February 2, 2010
by Daniel Rodriguez
![chart22](https://fonefrenzy.wordpress.com/wp-content/uploads/2010/02/chart22.jpg?w=630)
Since the iPhones debut, we have seen growth quarter after quarter. The last time the iPhone lost market share was in the 4th quarter of 2008 which according to API research, was not a significant drop. Fast forward to the 4th quarter of 2009 when Apple has a record qaurter for iPhone sales growing 18% year of year. The growth however big, was not enough to increase or maintain market share. The iPhone’s growth of 18% was trumped by the smart phone over all market growth of 26%. So what does this mean? It means Jon Rubinstein’s theory that there can be about 5 big players in the smart phone market could be true. Let’s take a quick look at Apple’s competition today when compared to the 4th quarter of 2008.
In 2008 Apple’s biggest competitors were RIM with its Blackberry lineup, Nokia and its s60 devices, Android with the G1, Samsung’s big player was the Instinct, Palm with the Centro and Treo Pro, and Microsoft with Windows Mobile 6.1 devices. Let’s be honest here, Apple didn’t have much competition. Apple’s market share was growing while almost everyone else was having one of their worst quarters ever. Fast forward to the 4th quarter of 2009. Now you have the iPhone 3GS which is basically the same as the 3G in the general consumers mind, however the competition has dramatically changed. What were the iPhones competitors in quarter 4 of 2009? Blackberry with the Bold, Bold 2, Storm 2, Tour, Pearl, Pearl Flip, and Curve, Palm with the Pre, Pixi, and Treo Pro, Android with the Moment, Hero, Eris, Droid, G1, MyTouch, Behold 2, Cliq, and of course all the variations of those same phones outside the U.S., Nokia now with the N97 Mini, N97, N900, E72, and the still famous E71, Microsoft now with Windows Mobile 6.5 and the HD2, TouchPro 2, Snap, Imagio, and Omnia 2. Obviously the competition has changed, companies like Motorola, Palm, and RIM are now growing once again. Apple did not do poorly, make no mistake, in fact they had a record quarter when it comes to iPhone sales. The market is shifting over from feature phones and messaging phones to smart phones. As people begin to use more powerful phones, the players in the smart phone arena will continue to see growth. Once the market is saturated, we will begin to see competition working to take customers from one another. Everyone now has the chance to stake their claim, so we will get to sit back and watch the innovation take place.
[Via Wall Street Journal]
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