Knowledge is power

Apple has another hit with their touchscreen iPhone. The combination mobile phone, portable music player and digital media gadget has outsold the BlackBerry and Palm Treo among many other smartphone rivals for the month of July. The research was conducted by market research firm ISuppli.

Just one month after it debuted, Apple Inc.’s iPhone achieved sales that exceeded those of the top-selling smart phone and that equaled those of the most popular feature phone, according to iSuppli. iSuppli’s U.S. Consumer Panel Survey revealed the two models of the iPhone now on the market outsold all smart phones in July, including the Blackberry series, the entire Palm portfolio, and any individual Motorola, Nokia, Samsung or other smart phone model from a branded service provider. The iPhone’s U.S. sales in July were equal to those of the most popular feature phone, LG’s Chocolate. iSuppli classifies the iPhone as a crossover phone, with attributes that put it in competition both with smart phones and with feature phones. While the iPhone has some features associated with smart phones, users cannot load third-party software onto the product, which is a key requirement to qualify for smart-phone status. iSuppli defines feature phones as handsets that have rich functionality.

When the iPhone was first introduced, I cautioned consumers about rushing to buy what could potentially be an overpriced toy. The early success of the iPhone can be mostly attributed to the early adapters who rushed to purchase the device after many months of hype. Whether the iPhone will be a huge success for Apple similar to the iPod still remains to be seen. Apple has not released the phone to countries outside the US but they are expected to do so in the not so distant future. In addition, many consumers held back from purchasing an iPhone because it could only be used with the AT&T network. This has changed recently since hackers have been able to unlock the phones so that one could be used with any carrier. This is certainly going to increase the market reach for the iPhone.

I would still like to see some research about how people find using the iPhone compared to other popular smartphones such as the BlackBerry. In my opinion, this would be the real test for long term growth.