3/04/2008

iPhone on track

According to a report from CNNMoney (http://money.cnn.com//news/newsfeeds/articles/djf500/200802291705DOWJONESDJONLINE000962_FORTUNE5.htm) on February 29, 2008 Apple's iPhone current holds 28% of the US smartphone market. Their sales to date are approximately 4 million devices. Apple's forecast was to be at the 10 million mark by Q3 of 2008. If this trend in their sales continues, they may surpass their forecast of 10 million before Q3.

The war starts now between RIM and Apple. As we know, RIM controls 41% of smartphone market and reported that they are looking at a 15%-20% on top of their current sale of 14 million devices for fiscal 2008.

Volume is great but the bottom line does matter for both companies. Where will this growth come from? For Apple it will be the business sector and RIM will be the international market and continue growth in the business sector. Apple current have about 5% of the business market and their drive will be to grow this slice. The business sector is more profitable than the regular consumer sector owing to the margin for business applications.

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