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May 20, 2009 6:13 AM PDT

Apple doubles its iPhone market share

by Jim Dalrymple

If there was any doubt about the popularity of Apple's iPhone, a quick look at the latest market share figures from research firm Gartner should put them to rest.

Released on Wednesday, the newest data from Gartner shows that Apple's share of worldwide smartphone sales grew from 5.3 percent in the first quarter of 2008 to 10.8 percent in the first quarter of 2009. In terms of unit sales, Apple jumped from 1.7 million in the first quarter of 2008 to 3.9 million during the same period in 2009.

While the quarter's iPhone adoption metrics may be impressive, Apple wasn't the only smartphone maker with big gains. Research In Motion saw its BlackBerry market share rise from 13.3 percent in first quarter of 2008 to 19.9 percent in 2009. The company's unit sales grew from 4.3 million to 7.2 million over the same period.

Nokia saw its market share drop almost 4 percent, from 45.1 percent in first quarter of 2008 to 41.2 percent in 2009. Despite the decline, Nokia remains the world's No. 1 smartphone maker, followed by Research In Motion and Apple.

Gartner analyst Roberta Cozza said growth in the smartphone category was driven by touch-screen products such as the iPhone and BlackBerry Storm, and credited "tighter integration with applications and services around music, mobile e-mail, and Internet browsing," as key factors to growth.

Although traditional mobile-phone sales still dominate the market, a clear shift is under way. Mobile-phone sales for the first quarter of 2009 totaled 269.1 million, a drop of 9.4 percent over the same period last year.

Smartphone sales for the first quarter of 2009 were 36.4 million, representing a 12.7 percent increase over the first quarter of 2008.

Jim Dalrymple has followed Apple and the Mac industry for the last 15 years, first as part of MacCentral and then in various positions at Macworld. A guitar player for 20 years, Jim also writes about the professional audio market, examining the best ways to write and record songs on a Macintosh with Logic Pro and Pro Tools. Jim is a member of the CNET Blog Network and is not an employee of CNET.
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by Universal_Indie_Records May 20, 2009 6:32 AM PDT
Good for RIM and Apple.
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by SIGHUP May 20, 2009 6:35 AM PDT
That is really impressive considering that the iPhone is only on one network. If Apple could figure out how to get its device to other carriers it would probably own the smartphone market.
Reply to this comment
by regulator1956 May 20, 2009 9:03 AM PDT
Worldwide. Lot's of carriers.
by atish505 May 20, 2009 12:32 PM PDT
Only in US. IPhone is available on other networks worldwide. It is available on two networks (Vodafone and Hutch) in India and that too without any contracts or lock in.
by myles taylor May 20, 2009 6:38 AM PDT
What I think is impressive is that Apple broke into a completely entrenched market and in less than 2 years has managed to hit 3rd place. To be honest, when Steve Jobs announced the iPhone my thought was: that's a cool device, but it will never catch on. Not only did it catch on, but it's completely changed the industry.

For all you flamers and haters out there, you can't deny that the iPhone was an industry changer. Well you can, but that won't change the truth. If not for the iPhone, it's unlikely we would have the G1, Storm (this might have been a good thing), Pre, and all the other touchscreen smartphones that are flooding the market.
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by SIGHUP May 20, 2009 6:47 AM PDT
I agree. My first thought was this was a shiny pile of crap with an apple logo which the mactards would buy just for the logo, but it turned out to be an innovative device that now Blackberry and Microsoft have to play keep up with. Well done Apple.
by iBuzz May 20, 2009 6:57 AM PDT
Yeah, I agree with what usability expert Jakob Nielsen said...

That the iPhone is the first mobile Internet device worth criticizing. It's a starting point that has set the bar for everyone else.
by atish505 May 20, 2009 12:35 PM PDT
IPhone is a success only in USA. It is a miserable failure in China and India (the world's largest mobile markets) and in dozens of other countries where it was launched.

It is still in third place two years form the launch and its success in US i snot enough to overtake Nokia and RIMM from the top.
by jtaylor475 May 20, 2009 3:32 PM PDT
Agree with you Myles. Made a similar point in the fracas around whether AT&T's 10 discount on service was a real deal or hot smoke. That Apple entered a market where other companies had really failed to INSPIRE. Now that they are there, the other majors are adding iPhone features in an also-ran frenzy in a market they OWN! Same thing with iPod - they weren't the first, they were the best. I know people who own Zunes JUST because they hate Apple. No matter an iPod might be better, it's not an Apple, all that matters!

