Analyst confirms Apple slid past RIM to become number two smartphone vendor

So apparently Apple knew what it was talking about after all. Research firm Canalys says that Apple stole the rug out from underneath RIM in the third quarter to become the world's number two pusher of smartphones, taking a hearty 17.3 percent market share compared to RIM's 15.2 percent and Windows Mobile's 13.6 percent. For what it's worth, the firm says RIM could very well bounce back in the fourth quarter with the Bold, Storm, and Pearl 8220 all ramping up in time for the holidays, but either way, number one platform Symbian needn't sweat any time soon; Nokia's baby managed to lose 21.5 percent share year over year, but they're still sitting pretty with 46.6 percent.

How'd Apple manage to steal so much BlackBerry thunder (pun painfully intended)? Part of the evidence might lie in J.D. Power's just-released 2008 Business Wireless Smartphone Customer Satisfaction Study, revealing that suits adore their iPhones, like their BlackBerrys just alright, and despise their Palms. Amusing to us was the iPhone's rating of a 5 out of 5 in the Features category -- the only contender to get a perfect score there -- despite the fact that virtually every other smartphone platform continues to outstrip it for raw capability. Usability, though, well... that's arguably another story altogether.

[Via AppleInsider]

Read - Apple outsells RIM
Read - JD Power rankings

[helloUser @ Nov 7th 2008 2:48AM]

Fashion statement.

[Anthony @ Nov 7th 2008 3:28AM]

oh yea .. it sexy and it does most of everything... if you jailbreak of course ^_^

[PM1 @ Nov 7th 2008 3:45AM]

Fashion Statement?

Whether or not it's a fashion statement is irrelevant as soon as the phone does what's important. If it doesn't do the basic things, but looks pretty...then your point makes sense. But when it's arguably the most feature rich phone thus far (not going into the future topic), does it really matter whether it's a fashion statement or not? If anything the fact that it looks good should be the icing on top.

If it passed RIM in its OWN game, then that would imply directly that:

1. Blackberry users bought the iPhone because it covered their needs (that the blackberry covered as well)
2. The iPhone has tonnes more downloadable apps (doesn't mean they are all quality ones) that suit the business power user
3. It looks good
4. Any combination of the above.


It's amusing how the bashing has evolved:

Stage 1 - Its too expensive! + bahh its only with AT&T + very little market share + no copy/paste! + fashion statement
Stage 2 - Very little market share + no copy/paste + fashion statement
Stage 3 - no copy/paste + fashion statement
Stage 4 - ...now...

[Josh G @ Nov 7th 2008 4:33AM]

@PM1

The most feature-rich phone?

You and I must've had different iPhones.

[jim cruise @ Nov 7th 2008 5:34AM]

its obviously a fashion statment!loo at the ipod its i icon in mp3 playes thets why so many competitions are run to win one look at this one for example. Click Here exploiting the brand strength of apple!

[Bryant @ Nov 7th 2008 6:46AM]

This is why it's a fashion statement:

"to become the world's number two pusher of smartphones--"

Ahem, no. Smartphones can cut and paste.

[zargon @ Nov 7th 2008 7:22AM]

The only reason this happened is because RIM hasn't done a major update to their phones recently, with the Bold and Storm, I would expect to see this shift again. The people that just have to buy the latest and greatest toy, the iPhone, will have to buy another phone soon.

[The Joker @ Nov 7th 2008 8:42AM]

I always knew the iPhone was a big #2.

[Mark Anderson @ Nov 7th 2008 9:13AM]

"1. Blackberry users bought the iPhone because it covered their needs (that the blackberry covered as well)
2. The iPhone has tonnes more downloadable apps (doesn't mean they are all quality ones) that suit the business power user
3. It looks good
4. Any combination of the above. "

Or, more realistically..

5. Neither RIM nor Nokia released a decent new smartphone that quarter. And no, the Nokia N96 doesn't count as I think everyone went lolN85plz to that one.

[Quix @ Nov 7th 2008 1:47PM]

Uh oh, a positive story about Apple and iPhone. UNLEASH THE TROLLS!

