Apple's "Useless" iPhone Takes 3rd Place In Q4 (AAPL)

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How did the iPhone stack up against the competition during Q4? Very well! Research firm Canalys says Apple (AAPL) accounted for 6.5% of the global smartphone market, third place behind Nokia's 52.9% (NOK) and BlackBerry maker Research In Motion's 11.4% (RIMM).

Good news for everyone involved: the smartphone market itself is growing at a rapid clip, with unit sales up 72% year-over-year to 35.5 million devices in Q4. And growth is accelerating -- Q4 was the best y/y growth quarter all year.

But Apple's performance was especially impressive considering it was only available in four countries -- the U.S., U.K., France, and Germany -- through one carrier each. Nokia, RIM, etc., are available on many more carriers, in many more countries.

Meanwhile, the FT reports that KPN chief Ad Scheepbouwer would love to offer the phone in the Netherlands, where it's not on sale yet. But he has a weird way of showing his fondness for Steve Jobs' gadget -- by insulting it. "I had one and I thought it was a pretty useless phone, to be quite honest," he told the FT. "The battery ran out in no time. I didn’t like the touch screen."

He also said it hasn't had much impact on KPN's business in Germany, where rival T-Mobile is Apple's exclusive carrier partner. Scheepbouwer "said the 70,000 iPhones sold since November in Germany was 'not a particularly impressive number' compared with the 700,000 net new customers [his company] gained in the fourth quarter, its fastest growth since 2000." Way to talk your way onto Steve's gravy train, Mr. Scheepbouwer.

See Also:
Apple Increases iPhone Memory, Margins
Apple's U.K. iPhone Carrier Sweetens Deal. Sales Slumping?


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Steve said:
The IPhone is still too locked down for me. With a windows smart phone, I can add all sorts of programs, even freebies, and I don't need anyone's consent (aka itunes store).

I'd buy an iphone if:

1. Apple let you put your own software programs it without going through them...talk about no privacy, the will know exactly what every user has on his phone...

2. Add a real keyboard, like i've heard is coming to the iphone,

3. Be available on verizon, cause ATT sucks

4. Add a place to put a memory card, which can't be hard if every other mobile phone does it

5. Let me replace the battery, which every other consumer product outside the apple brand allows

6. I never use video or picture mms, but i guess i just don't see why the iphone can't do it. My first mobile phone about 5 years ago could do both of those tasks easily, why can't apple?

7. Podcasts, I've heard it can't update podcasts without being connected to a computer. My windows mobile phone can update it's podcasts via turning on wifi, no computer needed....why is that? Because there are no restrictions to what sort of programs i can run. The iphone can't do that.

I'll admit, the iphone looks really really cool, and what it can do, it does well, but for the money, it still can't do a whole ton of things.

It's just funny to me that people always mention the shortcomings of new tech products, but when it comes to apple, they just sing praises about what it can do.

With most companies, they try to find out what people want, and then they produce their product hoping you'll like it. With Apple, they have good commercials, so they don't need to listen to consumers, they just tell consumers what to think, and what's funny is that people buy into it.

Gregory Kelley said:
For some reason people seem to think that a sale of an iPhone without an ATT contract is a bad thing for Apple. Well, first it means that Nokia and Blackberry did NOT get the sale. That is a zero profit for them. It also means the ultimate carrier ends up with the lowest profitability type of service contract. And market comparisons of a single phone to the whole product lines of Blackberry and Nokia seems to miss the point. Ask Motorola what they think about the iPhone. They can NOT even get a bid for their cell phone unit. NO BIDS! Motorola may be the first body bag in the iPhone onslaught.

Finally, I am getting used to over paid executives who make spectacular remarks without knowing their own markets. Ballmer (MS) was very negative on the iPhone before it went on sale. Now we have a european executive with his foot in his mouth. I've had Nokia and Motorola phones. I have an iPhone now and man there is NO COMPARISON. And remember, both of these executives had every opportunity to do this first. They were both in the phone business long before Apple showed up. I figure it will take Apple about three years to fill out the product line. 50 million phones in three years does have a ring to it.

Logan said:
Though I like the iPhone, in theory, I still don't like the idea that I can only have it under one company in the US. I am very much used to the European style of doing business where you can keep your phone and change plans and vice versa. iPhones need to be able to reach more people.

lrd said:
That's great for Apple.

Soon they be getting an extra boost of $300 million/qtr from iphone, Apple TV & iTunes sells.

And that will grow with each iPhone sold.

I'm thinking by the end of this calendar year we'll be looking at $500 million per quarter!

Now let's look at its competitors in that same time span: Dell would have 1/4 less of it's workforce; Gateway may be out of busy altogether; Lenovo who? Acer seller of crap; Sony who? And finally Microsoft I can make an iphone too from Surface that's sold less than 10 units sold far.

Dan said:
A lot of iPhones are being sold without subscriptions... but I don't think Apple is selling them *below cost* and expecting the subscription revenue to compensate for it. iSuppli estimated it costs Apple on the order of $265 to make an iPhone, so if someone buys one for $399, Apple should still make a very nice profit.

Mark said:
Well, looks like Nokia isn't threatened by Apple any time soon. How do you define "smart phone" btw? Internet capability?

Steve said:
Impressive start for Apple. But don't get carried away, they're stuck with AT&T for a while and having a hard time getting into Japan and China. Also, a lot of iPhone's sold without a subscription.

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