iPhone Drives Smartphone Sales, Analysts Say
The launching of the iPhone seems to be having a positive effect on the smartphone industry. Analysts say that since Apple introduced the iPhone in June, the sale of smartphones has increased, as predicted, and continues to induce consumer interest to this day. Last year, ARM Holdings CEO Warren East made the same prediction, saying the iPhone will help push smartphone sales further.
In the United States alone, the number of people that bought smartphones the previous year went up to about 14 million. Smartphones have seen a significant lag in sales over the past few years but with the advent of the iPhone, smartphone purchase has been increasing much faster than the total sales for all mobile phones.
Analysts say that the iPhone’s revolutionary user interface and Web browsing technology helped spark enthusiasm in the smartphone market. The influence of the iPhone is so extensive it even reaches countries where it isn’t officially available. Apple hasn’t done any promotional campaigns in these places, yet iPhone’s are being sold anyway.
During the recently held Smartphone Summit in Las Vegas the iPhone was yet again the favorite discussion topic despite the fact that Symbian was a major sponsor of the event. Symbian, along with Blackberry has been a major player in the smartphone market for many years but the entry of the iPhone may change this.
Symbian has sold over 180 million units since it was first introduced into the market, yet Apple has already sold over 3 million iPhones in less than a year. Some analysts say the iPhone may not even fall under the category of smartphone. Even with the addition of the software developer kit, the applications that will run on the device may be similar to the functions which are already seen on simpler handsets.
Still, analysts believe that the entry of new competitors will continue to create a dynamic environment for the smartphone industry. Instead of the expected consolidation, the smartphone market is now characterized by competition that is more intense than ever.
But while the iPhone is becoming increasingly popular in the US and in Asia, it still hasn’t completely penetrated the European market. The price of the phone may be an issue plus the iPhone currently is not equipped with 3G which is more commonly used in the EMEA region.
According to analysts, the demands of European consumers when it comes to mobile phone usage differ from that of US users so Apple will have to alter their approach to penetrate the market.