Screw the haters. My iPhone is the best gadget I've ever owned. Period. And no amount of anonymous Internet fuming from the discontents (or astroturfers) can change that. Does it have weaknesses? Absolutely. Does it kick the crap out of any other pocket device I've ever owned? Absolutely.

NOW VOTE ME DOWN WINBOTS!

[SimbaDogg @ Nov 8th 2008 6:51PM]

fashion statement? i say yes, others (the iphone herds) would say no...but we'll leave that for debate. the one thing i wont leave for debate is this:

apple enjoys 2nd place for 2 months, then falls back into 3rd (due to BB releaseing the bold, storm/thunder, kickstart and more

[Ray Von Sixx @ Nov 7th 2008 2:51AM]

woah nokia is number one in smart phones? news to me

[PatD. @ Nov 7th 2008 4:21AM]

Maybe Engadget should remember that they've an international readship and pen their articles accordingly?

[go seki @ Nov 7th 2008 4:45AM]

Woah // Apple makes a "smartphone" .. when did this happen?
- as someone said when its jail-broken sure .. bog standard it doesn't meet my definition of a "smartphone" .. ie capable of running multiple simultaneous programs.
- now if it would run Android .. now that would be a "smartphone"
RIM sales died largely because they're sold into the same market as the iPhone .. the US .. which remains a largely immature market in 3G and "smartphone" terms

.. kudos to Apple for making a device that has woken the US consumer to the potential use of a true "smartphone" device.

[Johan S @ Nov 7th 2008 2:54AM]

Apple deserves it. RIM didn't' innovate.

[someguy7234 @ Nov 7th 2008 3:18AM]

Really? Didn't innovate? Apple has 2 phones and the second one fixed the 3G that the first one didn't have.

Admittedly a lot of the RIM phones are EDGE only too, but in addition to traditional keypads, they have SmartType (which I'm a fan of), the Perl to navigate as well as now a touchscreen. They have the a networked based OS unlike traditional device-centric systems.

I'm not saying that the iPhones aren't great.... I'm just not sure that innovation has as much to do with it as marketing.

[Valicore @ Nov 7th 2008 3:27AM]

If RIM didn't innovate I don't know what the hell they did do to get so popular. The one thing I love about Blackberrys is they do what they're supposed to well and the trackball thingy is awesome.

[Mark Anderson @ Nov 7th 2008 9:14AM]

No, they did innovate - see the Storm and the flip Blackberry for details - they just didn't release anything new last quarter.

[len @ Nov 7th 2008 10:26AM]

What are you whining about? They released an HVGA phone that has higher pixel density than the iPhone. Isn't that what matters?

[utahnkid @ Nov 7th 2008 10:57AM]

Can someone please explain this marketing argument? I keep hearing that it's only because of Apple's marketing. Well who is this marketing supposed to target? I've seen a few television ads but nothing more than any other phone. Apple has NEVER even paid for their product to be in any movie or television show..

As far as I can tell the only "marketing" the iPhone gets is from it's users. The most common coverage comes from blogs and other internet sites, not Apple. If other manufacturers could make a decent phone then they could have all the free coverage they want as well.

[ilh @ Nov 7th 2008 1:41PM]

While I don't know if Apple paid for it or not but in "Home and Away", EVERY computer is a mac at that's no exaggeration.

[Quix @ Nov 7th 2008 3:16PM]

@ utahnkid:

Whenever an Apple product does well, the haters proclaim it's only because of "marketing." Or "fashion statement." It's their way of saying they have nothing intelligent to say.

And guess how the crap pile that is Windows became the dominant OS in the marketplace, people? You guessed it: MARKETING!

Engadget commenters: full of sound and fury, signifying nothing.

[Ellianth @ Nov 7th 2008 2:55AM]

"Part of the evidence might lie in J.D. Power's just-released 2008 Business Wireless Smartphone Customer Satisfaction Study, revealing that suits adore their iPhones."

Not calling every iphone user dumb here, but have you ever seen some of these suits? Dumb people love dumbed down electronics.

[mike @ Nov 7th 2008 3:35AM]

Are you sure? 18 months ago they were all using Blackberries and they switched.

Smart ass.

[James @ Nov 7th 2008 4:21AM]

Since when does having a job that requires you to wear a suit mean your dumb?

