Competition Spikes As More Smartphones Are Sold Than Ever Before


There’s one thing this market isn’t: Dull. In the past year, smartphone shipments have soared by 43 percent, hitting a record 60 million in sales during the second-quarter 2010.

A number of factors are leading to robust sales, but at the same time, heated competition is driving prices down. Carriers are heavily subsidizing the phones, and handset-makers are willing to trade lower margins for higher sales. Despite all the pressure, Nokia (NYSE: NOK) eked out a 40 percent marketshare due to heavy discounts, RIM (NSDQ: RIMM) grew sales abroad to maintain its share at 19 percent, and Apple’s blotched launch of the iPhone 4 led to slower growth, according to Strategy Analytics.

The strongest words in the quarterly report were reserved for Apple (NSDQ: AAPL). Even though it shipped 8.4 million iPhones worldwide during the quarter, representing a 61 percent increase compared to the year-ago period, an alarm has been triggered because Apple’s marketshare gains are slowing. In the second quarter 2010, its marketshare was calculated to be 14 percent, which is lower than four previous quarters over the past two years. It peaked twice before at 17 percent. Strategy Analytics maintains that in order to grow, Apple will need to sign up more carriers in the U.S., China and Japan — the dominant smartphone markets.

All-in-all, it’s not Apple’s profitability that is at stake, it’s the company’s reputation. “The honeymoon period for Apple in the mobile world is clearly coming to an end. We believe Apple may have lost some heartshare in recent weeks because of its perceived mishandling of the antenna problem,” the report claims.

However, while Apple may have to deal with perception (err, reception) issues, other top manufactures, like Nokia and RIM, are dealing with the ability to stay innovative. Both Nokia and RIM are getting ready to release a new version of its operating system which will either allow them to maintain their leadership positions. Android is also on the horizon, although doesn’t show up here, because the report tracks handset-makers not operating systems.


T Bone

iPhone 4 may signify that ““The honeymoon period for Apple in the mobile world is clearly coming to an end. We believe Apple may have lost some heartshare in recent weeks…….” All the abovementioned statistics are interesting, but the problem is wider than iPhone 4 Antennae’s.

The advent of OS 4, has reduced my existing iPhone to a snail. There are no indications of any solution to this problem which will definitely affect my next purchasing decision.

Martin Hill

Yes, CNN has corrected the 20% figure, but the new Android owners figure is still almost as bad.

The important quote from Yankee Group is this:

“36 percent of Google-branded Android phone owners say they plan to buy an iPhone, surpassing the 32 percent of Google-branded phone owners who intend to buy another Android phone.”

So that means that only 32% of owners of the Nexus One – Google’s own much lauded smartphone that is held up as the best example of Android phones out there – would buy another Android phone.

This compares to 77% of iPhone owners who would buy another iPhone.

Pretty shocking still if you ask me.



Leaks surfaced that when corporations are asked on prospects of developing business apps on the iPad, the overwhelmingly positive response is a 100% ‘yes’. IBM, the biggest service company in the world, has enlisted large number of iPad programmers and made iPad development a strategic service. iPad are made with Apple’s own custom designed SoC capable of fusing the iPad with any business hardware including equipment such as barcode scanners, RFID processors, warehouse equipment, office laser printers, production machines, storage management systems, immigration custom systems, etc. The openness of iPad connectivity and business processing capabilities are boundless. With Apple’s very strict software logistics and robustness the iPad is ideal for businesses large and small. Apple’s ecosystem is the best of breed bar none. As Apple iMac servers run Microsoft Windows Server 2010 and Microsoft Exchange, Microsoft Sharepoint, Microsoft SQL Server 2010, as well as the powerful Snow Leopard Server which is a Unix OS, the iPad will be the focal point as the App Center for access to all business apps within the corporation as well as business partner external systems with business workflows automating all the business processes. iPad is a pervasive business equipment that corporations cannot be without. Hundreds of millions of iPads are needed by businesses as well as individuals.

Martin Hill

It is important to distinguish between quarterly change and seasonality.

For the last 3 years, every quarter just before Apple’s once-yearly launch of a new model iPhone results in lower sales than the previous quarter. After the new model launches, iPhone sales sky-rocket as has already been demonstrated with the launch of the iPhone 4.

As a result the conclusion that the iPhone is losing ground in the smartphone market is flawed, particularly since the enormous demand for the iPhone 4 this quarter is well documented.

The Gizmodo stolen iPhone debacle would have accentuated the lull as many held off waiting for new model to arrive in Q3.

In terms of “Heartshare”, in the light of several recent studies, it is apparent this is not a problem for Apple:

Yankee Group found that 77% of iPhone owners said they will buy another iPhone while only 20% of Android customers said they’d buy another Android phone. A bit of a sore indictment of Android’s satisfaction for non-geeks.

Then there is ChangeWave’s recent March vs June survey that indicated that 52% of of those planning to buy a smartphone in the next 3 months were getting an iPhone (up from 31% in March).

19% said they’d get an HTC (up from 12%), only 9% said motorola (down from 16%), 6% RIM (down from 14%) and 0% Palm (down from 3%).

The other corker of the Changewave survey:

iPhone “Very Satisfied” rating = 73%

The next highest is HTC with a dreadful 39% “very satisfied” rating.
Moto is 34% and the rest are all below that.

As such, the statement ““The honeymoon period for Apple in the mobile world is clearly coming to an end” appears to have little basis in reality.



iPhones have clearly outsmarted and outclassed Rim offerings. Antenna talks had been ousted by an overwhelming 98.3% no longer an issue. iPhone sales would hit 50 million units mostly at the expense of Rim OS 6 and Blackberry sales slumps on new models. Android phones ripping more than 35% of sales from Rim in NA market.

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