madison

iPhone soars, Microsoft 'main loser'

Victoria Ho ZDNet Asia | August 20, 2009 5:05 AM PDT

Summary

The numerous players in the smartphone market are quickly gaining ground in innovation and shipment numbers, but this has been mainly at Microsoft's expense, said a research firm.
The numerous players in the smartphone market are quickly gaining ground in innovation and shipment numbers, but this has been mainly at Microsoft's expense, said Canalys.

Its latest research report highlighted the buzz surrounding the iPhone, Android and BlackBerry smartphone platforms, and focused particularly on Apple's iPhone gains in the market.

Canalys senior analyst Pete Cunningham, said: "Apple has revolutionized the smart phone sector, leapfrogging more experienced rivals."

He said, however, that there is opportunity for rivals to target Apple's weak spots, which he named as the high cost of the iPhone and the restricted selection of operators due to its exclusive tie-ups in many countries.

Canalys said, however: "The main loser has been Microsoft's highly standardized Windows Mobile platform. Its [global] smartphone market share has now fallen below 10 percent and the trend is likely to continue as many of its OEM (original equipment manufacturer) partners, including HTC, Motorola and Palm, are focusing investment on other platforms."

Globally, Windows Mobile has been eclipsed by Apple, which went from a 2.1 percent market share in the second quarter of 2008 to holding 13.7 percent of the market in the second quarter of this year.

BlackBerry-maker, Research In Motion (RIM), held a 20.9 percent share in the second quarter of this year, with Nokia still on top at 44.3 percent.

While Nokia still dominates the market by a large portion, its share has been falling. Last year during the same period, its share was 45.5 percent, according to Canalys.

In the Asia-Pacific region, however, the iPhone fever appears not to have set in yet. For the second quarter of 2009, Nokia's market share was 59.7 percent, with Sharp at 9.4 percent and Fujitsu at 9.2 percent.

The iPhone debuted in the region over a year later than it did in the North American market.

Canalys' report also pointed to the success of relative newcomer Android. The first Android-based phone was shipped in September last year, and has taken 3 percent of the smartphone OS market. Its overall share is expected to increase "substantially" as more vendors join HTC in making Android-based phones, said the analyst.

"The free license model, tight integration with Google applications and the potential for a high degree of vendor and operator customization are all benefits attracting industry participants," it said.

Among the OEM members of Android's Open Handset Alliance (OHA) are Motorola, Samsung and LG Electronics, with Kyocera being a recent entrant.

Outside of the smartphone market, Nokia, also has the lion's share of the basic phone segment. And with some emerging markets expected to continue to grow and adopt 2G devices, this is likely to directly benefit Nokia's business.

The Finnish phone manufacturer recently announced a tie-up with Microsoft, with the intention of taking on RIM in the enterprise space.

This article was originally posted on ZDNet Asia.

Talkback Most Recent of 51 Talkback(s)

  • Windows Mobile just ain't cool and never will be. Who wants people laughing
    when you answer your phone and they see it is
    Windows Mobile????
    ZDNet Gravatar
    DonnieBoy
    20th Aug 2009
  • Well......
    Beings I don't tie my confidence to a phone or computer I could give two sh1ts about what anyone thinks. Frankly the Samsung Omnia has been an excellent phone and I have no problem letting anyone and everyone see me use it. Plus Windows Mobile is in alot of other places besides smartphones, like all of our 100 warehouse Motorola RF guns run windows mobile and they do an outstanding job for us. Sorry I'm not cool man. Maybe when I have a mid life crisis I will get an Apple so I can whip it out and everyone will flock to me like I'm the king. I don't know how you do it with all the attention you get for being so cool man.
    ZDNet Gravatar
    OhTheHumanity
    20th Aug 2009
  • I LOVE my Windows Mobile Phone
    And I don't care if it isn't cool. My phone talks to all my pcs (activesync), I can do my homework wherever I am (office mobile) and transfer it off later, I don't need a data plan (wireless network card) and I can surf the net wherever there's a hotspot. I love my phone and it was CHEAP, as opposed to the 3-400 dollar iphone, mine cost 100. So while other folks are stressing about paying their bills, I am gonna use my laughable phone and spend my extra 300 bucks elsewhere.
    ZDNet Gravatar
    MikeZane
    20th Aug 2009
  • You have it right
    This is like people who live in poverty because they put all their money into a "cool" car. Live in a rathole, but they got a cool car, at $700 a month payment.

    And they have their "cool" phone too.

    Near as I can tell, looking cool sure is expensive.
    ZDNet Gravatar
    SanFranciscoCA
    20th Aug 2009
  • ZDNet Gravatar
    No More Microsoft Software Ever!
    20th Aug 2009
  • I know the prices
    I was referring to morons who buys cars, phones and other things simply based on feeling "cool" or that it is "cool" to have such things.

    E.g, when the iPhone came out that there were people paying a premium simply because it was the phone that everyone was talking about.

