Consumer Update: Apple threatens Nokia's dominance

SMH.com.au


Apple is on track to become the number one smartphone maker in Australia this year, analysts say.

Nokia has long dominated the smartphone market but in just three years since the iPhone launched, Apple has rocketed up the charts into the number two slot in Australia. Its growth rate far surpasses any other manufacturer, IDC telecommunications analyst Mark Novosel said.

Novosel is in the process of compiling smartphone sales figures for the first quarter of this year and while his final report has yet to be released, the preliminary figures are sure to cause consternation at Nokia.

"The iPhone is continuing to experience extremely strong demand in Australia, with 2009 shipments growing by more than 230 per cent year on year," Novosel said.

"If this trend continues throughout 2010, Apple will likely overtake Nokia as the number one converged device vendor, by market share."

Similarly, Telsyte analyst Alvin Lee said his firm's recent study into smartphone purchase intentions showed Apple's momentum continuing, and the company "could potentially become the top vendor by installed base this year within the smartphone market".

Borders Australia boss Dave Fenlon said at a recent launch that there were more iPhones per capita in Australia than anywhere else in the world. Asked to back up the figure, he cited Forrester research and an unnamed source.

But Apple can't rest on its laurels as a bumper crop of attractive Google Android phones, such as the HTC Desire and Sony Ericsson Xperia X10, have entered the market this year, while Microsoft is preparing to release Windows Phone 7 later this year.

"As Android matures and more vendors launch attractive new devices, Australian shipments in 2010 will grow significantly compared to 2009 levels, but compared with Apple's soaring demand will remain relatively low," Novosel said.

Globally, Google says it is shipping 65,000 Android handsets each day worldwide, compared to 30,000 about five months ago. It says its Australian mobile search traffic has tripled in the past year.

Both IDC and Telsyte noted that Microsoft's Windows Mobile platform had continued to perform poorly, with sales increasingly being cannibalised by Google's Android platform.

HTC's Australian sales and marketing director Anthony Petts said HTC was now selling double the number of Android phones than Windows Mobile phones in any given week.

BlackBerry is still going strong thanks to the company broadening its appeal from executives to mainstream consumers.

Microsoft's ageing Windows Mobile platform is set to be revived by the release of Windows Phone 7 series late this year. Before then, in June, Apple is expected to release a new and improved iPhone model.

"We are expecting a fresh new smartphone war beginning in the second half of this year, with Windows Phone 7 series, Maemo/MeeGo and Samsung's Bada joining the party," Lee said.

"The Android [platform] will certainly gain traction in the consumer space, competing with Apple, especially within the teens and gen Y demographics."

Novosel cautioned against labelling any of the recent iPhone competitors, such as HTC Desire, an "iPhone killer", as Apple's success was as much to do with its product ecosystem as the device itself.

"Other vendors competing against Apple are not just competing against a device, they are competing against Apple's entire ecosystem of apps, music, movies, home entertainment and mobility devices, therefore the term 'iPhone killer' should no longer be used when talking about any single device," he said.