Analyst confirms Apple slid past RIM to become number two smartphone vendor
By Chris Ziegler 
posted Nov 7th 2008 2:44AM
posted Nov 7th 2008 2:44AM
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
Fashion statement.
oh yea .. it sexy and it does most of everything... if you jailbreak of course ^_^
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...
@PM1
The most feature-rich phone?
You and I must've had different iPhones.
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!
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.
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.
I always knew the iPhone was a big #2.
"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.
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!
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
woah nokia is number one in smart phones? news to me
Maybe Engadget should remember that they've an international readship and pen their articles accordingly?
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.
Apple deserves it. RIM didn't' innovate.
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.
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.
No, they did innovate - see the Storm and the flip Blackberry for details - they just didn't release anything new last quarter.
What are you whining about? They released an HVGA phone that has higher pixel density than the iPhone. Isn't that what matters?
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.
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.
@ 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.
"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.
Are you sure? 18 months ago they were all using Blackberries and they switched.
Smart ass.
Since when does having a job that requires you to wear a suit mean your dumb?
@mike
lol good one ;]
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.
Just because they owned blackberries doesn't mean they knew how to use it.
@ 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.
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.
*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.
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?
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.
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.
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...
the storm doesn't have wifi, what a joke!
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!
I was gonna say everything he said but I had to take a dump first.
Here here.
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. :-)
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)
It does look pretty good and it isn't an excellent phone.
But there are better out there.
LULZ "isn't" h8r!1!!
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?
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.
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
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.
Have you bothered using any other smartphones, or are you just taking Apple's word that all the competitors' phones have hopelessly clumsy browsers?
I use an Omnia with Opera 9.5.
It's pretty good. Does that count?
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.
As a self-proclaimed S60 fanboy, even I am absolutely appalled by Nokia's offerings for late 2008. Everyone else has surpassed them or is about to, and the reasons to buy an S60 over anything else is starting to get very slim.
The only thing that MIGHT compete is the 5800, but even that will appeal towards veterans of the platform. Newcomers will still prefer the iPhone for the experience.
Why exactly are you 'appalled'? The current generation of s60 phones are the first i've used that aren't sluggish. The functionality is top notch and with the e-series they've the best industrial design i've seen from them years - especially the e71, which boygenius called the 'best nokia ever'.
Or do you rate phones on their potential to get their screens covered in fingerprints?
Have you even looked at what they have to offer is U.S. ->http://www.nokiausa.com/A4409001. Buy a phone there and you are not locked to any carrier. Choose a plan you want from the carrier. Also don't let your carrier's marketing material say what what you are supposed to do with the device. Wake up U.S. already - carriers only build networks and bill you . Dammit.
I kind of agree with Pat. The E71 is the best phone Nokia has ever made. It's good looking, the battery life is great and it's incredibly stable.
It's a shame that the N-series haven't improved as rapidly but I'm sure they've got some good things in the pipeline.
I think that since the iPhone came out, I've seen an advertisement for it every single time I've watched television.
I saw the television ad for the BlackBerry curve for the first time about 4 months ago, and haven't seen it since. The only other time I see a BlackBerry in commercials is from carriers, when they are thrown in with a bunch of other phones.
I don't think that a customer satisfaction survey has much to do with it.
Sure, Apple has JUST released the first iPhone. RIM has JUST started (really) trying to advertise to anything but business.
Totally agree that marketing has sold many iPhones - I see so many iPhone commercials on network TV that it is become annoying. I have watched some shows that had 2 iPhones commericials during the same episode. Rarely do I see a non-carrier ad for an individual phone other than Apple. The carrier commericals usually show multiple phones.
Apple does have great marketing, not necessarily the best products. Apple did the same for the iPod. During the meteoric rise of the iPod, saturation marketing by Apple was common. Network TV had multiple commercials for iPod via zero for competing devices, major city subway stations were plastered with iPod ads, and the trolleys themselves were plastered with iPod ads.
I am not saying Apple shouldn't advertise, it has worked well for them, and congratulations for several very sucessful marketing campaigns are in order. A friend of mine was all excited about his new iPhone. Wow, I can get all my email on it. I didn't have the heart to tell him that smartphones have been able to do that for years before the iPhone. Apple does not state that the iPhone is the only phone that can do basic things like email, and web browsing, but many people believe that because the only ads they see are for iPhones. Again, congratulations to Apple for clever, successful marketing campaigns.