[Anthony @ Nov 7th 2008 6:04AM]

@mike

lol good one ;]

[Mark Anderson @ Nov 7th 2008 9:16AM]

The J D Power survey falls under the LOL category based on sample sizes. The total was 1,338 units and they don't give the individual split. However, by looking at the average price compared to unit pricing you can see that the iPhone sample isn't going to be that high.

Still, good to see both iPhone busies users enjoyed the experience.

[Ellianth @ Nov 7th 2008 10:22AM]

Just because they owned blackberries doesn't mean they knew how to use it.

[Josh @ Nov 7th 2008 1:42PM]

@ Mark Anderson

Since when is 1338 a small sample size? That is slightly smaller than the sample used in a national presidential preference poll, and likely gives you a margin of error around +/- 3%. That hardly seems like cause for discrediting quantitative data, especially when our own eyes confirm the prevalence of iPhones on our streets.

[Mark Anderson @ Nov 7th 2008 2:45PM]

Gallup used a population of 6,000 voters for two candidates. J D Power used a sample of 1,388 users for multiple devices.

It's a small sample.

[o rly @ Nov 7th 2008 2:56AM]

*in the third quarter.
^ Just a quick clarification for certain fanboys that will post how huge the iPhone's total share is without bothering to read any of the articles (or using common sense.)

Sensational title is sensational.

[gad get @ Nov 7th 2008 3:23AM]

Well, Apple better enjoy it while it lasts, because there's a Storm coming!
Seriously though, Apple sold a lot of phones in one quarter, but that doesn't mean they'll continue to outpace Blackberry or Windows Mobile phones over the next few quarters. Remember, Apple is very good at hype, and they had a very wide release, which allowed them to really hit the ground running. But there are only so many customers looking for an iPhone, and a lot of them tend to rush over to the Apple store the minute a new Apple product hits the market (i.e., Apple fanboys). The competitors certainly don't come close in the hype department, but they do have a much wider existing user base, and RIM at least is pretty good at retaining customers once they get them. Apple has shown they can sell a lot of phones in a short period, but how well can they keep up the pace over the long haul?

[Pizzahut @ Nov 7th 2008 4:04AM]

What's all that non-sense about Apple hype? Not only Apple out sold the Crackberry, Apple tops the customer satisfaction according to J.D Power. iPhone is all about usable features, not check mark marketing features that many vendors claim. Sure, they all claim they can browse but try browsing with stylus or joystick. You see what I mean.

[gad get @ Nov 7th 2008 4:54AM]

The worst part is that people have been brainwashed to believe that everything Apple makes is top-notch, reality-busting, revolutionary genius. Hello! Try a simple thing like copying and pasting, or taking half-decent photos, or viewing flash! It doesn't let you! Why? Apple artificially builds in room for major improvements in the most basic of areas, so people keep coming back for the latest model! And meanwhile people put up with these ridiculous flaws because they've been trained to believe that the revolutionary nature of the product itself makes up for any of those 'minor' irritations.
The only thing revolutionary Apple has done in recent memory is to sell electronic devices based almost entirely on the basis of undeservedly positive public perception.

[mb3 @ Nov 7th 2008 9:35PM]

You my good sir are a freaking idiot to suggest that the 13+ million iPhone buyers are "Apple fanboys". But I totally agree with you that Apple has been brainwashing 13+ people... Oh wait...

Bastard...

[strom @ Nov 8th 2008 5:00AM]

the storm doesn't have wifi, what a joke!

[Valicore @ Nov 7th 2008 3:25AM]

Fanboys, wait a sec. Apple haters, you hold on too. Both sides have got to admit that the iPhone has its pros and cons.

Fanboys, admit Apple is being an asshole, raping consumers and developers and generally being malevolent fuckfaces just because they can be. Admit Apple has made errors.

Apple haters: Admit that Apple made a product that is revolutionary in that it does what it said it would on the box, and looks good while doing it. At a certain point, the "it's for fanboys and a fad" thing doesn't explain it anymore. Seriously, even I look at it and say "It does look pretty good and does what it says it does" (although the MobileMe thing or whatever was a big f-up)

If both sides continue to argue it like it can only be the most awesome thing ever or an evil failure and nothing in between, we as consumers loose. While we're busy arguing, we're giving the companies on both sides way to much money for way little innovation.

