Can the iPhone’s Momentum Be Stopped?

by Chris Howard Nov 12, 2008

The last few days the news and blogosphere have been awash with headlines of good fortune for Apple's iPhone. The iPhone is building a lot of momentum that might soon become unstoppable

Here's a few headlines from the last few days:

"iPhone 3G overtakes theRAZR as bestselling domestic handset"

"iPhone wins top business smartphone satisfaction marks"

"Lower income consumers drive iPhone growth"

"Demand for iPhone developers up 500%"

"iPhone trumps RAZR as most purchased  US handset"

"iPhone tops business rankings, steals Nokia market share"

"#1 iPhone take one step forward. Not so fast RAZR"

"iPhone only half as good at breaking as Blakberry"

"iPhone is now the top iPhone in Q3"

"Apple's iPhone makes inroads into corporate market"

"Study: Apple iPhone twice as reliable as RIM Blackberries"

"Dallas Morning News: RIM's new Blackberry still can't touch the iPhone"

"Canalys: Apple now wrold's #2 smartphone vendor; iPhone outsells all Windows Mobile units combined"

"Apple iPhone #1 Among US US Consumer in Q3 2008

Any Apple fan worth their salt would have enjoyed reading that list. Here's an article that summarizes all the sales headlines

But what does it mean? The headlines about sales are, after all, referring to the first quarter the iPhone 3G was available, so you would expect a significant downturn in the next quarter as the early rush subsides. And economic downturn should couteract the holiday buying season.

It'll be interesting though, because all the other players face the same issue. So can the iPhone maintain its momentum

The iPhone will get a lot more momentum out of those headlines. I hear people on radio or TV no longer talking about "cell phones" or "PCs", but instead referring to iPhones. E.g. "So and so has that embarrassing video on YouTube and now everyone's watching it on their iPhones.

Momentum at work.

As I wrote a while back, businesses, such as banks, are rushing to bring out online features that are specially tailored to the iPhone

Momentum at work

It's why Steve Jobs made a point of hammering the fact the iPhone, in revenue terms, outperformed RIM in Q3.

These are the things that help build momentum. Especially in gadgets. Apple, ably assisted by headline writers, is working hard to flog the notion that the iPhone is the most popular mobile handset, as popularity builds momentum as it all leads to sales

Because in Q4, when folks are buying a new phone, they'll feel the weight of that momentum pushing, pushing them to buy the most popular phone, the one that "everybody" has. And then they buy it, tell their friemds, get added to that quarter's statistics, and the momentum builds more

The iPhone has, in a sense, created its own halo effect. The more it sells, the more it sells.

I know that's blindingly simple marketing 101, but I still think it's well worth stating, because that's what momentum is about - the increasing weight of numbers coupled with the accelerating rate of sales.

As I've said before, the iPhone has created it's own market category and now everyone else is playing catchup. I think consumers are smart to that too. I think they know there's nothing else out there like the iPhone. And now those who hesitate read that the iPhone is most popular, so that pushes them just enough to buy the iPhone

It's a good time to be Apple

One of the iPhone's biggest advantages is its broad multi-functionality. It's not just two or three devices in one, but several. So when you're tossing up whether to spend you hard earned on a phone, a games player, a PDA, a GPS, a Blackberry, a Pocket PC, and so on, then why not get them all in one for not a lot more than the cost of any one device?

Add to that the App Store which greatly increases the functionality again and the value-for-money increases even further. For example, you can use it as a spirit level. I was using the Clinometer this week to help align my works for our graduation exhibition, and one of the other students asked, "Is there anything that thing doesn't do?" She's kinda right. The iPhone is getting to the point where it feels like it can do anything. How many other "smartphones" can claim that? The only one with any hope is Android, but it's still struggling to find its feet

Wonder what it's like over at Microsoft? And RIM? And Nokia? And Motorola who were given first chance at an Apple cell phone? I dare say they would all be a little uneasy. Can anyone say "iPod"? The MP3 player that was under-specced, over-priced and too late to the game anyway. It did okay.

Can the iPhone's momentum be stopped now? Probably if the Android can get its act together fast enough. The other manufacturers (RIM, MS, Nokia etc) are more likely to struggle because they are trying to put a new saddle on a old horse and expecting it to become something so much better.

I certainly don't think the iPhone has anywhere near the numbers to suggest its reached a tipping point.

Where's the tipping point? At what point do you think the iPhone's momentum will become unstoppable.

 

 

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