The iPhone Effect: How Apple’s phone changed everything

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Apple’s iPhone debuted four years ago, and we sometimes take for granted how much has changed since then. The phone altered the smartphone landscape and ushered in the modern era of intelligent, connected devices. Apple hasn’t cruised easily to the top; in fact, it continues to trail nemesis Google’s Android in smartphone market share. But it shook up the industry and forced changes and upheaval among many competitors.

Here’s a look at some stats on how things have changed over that period, both for Apple and for other companies operating in the same space.

Shifting stock fortunes

  • Apple’s stock price at the close of June 29, 2007, the day of the iPhone launch: $122.04 a share. Tuesday: $335.26 with a market cap of $310 billion.
  • Research In Motion’s stock price on June 29, 2007: $66.66. Tuesday: $28.24 per share with $14.7 billion market cap.
  • Nokia’s stock price on June 29, 2007: $23.63. Tuesday: $6.11 with $22.7 billion market cap.
  • HTC’s stock price on June 27, 2007: 361.01 Taiwan dollars ($12.49 USD), Tuesday: 1040.

Worldwide smartphone market share shifts since 2007

  • Second quarter 2007: Symbian 65.6 percent, Windows Mobile 11.5 percent, RIM 8.9 percent, according to Gartner.
  • First quarter 2011: Android 36 percent, Symbian 27.4 percent, iOS 16.8 percent, RIM 12.9 percent.

Apple revenues shift toward the iPhone

  • In the first quarter of this year, iPhone revenues hit $12.3 billion, 49.8 percent of Apple’s revenues, ahead of Macs at $4.9 billion and iPod at $1.6 billion.
  • In second quarter 2007, Mac revenue was $2.3 billion, 43 percent of the company’s revenue, while iPods brought in $1.7 billion, or 32 percent of revenue.
  • As of March, Apple said it has sold 108 million iPhones, 60 million iPod touches and 19 million iPads.

Notable changes since the introduction of the iPhone

  • Google introduces the Android operating system on Oct. 21, 2008.
  • HP announces acquisition of Palm on April 28, 2010.
  • Nokia announces partnership with Microsoft  to run Windows Phone 7 on upcoming smartphones on Feb. 11, 2011.
  • Motorola spins off Motorola Mobility Holdings on Jan. 4, 2011.

Effect on carrier competition and data use

  • In 2006, Verizon Wireless had 7.7 million new subscriber additions compared to AT&T’s 7.1 million. After the iPhone launched, AT&T outpaced Verizon in net subscribers adds for the next three years, according to FCC figures. By 2009, AT&T had 8.1 million new adds while Verizon had 5.9 million.
  • AT&T’s earnings before interest, taxes, debt and amortization went from 34.4 percent in fourth quarter 2006 to 40.7 percent by fourth quarter 2009, outperforming all the other major carriers.
  • AT&T’s postpaid integrated 3G devices have grown steadily since the launch of the iPhone. It went from 8.5 million in fourth quarter 2008 to 29.7 million by second quarter 2010.
  • Data revenue in 2006 for all carriers was just 7.5 percent of total revenue. By 2009, it was up to 26.8 percent.

The rise of smartphones

  • Smartphone adoption in first quarter 2008 was 10 percent according to Nielsen. Nielsen predicts smartphones will outnumber feature phones by the end of this year.
  • Worldwide smartphone sales will hit 468 million this year and reach 1.1 billion by 2015, according to Gartner.

Smartphones open the door for tablets

  • Apple has sold about 19.5 million iPad through the first quarter of this year.
  • Gartner estimates there will be 294 million tablets in 2015.

App ecosystems thrive

  • Apple’s App Store now boasts 425,000 apps, with 14 billion app downloads and $2.5 billion paid to developers to date.
  • The Android Market has 200,000 apps and has had 4.5 billion downloads as of May.
  • IDC now expects 182.7 billion mobile app downloads by 2015 across all platforms.
  • Canalys estimates mobile app revenue will hit $14.1 billion next year and rise to $36.7 billion by 2015.
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