&T could not control the features in Apple devices, what a nerve!!

Why harass a CSR scraping out a crappy paycheck? AT&T doesn't support tethering for the iPhoen so you have to buy a different phone or buy a USB/EC for your PC. It's not his fault.

As for why it got pulled we only know that Apple pulled the app. It makes sense that AT&T is the dominate force behind it but there are other carriers that don't allow tethering either. Regardless, snapping at a CSR has the same overall effect like suing Apple because US laws allow for the manufacturer to lock phones.

[macFanDave]

Perhaps someone can tell someone on Wall Street about Apple's good news.

It seems that the stock price does not reflect how well Apple is really doing.

[bloggerblog]

Originally Posted by solipsism

Why harass a CSR scraping out a crappy paycheck? AT&T doesn't support tethering for the iPhoen so you have to buy a different phone or buy a USB/EC for your PC. It's not his fault.

As for why it got pulled we only know that Apple pulled the app. It makes sense that AT&T is the dominate force behind it but there are other carriers that don't allow tethering either. Regardless, snapping at a CSR has the same overall effect like suing Apple because US laws allow for the manufacturer to lock phones.

I gently snapped at him I wasn't rude or anything, he was a cool dude. I'm usually a polite person TILL SOMEONE CRITICIZES APPLE THAT IS!!!

[SpamSandwich]

Hey, let's face it... with the lousy phones available out there, this news should surprise no one.

[samab]

Originally Posted by solipsism

The percentage may be lower, but the sheer number of switchers due to the iPhone is significantly higher than the original launch. The first 30 hours (the last 30 hours of Apple's Q3) they sold a reported 270k. In Apple's Q4 they sold a reported 1.4M. That is about 1.7M units. If 40% were switchers that means that 680k from other carriers. If these new estimates are accurate, even on the low end, then 30% would mean that over 2M new customers were had from the other carriers.

That is significant, but I look forward to the actual reported numbers as to how the various carriers faired overall for the quarter. i'd wager that Verizon added more customers than it lost.

But overall it's a very small number.

In the xmas quarter 2007 --- AT&T Wireless had 2.7 million subscriber net adds. In the same period, AT&T activated 900K iphones --- of which 40% were switchers from other carriers. So, that's 360K out of 2.7 million ---- a 13% contribution.

[solipsism]

Originally Posted by samab

But overall it's a very small number.

In the xmas quarter 2007 --- AT&T Wireless had 2.7 million subscriber net adds. In the same period, AT&T activated 900K iphones --- of which 40% were switchers from other carriers. So, that's 360K out of 2.7 million ---- a 13% contribution.

You've said this before, and I have no idea how you think that one model of one phone that cost $400 and required a 2-year contract with a minimum monthly fee of $60, generating 13% of all new customers to a carrier is not excessive. Tying a phone model to a carrier is very common in the US but you haven't shown one other single phone model that has come close to increasing the customer base the way the iPhone has for AT&T.

[samab]

The problem is that carriers can sit back, do nothing and more people would migrate to the $99 unlimited voice plan.

Without tracfone's contribution to AT&T's numbers, Verizon has beaten AT&T in net adds in every single quarter since the iphone's launch. Maybe they should spend that money on improving AT&T's network.

[solipsism]

Originally Posted by samab

Without tracfone's contribution to AT&T's numbers, Verizon has beaten AT&T in net adds in every single quarter since the iphone's launch. Maybe they should spend that money on improving AT&T's network.

Verizon has been just beating out AT&T with new subscribers, but how does that make million of people switching to AT&T from other carriers specifically for the iPhone less significant of an achievement? I see that as making it more significant as many people who did not like Cingular/AT&T are willing to go to them for the device they want. I am one of those since I've never liked any carrier I've been with I hoped getting a device i liked would be the better solution. SInce web browsing and iPod are main uses of the iPhone, it was worked out well, but I so few calls that I have no clue how good or bad AT&T's voice service is in my area.

[mjtomlin]

Originally Posted by solipsism

PS: When do they release Q4 results?

I believe on October 21st.

[TenoBell]

Originally Posted by samab

The problem is that carriers can sit back, do nothing and more people would migrate to the $99 unlimited voice plan.

Without tracfone's contribution to AT&T's numbers, Verizon has beaten AT&T in net adds in every single quarter since the iphone's launch. Maybe they should spend that money on improving AT&T's network.

You are comparing all of Verizon sales to the sales of the iPhone. A better comparison would be one smartphone on Verizon that sold for $400 and outsold the iPhone.

[YTV]

LOL, who wrote this trash? It reads like a 4th grade mid-term project.

Originally Posted by AppleInsider

In a little over a year, Apple's iPhone has grown to become the second best-selling mobile handset in the United States, according to NPD.

