October 27, 2009 11:24 AM PDT

Survey shows iPhone threatens BlackBerry; Palm holds steady

by Erica Ogg
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A recent survey shows that while Research In Motion continues to lead as the smartphone of choice among consumers, Apple's iPhone is quickly catching up.

ChangeWave Research on Tuesday released the results of its week-long September survey of 4,255 consumers, which showed that RIM retains its lead in smartphone ownership with 40 percent market share. That's actually a dip of 1 percentage point since the last survey in June, and the lowest share RIM has registered in two years.

Despite having more models of smartphones, RIM is facing serious competition from Apple, whose iPhone has 30 percent market share among those surveyed. That's an increase of 5 percentage points since June, when the new iPhone 3GS was released.

Apple RIM Palm (Credit: ChangeWave Research)

Among the same group, Palm has maintained a 7 percent share since June. Though it didn't see any growth even with the introduction of the Palm Pre and more recently the Pixi, the two new WebOS-based phones are helping the company to not lose share. Palm has seen its market share of smartphone ownership erode steadily from its peak of 36 percent in June 2006.

When including all manufacturers, the smartphone market is clearly gaining momentum. ChangeWave reports that 39 percent of those polled in September now own a smartphone, an increase of 2 percentage points since June, but more importantly, double the ownership of consumers polled two years ago.

And that momentum is something that PC makers are taking notice of, according to research also released Tuesday from Gartner. The analyst firm believes that more PC makers will start making smartphones to tap into those consumer dollars being spent in that segment. There's far more opportunity for them to court first-time smartphone owners than first-time laptop owners.

Smartphone revenue is expected to reach $191 million by 2012, which is more money than the $152 million users are expected to spend on laptops, according to Gartner. Apple, Sony, Dell, and Acer are the device makers that currently, or have announced they will, sell laptops as well as smartphones.

Erica Ogg is a CNET News reporter who covers Apple, HP, Dell, and other PC makers, as well as the consumer electronics industry. She's also one of the hosts of CNET News' Daily Podcast. In her non-work life, she's a history geek, a loyal Dodgers fan, and a mac-and-cheese connoisseur. E-mail Erica.
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by Random_Walk October 27, 2009 11:42 AM PDT
Oh, crap...

...brace for mindless flameboys touting their faves as superior to all in spite of the evidence...
Reply to this comment
by MPB October 30, 2009 5:39 AM PDT
Well as mindless as you think they are, they must be spinning some sort of truth if the figures are backing them up.
by The_happy_switcher October 30, 2009 12:51 PM PDT
No, just bracing for moronic comments like yours.
by stale_pancake October 27, 2009 11:42 AM PDT
Where did you learn to read a chart?

RIM holds steady.

Palms drop is a mirror image of Apple's growth in the reverse.
Reply to this comment
by Random_Walk October 27, 2009 11:46 AM PDT
"RIM holds steady. "

...sort of. Read the numbers - it's a slow drop over time for RIM.

(I use a Blackberry and don't own an iPhone, so before you go name-calling...)

I wonder where the Windows Mobile numbers are in all this, and why the US-only caveat isn't mentioned as prominently...
by Renegade Knight October 27, 2009 11:47 AM PDT
Looks like they are looking at the last month of the graph. I'd read it as Apple got 1% of Rim, None of palm and 4% of someone elses. Where is WinMo? Symbian, and Android? The last is a minor player as of now, but Symbian is a giant. This has to be US Based as well.
by C0mmanderB0nd October 27, 2009 12:07 PM PDT
Looking at that chart how can the title of this article seriously have "Palm holds steady" in it. Sure if you want to isolate the last month alone, then yes Palm didn't lose, but can they really go any lower????

