Apple’s hot iPhone hasn’t unseated BlackBerry
Posted by: in Companies Competitive StrategyFiled under: Good news, Products and services, Industry, Consumer experience, Competitive strategy, Microsoft (MSFT), Apple Inc (AAPL), AT and T (T), Research in Motion (RIMM), Technology
The question of whether or not Americans would be willing to dish out close to $600 for a new iPhone has already been answered. The iPhone was definitely one of the (if not the) biggest product launches of 2007, and just how successful Apple Inc. (NASDAQ: AAPL)’s new iPhone has been doing was made even more obvious with its third quarter sales figures.
Sales have been so good in fact, that in its first full quarter of sales, the revolutionary iPhone outsold all other smartphones with the exception of the BlackBerry from Research in Motion (NASDAQ: RIMM). This is an accomplishment that is even more impressive when you consider the obstacles that the iPhone was up against:
- iPhones have been put on sale only in the United Says
- iPhones are available for service only with AT&T (NYSE: T)
- iPhones weren’t available in some pretty massive markets inside the United Says, including much of Vermont, North Dakota, South Dakota and Alaska
Even with the above barriers to entry, the iPhone was able to gobble up a very impressive 27 percent of the total smartphone marketshare during the quarter. With its 27 percent share of the market, the iPhone has already outpaced the Microsoft (NASDAQ: MSFT) Windows Media lineup of smartphones, which is now sitting in a solid third place.
The iPhone’s success will undoubtedly change the landscape of the mobile phone market forever. For one thing, the launch of the iPhone resulted in the smartphone market growing by a big 180 percent. That is a huge inflow of new consumers into the market based solely upon the iPhone hype. Companies have definitely been paying attention to the iPhone and we have the ability to expect to see more smartphone designs hitting the market. But don’t be surprised to see some pretty hefty price tags attached to the next generation of smartphones. If the iPhone proved anything, it is that consumers will pay whatever it takes to get the products that they crave.
Looking ahead to 2008, I would not expect any shakeup in the top 3. The iPhone should be able to easily hold off Microsoft, but I do not believe that we will see a changing of the guard in the top slot just yet. The BlackBerry should definitely be concerned about the red hot iPhone, but should not be in any sort of danger of handing over its number 1 spot any time soon.
Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor’s Observer. DISCLOSURE: Mr. Fowlkes owns and/or controls diversified portfolios of long and short stock and option positions that include holdings in AAPL.
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