It’s true. Good folks at CNET are reporting that Apple iPhone indeed lost ground in the U.S. smart phone market in the Q1 of 2008. Apple had a lower number of sales this year than last quarter, which is disappointing for Apple to say the least. Having said that there are several reason why Apple apparently lost market share in the U.S. Market:
- Economy: Now you may challenge this argument, but there are a lot of people who just don’t afford the iPhone as it is right now with the 2 year contract and all. The new iPhone’s price cut should go a long way to address this issue.
- Carrier: AT&T may be a good carrier but its far from perfect. By locking customers into long-term contracts with AT&T, Apple perhaps failed to convert enough Verizon, T-Mobile, and Sprint customers. A few of my colleagues would love to buy the iPhone but they don’t because they too are locked into contracts with other carriers.
- Features: Apple iPhone is a wonderful device, but iPhone 1.0 is not made for the enterprise. Not that it can’t be used in a business environment, but the notion among business users is that the Apple iPhone is not a serious business phone. Obviously, people such as Steve Ballmer did their part in portraying the iPhone as a consumer phone that is not suited for the needs of business users.
Whatever the reason, iPhone 2.0 will address most of the issues that iPhone 1.0 is dealing with right now. With the SDK out and the price cut imminent, you can be sure that Apple will accelerate its growth rate and have its best quarter yet.