“With the iPhone released and selling like hot cakes across the nation, people are speculating excitedly over how many units Apple and AT&T have actually sold to date. One group of people who’s speculating over that not so excitedly is Microsoft, who from day 1 since the iPhone’s announcement in January have shown tremendous fear — but not on the surface,” Carl Howe writes for Blackfriars’ Marketing.
“It all started with Steve Ballmer’s response to the iPhone on CNBC-TV [back in January],” Howe writes.
Howe then deconstructs the following video in which Microsoft CEO Ballmer laughs at Apple iPhone:
Howe writes, “What’s really telling of Ballmer’s response is his typically somewhat-nervous laugh: as CEO of Microsoft, he knew best of all people how serious a threat the iPhone was to them… Ballmer states ‘[Microsoft] is selling millions and millions and millions of phones a year, Apple is selling zero phones a year’ (remember, this was January 17th). Millions and millions and millions — that sounds about right, given Microsoft’s roughly 0.4% market share in the worldwide cellphone industry.”
“Microsoft has about 5.6% market share in smartphones, which is a mere 6-7% slice of the overall cellphone industry. Translation: they sold about 4 million cellphones running Windows Mobile (any version) in 2006… It’s fairly safe to say that there are only, in total, no more than 7 million Windows Mobile phones in the world,” Howe explains. “Apple’s stated 10 million goal seems a lot more aggressive already.”
How writes, “Yet, the real kicker is what the iPhone really is: a fierce attack on many industries, companies and platforms. Above all, though, the iPhone is an attack on proprietary formats, one of Microsoft’s core competencies.”
The iPhone attacks:
• The cellphone industry at large.
• Companies ranging from carriers to handset makers to OS makers to Opera.
• Proprietary codecs.
Howe explains that Apple’s iPhone is “also the first real threat to Microsoft from a desktop point of view: Linux-based cellphones (about 17% of all smartphones) weren’t really convincing people to leave Windows behind and switch to Linux, but the iPhone may very well convince people to switch to a Mac.”
Full article – very highly recommended – here.
[Thanks to MacDailyNews Reader “MacVicta” for the heads up.]
Howe concisely nails many points in his excellent article. Please click through and read his full article.
Hotcakes are selling almost as well as iPhones!
@road warrior
There’s nothing wrong with MacBooks, but I’m actually finding people who could replace theirs with an iPhone instead of vice versa. Email? Check. Web? Check. Calendar, photos, music, movies? Checks. Fits in a pocket, way cheaper, and you don’t need to carry a separate phone. You won’t do any Photoshop on it, but many people never do that on the road anyway.
P. S. Posting on the web, like I’m doing now from my iPhone? Check.
For me, the iPhone fills a gap between working on a computer and leisurely cruising for news and entertainment. When I just want to look at MDN or Roughly Drafted or CNN or whatever, and check my email or other info – it’s perfect. I like that it’s NOT a full-on laptop because I don’t get side-tracked and let work mix too much with leisure. I can go to the coffee shop and watch some YouTube or read the news and check my stocks and stuff. It’s absolutely perfect for this. Certainly more useful than the Motorola Generic Bargain Special what is currently spending the last stages of its stand-by time gathering dust on a shelf at home. I actually WANT to talk on the iPhone. I look forward to people calling. Kind of a nice change of pace.
It’s no laptop, but that’s okay with me, I don’t want it to be one.
-c
I go to an auction. I preview before the bidding starts, placing my sights on a 1920s varqueno in need of a little love. I do a bit of research on several of my bookmarked antiques web sites.
I win the chest for $550.
I spend an afternoon doing a bit of refresh with some Howard’s restore, some shoe polish, and some briwax.
I sell the varqueno to a client for $2200.00.
The iPhone has paid for itself and the rent on my retail space at the antiques co-op.
Tell me the iPhone is not good for business.
Microsoft had a clue once of a mobile killer app called qode.
If Apple get a hold of qode. Kiss Microsoft and their mobile devices good buy. Then the physical world will be at everyconsumer finger tips.
This is a pretty good article but I was thinking while reading it that the author sounds a bit like a fanboy and then saw the disclaimer at the end. Nevertheless, it makes some rather cogent points about the market and Apple’s new position in it.
Not only that, [iPhone is] also the first real threat to Microsoft from a desktop point of view: Linux-based cellphones (about 17% of all smartphones) weren’t really convincing people to leave Windows behind and switch to Linux, but the iPhone may very well convince people to switch to a Mac.
I’ve thought this since January. I can’t imagine being out and about working and playing on your iPhone and then coming home to sync it with your Windows box and not think, “Man, Windows really sucks.”
An anonymous source told me Mrs. Butterworth activated over 20 million hotcakes just last weekend!
For me, the iPhone fills a gap between working on a computer and leisurely cruising for news and entertainment.
See, this is what I want a tablet for. There are many times while cruising teh intertubes that I’ve wished I were able to take the lot of pages open in Safari and relax with them on the couch or at the dining room table. And if Apple can make multi-touch work (optionally) along with something like a battery-less Wacom stylus then the tablet would be my primary workplace for all of my illustration, too.
I would like to think, like cell phones, the reason the tablet market hasn’t taken off is because no one has done it justice. I’d like to think that this kind of leisure computing market is more than just smart phones.