Reconcile and unite: we demand a phone that looks good AND has good functionality!

[Wulile @ Nov 7th 2008 3:37AM]

I was gonna say everything he said but I had to take a dump first.

[Paul Evans @ Nov 7th 2008 3:43AM]

Here here.

[John @ Nov 7th 2008 5:04AM]

I do agree with you. When I first tried the Iphone I really liked it, it's very user friendly and has some really cool features. However, when it comes down to price and size/weight there are better options to consider. Some people may indeed like the Iphone, just as others like to buy the Samsung-Armani (which is very crappy phone except that it has the Armani lable on it). But when it comes to features/value Iphone is not doing to well, but thanks to Appels marketing tactic that has yet to become a problem. :-)

[Chad @ Nov 7th 2008 8:32AM]

I think the iPhone is a great product, yet somehow I still hate it. I'm pretty sure I, like most Apple haters, don't like it because we can't stand the douchebags that own it. They tend to be an arrogant group that like to gloat. It is kinda like how people hate "Ricers". The cars are technologically impressive (sometimes) but the people who drive them are typically arrogant assholes.

To recap:
Apple Fanboys ~= Ricers
(not exactly what I was looking for when I started writing this)

[Mark Anderson @ Nov 7th 2008 9:17AM]

It does look pretty good and it isn't an excellent phone.

But there are better out there.

[Mark Anderson @ Nov 7th 2008 9:19AM]

LULZ "isn't" h8r!1!!

[Paul Chapel @ Nov 7th 2008 10:30AM]

What puzzles me about this whole iPhone drama is this: I've had friends that have used Windows Mobile for years and they've always complained about how crappy it is. When the iPhone came out, these very same people turned into Windows Mobile lovers all of a sudden, bragging about the "features" that they had on those same WM phones that they hated the day before the iPhone was announced.

This went on for the better part of a year since the iPhone was announced. At least half of those people that I know, have bought an iPhone already. The other half still complain and fast forward every negative review they can find on the internet. What the heck is wrong with these people?

Before it was just a freaking phone, a phone they didn't like too much and could do without, if it came to that. Now their WM phone is their religion. WTF?

[WickedEast @ Nov 7th 2008 11:13AM]

Most of the Apple hate is caused by Apple fanboys themselves.

I'm sure lots of you here noticed those douchebags appear in comments section for articles and news about product X from company Y (say, e71 from Nokia) and sneer at aforementioned product and company and then go on bragging about how much better Apple products are.

If Apple fanboys weren't such arrogant pricks, I'm sure there wouldn't be so much Apple hate.

[wintermute000 @ Nov 7th 2008 3:52AM]

There's a few things wrong with it that would make deal breakers for some people (including me)

- battery life
- volume
- no turn-by-turn GPS (this is the single biggest dealbreaker for me)
- iffy 3G reception
- locked to carrier and OS closed down unless you jailbreak
- insane integration into itunes (which doesn't matter for those who don't run itunes on an always-on media centre)

Other than that, its smokin'. If the next gen model loses half the above downsides I'm in

[Pizzahut @ Nov 7th 2008 3:55AM]

iPhone is all about usable features, not check mark marketing features that many vendors claim. Sure, they all claim they can browse but try browsing with stylus or joystick. You see what I mean.

[gad get @ Nov 7th 2008 5:13AM]

Have you bothered using any other smartphones, or are you just taking Apple's word that all the competitors' phones have hopelessly clumsy browsers?

[Mark Anderson @ Nov 7th 2008 9:19AM]

I use an Omnia with Opera 9.5.

It's pretty good. Does that count?

[cwj @ Nov 7th 2008 10:14AM]

I have tried browsing with a stylus...and quite enjoyed it.

For reading a page and just scrolling around, my big, fat finger is fine. When zoomed out, however, I find the precision of a stylus can help.

After using finger only for two weeks, I picked up an old iPaq with the latest Opera Mobile beta release and had a lovely time.

Thus: touch+stylus+d-pad/trackball > any one of these input methods individually.