iPhone loses market share to RIM, Palm - News - Communications

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This story was printed from ZDNet Australia.
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iPhone loses market share to RIM, Palm

By Tom Krazit, CNET News.com
June 03, 2008
URL: http://www.zdnet.com.au/news/communications/soa/iPhone-loses-market-share-to-RIM-Palm/0,130061791,339289520,00.htm

Apple's iPhone has experienced a setback in the US smartphone market during the first quarter, losing market share to the likes of RIM.

According to data compiled by research firm IDC, Apple lost market share going from the fourth quarter to the first, making it number two smartphone maker in the US behind Research in Motion's BlackBerry. The drop in market share occurred at the expense of RIM and Palm, according to the figures provided by IDC analyst Ramon Llamas.

RIM's market share went from 35.1 per cent in the fourth quarter to 44.5 per cent in the first, while Apple's dropped from 26.7 per cent in the fourth quarter to 19.2 per cent in the first. Palm's Centro lifted that company's market share to 13.4 per cent in the first quarter, up from 7.9 per cent in the fourth. Samsung and HTC ranked fourth and fifth in the US market with 8.6 per cent and 4.1 per cent of the market, respectively.

During its most recent earnings call, Apple revealed that it sold 1.7 million iPhones, down from the 2.3 million units it sold during the fourth-quarter holiday shopping season. Both RIM and Palm grew their shipments on a quarter-by-quarter basis over roughly the same time period, although the dates don't match up precisely with Apple because RIM and Palm are on slightly different fiscal calendars.

It's not clear what has led to the decline. Both RIM and Palm have intensified their pursuit of consumer smartphone users, RIM from the high end with devices like the Curve and Pearl, and Palm from the low end with the US$99 Centro.

Given the iPhone shortages that have been going on for several weeks ahead of iPhone 2.0's expected debut next Monday, Apple might have also lost share this quarter. But the company has consistently reiterated its intention to ship 10 million units in 2008, the first full calendar year the iPhone has been on sale. RIM sold 14 million BlackBerrys during its 2008 fiscal year, which ended on 1 March.