Apple's smartphone share closer to 13%, still ahead of Microsoft

[AppleInsider]

Apple's share of the worldwide smartphone market is closer to 13% than the 16% reported earlier this week, but that's still good enough to push the iPhone maker past Microsoft to become the third largest smartphone OS vendor, according to Gartner.

The market research firm said Apple's progress came amid a dismal third quarter for the global smartphone market, when sales reached their weakest year-on-year growth since historical data exists. Smartphone sales to end-users totalled 36.5 million units during the three-month period ending September, a mere 11.5 percent increase from the same period one year ago.

"The current economic climate is negatively impacting sales of higher end devices,” said Roberta Cozza, principal analyst at Gartner. “Going forward, we should expect the smartphone device market to continue to grow but at a slower pace."

Although leading mobile operators like Apple are subsidizing more smartphones to reach lower prices, they tie the device to two year contracts with monthly data plan rates which remain too expensive for average consumers, Cozza added.

Smartphone device share

Nokia maintained its No. 1 position with 42.4 percent market share in the third quarter, but for the first time it recorded a decline in sales of 3 percent on a yearly basis. At the same time, sales of Research In Motion’s BlackBerry smartphones increased 81.7 percent, and Gartner expects the company will see a boost from its new products, like the new touch-screen BlackBerry Storm, in the fourth quarter.

For its part, Apple watched sales of the iPhone soar an unprecedented 327.5 percent, good enough to regain the No. 3 position in the global smartphone market for hardware sales, improving its share to 12.9 percent.

Worldwide: Preliminary Smartphone Sales to End Users by Vendor, 3Q08 (Thousands of Units).

Apple’s shipments into the channel during the quarter approached 7 million units, which included about 2 million units of inventory fill that remained unsold entering into the fourth quarter. Gartner said it factored this into its market share estimate, which is therefore about 3 percent less than the 16 percent estimate reported earlier this week by financial firm Needham & Co.

Smartphone OS share

In terms of smartphone operating system (OS) share, Symbian software shipped on 49.8 percent of smartphones sold during the third quarter, which represents the first time the company's share fell below the 50 percent mark. Symbian’s share was most affected by a decline in sales from Nokia, and Gartner expects the mobile OS developer's slice of the pie will continue to erode next year

Meanwhile, blistering sales of iPhone 3G helped propel the Mac OS X into the No. 3 position fora global OS provider rankings.

Worldwide: Preliminary Smartphone Sales to End Users by Operating System, 3Q08 (Thousands of Units).

"For the first time, iPhone sales exceeded sales of Microsoft Windows Mobile devices worldwide and in North America," Gartner wrote in its report. "In the shorter term, open-source initiatives like Android and Symbian Foundation will challenge Windows Mobile’s licensing model. In addition, the lack of a competitive user interface will continue to limit Microsoft’s mobile device usability when facing competitive consumer smartphones."

Regionally

Regionally, North America was the fastest growing market, with a 68 percent increase in the third quarter. RIM and Apple led the region by combining for more than 70 percent of the smartphone sales, and Apple regained second position behind RIM with 25.4 percent share.

Smartphone sales in Europe, the Middle East and Africa (EMEA) increased 14 percent year-on-year. The region saw Nokia’s share decline nearly 8 percentage points in the quarter but still maintaining its leading position while Apple gained the No. 2 spot with 15.6 percent share, moving in front of HTC and RIM.*
*
The markets in Asia/Pacific and Japan declined 11 percent and 23 percent, respectively. In Latin America, despite the decline in sales for all handsets, the smartphone market grew 56 percent in the third quarter of 2008. The sales were bolstered by the official introduction of Apple’s iPhone 3G across a dozen of countries, Gartner said.

[ View this article at AppleInsider.com ]

[hmurchison]

I think Apple's going to have to move beyond the "one size fits all" approach to phones before they can attack the rest of the market. They need a smaller phone that doesn't do multitouch and has your basic keyboard or qwerty.

