Samsung

33% of U.S. touchscreens are iPhones


Touchscreen phones are on fire, comScore reports, and Apple is leading the pack. For now.

Touchscreen device pie chart

Three months ending Aug. 2009. Source: comScore MobiLens

There's a thundering herd of imitators behind it, but Apple's (AAPL) iPhone still dominates that fastest-growing segment of the U.S. smartphone market, according to a comScore report issued Tuesday.

Touchscreen mobile phone adoption in the U.S. grew at a breakneck 159% rate last year, comScore reports, easily outpacing the 63% growth of the broader smartphone market.

By last August, nearly 34 million Americans were carrying smartphones, 23.8 million of them touchscreen devices. And of those touchscreen phones, 32.9% were iPhones.

“The iPhone clearly set the trend in the industry for touchscreen devices, so it’s no surprise that it has the largest share of the market,” said comScore VP Mark Donovan. “But as other players have entered the touchscreen market with compelling devices, competition is clearly heating up.”

Donovan mentioned Google's (GOOG) Android platform in particular, although the closest Android contender in August was the T-Mobile (DT) G1 running a distant seventh after two proprietary LG phones, the BlackBerry (RIMM) Storm, the Palm (PALM) Pre and the Samsung Instinct.

Below the fold, comScore's spreadsheets, including one that shows preference by age group. (The smartphone sweet spot seems to be ages 24 to 34.)

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The best new gadgets for business


Our correspondent goes to a geekfest and reports back on five new tools you need now.

Catch that mouse. Logitech's Performance Mouse MX is one to love. Photo: Logitech

Catch that mouse. Logitech's Performance Mouse MX is one to love. Photo: Logitech

I was in gadgetry heaven.

The Pepcom Holiday Spectacular in New York Thursday night was buzzing — and it wasn't just the sensation of mobile devices on vibrate mode.

With 80 companies — from Hewlett-Packard (HPQ)  to Samsung — showing off their goods for the holiday season, the room pulsated with enthusiasm, competitiveness and innovation. It was like the recession didn't exist!

I can't go through everything I saw, but here are my top five picks of the most interesting, unique technology solutions for business (and then some honorable mentions). More

Bandwidth hogs – iPhone and other smartphones


The way consumers use Apple's mobile phone (i.e., constantly) means big headaches for carrier AT&T. And more smartphones are on the way.

Randall Stephenson, chairman, CEO, and president of AT&T,  holds up his Apple iPhone

Randall Stephenson, chairman, CEO, and president of AT&T, holds up his Apple iPhone

At the South by Southwest music, film, and interactive fest in Texas earlier this year, the iPhone was all the rage — and not in a good way.

The device proved so popular with Internet-addicted attendees that AT&T's wireless network in the city of Austin buckled under the strain, all but shutting down both voice and data service for many customers.

iPhone users bashed the phone company on Twitter and in blogs, and AT&T (T) had to haul in extra network equipment just to ease the gridlock. More

4G hype: Time for a reality check


Wireless carriers tout a new wave of wireless technology but it will be years before most consumers benefit — and before carriers make money.

4G Phone: Samsung's Mondi device operates on WiMax networks. Image: Samsung

4G Phone: Samsung's Mondi device operates on WiMax networks. Image: Samsung

Verizon Wireless, a joint venture of Verizon (VZ) and Vodafone (VOD), last week announced it had completed data "calls" using its flavor of so-called 4G technology, a new generation of radio upgrades that promises to improve the throughput  and capacity of wireless phone networks.

Rival Sprint Nextel (S) immediately responded with a flurry of news releases touting its 4G network, which uses a competing technical standard.  In proclaiming its ability to deliver peak downlink speeds of 10 Mbps, one release gushed: "At these speeds, Sprint 4G breathes new life into wireless Internet."

Um, wasn't that what 3G was supposed to do? More

MacBook back on top at Amazon


MacBook on AmazonIn a sign that should bode well for Apple's (AAPL) earnings in its third fiscal quarter — which ended Saturday — the MacBook has clawed its way back to the top of Amazon's (AMZN) bestseller lists.

The Mac, which once led the pack in the online retailer's Computers & PC Hardware Bestsellers category despite its $1,000 to $2,000 sticker prices, had fallen behind the blistering sales pace set by netbooks like the Asus Eee and the Acer Aspire One, which sell in the $300 to $400 range.

By June 1, the bestselling Apple computer on the list — a white plastic MacBook — had been pushed down to the No. 14 position.

But netbooks have started to fall out favor recently — as witnessed by reports of return rates as high as 30% and an NPD study that found that 60% of consumers who bought them didn't understand the difference between a netbook and a notebook.

