Apple, RM Battle Shapes Up

Apple took 28 percent share of the fast growing U.S. converged device (smart phone) market in the fourth quarter of 2007, behind Research in Motion’s 41percent, but a long way ahead of third placed Palm at nine percent, say Canalys researchers.

Apple also finished ahead of all Windows Mobile device vendors combined, whose share was 21 percent in the quarter.

Globally, converged device shipments rose 60 percent to hit 115 million in 2007. U.S. sales doubled.

Nokia remained the global market leader, shipping 60.5 million smart phones, while RIM shipments grew 112 percent to 12.2 million.
Globally, Symbian operating system devices had 67 percent share, followed by Microsoft on 13 percent and RIM with 10 percent.

Apple claims that nearly 70 percent of all mobile Internet traffic is generated by iPhone users. Executives at Google, meanwhile, have confirmed the basis thesis: iPhone users surf the Web way beyond anything seen up to this point.

On the other hand, RIM points out that nearly two thirds of its 12 million BlackBerry subscribers in December 2007 were government or corporate customers.

The observation is that as the smart phone market continues to grow rapidly, the dynamics of the U.S. market--as distinct from the global markets--are shaping up, in part, as Apple going "up market" to enterprises and RIM going "down market" to consumers. That's not to dismiss Microsoft-powered or Nokia devices, but simply to illustrate a dynamic.

We have a market likely to take new shape as devices and users expand beyond the original base of "mobile email" addicts. The iPhone has shown there is a new class of user who uses mobile email but also surfs the Web and uses the mobile Internet in ways we haven't seen before. That's going to get designers moving in different directions as the various segments start to emerge. For some users the current iPhone or BlackBerry interfaces still will work. For others, something else might emerge.

Personally, I like the ability to swap SIMs between devices, which iPhone doesn't want me to do. I like to be able to change my own batteries, which iPhone doesn't want me to do. Small things, of course, but real barriers to me getting rid of my BlackBerry. Other choices will have to be made by music or video afficianados.

Enterprise iPhone? Just talk to RIM Servers

Though there are other issues, Apple would get far down the road as an enterprise device if it did just one thing: ensure compatibility with Blackberry servers.

Though Microsoft Mobile is growing its share, BlackBerry is the device to beat. Apple will keep getting heat for its lack of security as well.

But the main thing is the ability of a user to get company email on an iPhone, not just on a Blackberry.

Does iPhone Hurt BlackBerry?

If Changewave Alliance members are an accurate reflection of broader market trends, sales of Apple iPhones do not hurt sales of Research in Motion BlackBerries, Curves and Pearls. Since January 2007, it appears the percentages of new phone buyers who plan to buy either an iPhone or RIM device have increased fairly steadily, with Apple retaining a slight edge in buying intention.

Of course, things could change once poll respondents actually go to the retail outlet to buy. But the poll suggests that the iPhone is not hurting RIM's handset sales. Instead, sales of smart phones seem to get a boost. Among brands, it most likely it is Motorola devices that are taking a hit.

Now This is a Smart Move

T-Mobile has rolled out the BlackBerry Curve 83200 with Wi-Fi support, so the device can be used with T-Mobile's Hotspot@Home system or on public hotspots. As part of that plan, the Curve can be used for unlimited calling from the home or public Wi-Fi zones. That costs an extra $10 a month.

The in-home router T-Mobile sells is optimized for voice and costs about $50 but there is a rebate, we understand.

Dual-mode service with limited or unappealing handsets is a main reason why femtocells, which place no restrictions on end user handset choice beyond the limitations of handsets any given carrier will support, have seemed to me a wiser choice for fixed-mobile consumer applications. Giving Curve Wi-Fi is smart.