Summary
Apple's iPhone users are beginning to see problems with the device. Wether it is hardware, software or both is still uncertain or, does it even matter? This analysis looks at the issue from a market share and positioning perspective.
Analysis
Apple has created an image of being immune to problems with their products. This is largely an illusion, possible to maintain because of market share in the PC market. In 2008, Apple had roughly 3.3% (http://www.systemshootouts.org/mac_sales.html) of overall PC market share with 2.2M Macs sold per quarter. The total sales for all of 2008 were 69.5M. Granted, the Mac is a case study in design and quality but, the relatively small market share is directly proportional to the magnitude of any problems.
The situation is quite the opposite with the iPhone though. Apple has carved out a significant smart phone market share with 13.3% as of August 2009 (http://news.cnet.com/8301-13579_3-10308173-37.html). The twist is in how much data the iPhone represents. According to AdMob (www.admob.com) (http://www.webpronews.com/topnews/2009/05/27/comparing-smartphone-market-share-by-operating-system) the iPhone/iTouch has a commanding lead in mobile Internet use. This exposes Apple to a new level of scrutiny. Add a device evolution where more and more functions are crammed into a smaller and smaller device and you are setup for trouble.
Apple has set the bar high, both with its design and with its attack on Microsoft and PC market. It is quite possible that the market (you and I) expect more from Apple than we would from other vendors. This is what we are seeing with the current reporting.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
