Apple excels in smartphone market

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Computing giant Apple has become the world's third biggest seller of smartphone devices, just a year after making its debut in the market.

Nokia is by far and away the market leader, claiming 52.9 per cent of the "smart mobile device" market in Q4 2007, according to new figures from Canalys. Then follows BlackBerry maker, RIM, with an 11.4 per cent market share.

But hot on RIM's heels after selling 2.3 million iPhones in the Christmas quarter of last year is Apple, claiming 6.5 per cent of the worldwide market. That leaves Apple almost level-pegging with Motorola, the long-established handset manufacturer, which is reportedly a target for Dell.

The news is even better for Apple in the US, where it claimed 28 per cent of the smartphone market, second only to RIM with 41 per cent, and leaving Palm loping over the horizon on 9 per cent.

"When you consider that it launched part way through the year, with limited operator and country coverage, and essentially just one product, Apple has shown very clearly that it can make a difference and has sent a wake-up call to the market leaders," said Canalys senior analyst, Pete Cunningham.

"What it must demonstrate now is that it can build a sustainable business in the converged device space, expanding its coverage and product portfolio. It will also need to ensure that the exclusive relationships that got it so far so quickly do not prove to be a limit on what it can achieve," Cunningham added.

Cunningham also warns Apple not to rest on its laurels with the single device. "Experience shows that a vendor with only one smartphone design, no matter how good that design is, will soon struggle," he said. "A broad, continually refreshed portfolio is needed to retain and grow share in this dynamic market. This race is a marathon, but you pretty much have to sprint every lap."

Apple yesterday announced it was doubling the storage in the iPhone to 16GB.

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