Apple’s iPhone Tops All Other Smart Phones in the US
By Max Brenn
23:05, September 4th 2007
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Apple’s iPhone Tops All Other Smart Phones in the US

The expensive UniquePhone dethroned all other smart phones sold in July in the US, a territory where most consumers aren’t keen on paying more than $100 for a handset.

According to estimates provided by research firm iSuppli, famous for having uncovered the losses Sony suffers with each manufactured PS3 or the profits Apple Inc. reaps with every iPhone, Apple’s touch screen gadget is now on the top spot (as if that would be a surprise…) among all smart phones acquired by customers in July.

In its first month of presence on the market, the iPhone accounted for 1.8 percent of all mobile handset sales in the U.S, meaning that more than 220,000 handsets have been bought during summer’s hottest month. iSuppli’s data has been gathered based on a survey of more than 2 million U.S. consumers.

Other smart phones from the likes of RIM, Palm, Sony Ericsson or the almighty Nokia have paled in front of iPhone’s attractiveness, which has only been equaled in the same interval by LG’s Chocolate handheld.

"This is a remarkable accomplishment for Apple, considering that July marked the first full month of sales for the iPhone," iSuppli wrote in a report released Tuesday. "While iSuppli has not collected historical information on this topic, it's likely that the speed of the iPhone's rise to competitive dominance in its segment is unprecedented in the history of the mobile-handset market."

As a consequence of iSuppli’s findings, Apple will have to raise the bar to 4.5 million iPhones shipped worldwide in 2007 (including Europe, where the Cupertino giant is currently negotiating with high profile names like Vodafone, Orange or O2 for exclusive contracts), and to more than 30 million units by 2011.

"Some of the iPhone's success in July can be attributed to pent-up demand following months of hype. Real proof of success will come in the coming months as demand patterns stabilize," iSuppli wrote. "Based on consumer demand, Apple's brand image, industry anticipation and iSuppli's estimates of volume shipments by manufacturers and the market segment, iSuppli is maintaining its projection that 4.5 million iPhones will ship in 2007, rising to more than 30 million units in 2011."

The gadget’s audience is composed of 52 percent males and 48 percent females, and most of them (57 percent) are 35 years of age or younger, iSuppli reported.

Nearly two-thirds, or 62 percent, of iPhone buyers in July had a four-college degree or more education.

One quarter of consumers (roughly 25%) who bought iPhones switched to AT&T service. AT&T is the exclusive provider of service for the iPhone and has extensive reach with its current customers – it now serves more than 62 million customers, and its customer base has grown at least 40% since the end of 2004.

The study and its consequences prove once again Apple’s force and the company’s ability to literally shape markets according to its own needs.

Another research published immediately after iPhone’s launch, on July 13, and this time conducted by Parks Associates, had shown that only 3% of the US customers were interested in purchasing Apple’s craved gadget at the $499.99 price tag, and with a two year contract. 

On average US customers are willing to pay only $99 for a regular phone and $199 for a smart phone with a two-year contract. The majority of consumers still consider network and voice quality as the most important factors for their choice of mobile carriers, and only a small percentage consider handset design as important.

The revolutionary phone crafted at Cupertino that also packs an iPod and an Internet device under the hood (and which is also very profitable for Apple), has been seen as the only hope for a refreshing change in the otherwise static and extremely competitive telecom business. And it didn’t fail.

iSuppli’s report will not only boost Apple’s shares in the eve of two major events (one occurring probably as you read these lines in San Francisco and probably having to do with the overhaul of the iPod line and another expected this October- the debut of Mac OSX Leopard), but will also give Steve Jobs the upper hand during his negotiations with its future European partners.

Apple has said it is targeting the sale of 10 million iPhones in 2008.



© 2007 - 2008 - eFluxMedia
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