Apple's iPhone emerges as leading U.S. smart phone in July

Posted:
in iPhone edited January 2014
Apple Inc.'s iPhone outsold all smart phones in the United States during July, and equaled the sales of the most popular feature phone, according to market research firm iSuppli



The two models of the Apple handset accounted for 1.8 percent of all mobile-handset unit sales during the month, the firm said, besting sales of the Blackberry series, the entire Palm portfolio, and any individual Motorola, Nokia, Samsung or other smart phone model from a branded service provider. In addition, the iPhone's U.S. sales were equal to those of the most popular feature phone, LG's Chocolate.



"This is a remarkable accomplishment for Apple, considering that July marked the first full month of sales for the iPhone," iSuppli wrote in a report released Tuesday. "While iSuppli has not collected historical information on this topic, it's likely that the speed of the iPhone's rise to competitive dominance in its segment is unprecedented in the history of the mobile-handset market."



The firm went on to say that, while the speed of the iPhone's ascent to the top of the smart-phone and feature-phone charts is remarkable, it's equally amazing that Apple achieved this in the face of numerous, well-entrenched competitors.



iSuppli's consumer panel survey revealed that approximately 57 percent of iPhones bought in July were purchased by U.S. consumers 35 years of age or younger. The majority of those iPhone buyers were men, with 52 percent of purchasers being male and 48 percent female.



Additionally, the firm's survey revealed that nearly two-thirds, or 62 percent, of iPhone buyers in July had a four-college degree or more education, and one quarter of consumers who bought iPhones switched to AT&T service in order to do so.







"Some of the iPhone's success in July can be attributed to pent-up demand following months of hype. Real proof of success will come in the coming months as demand patterns stabilize," iSuppli wrote. "Based on consumer demand, Apple's brand image, industry anticipation and iSuppli's estimates of volume shipments by manufacturers and the market segment, iSuppli is maintaining its projection that 4.5 million iPhones will ship in 2007, rising to more than 30 million units in 2011."



Shares of Apple rose $4.48 or more than 3 percent to $142.9 on the Nasdaq stock market early Tuesday, following word of the report.
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Comments

  • Reply 1 of 74
    MacProMacPro Posts: 19,483member
    Nice to see the stock above 140
  • Reply 2 of 74
    Assuming the iPhone reaches its projected sales volume, it will be interesting to see if there is any impact on Ipod sales.
  • Reply 3 of 74
    Does this market share include only personal purchases, or also corporate/ corporate-sanctioned purchases? If also the latter, then it is quite an impressive number, considering that nearly all of iPhone sales are to individual consumers.



    Still, total sales of 4.5 million in 2007 sounds way too optimistic.
  • Reply 4 of 74
    Even aside from the difficulties of culling facts from statistics, how unbiased is a firm called "iSuppli?"



    If the data is accurate though, almost 2% of all handset sales is pretty tremendous! Even if it drops to 1.0-1.5% after the initial splurge it will do well until buyers can easily and legally go beyond AT&T, at which point .... boom.



    Just keep regular firmware upgrades in the mix, Apple!
  • Reply 5 of 74
    EDIT: Meant to quote the article not a post



    Why are these numbers believable?
  • Reply 6 of 74
    Quote:
    Originally Posted by MacGregor View Post


    Even aside from the difficulties of culling facts from statistics, how unbiased is a firm called "iSuppli?"



    I hope that was a joke.
  • Reply 7 of 74
    gqbgqb Posts: 1,934member
    Quote:
    Originally Posted by anantksundaram View Post


    Does this market share include only personal purchases, or also corporate/ corporate-sanctioned purchases? If also the latter, then it is quite an impressive number, considering that nearly all of iPhone sales are to individual consumers.



    Still, total sales of 4.5 million in 2007 sounds way too optimistic.



    To the best of my knowledge, there are no 'corporate sanctioned' purchases at all yet.

    AT&T only allows individual contracts, so even if your company has a bulk plan with AT&T (as does mine), you still have to have your number transfered to you as an individual, and you have to expense it.



