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IPhone Grows Market Share In Q2

iphone/arrow upSurging iPhone sales helped Apple increase market share among smartphone makers in the second quarter, jumping to 13.3% from 2.8% a year ago and 10.8% in the first quarter, according to new data from Gartner.

Apple is closing in on BlackBerry-maker Research in Motion, which had an 18.7% share and ranked second in the smartphone category leader Nokia, with a 45% share. That's down from 47.4% a year ago while RIM went up slightly from 17.3%.

Gartner noted that the iPhone's expansion into a greater number of countries in the last year has boosted sales as well as the cutting the price of the 8GB 3G model to $99. With the new 3G S being released only at the end of the quarter in June, "its full potential will only start to show in the sales figures in the second half of 2009," according to the research firm.

Gartner wasn't as bullish on the other high-profile smartphone to debut in June-the Palm Pre. "This device attracted a lot of media attention but showed mixed results at the cash register as sales only reached 205,000 units," said analyst Roberta Cozza, in a statement. "Palm currently ranks tenth in the smartphone market and Gartner remains concerned about its ability to gain traction outside the U.S. market, where its brand is less strong."

The Pre will hit Europe later this year through exclusive deals with Telefonica's 02 and Movistar to sell the smartphone in Britain, Ireland, Germany and Spain.

Gartner was also unimpressed with the 500,000 units Nokia sold of its iPhone rival N97 device during the quarter. Smartphone sales as a whole continued to defy the worldwide economic downturn, growing 27% in the second quarter compared to a 6% drop for mobile phones overall.

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