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iPhone Doubles Share of Smartphone Market

While I still firmly believe Apple's primary currency is mindshare and their primary concern is profit share, analysts fill their plates with metrics and so it's dinner time once again for smartphone marketshare reports!

And how is Apple doing? Up from 5.3 to 10.8 according to Gartner, while the smartphone market as a whole was up 12.7%.

Of course, when you don't sell below-cost, margin eating goods, high market share goes hand in hand with high profit share, so Apple is no doubt enjoying both at the moment.

Other big winners included RIM's BlackBerry, up from 13.3% to 19.9%. Falling in share were Nokia, down from 45.1% to 41.2% and "others" going from 28.1% to 18.8% (we have to figure Palm is hidden in there somewhere, and will no doubt rebound when the Pre hits the market starting June 8).

Rene Ritchie

Rene Ritchie is one of the most respected Apple analysts in the business, reaching a combined audience of over 40 million readers a month. His YouTube channel, Vector, has over 90 thousand subscribers and 14 million views and his podcasts, including Debug, have been downloaded over 20 million times. He also regularly co-hosts MacBreak Weekly for the TWiT network and co-hosted CES Live! and Talk Mobile. Based in Montreal, Rene is a former director of product marketing, web developer, and graphic designer. He's authored several books and appeared on numerous television and radio segments to discuss Apple and the technology industry. When not working, he likes to cook, grapple, and spend time with his friends and family.

  • First: Never believe a thing Gartner says about anything at all. Ever. These guys are paid shills, and do little to hide it.
    But given that this article is focused on that particular Gartner report, there are some interesting items in that report that were glossed over.
    First is the obvious absence of Apple in the sales of regular cell phones. With 269 Million of these units sold it seems really odd that apple would not trade on its name and design into that market with a cool looking phone that was not hugely expensive, not a smart phone, just a sell it once and forget it phone like everything else out there. Something about the iPod Nano size.
    Second, is the HTC is under-counted: For HTC, Gartner counts only the company's own-branded devices including the G1. Its too bad they didn't include all Android phones in a separate category.
    Also, Apple, doubling its share, still sold less ADDITIONAL units (YoY) than did RIM.
    The Apple jump is almost totally attributable to the arrival of the 3G.
    This huge jump for Apple (5.5%) won't be sustainable once the comparison quarter moves from Q1 of 2008 to Q3 and Q4.
    I would expect to see something more akin to 2 to 3 % share growth YoY, and I would expect to see RIMs growth fall off a bit.
    I expect the Pre will eat RIM's lunch while making very little lasting dent in Apple's sales figures for at least the first 3 quarters of its life.
  • @icebike
    Lots of good points. Not sure I'd read much into Apple not being in the feature phone market. They're highly selective of their markets and laser focused. Lots of things have high volume and Apple stays completely away from them. That's one of Apple's hallmarks. And they don't take brand leverage when it's really dilution lightly (ROKR learned 'em).
    HTC as both manufacturer and ODM is likely fuzzy for reports like this. Did they count the Treo Pro? ;)
    Apple's one SKU on one US carrier model likely will never scale to RIMs multi-device on every carrier market share, but again, as one of Apple's legs, even an increasingly important one, they're taking their share of profits none the less.
    If Pre hits Verizon and AT&T, I think other brands are in more trouble, no?
  • If (when?) the Pre hits other carriers, it could obliterate RIM's consumer efforts, but it probably will not dent RIM's corporate fortress any more than Apple's consumer one -- at least not right away. A couple quarters down the road, assuming some good management tools, definitely. Of course, by then, if the Pre lives up to its hype, it will be threatening Apple as well, but Apple seems better poised to stay ahead of the curve (giggle).