Meanwhile, Apple announced on June 8 that it was refreshing its notebook line and lowering its prices. Result: its computers have become hot sellers on Amazon once again.

Apple's entry-level 13-inch unibody MacBook, renamed the MacBook Pro, has been one of Amazon's top 100 bestsellers for 20 days — basically since the moment it went on sale. As of Monday morning, it was the site's No. 4 bestselling computer overall and No. 1 in the laptop category.

In fact, three of the top 10 and five of the top 20 bestselling laptops on Amazon are now MacBooks.

Apple is not the only beneficiary of what some see as growing consumer disillusion with netbooks. HP (HPQ) Pavilions, Toshiba Satellites and Samsung Mini Notebooks are also selling briskly online.

See also:

iPhone share of U.S. smartphone traffic hits 69%


AdMob smartphone pie May 2009See the blue slice in the pie chart at right? It represents the iPhone's share of U.S. smartphone traffic on the network maintained by AdMob, one of the companies that run those little ads that appear on the screen of your mobile phone.

We've been watching that slice grow over the past few months. In February it covered 51% of the pie. By April it had grown to 59%. And by Thursday morning, when AdMob released the May edition of its U.S. smartphone pie, Apple's (AAPL) share had grown to 69% — a 10 point increase in one month.

Some caveats are in order. This is just one company's view of the mobile Web — albeit the view of world's largest supplier of mobile ads, serving 6.3 billion banner and text ads per month. And it's only a snapshot of the smartphones on the U.S. portion of the AdMob network — although 47.6% of AdMob's traffic comes from the U.S. and 37.3% of that comes from smartphones.

Still, what it suggests is that Apple's domination of the smartphone market — the only part of the cellphone market that has continued to grow in the face of the recession, according to Gartner Research — is accelerating.

How tough this makes it for the competition is even clearer when you look at AdMob's report on the total U.S. handset market — one that includes smartphones, so-called feature phones and devices that aren't phones at all, like the iPod touch. Apple's share of this market, viewed through AdMob requests, is 45.1%, having grown 10.4% between April and May. Most of the other players in the field — including Research in Motion (RIMM), Samsung, Motorola (MOT) and Palm (PALM) — are showing negative growth. We'll be watching next month to see if Palm's share grows once AdMob starts to get data from the Pre.

AdMob U.S. May spreadsheet

Below the fold: AdMob's worldwide data, in which Apple's share  (31.4%) and share change (5.2%) are smaller, but the pattern is basically the same. You can see the full report here.

See also:

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J.D. Power survey: iPhone tops in all but battery


JD Power awardsApple's (AAPL) iPhone took first place in J.D. Power's 2009 smartphone consumer satisfaction survey released Thursday.

The iPhone ranked highest in every category except battery life, where it was tied for last place with Motorola (MOT).

Research in Motion's (RIMM) BlackBerry, by contrast, scored highest in battery life but ran with the middle of the pack in the other categories (physical design, ease of operation, features, operating system and overall satisfaction).

The survey was conducted between July and December 2008 among 2,648 smartphone users. Apple scored 791 on a scale of 1,000.

In a separate survey of 15,270 owners of traditional mobile phones, LG did best, followed closely by Sony Ericsson.

The iPhone's nearest competitors were two phones running on Microsoft's (MSFT) Windows Mobile: LG and Samsung. They were followed by HTC, running Google's (GOOG) Android. RIM, Palm (PALM) and Motorola brought up the rear.

Below: The smartphone consumer satisfaction summary. Individual scores below the fold.

JD Powers 2009

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iPhone sales grew 245% in 2008 – Gartner


2008 Smartphone shareApple's (AAPL) iPhone was the fastest-growing smartphone of 2008, despite end-of-year sales that failed to maintain the blistering pace set in July with the launch of the iPhone 3G, Gartner researchers reported Wednesday.

"Apple's initial sell-through dropped significantly as sales fell during the fourth quarter," Gartner said. "Nevertheless, Apple maintained its third position in the global rankings."

Nokia (NOK) still dominates the worldwide smartphone market with a 43.7% share, but overall it was not a good year for the world's No. 1 manufacturer of mobile phones. Its smartphone sales were flat compared with 2007 and actually fell 16.8% year to year in the third quarter.

Research in Motion (RIMM), HTC and Samsung all grew their smartphone market share last year, but none as fast as Apple, whose sales increased 245%. See Gartner's table 2 below:

Gartner WW smartphone sales 2008

New products offering "compelling device experiences and touch interfaces" drove smartphone sales in 2008, according to Gartner research director Roberta Cozza — especially in calendar Q4. With no new iPhone to show in the December quarter, Apple's sales to end users fell 13.6%, to 4.08 million in Q4 from 4.72 million in Q3, as Gartner counts them. (Apple reported sales of 4.36 million iPhones and 6.89 million, respectively, in those quarters, but roughly 2 million iPhones built in Q3 ended up in inventory, according to Gartner, and therefore didn't count as sales to end-users.) Still, Apple's fourth quarter iPhone sales were up more than 111% year to year.