    I would expect this to change before long, and when it does (along with some sort of Exchange solution), corporate sales will take off.
  • Reply 8 of 74
    Undoubtedly, with introduction of Leopard to the iPhone and the upcoming holiday season, the iPhone should sell even faster. It's very likely that with the Leopard versioned iPhone there should be provisions for synching with corporate mail servers. I believe that will severely hurt BlackBerry sales while boosting iPhone sales.

    I can only hope that iSuppli is not made up of Apple fanboys and that their data is accurate. If Apple gets the iPhone launched in Europe in the fourth quarter, then sales should spiral upward at a fast rate. 4.5 million doesn't seem unreachable. I really believe many people are waiting for the Christmas holidays to buy iPhones and iPods. We'll see.
  • Reply 9 of 74
    Quote:
    Originally Posted by anantksundaram View Post


    Does this market share include only personal purchases, or also corporate/ corporate-sanctioned purchases? If also the latter, then it is quite an impressive number, considering that nearly all of iPhone sales are to individual consumers.



    Still, total sales of 4.5 million in 2007 sounds way too optimistic.



    Yeah the 4.5 million sales this year is going to be tough to reach under current conditions. IMO, it'll only happen if they start selling phones in Europe and they introduce an iPhone 'nano'.



    The current model is doing well but Apple won't meet their sales goals without the above IMO.
  • Reply 10 of 74
    citycity Posts: 522member
    Quote:
    Originally Posted by MacGregor View Post


    Even aside from the difficulties of culling facts from statistics, how unbiased is a firm called "iSuppli?"




    These are the good people that break open new products and give us a cost break down.
  • Reply 11 of 74
    While hitting the #1 spot is great news it also reflects 6 months of build up demand and there is some skewing because people had to wait so long.



    Personally I think the iPhone is going to have it's own market segment. It really doesn't compete with "smart phones" that have a hundred buttons to press, nor does it compete with the $29.95 phones with a 2 year contract.



    It's a new market segment and over time we'll see other mobile OEMs trying to join it. Unfortunately the iPhone has OS X, allowing Apple to continually add features.



    So for now, look for Apple to satisfy the initial surge demand, then provide supply that will meet the demands from the kids going back to school and finding that the "have just got to have" an iPhone because everyone else does. Toss in an increase in demand as word spreads about how good the iPhone really is and you have growth all the way to the start of the holiday buying season.
  • Reply 12 of 74
    Quote:
    Originally Posted by city View Post


    These are the good people that break open new products and give us a cost break down.



    OK, so they took one apart, are they qualified for or have access to the facts to come up with these numbers? They might be I don't know, but dont you have to ask that question?
  • Reply 13 of 74
    The hyperbole from these third party reports is hilarious. Depending on who you believe, the iPhone is either a complete disappointment, or an unprecendented success. Not much in the middle.
  • Reply 14 of 74
    louzerlouzer Posts: 1,054member
    Quote:
    Originally Posted by kenaustus View Post


    While hitting the #1 spot is great news it also reflects 6 months of build up demand and there is some skewing because people had to wait so long.



    Not to mention the rabid "I'll stand in line for three days to buy anything from apple, despite the fact that I know nothing about it" apple fanatics.



    Quote:
    Originally Posted by kenaustus View Post


    Personally I think the iPhone is going to have it's own market segment. It really doesn't compete with "smart phones" that have a hundred buttons to press, nor does it compete with the $29.95 phones with a 2 year contract.



    Sorry, but 'smart phones' don't have a hundred buttons, and the iPhone has just as many, its just they're in a different spot.



    Quote:

    It's a new market segment and over time we'll see other mobile OEMs trying to join it. Unfortunately the iPhone has OS X, allowing Apple to continually add features.



    How is it unfortunate that it has OS X? And am I mistaken, or don't all 'smart phones' have an underlying OS allowing the company to add features? Or is it somehow magical for OS X? (Of course, if OS X is any indicator, they'll keep adding features while ignoring issues real-world users have with the phone for the next 4 years).



