Since the launch of Apple's iPhone last June, the popular mobile phone device has
it's competitors gearing up to give Apple a serious run for it's money. With a 28 precent share of the U.S.' converged device market,
Apple has given enough reason for the competition to be concerned.
While the iPhone is certainly a cell phone, it is far more than that. Phil Leigh,
senior analyst at Inside Digital Media said, "Voice is merely one application of many that it will use on the wireless Internet."
Competitors are aware of the variety of features the iPhone offers as well as the impact the iPhone is having on the white-hot
smartphone marketplace.
With the launch of the iPhone, shipments of smart mobile devices have rose 53 percent
in 2007, compared with 2006. Converged devices account for approximately 10 percent of worldwide mobile phone sales, growing at an annual
rate of 60 percent. Research In Motion's (RIM) Blackberry had 41 percent of the U.S. market share in 2007, with Apple's iPhone at 28 percent and
Palm at 9 percent. Globally, however, RIM's Blackberry shipments grew by 121 percent in the fourth quarter, solidly placing it in
second place behind Nokia at 53 percent and Apple at 6.5 percent in the global market share.
"When you consider that it launched partway through the year, with limited operator
and country coverage, and essentially just one product, Apple has shown very clearly that it can make a difference and has sent a
wakeup call to the market leaders," Canalys senior analyst, Pete Cunningham said. "What it must demonstrate now is that it can build a
sustainable business in the converged device space, expanding its coverage and product portfolio."
While Apple has taken the smartphone industry by storm, the company can't risk taking
a break with the competition wanting to one-up the iPhone. Before Apple emerged in the converged device market, they checked out the best
features amoung smartphone competitors such as Nokia, Motorola, Blackberry and Palm.
Look for lots of "me too" devices out there, a common occurrence among competing cell
phone companies trying to get a leg up on the competition. Copycat iPhones are already out in the market, however none have gained
more than a sliver of the smartphone market share.