Aww shucks ChrissyOne – you’re teasing now – it’s gonna be a while before we get the iPhone to europe.
@justified
Finally, a sane argument for the iPhone.
Exchange Sucks.
I am the Lotus Notes admin at a company in Utah and we use IMAP4 via SSL to access our mail over our Treos (both Windows Mobile – which SUCKS – and Palm OS). I now use my iPhone to access my mail even more efficiently. This is from a Lotus Domino server with IMAP enabled. Easy. Fast. Efficient. Secure. And my mail displays properly, not all mangled like on the Windows Mobile device or the Palm OS device (no offense to Palm, still love your OS – way better than Wincrap Mobile, but the email is terrible).
Give Apple 12 months. They will wipe the floor with the competition.
The Mac tablet=Bigger iPhone, the fondations are here
“Ballmer states ‘[Microsoft] is selling millions ‘[plural] and millions ‘[plural] and millions ‘[plural] of phones a year”
That at MINIMUM makes 6 million phones a year. If Carl Howe is right when he states “sold about 4 million cellphones running Windows Mobile (any version) in 2006” then Ballmer is lying! (okay, incorrect)
Oh for God’s sake — or Oh, for God’s sake. Where can you get a $200 Blackberry?
Because, until I get my Rev2 iPhone — I’d like to buy, then flip this $200 Blackberry.
I think I either smell opportunism, or I smell fertilizer.
We are witnessing the beginning of a new trend. It’s not the one you guys are thinking of though.
I’m talking about how one day soon, hot cakes will be history, and products that sell well, will be said to, “Sell like iPhones.”
Is everyone charging a dead battery every night like I am? My iPhone has been constantly ON since getting it. I’ll never be able to test that “250 hours standby time”. This is quite simply the single greatest invention of our time. And, to our friends across the ocean patiently awaiting their time to get one… keep saving your money, you will consider it well spent (after you get done letting all your friends play with it). It is a very addictive “toy” and just a joy to have & hold. I downloaded “Finding Nemo” to iTunes, then to the iPhone… and I have to admit it looks fantastic. Apple has given the world something very special to enrich their lives. Look to any current iPhone owner and see them smile. Do RAZR owners smile and gloat about what they carry on their belt clip holders? Are they enthusiastic about their phone? What about those Blackberry owners? The ones I see on a daily basis like them, but all have admitted they’re hard to use. I showed them my iPhone and EVERY single one of them said they would switch to an iPhone as soon as their contracts were up. So, keep your hopes up very high Europe…
you’re gonna love this!
For a very funny skit on hot cakes, check this out from Big Train, a very very funny Brit show. If you do follow the link, look at the other Big Train skits as well as they are all pearlers.
HOT CAKES
@gary
Yes, I have encounter the same problem with my I phone… Battery life is the pits. I use it so often now that recharging is a daily theme and often I am charging it even twice in a day.
Apple has really made my life so much better than lugging around a laptop- now I lug a palmtop around.
Creating a larger carbon finger print and namely in Microsofts eye.
Hey guys this is for real
I would like to come to US to work I have many skills my passion is in Product development and Design, I have filed for provision patents before.
But l have been working around IT for about 5 – 6 years; server, web and client.
I am hopin there may be a cool job in USA, ?
Regardios Anthony
The 7730 from Verizon is $199 with a $50, the 8703e is $249 with a $100 rebate, the 8830 is $299 with a $100 rebate.
In other words, every Blackberry Verizon sells is $200 or less.
At AT&T, the Curve is $299 with a $100 rebate, the Pearl is $249 with a $100 rebate, the 8700c is $249 with a $50 rebate.
Sprint… T-Mobile… You get the point.
Get to flipping, fertilizer boy.
Why is it that most (not all) IT folks just hate everything that means they have to change, or tackle an issue ? They embrace nothing new, they are always the rock in the stream. Can’t do this, can’t do that. Listen up IT (not all) people here is a tip for you. Move out of your Mom’s basement. Get that Klingon outfit off. Get outside more, go camping or hiking – embrace change, smile more. Learn to like to please your fellow employees. There, don’t you feel better ?
Your world is going to change very soon, like it or not.
Howe absolutely nails it. The iPhone — and, BTW, Apple TV — attack all of the proprietary platforms infesting the Internet. Apple is betting that the limits free commitment to open standards will win the day. Google is in the same camp. Microsoft had better be sweating it. So should Adobe.
“Why Microsoft’s so scared of Apple’s iPhone”
Forget sales numbers, the Gates and Ballmer children all want iPhones.
Actually, I am a server at an IHOP (Tucson, Arizona) and I can tell you that our current promotion ( Strawberry pancakes, Strawberry french toast and Strawberry funnel cake ( Which come with a regular, big or sampler meal)) is selling so well that we actually ran our distributor out or strawberry compote.
So I suppose that says it all right there about them there hot cakes eh?
MW today, as in today is one of my two days off,
OFGS, you are likely correct.
However, American telcos and American prices.
How silly of me to think that there’s the world OUTSIDE of America. (Nothing against it, but the other 5.7 Billion of us actually DO exist. FWIW, That’s 95%)
But, my fault. I should have considered that I was responding to an American. And I should have EXPECTED a response with an American POV.
Sorry if I ruffled your feathers. And I know you were thinking globally when you responded. Well, ‘globally’ from your POV.