I think a more telling statistic would be how many personal users are paying for a blackberry and how many are paying for an iPhone, the only thing in my opinion keeping up the RIM numbers is the mass corporate backing.
Reply to this comment
by ballmerisanape October 27, 2009 12:07 PM PDT
pretty remarkable considering the iPhone is only on one carrier.. Just imagine the bloodbath if the iPhone was offered on multiple carriers. You notice that every time the iPhone takes a leap upward.. RIM drops (albeit ever so slightly). Now that Palm is out of the way.. RIM is the only one left in the room. RIM, however, has a pretty strong brand loyalty... so it will take something bigger than the current iPhone line-up (or a multiple carriers) to knock RIM off of its well-established throne.
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by dennisheadley October 27, 2009 12:15 PM PDT
I don't have a iPhone (Verizon - Samsung Omnia) but I find it very impressive that a company with one single phone is able to garner a 30% market share ( I realize the chart is US only) of the smartphone market and marginalize so many other manufacturers with so many different phones. I also must be one of the few people at Verizon that bought a Windows mobile phone instead of the buy one get one free Blackberry phones earlier this year. (a deal which makes the blackberry percentage not as impressive in my mind in comparison to an expensive, no deal involved phone)
Reply to this comment
by mike.gw October 27, 2009 12:21 PM PDT
A Verizon iPhone offering would pretty much place Apple in the lead. Verizon needs to get off their high horse and allow Apple the same freedom for it's device as AT&T allowed on it's network. And as far as PC makers trying to get into this smartphone race, from what I see, people are adopting an image... not an OS. They want to be a member of the Apple Club, or the RIM Club or the Palm Club. They are not really trying to run a MS OS on a choice of HTC, Samsung, Motorola, etc. Like Microsoft did when they gave up trying to license MP3 players, and began to offer the Zune, MS will have to market it's own cellphone. Supplier choice doesn't seem to be the virtue that it is in the PC marketplace.
Reply to this comment
by mike.gw October 27, 2009 12:27 PM PDT
Also, as a corporate IT Director who runs an Exchange server, I would be more than happy to dump my RIM Blackberry Server and handhelds. The browser is not as good as Apple's. The RIM delivery system is known to be problematic at times. Those damned trackballs are annoying when dirty (they've been replaced by touchpads in newer models tho). The BES server is one more piece of hardware that I must patch and maintain and budget for. RIM's main advantage these days is that some people prefer a physical keyboard.
Reply to this comment
by Random_Walk October 27, 2009 1:23 PM PDT
"I would be more than happy to dump my RIM Blackberry Server and handhelds. "

The line forms directly behind me (though I will say that in spite of the pricetag, BES is a hell of a lot easier to manage than Exchange's ActiveSync).

OTOH, I can see a point in the future where using Exchange ActiveSync push will end up costing money (just not right now, for obvious reasons...)
by jaxstephens October 30, 2009 12:32 PM PDT
I'm the IT director of my company as well. Over the past three or so years, I've had all my users on first BlackBerry devices, then Windows Mobile ones, and now iPhones. People "put up with" the BlackBerry devices. They *hated* Windows Mobile . But they *love*--yes, that's the actual word they use--their iPhones.

As an IT department support load, the iPhones just work. Users don't have questions about how to use them; no training is necessary. They rarely get buggy or display errors. Windows Mobile was a disaster. Even after providing detailed training, users still couldn't figure out how to use basic features. The phones were also buggy as hell. BlackBerry phones basically did the trick, but they were drab and boring to use. They were phones with email, nothing more.

Today a former employee called me up to ask a favor. When he left the company, we had to take his iPhone back. In passing, he mentioned to me, "I couldn't resist, man. I had to go out and get an iPhone myself." For most people, once they use an iPhone--really *use* it--they will "love" the experience and not want to leave it. Notice that I say "most." There is a small group of techies, power users, and physical keyboard lovers for whom the iPhone will not provide satisfaction. For them, they can have Google Android or Palm WebOS. My sense, however, is that they are the minority.
by deuceswyyld October 27, 2009 12:32 PM PDT
I would like to see these charts in December, with Google's Android OS included. Once Android hits Sprint and Verizon networks, there may be a huge shift from Palm and RIM devices...
Reply to this comment
by pjk0 October 27, 2009 12:49 PM PDT
As for Palm, look at it this way: The Pre was only introduced in 2009-06, so it's not that unreasonable to talk of them "holding steady" because the Pre could not have influenced their results prior to that date.