An earlier poster claimed that all the Apple products we see in TV shows, and moves are not paid for by Apple. Funny, I just finished watching the latest 30 Rock episode from Hulu which feaured the MacBook Pro, and at the end of the show there was the "promtional consideration paid for by Apple" statement. Wonder what they meant by that since Apple does not pay for promotions according to an earlier poster?
They market well because they have product that is actually worth spending money on to market. Simple as that. You're suggesting that they should make a product and keep it in the dark? Brilliant! I want you as head of marketing in my company!
I was not complaining about Apple marketing, in fact I said it was slick and effective. I was relating my opinion that the slick, effective Apple marketing has sold many Apple products including iPhones. Marketing is a good thing. With rare exceptions, all successful companies have extensive, effective marketing campaigns. As I also indicated in my original post, my friend was excited about the iPhone being able to retrieve his email. He thought the iPhone was the only device that could do this because the only device he saw advertising this ability in TV ads was the iPhone. Apple should definitely continue their successful advertising; however, competitors should learn a marketing lesson from Apple, and also advertise heavily on TV (not just tech publications). The competitor's ads should include basic features like email for the non-tech viewers who will see their TV ads.
Although the iPhone is too feature deficient for my smartphone needs, it is a slick device that does its limited (for me) functions quite well.
Newsflash: Iphone is not a smart phone altough it falls short of that. Better check the new releases from HT and Samsung or even LG.
I can't let this one go, 'Apple slid past rim'? Either I've got something on the brain, or that was an intentional anal joke.
It's a power trip, nothing more. Blackberries have become common and are given to all levels of staff so now the bigshots want something new to say 'hey i'm rich and powerful'. Most companies stick to blackberries as a corporate policy, but if their CEO asks for an iPhone their IT dept. will run to get one for them, if it was a regular middle manager or techie they'd tell you to get lost and put up with whatever old blackberry they had lying around.
This is what I absolutely love about Engadget. In a quarter where absolutely no new devices were out except the 3G iPhone, Apple did better than everyone else, and Engadget runs a "best selling smartphone ever" article. In a quarter where AT&T was specifically holding back the BlackBerry Bold, because they didn't want it to step on iPhone sales, the iPhone did better than BlackBerries, what a shock! Who wants to take odds as to whether or not Engadget is going to run a big story next quarter talking about how the iPhone comes up behind RIM and HTC as three new BlackBerry models come out, and HTC branches out to Android devices as well as Windows Mobile? I certainly have missed all the quarterly reports up until this one where the iPhone was behind just about everyone else, even Palm.
Somehow, if the past is any indication, I suspect that from now on Engadget will use this one quarter to repeatedly say that the iPhone is the best selling smartphone ever, no matter what subsequent quarters look like.
You hit it right on! They're keeping back the Bold on purpose! It has nothing to do with the OS and network glitches that RIM is trying to fix up and that those in the UK are having issues with. It all makes sense now. Thanks for contributing your low IQ to this discussion.
"Windows Mobile's 13.6 percent" unbelievable.
what some people will put up with. shakes head. unbelievable.
Number doesnt seem right either considering WM sold more licenses in the past year than apple has ever sold. I think thats market share for the quarter. Which makes sense since apple had their big launch in that time.
Yeah, I totally know what you mean! Like what is up with all these iPhone people putting up with having to hack their own phone just to get basic functionality out of it, and developers putting up with getting their apps refused and then copied by Apple? It really is amazing what people will put up with just to support their favorite brand, isn't it?
Considering all the models of Windows Mobile handsets that are available and supported by just about every wireless carrier, Windows Mobile has no excuse for not being #1.
@Evan
Yes they do. It's called "open competition".
I know fans of certain brands aren't familiar with that concept so I'll let it pass. This time.
"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."
Goes to show that a feature is worthless if your target audience can't figure out how to use it. Regardless of how you feel about the iPhone, you have to admit that it is incredibly easy for non-tech people to figure out how to use it. That has always been Apple's strong suit.
I'm sure it's a matter of perspective.
A lot of iPhone users probably aren't coming from Windows Mobile or Symbian. They're used to free with contract dumbphones. In comparison to most phones sold in the US, the iPhone is 5/5 for features. Compared to its rivals, it's maybe 3/5.
