iPhone grabs top smartphone spot in the US

iPhone 3G more efficient in pulling buyers from other carriers than its first-generation predecessor.

Apple boosted its share of the US consumer smart phone market by 55 percent after cutting the price of its iPhone and rolling out a 3G model this summer, a research firm said Monday.

According to data from NPD Group, the iPhone's share of the market grew from 11 percent before the July launch of the iPhone 3G to 17 percent as of the end of August. Apple's device is currently the best-selling consumer smart handset in the US and was often in short supply during the first few weeks after its release.

"The last three months, we have it ranked number one," said Ross Rubin, an analyst with NPD. The research firm bases its findings on online surveys it conducts with more than 150,000 American consumers each month.

Rubin credited the second-generation iPhone's lower price and access to the faster 3G network for the increase in share, with the latter particularly important to the iPhone's gains. "The iPhone 3G was more efficient in pulling buyers from other carriers than the first-generation," Rubin said, citing statistics gleaned from NPD's surveys.

In the three months surrounding the iPhone 3G's launch, 23 percent of American consumers switched mobile carriers; during the same June-August time period, 30 percent of iPhone buyers switched from another carrier to join AT&T, Apple's exclusive network partner in the US.

The bulk of new iPhone owners who switched -- 47 percent -- left Verizon Wireless, while another 24 percent dumped T-Mobile and 19 percent switched from Sprint.

"Carriers withstood the pull of the first-generation iPhone, but Apple's taking advantage of AT&T's 3G network," Rubin said. Verizon has been especially susceptible to defections because, unlike rivals such as Sprint, it has not had a handset competitive with the iPhone. "It's proven more vulnerable to the iPhone because of that, and also because of its size," he said.

Apple and AT&T, however, will face increasing competition, predicted Rubin, who called out the new G1 from T-Mobile -- the first smart phone powered by Google Inc.'s Android operating system -- as a prime example. "Now we're seeing other manufacturers launching full-fledged smart phones," said Rubin, who also cited the still-unofficial BlackBerry Storm from Research In Motion as another potential iPhone rival.

Apple has scheduled a conference call with Wall Street analysts and reporters for Oct. 21, when it will announce its fiscal fourth-quarter earnings, and reveal iPhone sales figures for July through September.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags iphone 3g

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Gregg Keizer

Gregg Keizer

Computerworld (US)
Show Comments

Father’s Day Gift Guide

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?