I love reading people's comments where they say "Apple should worry about (enter new, soon to be forgotten model here) in a couple months, it will kick iPhone's butt!"

Point is, Apple is no doubt planning some other move that the rest will follow. That phone that's gonna kick iPhone's ass in two months is an iPhone copy that will be 6 months behind in two months.

No, they don't win every race (anybody remember "eWorld"?). But when they do, they ca win big. And it's not by worrying about the also-rans.
by DrtyDogg May 21, 2009 3:53 PM PDT
but they aren't winning and are already 2 years behind the competition.
by jypeterson May 20, 2009 6:55 AM PDT
@myles

Good point. I agree that it was Apple that has completely changed mobile communications forever. What's interesting is that this didn't come from the entrenched companies -- Palm, Microsoft, et cetera. Nokia has had a firm grip for years, but this only happened when Motorola lost its market share.

Now that every phone manufacturer is playing catchup to Apple, it will be interesting to see what comes out. In terms of OS, the Pre may end up being the most competitive, but the proof remains to be seen. Apple's strong point is software, and with so much experience and market momentum behind the company, I can't see the Pre taking a huge bite of the Apple (pun intended). Everyone else is at least 2 - 3 years behind Apple because they just tried to shoe-horn their operating system into a touch screen phone, which resulted in <<stellar>> products like the Storm.

Competition is good, and the mobile industry was too complacent which allowed Apple to make a huge shift in the industry.

Now, if someone can just do the same for the banking, auto, and other manufacturing industries...
Reply to this comment
by btbeme May 20, 2009 7:07 AM PDT
I am not sure that <<someone>> will ever do the same in these other areas. I am certain that <<the one>> that does step forward into the breach, as Apple has done so many times before, will be taking the risk that virtually every other company in the world loathes to take. So, they will be content to wait for <<someone>> as they always have, and will forever be doomed to mediocrity.

Would the Storm be considered a risky product or a stroke of genius within the hallowed halls of Blackberry, had the iPhone never been invented?
by La_Mont May 20, 2009 7:25 AM PDT
Hoorah for apple and the Blackberry. Great growth for both, but apple's growth rate will slow down because of the lack of a keyboard( no matter how horrible). Many people find a keyboard quicker and will not look at the iphone for this reason( rightly or wrongly). Plus all other handset manufacturers are going to step up their game. Great for us consumers.
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by kaibelf May 20, 2009 7:28 AM PDT
Honestly, I never understood this. The only people I know who can't handle the apple keyboard are those with sausage fingers and absolutely zero dexterity.
by whobob May 20, 2009 7:33 AM PDT
sausage fingers and absolutely zero dexterity, that covers most of the business market (me include). No wonder Blackberry owns that market.
by kaibelf May 20, 2009 7:40 AM PDT
Amazingly, they get incredible skill when it comes to counting cash, manipulating a tiny bluetooth earpiece, and using an undersized "keyboard" on a blackberry.
by Perry_Clease May 20, 2009 7:52 AM PDT
Like with any new keyboard it takes practice getting used it. When typing on an iPhone if you see that you have hit the wrong key you can slide your finger to the correct key and then lift the finger. Also you don't need to mash the key, a light touch will select it.

I had a TREO before getting the iPhone, I don't miss the "physical" keyboard.
by ballmerisanape May 20, 2009 8:53 AM PDT
The "virtual" keyboard is more flexible. I guess I'm strange.. because I never got used to using the undersized keyboards most phones come with. With my iPod.. I can type with landscape and portrait layouts.. and I really appreciate the "shortcuts" ( .xxx, symbols..etc) that the virtual keyboards accel at. I can type while walking without problems.

I think this argument is one made mainly by people who have never actually given the iPhone OS a try.. and are parroting articles and forum comments.
by iBuzz May 20, 2009 9:53 AM PDT
The dexterity argument was the same objection that the "business crowd" originally had against the Mac: that they would never buy a Mac because it required using a mouse, which at the time, many thought was too hard to use. The whole operation of having to move a device on desk to position the cursor exactly on the screen, and then pressing the button while not moving the device was very difficult for many to do at the time. And forget about trying to double-click something without moving the cursor. Many could simply not do it. But look where we are today... who, apart from someone with physical disabilities, cannot use a mouse?

