Blackberry versus I-phone market share

Well, the data is hot off the press: Smartphone purchases in the US shot up 68% in 2008. We now buy smartphones in greater quantities than our Western European counterparts. It is not just a phone anymore, it is mobile e-mail, mobile web, mobile applications for data, navigation, synchronization with Outlook, calendars, contacts, notes, QWERTY keyboard for text. There are endless features that present themselves in the form of a smartphone.

Research in Motion still holds a convincing 46% market share while Apple and its I-phone hold an impressive 21%. Palm, Samsung, and Nokia are on the radar for market share but it is clear that RIM and Apple are our leaders. RIM has agreements with all the major domestic carriers, even ATT. The Apple I-phone on the other hand is sold exclusively through ATT. It is impressive that Apple is on this list like this in such a short time. But I believe this exclusive agreement will prevent ATT from expanding its market share much more dramatically. The fact is, ATT is not known for its network. If the professional consumer (who predominantly is purchasing these smartphones) does not have adequate choice or coverage, ATT will struggle to overcome RIM. Make no mistake, both of these devices have brought a win win to the consumer and the carriers. The consumer has a more intelligent advantage to do business and work while the carriers are collecting the data fees from month to month. I believe though that RIM and Apple will have a hard time sustaining growth and demand for smartphones like we saw from 07 to 08.

I find it promising to see another American company pick up the slack for sluggish Motorola and compete with this giant from Canada (RIM)and the likes of Korean international vendors such as Samsung or LG. I just hope on the next I-Phone generation that Apple will unlock its technology away from an exclusive arrangement with ATT. Verizon which has now merged with Alltel, and Sprint Nextel are powerful domestic partners to grow their share with.

Welcome to the Future.

Mike