    You can't compare iPhone prices of today to what it was when it was the cool phone to buy, back when it debuted.

    Fact is, there are people who spend money wisely on a cell phone, those who buy based on what a device does for them and to meet their needs.

    In contrast, there are people who will wait in line overnight to be the first to have the iPhone, not matter that they perhaps need a physical keyboard and a battery that can be removed (rather than sending it in for a warranty repair when the battery fails).

    And in contrast to people who buy because a phone looks cool. For them that is all that matters, that it looks cool and that their friends will say "Cool phone man." Or when at a restaurant they will put the phone on the table so everyone will see his cool phone.

    But you are right, currently many WinMo phones are more expensive than the iPhone. I know that because I just bought a $550 Touch Pro2 ($329 on a one year contract).
    ZDNet Gravatar
    SanFranciscoCA
    20th Aug 2009
  • You are right, currently many WinMo phones are more expensive than iPhones
    Thanks for that.

    iPhone is a GREAT value AND gives you the COOL factor. I can understand that you don't 'work it girl', but COOL is still in!

    Why do you drive your corvette? cool? maybe?

    Fact is that COOL is a very, very MINOR part in the buyers decision to get an iPhone. I think today it's about the APPS. Sure, some are iFart stuff...but face it...folks LAUGH and get enjoyment from a free app here!

    Point is...iPhone rocks and continues to build it's base. Something that Microsoft is failing miserably at!
    ZDNet Gravatar
    No More Microsoft Software Ever!
    20th Aug 2009
  • He has a point.....
    We all shower and usually have our hair cut or combed. We do dress
    to a certain degree up for when we go out even when we are not
    working.. usually that is. Some of us work out and watch what we eat.
    Now sure if you take anything like that to far it becomes unhealthy but
    it can also be relatively healthy if you keep it in the right perspective.
    After all working out has definite health benefits.

    As for the iPhone. Since the phone seems to do what is needed by its
    satisfied customers it seems to have the needed function. So it does
    not hurt the iPhone to have style nor a UI that gives easy access to its
    many functions a WOW factor if you will.

    You both are going to extremes where the middle ground is the REAL
    area to focus on. Forest meet tree's. Tree's... forest.

    Pagan jim
    ZDNet Gravatar
    James Quinn
    20th Aug 2009
  • Yeah, there's the basis to make all decisions
    Gee, I have to go back and reevaluate everything I have, based on "is it cool?"

    And I hope it's not too expensive to become a cool smartphone user. Tell us, what phone and OS are cool according to your standards? Tell me so I can go out and buy it. I am so looking forward to being cool and to have people stop laughing at me because I am using a WinMo device.

    Sidenote: I walk around downtown San Francisco and I have never been close enough to anyone to see that they are talking on a WinMo based device. And I have never seen anyone that close to me to check out my phone OS.

    You are a creep if you are nosing up to people to check out what OS people are using when talking on their phones. And you are creepy if you look at user phones to see what OS they have.

    Sounds like a restraining order is needed on you.

    Bonus Sidenote: Your statement explains what all those people on the street corners were laughing about. It was someone using Windows Mobile. Thanks for clearing that up.
    ZDNet Gravatar
    SanFranciscoCA
    20th Aug 2009
  • ZDNet Gravatar
    No More Microsoft Software Ever!
    20th Aug 2009
  • To be expected...
    Microsoft has not had any real updates to Windows Mobile in quite some time. While others (Palm, RIM, Apple) have had several iterations in that same time period.

    MS needs to get on the ball if they intend to stay in this game.
    ZDNet Gravatar
    Stuka
    20th Aug 2009
  • Innovation
    MS has been stifling innovation on the PC for years
    with their OS monopoly, and gouging the OEMs and
    the end users.

    MS can't do that on the smart phone platform
    because the OEMs saw what happened with the PCs
    and so won't let MS monopolize and therefore can't
    stifle others innovation, and they sure can't innovate
    themselves.
    ZDNet Gravatar
    bigpicture
    20th Aug 2009
  • Gee, when did MS start selling phones?
    To my knowledge they have never sold a single one...
    ZDNet Gravatar
    No_Ax_to_Grind
    20th Aug 2009
  • You are wrong, they did sell phones
    http://en.wikipedia.org/wiki/Microsoft_Cordless_Phone_System

    I had one, it was really quite a powerful home phone system, but unfortunately a bit ahead of it's time.
    ZDNet Gravatar
    KTLA
    20th Aug 2009
  • IPhone Won't Hold Market For Long
    As long as AT&T continues to treat its customers like dirt and give out one lame excuse after another for its shortcomings where functionality is concerned with the IPhone (MMS, Tethering), people are going to start referring to the IPhone as the most successful failure in AT&T history.

    I can only hope another provider picks up the IPhone because AT&T is failing miserably when it comes to support and delivering on features that are a part of every other cellular device.

    Hurry up Verizon/T-Mobile!!!
    ZDNet Gravatar
    itanalyst2@...
    20th Aug 2009

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