[fraklinc]

These #s bring back memories do anyone remember this clip.
http://www.youtube.com/watch?v=C5oGaZIKYvo

[Jimzip]

Originally Posted by hmurchison

I think Apple's going to have to move beyond the "one size fits all" approach to phones before they can attack the rest of the market. They need a smaller phone that doesn't do multitouch and has your basic keyboard or qwerty.

Any specific reason why people would find that desireable though? I mean, $199 is an incredibly agressive price-point for a device this functional (iPhone). Stripping features would just bring another cheap phone to an already flooded marketplace. No?

Edit: And isn't the point of a 'one-size fits all' product to fit all?

Jimzip

[teckstud]

From 16% to 13%?? Who's paid to make that kind of error? That's not even funny.

[TenoBell]

This assumes Apple wants to dominate the rest of the market. So far their is no indication that is their desire. I think they are going to follow their Mac business strategy and stay with the most profitable part of the market. Not bother with the thin margin profit risking bottom of the market.

Originally Posted by hmurchison

I think Apple's going to have to move beyond the "one size fits all" approach to phones before they can attack the rest of the market. They need a smaller phone that doesn't do multitouch and has your basic keyboard or qwerty.

[TenoBell]

Now that the iPhone is doing so well, few of the Europeans who used to deride the iPhone and North America are not actively posting anymore.

I told them once North America hits the tipping point, smartphone growth would explode.

Originally Posted by AppleInsider

Regionally, North America was the fastest growing market, with a 68 percent increase in the third quarter. RIM and Apple led the region by combining for more than 70 percent of the smartphone sales, and Apple regained second position behind RIM with 25.4 percent share.

[mark2005]

So the sales numbers for all the other handset mfrs only include sales to end users, and don't include sales into the channel?

[JeffDM]

Originally Posted by hmurchison

I think Apple's going to have to move beyond the "one size fits all" approach to phones before they can attack the rest of the market. They need a smaller phone that doesn't do multitouch and has your basic keyboard or qwerty.

Originally Posted by Jimzip

Any specific reason why people would find that desireable though? I mean, $199 is an incredibly agressive price-point for a device this functional (iPhone). Stripping features would just bring another cheap phone to an already flooded marketplace. No?

Edit: And isn't the point of a 'one-size fits all' product to fit all?

The problem is usually one-size-fits-all is that it usually does so poorly, the product is not tailored to fit anyone but rather a set of compromises that wouldn't happen if different kinds of buyers got what fits their needs best. But here, iPhone is basically one model, two if you count capacity variations, but one form factor, and it's apparently outselling all of the MS platform phones combined, which does offer several kinds of form factors.

Maybe it would be nice to have a model with a physical keyboard for the people do a lot of text input, but there are trade-offs to do that, it's either a smaller screen or make it thicker and possibly less reliable to add a slide out keyboard.

[MacTel]

It is surprising to see Palm OS up 103%. I don't know of anyone who likes Palm or has Palm and plans to stay with them. That's quite a turn-of-events from just a few years ago.

[jfanning]

Originally Posted by Jimzip

Any specific reason why people would find that desireable though? I mean, $199 is an incredibly agressive price-point for a device this functional (iPhone). Stripping features would just bring another cheap phone to an already flooded marketplace. No?

The iPhone isn't $199, that is the subsided price, you pay the rest in your monthly network fees

[jfanning]

Originally Posted by TenoBell

Now that the iPhone is doing so well, few of the Europeans who used to deride the iPhone and North America are not actively posting anymore.

I told them once North America hits the tipping point, smartphone growth would explode.

No, I think you will find they just sick of the rabid Apple fanboys that hang out here at iPhone insider, heaven forbid you say something bad about the mighty Apple iPhone, and the small mobile network called the Americas.

[Walter Slocombe]

now who was it that said "no-one will buy such an expensive phone"?

[NasserAE]

Originally Posted by jfanning

The iPhone isn't $199, that is the subsided price, you pay the rest in your monthly network fees

And what do you pay for your data and voice plans?!