A report issued by the market research firm Monday claims the touch-screen handset now trails only Motorola's RAZR V3 on the US sales charts. It also cited a surge in sales immediately following the introduction of the iPhone 3G that has helped the device garner a 17 percent share of the overall US smartphone market.

OMG, its beating a phone that came out 5 years ago, and vitually noone has bought in the last 3 years. Seriously when is the last time you have seen ANYONE with a Razr? I don't even see poor teenagers with a phone outdated as the Razr.

Originally Posted by AppleInsider

More specifically, NPD said the iPhone 3G was the No. 1 US smartphone based on units sales from June through August, outselling the Blackberry Curve, Blackberry Pearl, and Palm Centro.

NPD? Thanks for letting us know who that is and what it stands for. National police of dimwits?
I don't doubt the iphone is outselling these phones, but will say, I know atleast 80+ people personally with those 3 exact models. While at the same time I know exactly 4 people with iphones, and all 4 of them use them as data only devices.

Originally Posted by AppleInsider

Nearly half of iPhone switchers (47 percent) made the jump to AT&T from rival Verizon Wireless, while 24 percent switched from T-Mobile. Another 19 percent are reported to have switched from Sprint.

No surprise here. Sprints 3g coverage almost blankets the whole US, their prices are half of ATT, their voice quality is 10x better, so there is little incentive for them to switch. I would bet out of the Sprint users that did cross over to ATT to try the iphone, atleast 40% of them switched back.

[solipsism]

Originally Posted by YTV

OMG, its beating a phone that came out 5 years ago, and vitually noone has bought in the last 3 years. Seriously when is the last time you have seen ANYONE with a Razr? I don't even see poor teenagers with a phone outdated as the Razr.

And how does it make it any less true?

NPD? Thanks for letting us know who that is and what it stands for. National police of dimwits?

If you don't know what NPD stands for by now, you can look it up. Unless you are too dimwitted to do a simple Google search.

I don't doubt the iphone is outselling these phones, but will say, I know atleast 80+ people personally with those 3 exact models. While at the same time I know exactly 4 people with iphones, and all 4 of them use them as data only devices.

I put professional analysts pretty low on my list of things that are true, so can you guess where your anecdotal perceptions places you on that list?

No surprise here. Sprints 3g coverage almost blankets the whole US, their prices are half of ATT, their voice quality is 10x better, so there is little incentive for them to switch. I would bet out of the Sprint users that did cross over to ATT to try the iphone, atleast 40% of them switched back.

Prove it. Show me where the prices are half.

[Rot'nApple]

Originally Posted by macFanDave

Perhaps someone can tell someone on Wall Street about Apple's good news.

It seems that the stock price does not reflect how well Apple is really doing.

Get used to it.

What with the Presidential candidates both talking down the economy and then the press talking about them talking down the economy and other poor economic news, I wouldn't be surprised to see Apples stock go down to $75.00 a share before election day. Apples stock is not reflecting any "good news", more than it is reflecting the US market and now the world market trend.

And although the stock rebounded a couple of bucks when it was down four or six bucks in morning trading, I bet we won't see the $4, $6, or $8.00 jumps we enjoyed in the past and will take some time, if ever, to get back in the 175.00 - 200.00 range.

I know I took a bath the past few days!

[clustertim]

I finally gave in and gave up my BlackBerry and got a new IPhone3G. LOVE IT! best thing I ever did and I would recommend it to anyone!

Jiff
www.privacy.es.tc

[8026mn]

I think they realize now its not really there service that we are after but the phone as the primary motivation for switching services which is why we all had to switch to AT&T to get one unless you wanted to wait 5 years for the exclusive contract to run out. Smart on AT&T's side, but I'm guessing if the Android is the next best thing that comes out is Exclusive to T Mobile we all would be switching to T mobile to get the phone after our 2 year contract expires or we are willing to pay the ridiculous $200 to get out of the contract or whatever it is. How much better off would we be if we could just standardize on say GSM / 3g network for all Carriers and allow any phone to work with any carrier so you don't necessarily have to switch providers to get the phone you want and urge the providers to provide better coverage, speed of service, etc. as a way to differentiate themselves rather than hooking themselves into these exclusive contracts and forcing the public to switch.

[cameronj]

Originally Posted by YTV

OMG, its beating a phone that came out 5 years ago, and vitually noone has bought in the last 3 years. Seriously when is the last time you have seen ANYONE with a Razr? I don't even see poor teenagers with a phone outdated as the Razr.

Um... well since the Razr is the top selling phone in the country, I'd venture to say that a lot more people are buying it than you know. Are you willing to consider that possibility?

[Macrosheep]

Originally Posted by YTV

OMG, its beating a phone that came out 5 years ago, and vitually noone has bought in the last 3 years. Seriously when is the last time you have seen ANYONE with a Razr? I don't even see poor teenagers with a phone outdated as the Razr.

