iPhone market share grew 327.5%
We've known since October, when Apple released its latest earnings report, that the iPhone had a bang-out summer – shipping nearly 7 million units in the quarter, up from just over 1.1 million the year before.
But it wasn't until Thursday, when Gartner Research issued its smartphone sales report for the third quarter of 2008, that we learned just how well the iPhone did vis-a-vis its competitors.
Apple's (AAPL) share of the worldwide smartphone market leaped 327.5% in Gartner's survey, catapulting past Microsoft's (MSFT) Windows Mobile to grab the No. 3 position and putting it within striking distance of Research in Motion's (RIMM) BlackBerry for the No. 2 spot.
Smartphones running on Nokia's (NOK) Symbian operating system are still No. 1, with nearly 50% market share, but they lost ground as Symbian sales shrank for the first time, down 12% for the quarter.
Apple's results would have been even more impressive – and would have knocked RIM off the No. 2 perch, as Steve Jobs claims -Â if Gartner's researchers hadn't reduced the iPhone's quarterly sales numbers by the more than 2 million units that Apple shipped before the end of the quarter but were still sitting in inventory.
Gartner's preliminary sales figures – listed both by vendor and by operating system – are available in its press release here. But they are easier to visualize in the bar graphs, pasted below the fold, that Ars Technica's David Chartier has helpfully produced. See here.
So 327% seems like fairly large growth, but it doesn't make the stock value any greater. For all the praise that's heaped upon Apple, it really doesn't impress anyone except Apple fanboys. Apple needs to do something that will get people to invest in the company.
Revenue is supposedly coming in from iPhones, notebooks, App store downloads, filled retail stores, even higher-value iPod Touches, supposed OSX market growth, but still the stock barely moves at all. Is there anyone sure that Apple is making any money at all? Adding all this stuff up should make Apple some sort of powerhouse company as an investment, but it really doesn't appear to be anything special. It appears to be just a mediocre high-tech toy company as far as WS is concerned. We're being told Apple is doing far better than competitors, yet it doesn't appear they're doing FAR better at all.
Where is all it's value? Just cash reserve. There are other companies with far less cash reserve, but their stock price moves no worse than Apple's stock price. If it was all that obvious, investors would pull their money out of all the other companies and invest it in Apple, but nobody is doing that. If it's such a sure thing why would any astute investor want to pass up this chance.
I'm only asking, what's the big deal that fanboys are so excited about? You get happy just because you see a few more Apple products around?
Apple would be $300 in a "normal stock environment?" It isn't even $3 better than average in today's environment.
@ walid: The Nokia N97 should be called the Knock-you-uh N97. I have it and I will not keep it after my 2 years contract is up. The iPhone is a much better phone!!! Apple iMacs lines is a better product then HP plus you get tons of upgrades for FREE!
Iphone should be called Ihyped! I mean the reporters keep hypping this phone while it is an ok phone…. I have it and i will not keep it after my 2 years contract with ATT expires even i might considered cancelling my contract because ATT is ripping me off and Apple reporters is hyppping Iphone! the incoming Nokia Express 5800 is a better phone… let alone the N97!!! Apple is increasing its market shares with the Iphone because most ofthe people want an apple product good or bad… Only I give Apple a credit with their OS… because Vista sucks big time! macs are overrated and expensives… HP new HDX lines is a better product then Mac plus u get tons of upgrades not like Mac! enough said about Apple…
@Steve Mobs – are you as blind as you are absurd? Take a look at all the market shares – with the exception of Symbian, they are all small… This from a device that has been on the market just under a year and a half. Try reading up on the full story of this company and device – you make yourself look like a fool…
Apple has the strongest balance of ANY company in the market. Yes, you will read that statement and naturally assume it is an exaggeration. However, it really isn't. I have yet to find a company with a balance sheet that comes anywhere near Apple's 0-debt, $25 billion cash, low PEG ratio numbers.
With the way Apple's iPhone and Mac marketshare is increasing, it is nuts that Apple is trading at a forward P/E near 10. This stock deserves a 40-50 forward P/E multiple, in my educated opinion. Apple would be a $300 stock in a 'normal' market environment