Regarding their low share in general, consider also that prior to the debut of the Pre, almost all the US carriers were selling some sort of PalmOS device (T-Mobile, Verizon, ATT, Sprint) and many were also selling Palm Windows Mobile devices too. But now Sprint is not only the sole source for the Pre, but they also in a way carry the burden making up sales for all of the other discontinued Palm devices as well.

Considering that, I'm not that surprised that their share is still relatively low. I think that will start to rise as WebOS apps start to proliferate, which is starting to happen.
Reply to this comment
by ballmerisanape October 27, 2009 1:44 PM PDT
The original iPhone gained a percentage a month after it was released... with little support.. and it was expensive. Palm has history.. and the Palm OS was arguably more mature than the iPhone OS when it was first released. For Palm to gain nothing after all of the Pre hype fed to us is troubling. This is especially true since the market is maturing rapidly, and Palm will be constantly playing catch-up... which they can't afford since they are at the bottom. Like Palm.. but there is no way they are going to recover from this... and if they do.. it will take at least a few years. They simply do not have the resources to deal with the iPhone juggernaut, Google, RIM.. and the upcoming Windows mobile releases.
by Renegade Knight October 27, 2009 2:29 PM PDT
@ ballmerisanape

Palms is mature, they do make a good OS, and that they are holding now is a good sign. We shall see if the trend reverses. The iPhone showed us what's possible in a new way, now it's a race for the rest to catch up to iPhone for easy of use and Apple to catch up to the rest for what they could do years ago that you can't on an iPhone.

Both sides now have holes to fill in their mobile phone offerings.
by ballmerisanape October 27, 2009 3:44 PM PDT
They have a mature SDK?.... Remember... apps are what helped propel the iPhone platform. Unless the have a system in place that can compete with the app store.. It's a no deal.
by phato777 October 27, 2009 4:22 PM PDT
LOL, Palm Pre = fail. That thing has the same cpu as the iPhone 3GS and it runs horribly. WebOS is a joke too, those apps will only go as far as iPhone's web apps went. Apple saw the limitation and decided to let devs use their hardware and APIs which was a very smart move that made Apple's iPhone sales keep climbing and they will continue to climb like they have been. I think it's pretty obvious to picture how that graph will look in a year from now, hehe.
by myles taylor October 27, 2009 12:57 PM PDT
I'm just afraid of the market getting over-saturated with smartphones. Soon we'll have so many phones and so many app stores it will be nuts trying to get support for or support them.
Reply to this comment
by Gold_Storm_Mac October 27, 2009 1:19 PM PDT
the iphone would totally kill if all carriers supported it. but i think iphone is in the gsm business and doesn't want to make a cmda version. T-Mobile's network isn't even that great speed-wise.
Reply to this comment
by cnetpre October 27, 2009 1:30 PM PDT
The Palm Pre was first released on June 2009 which explains why Palm is holding steady. Erica appears to have a good grasp and understanding about more than just charts but the actual history behind the Palm Pre, iPhone 3Gs, and Blackberry. Critics need to do more homework.
Reply to this comment
by stalexone October 27, 2009 1:51 PM PDT
This is the point where we ask the writer:
1) did you take that class on how to interpret numbers and graphs?
2) did you take that class on collecting broad data (like for across the entire market) vs. collecting data on only the items you wanted to?

She is obviously an iPhone fan girl; any other person would have researched every kind of phone OS in the market before coming up with this weak data and weaker interpretation. I have lost all respect for CNET reporting because it is seriously lacking in content, depth, and objectivity. They all just seem to be "buzz-hounds" who don't pay attention to details whatsover (sorry for the generalization...some of you do a good job but the majority do not!).
Reply to this comment
by dukeoconnor October 27, 2009 3:21 PM PDT
This article is simply repeating the findings of changewave. If you don't like their data or interpretation, you're free to rebut them with your own data, interpretation or links. Sorry if the results aren't what you'd like them to be, but ad hominem arguments really don't bring any light to the subject.
by dennisheadley October 27, 2009 4:32 PM PDT
She is reporting, as was clearly stated at the beginning of the article, the report issued by ChangeWave. It is their data, their graph and their data conclusion. She did not speculate on anything, as if she would have she would have reported that their report for future smartphone marketshare has the iPhone going up to 44% and RIM dropping to 23% in their 90 day forecast.