Hmm, it looks like you misread the article you're so quick to criticize. The iPhone -did not- beat the Razr3, as the Razr3 is the top-selling handset in the country. Unfortunately, this fact sort of invalidates your whole argument that nobody is buying the Razr.

Oh, and to re-use your logic, I know at least 3 people that have Razrs, 5 people that use iPhones, and I know no one that uses Sprint. I guess the iPhone must be out-selling everyone, and Sprint is out of business! Facts be damned!

[YTV]

Originally Posted by cameronj

Um... well since the Razr is the top selling phone in the country, I'd venture to say that a lot more people are buying it than you know. Are you willing to consider that possibility?

I am willing to consider anything. The fact is this article is complete slop. A friend who owns a regional cellular chain (42 locations)(he sells Sprint, Verizon, and ATT as well as a couple other smaller services. He does not sell Tmobile) said the Razr has not even been in the top 10 selling handsets in the last 2 years for any carrier. Please note he was talking about in the entire cell industry, not just his business.

The Razr very well could have been the top selling handset in 02, 03, 04, 05, I really dont know and dont feel like looking it up. The fact is the past couple years it hasnt done anything, and to compare the iphone to it in this article, is like saying the iMac is far outselling the Commodore 64. It just has no relevance.

[cameronj]

Originally Posted by YTV

I am willing to consider anything. The fact is this article is complete slop. A friend who owns a regional cellular chain (42 locations)(he sells Sprint, Verizon, and ATT as well as a couple other smaller services. He does not sell Tmobile) said the Razr has not even been in the top 10 selling handsets in the last 2 years for any carrier. Please note he was talking about in the entire cell industry, not just his business.

The Razr very well could have been the top selling handset in 02, 03, 04, 05, I really dont know and dont feel like looking it up. The fact is the past couple years it hasnt done anything, and to compare the iphone to it in this article, is like saying the iMac is far outselling the Commodore 64. It just has no relevance.

Eh, whatever. I don't see what you're so upset about. You're clearly not willing to consider "anything" because you won't consider the possibility that the Razr is still the top seller, which I have no trouble imagining. There are so many dozens of cell phones out there, most don't sell large numbers, but you do see Razrs all over the place.

Even still, if you don't agree with the premise that the Razr (which is always free these days) is the top, do you think the iPhone is?

[bsenka]

NDP?

A socialist Canadian political party is considered an authority on American cell phone usage? When did that happen?

[solipsism]

Originally Posted by bsenka

NDP?

A socialist Canadian political party is considered an authority on American cell phone usage? When did that happen?

NPD, as in NPD Group, formerly National Product Diary.

• http://en.wikipedia.org/wiki/NPD

[cameronj]

Originally Posted by bsenka

NDP?

A socialist Canadian political party is considered an authority on American cell phone usage? When did that happen?

Nope. Details matter, you know? Letters, when formed into the proper order, form words. When you change the order, the meaning of the word can completely change.

[angelinalove]

Of course price should come down bcoz a lot of new mobile phones are stepping in market at the moment. Iphone is very smart phone but not reliable.

[BenRoethig]

Originally Posted by gizmodiva

well Apple has rocketed to the top of the US sales-charts with their iPhone 3G.the 3G has managed to clench a solid 17% of the US smartphone market.It is currently one of the hottest handset in the US.and i think it is just because it has some unique features.The top-dog smartphone, iPhone 3G, has outpaced the likes of the Blackberry Curve, Blackberry Pearl,and Palm Centro.Hope to see a price drop on the iPhone 3G for this holiday shopping season?

Its dropped to its normal price. That being said, I could see a $99 Iphone nano in the future.

[solipsism]

Originally Posted by BenRoethig

Its dropped to its normal price. That being said, I could see a $99 Iphone nano in the future.

With a one year contract? Because right now an 8GB iPod Nano is $149. Figure another $50 for phone HW and you easily have a $200 device. I can't see them offering a 4GB model. That didn't even work for the original iPhone.

PS: What would they do for an OS. trim down OS X even more or add the appropriate SW to the iPod OS? Is OS X scalable for a much slower CPU and considerably less RAM? Is the iPod OS scalable to allow for a phone app to be running in the background 24/7?

[bnordan2]

I really doubt that. I know numerous people that switched from Sprint for the iPhone and are still very happy especially with the 3G. Sprint doesn't have 3g coverage in my home town and AT&T does. My coverage with AT&T has been much better with AT&T no matter where I have been. Just spent 3 weeks in Hawaii on 3 different islands and the 3g coverage was amazing.

[robb01]

Originally Posted by angelinalove

Of course price should come down bcoz a lot of new mobile phones are stepping in market at the moment. Iphone is very smart phone but not reliable.

Mine has been pretty reliable

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