I'm sure Apple's "OMG, we're amazing! We invented 3G!" adverts help shape perceptions too.
Completely agreed.
"J.D. Power's satisfaction ranks "
What is the universe of customer used for this test?. (or companies, companies are unlike to share information about their platform).
What is the, social status, regional location and job occupancy of the customer?.
Was obtained by current users?
Was obtained (the ranking) using the current features of the cellphone?.
AFAIK this raking say nothing, just a bunch of datas mixed together and some analysis to show and give some points. Or you could say, is just a ads in disguise.
I am not saying that iphone is a good or bad cellphone, just this ranking is good for nothing, a "Jedi trick mind" ;-)
Congratulations to Apple and the iPhone. With that said, who didn't see this coming? This was projected last quarter when the iPhone market share in the second quarter dropped because Apple was prepping for the 3G launch. It really isn't difficult to post those numbers if the competition doesn't have anything new to provide the consumer.
For example, if the Bold was released when it was suppose to, I think the numbers would be different. Right now, AT&T said how a lot of people have been responsive to the Bold finally being released. I'm sure consumers would've have been even more responsive when the Bold was released when it was suppose to with all the hype (the hype died down when AT&T kept on delaying the Bold)
But look for market share to go back and forth. Next quarter, RIM is going to get all that back with the Storm, 89xx (if it actually gets released soon like the rumors say), Bold and 8220 while Apple slips with just their one handset.
(From the 15% I'm thinking this is global market share? and for only the third quarter? What is the total market share each company has?)
It's not a smartphone... It's a media-centric featurephone with enhanced browsing capabilities.
And that all-powerful Apple logo on the back.
I suspect the reason why the average-Joe iPhone owner feels that it is feature-rich, is because it does pretty much everything they want it to do, and not a lot that they don't need it to - MMS being the main example.
Yes, it's a big glaring feature to leave off, and it's great to use to bash the iPhone with, but when don't have it on your phone, you don't actually miss it. So what's the point?
Really? That's one of the biggest complaints i've heard from iphone users. To me, one of Apple's greatest victories and assets is that they can convince macheads that they actually don't NEED features, just because they left it off.
I use my cut_paste on my Blackberry 7130 EVERY day. Creating new contacts, replying/quoting, etc. But I guess it's superfluous, right?
I don't think MMS is a big deal. The only time I've used it is when an annoying girlfriend wanted to send me a picture. Of course, my best friend has an iPhone and I always annoy him by saying I have a great picture of some hot girl and I'll end the discussion by saying, "Hey, dude, I'll text you the picture."
He gets mad and says, "You know I have an iPhone!"
Of course, I secretly want an iPhone and he knows that. So I guess he has the last laugh.
Apple became number two smartphone vendor? Surely, there's bashing material in there somewhere.
Oh (sees all the above).
I'm sure RIM will retake the number 2 spot once its new lineup comes out. The reason why this is remarkable is because Apple did it with ONE DEVICE!!!! RIM sales several different phones and they have 3 new ones coming out... this is what it will take to return Apple's lone phone to number 3. The dynamic would certainly change if Apple were to release different lineups (not happening anytime soon).
too bad it's not a smartphone...
no anti-apple here, but the iPhone is just another featurephone.
That's pretty amazing considering Apple only has one phone...
Sales numbers do look good, but then again is there any talk about target demographics? Apple goes after a much wider mass audience - everyone from teenagers to rappers to head honchos. Isn't a CrackBerry meant for the corporate types? How many firms have actually adopted the iphone for their corporate email?
I would not trade my IPhone for anything. This is one of the greatest purchases I have made. For someone who is always traveling there is no other phone to have.
Uh, just how exactly the hell is the iphone a smartphone?
No copy/paste, no file browser, no bluetooth file transfers, proprietary interface, no a2dp...
Sound's like the dumbest phone imaginable to me.
Apple haters come forth! Bring forth your amazingly lame excuses as to why Apple is kicking everyone's trash! Marketing... Fad... Fashion statement... Apple logo... Because all of America besides me is to stupid to see past the shiny surface... Because it's a P.O.S.... (oh wait....) Yes that last one is my favorite. Please stop polluting Engadget's forums with your stupidity.