Apple, RIM, Nokia stocks take a dive on Gartner ‘smartphone’ sales report

“Research In Motion Ltd., Palm Inc., Nokia Corp. and Apple Inc. all saw their shares take a hit Monday, retreating following a research report that showed a dramatic slowdown in the sales growth of so-called smartphones,” Dan Gallagher reports for MarketWatch.

“The term smartphone refers to devices, such as the BlackBerry, the iPhone and the Palm Treo, designed to handle email, Web surfing and organization tasks as well as phone calls and text messages. Such devices have been the fastest-growing segment of the wireless device market, thanks to growing demand for mobile computing products.
A report from market research firm Gartner Inc. found that sales of smartphones grew nearly 16% globally during the second quarter. While strong, that represented a sharp drop from the 55% growth rate in the same period last year,” Gallagher reports.

MacDailyNews Take: If those other things are “smartphones,” then Apple’s iPhone really needs a new category for itself. “Geniusphone,” perhaps?

Gallagher continues, “‘The current economic environment continues to negatively impact the market, limiting consumer spending and replacement purchases in general,’ wrote Roberta Cozza, principal analyst at Gartner, in the report.”

“Shares of Apple traded down nearly 4%… The report found that the company’s share of smartphone sales fell during the second quarter as it cleaned out inventories ahead of the 3G iPhone, which went on sale in July. The company’s sales are expected to increase ‘dramatically’ in the second half of the year amid strong demand for the new device, the report predicted,” Gallagher reports.

Full article here.

[Thanks to MacDailyNews Reader “JES42” for the heads up.]

So why did Apple shares fall today if their “slowdown” was directly attributable to the iPhone transition and iPhone 3G sales are expected to increase “dramatically?’ There seems to be quite a disconnect here. Could it not be that smartphone sales took an understandable break as consumers waited for Apple’s iPhone 3G and not, as Gartner says, due to the “current economic environment.” After all, as evidenced by iPhone 3G lines that continued out the door and unabated for weeks, the “current economic environment” did not negatively affect smartphone sales, as long as they were iPhones, that is. Plenty of people – multiple millions, in fact – seemed to have at least, if not more than, enough cash for iPhones. Logic, Gartner, logic. Give it a try sometime.

The reason “smartphones” sales went into the toilet is because the smart smartphone buyers were waiting for and then buying Apple’s iPhone 3G, eschewing the antiquated devices offered up by the Palms, Nokias, RIMs, etc. of the world.

On other words: bloodbath. Even Wall Street will figure it out eventually.


  1. These so called “financial advisors” are so stupid, for the lack of better word…. and the investors that buy in to these financial advisors are even more stupid. Blind leading the blind. They have to do more research before opening their mouths.

  2. MDN is right on. The slowdown was directly related to the market waiting for the iPhone G3. The dam-burst of sales after its introduction makes this obvious. It’s one thing to gather numbers, it’s a whole different thing to analyze them. This seems like a misread by some, and definitely an overreaction on the stock price as far as Apple goes.

  3. it is so much easier to make money as a stock goes down because you can sell a stock you do not own

    it is called naked short selling

    look it up it is a legal way for big firms to print money …..

    as George Carlin used to say ” they made the sh*t ” up ”

    it is not real just a one sided game

  4. No, they are not stupid, they are too smart and manipulative. They already sold their shares of Apple, make million of dollars in profit.

    Now, it’s time to manipulate the market and scared off all the small investor into selling their shares. And guess what, when the stocks hit low, enough, it’s time to buy back all those APPL shares and make more money.

    MDN Magic Word: need – more money to buy more shares ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  5. MDN word: intelligent as in…
    “There are smartph0nez (for dumb@zzes), and there’s the intelligent phone – the iPhone. the intelligent Phone for the rest of us.”

    my .02.

  6. Pick up on this! Pick up on this!
    Apple ran out of iPhones during the 2nd Quarter, remember? Doofuses.
    Slowdown, schmodown. There were absolutely no down. (My wife and kids tried to get me one for Father’s Day! They could only purchase me a gift certificate … for the new 3G phone (darn)

  7. If you base the market average of smartphone sales on the average smartphone, you would come up with the same conclusions they did. What they didn’t figure on is that the reason the average smartphones are dropping is that they are now facing the iPhone. They are all going to tumble. (Except for Apple, bringing down the average.) Apple might announce some sales numbers on 9/9, and will definitely blow them away in the next two quarterly reports. They they will see the light we have been basking in for awhile now.

  8. The following is an assessment of the quality of Gartner researchers, and attributed to Computer Associates co-founder Charles Wang:

    “I want to choose my words carefully here, so I’m not misunderstood,” he said. “They’re a bunch of fscking idiots.

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