Smart Phone Smackdown

Rumours of an iPhone price break makes economic sense for Apple, considering a new report about its share in the smart phone market. Research firm IDC’s vendor survey shows that Apple’s iPhone had 19.2 percent of the U.S. market for smart phones during the first...

923 4
923 4

Rumours of an iPhone price break makes economic sense for Apple, considering a new report about its share in the smart phone market.

Research firm IDC’s vendor survey shows that Apple’s iPhone had 19.2 percent of the U.S. market for smart phones during the first quarter of 2008. That was down from 26.7 percent share in the fourth quarter of 2007.

Before you can say “holiday sales,” note too that Research In Motion’s BlackBerry took 44.5 percent of the market during Q1-2008–up from its 35.1 share in Q4-2007. IDCÂ analyst Ramon Llamas noted BlackBerry’s appeal to so-called “prosumers”–people who use the latest tech in both their professional and personal lives.

Whatever the reason, BlackBerry’s resurgence comes despite many observers’ predictions that Apple would dominate smart phones. Considering improvements (real or predicted)Â in the latest versions of both BlackBerry and iPhone, neither handset will be the obvious winner, technologically-speaking. They may have to resort to a price war.

Considering that, the $199 iPhone rumours sound great not just from a consumer standpoint, but from a strategic one as well. Though that could mean falling prices for BlackBerrys too–negating corporate strategy, but improving things for consumers even more.

The smart phone smackdown has begun.

In this article

4 comments

  1. Eydie

    Thanks Giff!

  2. Giff Gfroerer, i2SMS

    Eydie,

    You have it exactly right! The iPhone’s initial appeal was the exclusivity factor. I agree 100%.

    I am trying to think down the road, and this same exclusivity factor played out in all their other products until they released a lower price, no bells and whistles model.

    And you are dead on again with the “common man’s” needs and wants. Most folks don’t want all the bells and whistles like GPS, etc. and certainly don’t want to pay for extras they see no need for. But they have heard their friends raving about the iPhone and would love to have one without having to pay for all the bells and whistles.

    I couldn’t have said what you commented on any better!

  3. Eydie

    Hmm, kind of like the Mac mini?

    That’s an interesting idea, but I suspect the iPhone’s appeal is the exclusivity factor–not everyone can afford one, or can afford to take three days from their lives to stand in line for one 🙂

    However, if Apple is serious about grabbing market share (in the U.S. as well as around the globe, where advanced handsets are much more de rigeur), then you might be on to something. The iPhone’s biggest appeal to the “common man” is the nifty, intuitive interface, rather than bells and whistles like GPS, music, web-browsing (personally I could do without music, but only because I prefer CDs and vinyl, LOL). Maybe have a handset with only the basics–like calling and texting–that can be manipulated with the touch screen.

    Call it the iPhone itty-bitty 🙂

  4. Giff Gfroerer, i2SMS

    Let me throw out a thought here. What if a stripped down version of the iPhone came out? An iPhone, possibly smaller, without some of the glitz, to try to put a smart phone in the hands of those that can’t afford the high ticket price. Call it the “common-man’s” iPhone.

    Jobs has done this with all of Apple’s other products. Why not do it here as well?

    Sure, we will have the 3g iPhone at a steep price. Sure we will have the $199, 2.5g iPhone. But what about a $99 pretty slick, but not complete iPhone?

    I’ll bet donuts to dollars we get one of those soon… Too many folks missing out on the buzz that would love to get invited to the party…all except for the price tag!

Comments are closed.