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How Do You Explain This…? February 10, 2008

Posted by Fast Follower in Apple, Blackberry, iPhone, Microsoft, Motorola, Research in Motion, RIM.
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A headline from Info World:

“Apple beats Microsoft, Motorola in Q4 phone sales

Research in Motion had the largest share of the converged-device market in the United States in Q4, followed by the iPhone and Windows Mobile devices”

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1. Tell it like it TI is! - February 10, 2008

There you go again not telling the WHOLE story. You want so bad to have a Harvard Business Review, but you have to look at the situation, facts, and compare apples to apples (really, no pun intended). Let’s disect this before you go off making false, incorrect assumptions….

1. First off use the correct terminology….the correct term is “converged devices” that is what iPhone has a 28% share of. Now, take a look at what the iPhone has converged with…. the iPod!!! It’s no wonder (at least to me) why this was a great device… it converged with one of the most popular electronic devices in history!!!

2. Set the record straight… Windows Mobile is an operating system, and iPhone is a piece of hardware. As the kids say..don’t get it twisted or try to pull us into your Mac vs. PC debate on this one.

3. It so clear that it is not the phone or the business piece of the equation that folks are raving about. There were seveal cool iPod upgrades incorporated with the device. This is also evidenced by the thousands of devices that were never even activated with AT&T.

So the bottomline is this… iPod outsold the Window Mobile smartphones,and it is clear that there it will be hard to maintain this type of marketshare, unless Apple is able to keep the innovative convergence going.

So before you start your Apple worshipping…just tell it like it is!!!!

2. Fast Follower - February 11, 2008

How wrong can you be. Maybe that’s because I had the advantage of reading the entire article. So I’ve placed it below. First, converged devices apply to devices running Windows Mobile as well. Yes, Windows Mobile is an operating system. But it’s an operating system that only runs on converged devices like the 6700. So what this means is that the iPhone has more market share than all Windows Mobile devices combined. Is it Apple’s fault that the iPod functionality that’s part of the iPhone is significantly better than the music player functionality of Windows Mobile devices like the 6700? Second, it’s not clear that the iPod functionality is the exclusive feature makes the iPhone outsell Windows Mobile devices as you suggest.

“….Even after being on the market for less than half a year, more iPhones sold in the fourth quarter than Windows Mobile phones in the United States, according to research from Canalys.
Free IT resource

Canalys researchers estimate that the iPhone had 28 percent of the U.S. converged-device market in the fourth quarter of 2007. Research in Motion, with 41 percent, had the largest share of the market. Windows Mobile phones had a 21 percent share of devices sold in the quarter, falling into third place behind Apple.

Worldwide, the lineup is a bit different. Nokia, which typically dominates around the world but not in the United States, sold 52.9 percent of smartphones worldwide in the fourth quarter. RIM grew its share of converged-device sales to 11.4 percent, up 121 percent over the same quarter in 2006. Despite its limited availability around the world, Apple took third place with 6.5 percent of the market, just barely squeaking ahead of struggling Motorola.

Apple may have stirred renewed interest in smartphones in the United States. Converged-device shipments, which include smartphones and wireless handhelds, grew 222 percent in the United States during the quarter, according to Canalys.

The iPhone also did well in the Europe, Middle East, and Africa region, where it became available in three countries partway into the quarter. In the region, Apple came in fifth place behind Nokia, RIM, HTC, and Motorola, but beat out Sony Ericsson, Samsung, and Palm, Canalys said.

Apple’s success as a new entrant is striking, but it will face challenges to keep its momentum going, said Canalys analyst Pete Cunningham in a statement. Historically, vendors with just one smartphone design, no matter how good, struggle, he said. That means Apple will have to create and refresh a portfolio of devices if it wants to increase its market share, he said.

Beyond hardware, competition is continuing in the mobile operating system market. Worldwide Symbian, which credits most sales to Nokia, had 65 percent of the market, followed by Microsoft at 12 percent and RIM at 11 percent, for the fourth quarter, Canalys said.

Despite all the buzz around mobile Linux, total Linux phone shipments in 2007 were essentially flat compared to 2006, Canalys found. In Asia Pacific, Motorola had a drop of 28 percent in its Linux smartphone shipments compared to 2006.

Phone makers are trying to attract customers to smartphones, which carry a higher price tag than low-end feature phones. However, converged devices made up just 10 percent of the global phone market in 2007, the researchers found.”

3. Fast Follower - February 11, 2008

By the way, I’ll admit that the iPod functionality is key to the success of the iPhone. Again, what’s wrong with that?

4. Tim - February 20, 2008

I think the only problem, for some, is that it doesn’t run Windows Mobile.

For others, that vice is a virtue. – Tim


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