RIM, Palm grab iPhone market share Posted on June 1st
NEW YORK (AP) — Apple Inc.’s iPhone, a new model of which is widely expected this summer, took 19.2% of the U.S. market for smartphones in the first quarter of 2008, according to research firm IDC’s vendor survey.
That was down from 26.7% of smartphones sold in the fourth quarter of 2007, which included the holiday shopping season, IDC reported.
Much of the slack was picked up by Research In Motion Ltd.’s BlackBerry, which took 35.1% of the market in the fourth quarter and 44.5% in the first.
IDC analyst Ramon Llamas said the BlackBerry is now strong in the “prosumer” segment, as Research in Motion (RIM) has successfully widened the appeal of the device beyond the professionals who have been its core customer group.
Smartphones are designed to be used for Web surfing and e-mail, in addition to voice calls, and usually have alphabetic keyboards or touch screens. They account for a growing share of cell phones sold, as prices descend and carriers complete their fast data networks.
IDC did not reveal the total number of smartphones sold in the quarter. Apple (AAPL, Fortune 500) said it sold 1.7 million iPhones in the first quarter, including overseas sales.
Palm Inc., a pioneer in the category along with RIM, also picked up market share in the first quarter, when it grabbed 13.4% of smartphone sales, up from 7.9% in the fourth quarter, IDC said.
“Palm also did really well. It posted a sequential gain mainly on the strength of the Centro phone,” Llamas said. The Centro, a smaller phone than Palm’s Treo models, came out last fall for the Sprint Nextel Corp. (S, Fortune 500) network and was launched by AT&T Inc. (ATT) in February.
But Palm’s (PALM) market share is down from 23% in the first quarter a year ago, apparently falling victim to the iPhone, which went on sale late last June. RIM’s (RIMM) market share is also down from last year, when it sold 48.7% of U.S. smartphones in the first quarter.
No. 4 in market share in the most recent quarter was Samsung Electronics, with 8.6%, up from 5.1% in the fourth quarter, a rise Llamas credited to the availability of the BlackJack on Verizon Wireless (VZ, Fortune 500).
Motorola Corp. (MOT, Fortune 500), which is struggling in the overall cell phone market, performed poorly in smartphones as well, dropping from a 7.5% share in the fourth quarter to 2.6% in the first. 