RIM gains U.S. market share in Q1 08 as world awaits Apple iPhone 2.0

“BlackBerry-maker Research In Motion upped its dominance in the U.S. smartphone space during the first quarter of 2008, while Apple and its iPhone lost ground, according to a new report from IDC. But the market research firm’s findings must be considered in context, alongside a number of significant related factors,” Al Sacco writes for CIO.

“IDC says RIM took 44.5 percent of the U.S. market for smartphones in the first quarter of this year; that’s up almost ten percentage points from the previous quarter’s 35.1 percent share, according to news reports,” Sacco writes. “But while RIM gained ground, Apple fell further behind the handheld giant with just 19.2 percent of the U.S. market in Q1 2008, compared to the 26.7 percent the iPhone-maker held in the fourth quarter of last year, IDC found.”

“It’s worth nothing, however, that despite the gap in market share between the two, Apple is proving to be a legitimate RIM rival–and after only a year since the iPhone’s debut. (Longtime RIM rivals like Palm and HTC were left in Apple’s wake.) Furthermore, Apple currently offers only one smartphone, which makes up for all of its market share, while RIM offers a wide variety of different smartphone product lines and separate models with each lineup,” Sacco writes.

“As for Apple’s market losses in the beginning of 2008, the drop could have to do with the fact that the final quarter of 2007 included the busy holiday shopping season… And with the next-generation iPhone expected this month, it’s a safe bet that Apple will see market share increases in the current and upcoming quarters. Fruits of the iPhone software development kit (SDK) are also expected over the coming months… So though BlackBerry may be in the driver’s seat today, you’ll likely see Apple closing the gap even further in the near future,” Sacco writes.

More in the full article here.

Enjoy it while it lasts, RIM.


  1. Not to worry. There are plenty of contracts with non-ATT carriers that still have yet to expire, and from my little circle of friends, there will be about 10 new iPhone owners in September. The iPhone is just taking a breath to get ready for another run.

  2. boy, Apple better have an iPhone 2.0 in the works, or this will really sour folks on them. Poor Apple. People have gotten too expectant of constant product refreshes, if they don’t deliver, they get poo-poohed by the customers and the market. They’ve dug themselves into a hole on this one!

  3. Apple under the gun (over acting or what?) It probably has something to do with the fact you seem to be the only person left who doesn’t seem to realise iPhone 2 is a week or so away from being launched for a starter, followed by your overly dramatic treatise about what has been a very successful first year for this product is simply like something out of a B movie horror script. Otherwise all was perfectly sane and sensible. Of course if you want to relate to facts and evidence to support a well thought out and logical viewpoint then perhaps responses will improve substantially. Hope thats some help.

  4. I hope the speaker output on the 2.0 phone is better than the current model; had to use one on a support call this past week, and I had a hell of a time hearing anything on it. Reception was excellent though, even in a basement-level, which surprised me on the ATT network.

  5. so what? iPhone is doing OK. being #1 right now is more bragging rights than anything.

    and “Apple under the gun” does have somewhat of a point… users/investors/bloggers/”journalists” seem to freak out if Apple doesn’t refresh their product every quarter….

  6. The MDN headline makes no sense. This is data from Q1. From January to March people were holding off buying an iPhone awaiting version 2? Um, no. That could easily be valid for the last couple of months, but not for the first quarter of this year.

    Personally, I agree the Apple drop is likely explained by moving from the Holiday quarter to the next. Still, it’s a bigger drop than I expected, and RIM experiencing a huge rise during the same time frame is equally unexpected.

    There’s no way to turn this into good news (or even particularly bad news) for Apple, but it’s GREAT news for RIM no matter how you look at it.

  7. “RIM will report results for the fourth quarter and fiscal 2006 year-end on April 6, 2006.” Quote from a couple of years ago. By that, RIM’s 1Q would have to be April 1 to June 30. Apple’s 1Q is October 1 to December 31. Results may differ.

  8. Another consideration is how iPhone supply is very constricted as Apple is depleting their inventory to make way for iPhone 2.0. It’s hardly a surprise the marketshare dipped.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.