With two new BlackBerry models introduced in Q4, RIM's sales were up both year to year (84.9%) and quarter to quarter (28.3%). Samsung had a particularly strong quarter with sales up 138% year to year,  thanks in large part to its new touchscreen Omnia. See Gartner's Q4 2008 table below.

Gartner 2008 Q4 smartphone sales

Below the fold: Gartner's tables for smartphone operating systems for the year 2008 and for Q4 2008.

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Amazon's Christmas bestsellers: Acer, Apple and Asus


Amazon's bestselling notebooks Xmas 2008Look what Santa left under Amazon.com's tree this Christmas morning:

  • 7 Acer netbooks
  • 7 Apple MacBooks
  • 4 Asus netbooks
  • 2 Samsung netbooks
  • 2 MSI netbooks
  • 1 OLPC (One laptop per child) XO laptop
  • 1 Lenova Ideapad laptop
  • 1 Toshiba Satellite laptop

Can you spot the ringer on Amazon's 2008 Christmas-day list of 25 bestselling notebook computers?

You guessed it. It's those seven premium-priced Apple (AAPL) MacBooks in a shopping cart dominated by stripped-down netbooks, heavily discounted Windows notebooks and a 2-for-1 "$100" laptop.

Except for the MacBooks and one $599 Toshiba, every computer on that list sells for less than $500.

The seven MacBooks, by contrast, sell for three times as much: an average of $1,473.41, after rebates.

It's almost as if Macintosh buyers were insensitive to price, even in a recession. In fact, the best-selling Apple on that list isn't the cheapest; it's a $1,299 unibody MacBook marked down to $1,218.98. The cheapest Apple — a $999 white MacBook, marked down to $929.99 — is No. 22.

Over on Amazon's desktop bestseller list, Apple did even better this Christmas morning: 4 of the top 5 are Macs.

Amazon (AMZN) is the world's largest online retailer, but for definitive holiday sales figures we'll have to wait for the quarterly reports.

J.D. Power: iPhone beats BlackBerry


J.D. Powers surveySo much for the physical keyboard — the lack of which on the iPhone was supposed to be a deal breaker for hardcore smartphone users in the business world.

Despite its much-maligned touchscreen, the iPhone ranks highest in customer satisfaction among business types, according to J.D. Power and Associates' second annual survey of smartphone users. Apple's (AAPL) device easily outscored phones with physical keys made by RIM (RIMM), Samsung, HTC (HTC) and Motorola (MOT).

Apple racked up 778 points on a scale of 1,000, according to a press release issued Thursday, "performing particularly well in the ease of operation, physical design and handset feature factors."

The BlackBerry scored highest in J.D. Power's 2007 survey with 702 points; this year it came in second with 703 points.

The iPhone didn't even make the cut last year.

"With the introduction of the iPhone in 2007, Apple has clearly differentiated itself from the competition in areas that are most important to business smartphone users," said Kirk Parsons, J.D. Power senior director of wireless services. "By making basic applications and features easy to use and providing functionality in a thin, lightweight device, Apple has performed well in exceeding customer expectations." (link)

Keyboards are an important factor when choosing smartphones, but not the most important factor. According to the survey, the top five reasons given for picking a particular model are Internet capability (45%), ability to use e-mail account (41%), overall design/style (39%), Bluetooth capabilities (37%) and keyboard style (37%).

Among the survey's other findings:

  • Smartphones are buggy. 44% of respondents reported having to reboot their device at least once a week during the past 12 months, while 34% experienced either an application malfunction or application freeze one or more times per week.
  • Prices are falling. The average purchase price of a smartphone device was $216, compared with $261 in 2007. Apple owners report the highest average purchase price at $337, while Motorola owners report the lowest at $169.
  • Games are popular. 34% of business smartphone owners say they download third-party software, including games (49%), business applications such as Microsoft Word and Excel (43%) and travel-related programs (36%).

The study was based on responses from 1,388 business wireless customers who currently own a smartphone. It was fielded between August and September 2008. Overall satisfaction was measured across five factors: ease of operation (27%); operating system (24%); physical design (21%); handset features (18%); and battery aspects (10%).

See also Smackdown: BlackBerry Bold 9000 vs. Apple iPhone 3G, iPhone vs. BlackBerry 9000: The keyboard wars, round 2 and iPhone vs. BlackBerry: A battle for hearts and minds of developers

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