It is most certainly NOT the job of a CNET reporter to write a story about a report from ChangeWarve, NPD or any other industry tracking agency by researching everything they can find on the subject and debating the report. The report is the report plain and simple.

I absolutely hate NPD figures for computer games. The numbers are complete rubbish in my mind due to the fact that they don't collect data from several of the top brick and mortar retailers and they do not collect data from any digital distribution channels such as Steam or Direct2drive etc. Yet when they release a report to the public each month I do not attack the reporter that writes the story and shares the NPD figures.
by wynand32 October 27, 2009 1:59 PM PDT
Um, $191 million in revenues for smartphones and $152 million for notebooks in 2012? Me no think that's right...
Reply to this comment
by artistjoh October 28, 2009 3:51 AM PDT
Why do you not think it is correct? Do you have evidence that suggests otherwise? However it should be pointed out that the figures for dollar amounts are given but not the time frame so we are all left wondering is this per month or some other time period? Until we know what the time frame is it is very difficult to confirm or deny the figures quoted.
by seanness October 29, 2009 1:36 PM PDT
@artistjoh...here is the proof. Go to this website - http://www.betanews.com/joewilcox/article/iPhone-cannot-win-the-smartphone-wars/1256668455 and then follow the math.

In 2012, Gartner forecasts 525.68 million smart phone sales. If $191 million is accurate, that means that the phones cost $0.36 each. $363 is more likely the cost per phone, which would lead to revenue of $191 BILLION.
by askgees October 27, 2009 2:53 PM PDT
Pretty bad piece. Thanks for the horrible article. Next time try adding all manufactures to the graph. Not just the ones you wish. It's sort of like doctoring the data to make your point. I really don't see the point of coming back to CNET.
Reply to this comment
by dennisheadley October 27, 2009 4:13 PM PDT
You will be missed....I'm sure
by phato777 October 27, 2009 4:27 PM PDT
Why are you complaining about the article? Do you have some data you've gathered and would like to review and enlighten us on, or are you just taking up room in the comments so your words can make people ignore you?
by fthead9 October 27, 2009 11:51 PM PDT
I read this post on the future of BlackBerry earlier today, http://www.toktumi.com/voipnews/blackberry-doomed/ Seems that the difficulty in developing apps for BlackBerry is going to have a major impact on their future.

They're in a tough position right now. Do they make fundamental changes to how they development their phones in order to stay in the apps arms race at the risk of alienating their existing user base or do they stay the course and risk becoming obsolete if software choices become the dominant factor in purchase decisions.
Reply to this comment
by ChinaCellPhone October 28, 2009 9:13 PM PDT
I prefer iPhone than BlackBerry, and I find an attractive one in soundasia, if you are interested in the SciPhone N21 Smart Phone with Google Android and Wifi Dual Sim 5.0 Camera, you can click in : http://www.soundasia.com/china/Smart-Phones-7/N21-2399.html . Just wanna share good products with all of you guys...
Reply to this comment
by MarkN62 October 29, 2009 3:37 PM PDT
So who has the 23%? Would it be the increase in android usage?
Reply to this comment
by AppleSuxLeo October 29, 2009 8:17 PM PDT
The screen has TWICE the pixel count of the iPoser...most web pages don`t require panning or scrolling !
http://www.youtube.com/watch?v=07OE7jvl02M&feature=related
Reply to this comment
by krosafcheg October 29, 2009 9:29 PM PDT
Mark my words, the minute that Apple get full encryption on that device and some Enterprise management tools, RIM is over.
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