Based on AT&T and T-Mobile you pay the same voice and data monthly fee whether you buy a Blackberry, an iPhone, or any other free phone and whether you sign up for a contract or not. (Actually the iPhone data plan is $5 cheaper than others).

Based on your assumption, I didn't buy my P900 SE phone for $700, I bought it for $700 plus what ever I paid AT&T and T-Mobile for their voice and data plan since 2004 (around $720/year X 3 years = $2160 + $700 for the phone = $2860). I guess I should've just bought the phone and never use data and voice plan to save some money

[Rot'nApple]

Originally Posted by jfanning

The iPhone isn't $199, that is the subsided price, you pay the rest in your monthly network fees

But doesn't that apply to all the "subsidized" phones, smart or otherwise, sold by the various mobile phone carriers here in the U.S.?

[jfanning]

Originally Posted by NasserAE

And what do you pay for your data and voice plans?!

You are fixed to that network with a locked phone for the term of your contract, or you must pay a disconnection fee. What if you want to move to another network, or move country with your phone? Depending on the country you are in, some providers will charge you money to unlock the phone in contact as well.

[jfanning]

Originally Posted by Rot'nApple

But doesn't that apply to all the "subsidized" phones, smart or otherwise, sold by the various mobile phone carriers here in the U.S.?

Yes it does, but most people on this site will compare that subsidised price to the full price of other manufactures phones.

[TenoBell]

Ah, I spoke too soon.

If you are tired of the iPhone why visit the iPhone section of an Apple enthusiast website. I don't go to Nokia enthusiast websites complaining about Nokia.

Originally Posted by jfanning

No, I think you will find they just sick of the rabid Apple fanboys that hang out here at iPhone insider, heaven forbid you say something bad about the mighty Apple iPhone, and the small mobile network called the Americas.

[NasserAE]

Originally Posted by jfanning

You are fixed to that network with a locked phone for the term of your contract, or you must pay a disconnection fee. What if you want to move to another network, or move country with your phone? Depending on the country you are in, some providers will charge you money to unlock the phone in contact as well.

As you said they will charge you money for unlock or breaking the contract not because you bought a blackberry or an iPhone for $199. For example, I need to pay the same fee if I want to cancel one of my family plan phones even though I paid full price for the phone itself.

It is really simple, any smart phone = need voice and data plan = you pay monthly fee regardless of carrier = $1700+ over two years with or without contract or whether locked or not. How much you pay a month has nothing to do with your contract obligation. Even if you travel overseas you will pay money for data and voice. Choice have nothing to do with money here. Yes you might be saving $5 a month if you use another carrier, but you will still pay close to $65 for data and voice with T-Mobile (the only other choice).

I understand that in Europe some carriers calculate how much you pay for a phone based on your monthly plan. But that doesn't mean that everyone else is doing it.

[NasserAE]

Originally Posted by jfanning

Yes it does, but most people on this site will compare that subsidised price to the full price of other manufactures phones.

Come on!! you are trying to say that $500 Nokia or SE is as attractive to customers as $199 iPhone or BB?! You still pay $300 more with a $500 phone (In the US that is).

[RichL]

Originally Posted by NasserAE

Come on!! you are trying to say that $500 Nokia or SE is as attractive to customers as $199 iPhone or BB?! You still pay $300 more with a $500 phone (In the US that is).

You'd be silly to pay $500 for an unlocked phone from Europe unless you could sell your contract phone for a decent price or could get some kind of discount on the contract.

Obviously things are very different in other countries (aka the other 5.7 billion people on the planet).

[teckstud]

Originally Posted by TenoBell

Ah, I spoke too soon.

If you are tired of the iPhone why visit the iPhone section of an Apple enthusiast website. I don't go to Nokia enthusiast websites complaining about Nokia.

A lot of Mac enthusiasts think the iPhone sucks- so get over it. This isn't an iPhone enthusiast website.

[jdmlight]

Originally Posted by MacTel

It is surprising to see Palm OS up 103%. I don't know of anyone who likes Palm or has Palm and plans to stay with them. That's quite a turn-of-events from just a few years ago.