    And how would you define this new market, if not a smartphone? Semi-smart phone (no custom apps need apply)? MediaPlayer/InternetConnectivity Phone? Touch-screen phone (no, that won't do, because somebody already has touch-screen, but its not MULTI-TOUCH! That's it!) Apple Multitouch phones. There, that makes it a new market.



    Quote:

    So for now, look for Apple to satisfy the initial surge demand, then provide supply that will meet the demands from the kids going back to school and finding that the "have just got to have" an iPhone because everyone else does. Toss in an increase in demand as word spreads about how good the iPhone really is and you have growth all the way to the start of the holiday buying season.



    Initial surge was satisfied by mid-July. I'm not sure how many kids are going to be getting an iPhone (didn't you read the report, most are going to under-35 grads, kids in school generally haven't graduated yet). The overall cost (on a college income) seems to outweigh its supposed advantages (except in the all important "Look at me! I'm cool! I've got an iPhone!" crowd). Well, maybe they can afford it at the higher-tier private schools.



    And it doesn't matter how 'good' the phone is, as $600 for a phone, plus $60 a month (can you put this thing on a cheap family plan?) is still a lot of money just to have what everyone else has.
  • Reply 15 of 74
    louzerlouzer Posts: 1,054member
    Quote:
    Originally Posted by bsenka View Post


    The hyperbole from these third party reports is hilarious. Depending on who you believe, the iPhone is either a complete disappointment, or an unprecendented success. Not much in the middle.



    Well, it could be an unprecedented success at being a complete disappointment. Or, to some, a complete disappointment at being an unprecedented success.



    Although the August/September numbers are what everyone wants to see. I never doubted it would sell big in July (since everyone talked about it for 6 months and how it was a life-changing device), but once you get past those people, how's the month after month sales going to proceed?
  • Reply 16 of 74
    Quote:
    Originally Posted by backtomac View Post


    Yeah the 4.5 million sales this year is going to be tough to reach under current conditions. IMO, it'll only happen if they start selling phones in Europe and they introduce an iPhone 'nano'.



    The current model is doing well but Apple won't meet their sales goals without the above IMO.



    A little trickier in Europe though. Apple actually have competition there and the iPhone in it's present hardware is two year old tech.
  • Reply 17 of 74
    Quote:
    Originally Posted by bsenka View Post


    The hyperbole from these third party reports is hilarious. Depending on who you believe, the iPhone is either a complete disappointment, or an unprecendented success. Not much in the middle.



    How else do you expect these turds to sell their consulting services or drive traffic to their web sites... no one ever made the headlines with, "Nothing significant to report here".
  • Reply 18 of 74
    Quote:
    Originally Posted by AppleInsider View Post


    "Based on consumer demand, Apple's brand image, industry anticipation and iSuppli's estimates of volume shipments by manufacturers and the market segment, iSuppli is maintaining its projection that 4.5 million iPhones will ship in 2007, rising to more than 30 million units in 2011."



    IF TRUE...



    "Say it ain't so...." - Steve Ballmer
  • Reply 19 of 74
    What is with everyone's ``IMO''? Is this a new technique to cover your butt when you are shown to be wrong?



    The only counter opinion to such reported statistics are from representatives who have done the work in recording purchases and done breakdowns by whatever set of criteria they have determined before they start recording statistics.



    Everyone else is talking out their rears.



    However, one could comment on whether or not this iSuppli was sponsored by Apple to write a favorable report or not.
  • Reply 20 of 74
    cameronjcameronj Posts: 2,357member
    Quote:
    Originally Posted by MacGregor View Post


    Even aside from the difficulties of culling facts from statistics, how unbiased is a firm called "iSuppli?"



    If the data is accurate though, almost 2% of all handset sales is pretty tremendous! Even if it drops to 1.0-1.5% after the initial splurge it will do well until buyers can easily and legally go beyond AT&T, at which point .... boom.



    Just keep regular firmware upgrades in the mix, Apple!



    I guess you don't pay much attention to IT news huh?



    iSuppy has been around and doing market stats long before Apple started using the i prefix on products.
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