This was the argument that I heard at the time: that the mouse was a needless requirement that took too much time to master, so therefore they are sticking with PC/DOS. It's the same argument being used against the iPhone's virtual keyboard. The other reason against the Mac was the lack of a color screen (which I agreed with, and which I believe is why the Kindle has a long way to go), but given that the iPhone has a great screen, and the next version will most likely have an incredible OLED display, the display is actually in Apple's favor this time.
by T-Guy May 21, 2009 6:34 AM PDT
1: I generally like the iPhone touchscreen keys but...
2: One thing that still annoys me about it and any other touchscreen keyboard is that I can't rest multiple fingers on it to type as quickly as I like.

Still looking for the perfect smartphone keyboard...
by kaibelf May 20, 2009 7:26 AM PDT
I wonder if RIM's "unit sales" is counting those buy-one-get-one-free units as a separate sale.
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by aMUSICsite May 20, 2009 7:47 AM PDT
You bet they are ;)
by kaibelf May 20, 2009 10:09 AM PDT
Thought so. That's like Cup O' Noodles giving out free samples nationwide, then claiming to be more popular than pizza.
by Ed from Texas May 20, 2009 7:52 AM PDT
"Apple doubles its iPhone market share"

Snark
So, how much of the iPhone market does Apple now command? And, who lost ground in the iPhone market if Apple doubled their share of it?"
/Snark

Gotta love badly written headlines.
Reply to this comment
by myles taylor May 20, 2009 8:33 AM PDT
You're arguing semantics. Apple doubles it's phone market share, but since it's only phone is the iPhone, it makes sense to say iPhone. Is anyone actually going to confuse it? If so, they shouldn't be reading this site because they have deeper issues.
by rgijzen May 20, 2009 8:20 AM PDT
It' even more impressive considering that there is only one iPhone model, where RIM and Nokio offers a wide range of different models...
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by bgulien May 20, 2009 8:49 AM PDT
Do I hear a certain Mr. Ballmer in the background about Iphone not making the grade! And that WinMobile will always win, because of the choice you have!
Bwaahahaha!

It's not even on the charts!
Reply to this comment
by atish505 May 20, 2009 12:37 PM PDT
Windows Mobile is DEAD. Ballmer is in denial.
by DrtyDogg May 20, 2009 2:34 PM PDT
lol not even on the charts, well that's because this is an article about hardware, Microsoft doesn't produce any phones. They should not be on this chart at all. The smartphone Operating System chart places Windows Mobile in 3rd place, behind Rimm and in front of Apple. Is that the chart you are reffering too?
by Norseman May 20, 2009 9:14 AM PDT
I'm thinking the new iPhone/iPod touch will accept a variety of optional keyboards that will plug into the dock connector. That would make the anti-touch folks happy, and might even take a bite out of the netbook market.
Reply to this comment
by DrtyDogg May 21, 2009 3:54 PM PDT
or go with windows mobile and use a bluetooth keyboard, Oh wait that was 3 years ago.
by totobay666 May 31, 2009 3:21 AM PDT
One month after its debut, Apple?s new iPhone has hit the 3 million sold mark, according to analyst Michael Cote of the Cote Collaborative.
"They are seeing unprecedented demand," says Cote, adding that there appears to be no signs of a let up yet. Cote, a former T-Mobile executive, has been extremely accurate with wireless predictions in the past.
An Apple spokesperson declined to comment on Cote?s projections.
The blistering sales pace of Apple?s new gadget defies the otherwise downward trends in consumer spending, employment levels and overall economic health. The 3 million figure is much higher than Wall Street analysts had anticipated. Forecasts called for total quarterly sales of three million to four million
If you want to savvy more information about mobile phone pls come to http://www.totobay.com
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by jbozzo July 9, 2009 4:25 PM PDT
Truthfully yesterday i realized what the problem is. My firend is a devout bb bold user and advocate. he used my iphone in the car and downloaded some song for me from itunes to listen in my car. downloaded it plugged it in my car in 1:30. after using the phone for 5 min he realized what all the hype was about and said "This phone is incredible". He ended up using it for 30 min.

All people need is some face time with the phone and use some of its functions in real life situations to understand the difference. watching someone else use it or seeing it on tv will not do enough to convert bb users. It's actually much more fluid and intuitive then people realize.
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