Count me as one! I love my Palm Centro and intend to stick with Palm for a while. (It's quite an upgrade from my Palm IIIxe - USB being one of the nicest, serial is a pita to get working in Leopard )

I know, I know, it's blasphemy to post that I like a non-iPhone in an iPhone forum on an Apple-based website.

[TenoBell]

That doesn't mean you absolutely have to come to the section marked iPhone.

Originally Posted by teckstud

A lot of Mac enthusiasts think the iPhone sucks- so get over it. This isn't an iPhone enthusiast website.

[JeffDM]

Originally Posted by jdmlight

Count me as one! I love my Palm Centro and intend to stick with Palm for a while. (It's quite an upgrade from my Palm IIIxe - USB being one of the nicest, serial is a pita to get working in Leopard )

I know, I know, it's blasphemy to post that I like a non-iPhone in an iPhone forum on an Apple-based website.

I think you're well clear of any problems there. I really haven't seen anyone complain about something like that here, except maybe in cases where the person is being an ass, the real problem is the ass part, not the part about liking the non-iPhone product. I've mentioned my previous affinity to my Palm-based Zodiac in the past, no one has ripped me new ones for that. It was quite nice as a PDA, quick & efficient, lag free on most apps and no time based animations slowing things down. Just no phone feature and the media player wasn't very good in terms of organization, meaning still needing a nano and a separate phone. It's too bad that Palm had such a hard time transitioning to phones, among other things. I'm using an iPhone now, so that ship has sailed as far as I am concerned.

[TenoBell]

I concur as long as you are reasonable, Palm works for you and their is nothing wrong with that.

I had a friend who was asking my advice between an iPhone and the Blackberry Bold. From what he described as his needs my advice was that the Bold should work better from him. That is what he bought.

Originally Posted by jdmlight

Count me as one! I love my Palm Centro and intend to stick with Palm for a while. (It's quite an upgrade from my Palm IIIxe - USB being one of the nicest, serial is a pita to get working in Leopard )

I know, I know, it's blasphemy to post that I like a non-iPhone in an iPhone forum on an Apple-based website.

[jfanning]

Originally Posted by TenoBell

Ah, I spoke too soon.

If you are tired of the iPhone why visit the iPhone section of an Apple enthusiast website. I don't go to Nokia enthusiast websites complaining about Nokia.

I didn't, this was on the main page.

Plus the articles here are so full of mistakes, it is my duty to help correct them...

[jfanning]

Originally Posted by NasserAE

It is really simple, any smart phone = need voice and data plan = you pay monthly fee regardless of carrier = $1700+ over two years with or without contract or whether locked or not. How much you pay a month has nothing to do with your contract obligation. Even if you travel overseas you will pay money for data and voice. Choice have nothing to do with money here. Yes you might be saving $5 a month if you use another carrier, but you will still pay close to $65 for data and voice with T-Mobile (the only other choice).

I have a smart phone, and I have no fixed contract for voice or data, I can prepay on both, no cancellation fee, no unlocking fee

[jfanning]

Originally Posted by NasserAE

Come on!! you are trying to say that $500 Nokia or SE is as attractive to customers as $199 iPhone or BB?! You still pay $300 more with a $500 phone (In the US that is).

It depends on the country, Apple always prices their products cheaper in the US, than other countries. In my current country, to buy an iPhone in a similar environment to what my Nokia is would cost me €200 more, and it is still locked to that network.

[financegozu]

Did I miss an announcement or what? Last time I checked Apple was only making the iPhones, but you never know ...

[Tofino]

Originally Posted by jfanning

It depends on the country, Apple always prices their products cheaper in the US, than other countries. In my current country, to buy an iPhone in a similar environment to what my Nokia is would cost me €200 more, and it is still locked to that network.

i think it's because your nokia masters pay you for your posts in phones...

[teckstud]

Originally Posted by TenoBell

That doesn't mean you absolutely have to come to the section marked iPhone.

