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.

25 Comments

  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.

  9. Perhaps oh apple fan boys and gals the jump is due to soccer moms can buy a pearl or curve for less then $100 now? People seem to not grasp that price is a huge factor in the mobile space. The razor didn’t explore until it dropped to $150 and now it’s basically free. If you sell your mobile device in the $300+ range you have a built in limited audience and outside of apple users and ipod fans (which is no doubt a large number of potential user) your sales reach a peak. Apple to take this to the next level needs to take current Iphone and turn those babies out as cheap as possible.

    Went to see Sex in the City and Samatha was sporting a iphone, Miranda a Blackberry (which is what most law firms allow) and Carrie was sporting a plain on motorola cell phone. A point in the movie Carrie needed a cell phone and was handed the iphone and she looks at it and goes “I don’t have time to figure that out, give me a phone!”. That my friends is what any smartphone device has to get beyond. There will always be a large % that could careless about media / web and just want to make a call.

    I’m on what is like OS 2.0 beta 5 and it’s getting there, not sure it’s ready for market yet so I wouldn’t be shocked if they announce a later date for its release. It still has some security holes to fix and for the love of god – DROP the itunes requirement for activation / setup. OTA is where it’s at.

  10. MobileAdmin:

    If the new version of the mobile iTunes store allows over the air downloads, they could still tie the activation to iTunes AND have it done over the air. Two birds with one stone. No computer required.

  11. mikeR, they are measuring the calendar quarter.

    i agree with treestman. regardless of factors that affect mkt share the larger picture is that both RIM and Apple will sell tons of smartphones in the coming years. even palm will sell a bunch…

  12. But to state the obvious, the iPhone has not been available for nearly a month- not just the states. Plus, a lot of companies are waiting for version two to come out with exchange support with the remote wipe. So, a grip of business will go to the iPhone and quickly erode the RIM share. Plus, doctors will start to shift in the medical industry where higher resolution and software will have meaningful uses beyond the limited smart-phones they now have. The normal person will soon be able, I hope, to send MMS photos and video- that is a deal breaker for a lot of people. Just to let many people know that may never have used a iPhone- I have had more than 15 or 20 of my departments officer switch to the iPhone and everyone one of them marvel at how easy it works. Plus, no lost stylus. HELLO-millions of little Apple computers with Safari running all over the world…… IE to lose market market share. Expect in the middle 60 percent in two years.

    Version two(2) is going to be another bomb on the market…..

  13. Well, in the computer world, Apple has steadily improved the OS at at step with OS X. Even to the point where Microsoft has copied it again. Then Apple reinvented the mobile music market with the constant stream of new iPod models, features, and design, iTunes store , and even created a new model of which the music industry is now profiting for-plus fought to have DRM music, a set price model, and a codec that uses less power on the processors that creates longer play times on the music players. Then quietly reinvented the phone right under the eyes and ears of the industry, with a high price, one model, limited OS, and no keyboard. Then created a sharing of profits on the phones, opened up Star bucks to future menu purchases straight from the phone, music purchases, and even ATT will give free wifi to the iPhones. All in different time lengths granted, but for the phone they had a year to pass everyone, including surpassing internet use by all of Microsoft’s smart-phones combined in short order, and biting on the leader none could touch. All this in a year and Apple is just starting. They reinvented the phone, market, and pushing forward now on volume and flexibility.

    OOOhhhh yea, RIM has been leading by sleeping too much. They will soon pay as Microsoft has paid in their smart-phone market.

    This is why so many have purchased the iPhone. The know who the mover and shaker will be. And at the moment-RIM is not it.

  14. Yes, thanks Apple. Innovation comes with it. As the next generation of software comes out, an even better phone emerges. And you do not HAVE to buy another phone. With the 20.00 dollars difference in service I will pay for the phone in the savings of the monthly fee in the first two years. Basically free compared to Verizon. And all the games to come out for it. Remember it has more power than the PS2 and have 360 degree control in movement, with easy internet access, programability, and it is upgradable for future features. Not like any crop of current phones that is out there and at 203 ppi resolution- great gaming is coming to V1 and V2 of the iPhone.

    You are absolutely correct in thanking Apple for changing the face of phones. The OS expands, the features expand, and the abilities will grow rapidly, from purchasing food at restaurants, controlling your car (Delphi), acting as a game controller, tv, and other devices as well.

    Look at any of the first of any other company and you will find it limited in OS, design, expensive, and lacking processing power. The exception is that Apple load an actual desktop variant with the ability to expand for free. With a desktop verison of a web browser.

    DAMN, you are so correct to thank um! Great insight!

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  15. As I already stated: these are just the last spasms of the dying!

    When iPhone v.2 comes out it will be the Blackbunnies’ waow day! There gonna be looooots of Blackbunnies on sale with all that bunch of people who will switch to iPhones! ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

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