“AT&T recently revealed that the 4-month-old iPhone is its top-selling handset. How long until it leapfrogs the competition — including Motorola’s iconic RAZR — to become the No. 1 handset in the U.S.?” Elizabeth Woyke asks for Forbes.
“Three to six months, says research firm Strategy Analytics,” Woyke reports. “It calculates that the device, which Apple reports has sold 1.4 million units since its June 29 release, is the fourth-best-selling handset in America. Moving 1.6 million to 1.7 million more phones in the fourth quarter would likely put it at No. 1, says Barry Gilbert, vice president of Strategy Analytics’ BuyerTRAX, a quarterly consumer tracking program. ‘The iPhone has momentum that is basically unparalleled,’ says Gilbert.”
“To claim the volume lead, the iPhone would need to outsell the top three handsets — currently Motorola’s RAZR v3, LG’s Chocolate and LG’s VX 8300, according to iSuppli,” Woyke reports. “In terms of profitability, the game’s over already. Though numbers for the v3 are all over the place, iSuppli estimates that Motorola nets about $35 per unit. Apple makes about $133 off each iPhone. The figures don’t take into account revenue or royalties from the carriers.”
iPhone’s performance in the market is “articularly impressive given that RAZR enjoys a clear mass-market edge. It works on every major wireless network in the U.S., while the iPhone is currently only available through AT&T. It’s also cheaper. Wireless carriers subsidize the the cost of the v3 by as much as 100% to lure subscribers.,” Woyke reports. “‘The iPhone was originally viewed as a niche product,’ says Gilbert. ‘But its design, features and functionality are turning out to have broad appeal.’ Imagine that.”
Full article here.
[Thanks to MacDailyNews Reader “Mike in Helsinki” for the heads up.]
Only those who didn’t grasp the history and success of the iPod while also failing to understand the iPhone initially viewed the iPhone as a niche product.