I don't nor does anybody else. The threads at AI are listed generically on the main page and don't differentiate what "section" they pertain to. And iPhone isn't even mentioned in the title of this particular thread. If you want a website for iPhone fanboys only perhaps you should create one yourself.

[1st]

Originally Posted by teckstud

From 16% to 13%?? Who's paid to make that kind of error? That's not even funny.

JOB... that's funny.

[solipsism]

Originally Posted by teckstud

And iPhone isn't even mentioned in the title of this particular thread.

For future reference, any AI article title that mentions "smartphone" is going to heavily reference the iPhone.

[bobcode]

Originally Posted by hmurchison

I think Apple's going to have to move beyond the "one size fits all" approach to phones before they can attack the rest of the market. They need a smaller phone that doesn't do multitouch and has your basic keyboard or qwerty.

Didn't work for Palm. That would also complicate compatibility. The Centro is smaller and cheaper than the Treo. I thought the Treo was the best. I preferred the PalmOS, and never bothered with Microsoft. Palm was great with Graffiti, and an external folding fullsize keyboard was awesome. I type better on the iPhone.

Originally Posted by fraklinc

These #s bring back memories do anyone remember this clip.
http://www.youtube.com/watch?v=C5oGaZIKYvo

Funny clip. Their strategy isn't working too well.

[TBaggins]

Originally Posted by hmurchison

I think Apple's going to have to move beyond the "one size fits all" approach to phones before they can attack the rest of the market. They need a smaller phone that doesn't do multitouch and has your basic keyboard or qwerty.

Originally Posted by TenoBell

This assumes Apple wants to dominate the rest of the market. So far their is no indication that is their desire.

I think they are going to follow their Mac business strategy and stay with the most profitable part of the market. Not bother with the thin margin profit risking bottom of the market.

Of course, we heard the same thing about the iPod way back when. Didn't really work out that way. Apple did end up making lower-priced iPods, and they wound up dominating the market at pretty much ALL pricepoints, not just the top.

And booyah on them for doing so. Love my Shuffle at the gym.

In any case, the smartphone market is 150 million units or so per year. The general cellphone market is a billion plus. At some price/profit level, it may make sense for Apple to go after the broader market.


...

[TBaggins]

Originally Posted by TenoBell

Now that the iPhone is doing so well, few of the Europeans who used to deride the iPhone and North America are not actively posting anymore.

I think finally getting a 3G iPhone out helped mollify a lot of 'em. Heck, the Euros are even starting to get MMS on iPhones now (hi Sweden).


...

[TBaggins]

Originally Posted by teckstud

A lot of Mac enthusiasts think the iPhone sucks- so get over it. This isn't an iPhone enthusiast website.

You're kidding, right? This so is an iPhone enthusiast website.

And you don't have to say the iPhone sucks to find that out in a hurry. Merely offer constructive criticism (along the lines of "I like the iPhone, but it would be better if Apple would...") and watch how many ppl get insta-butthurt, or some variation thereof.

That isn't everybody at AI, but it is a pretty large subset.


...

[TBaggins]

Who else finds it hilarious that iPhone marketshare is beating Windows Mobile marketshare, even though Apple's only been in the market for a year and a half, while 'mighty Microsoft' has had most of the decade to push WinMo down everyone's throat, and has largely failed.

...

[TenoBell]

Originally Posted by TBaggins

Of course, we heard the same thing about the iPod way back when. Didn't really work out that way. Apple did end up making lower-priced iPods, and they wound up dominating the market at pretty much ALL pricepoints, not just the top.

I don't remember hearing that. Who was saying that Apple was not going to diversify the iPod?

Apple got into the mp3 market early enough to dominate it across the board. Apple set the tone for the mp3 market in a way its unable to in mobile phones. All iPod models make Apple direct profit, none are loss leaders for a long term service the way mobile phones are.

In any case, the smartphone market is 150 million units or so per year. The general cellphone market is a billion plus. At some price/profit level, it may make sense for Apple to go after the broader market.

We've seen clear example of how you can destroy your business going for the broader market.