Tuesday, November 3, 2009
Was the iPhone’s Launch in China Really a Bust?
Apple’s internationally coveted iPhone finally arrived at market in China last week and by most accounts its debut was uncharacteristically muted. There is “no sign of the sort of sellout reception that greeted the smart phone at its introduction in other countries,” The Wall Street Journal reported. Clearly, the device’s Chinese launch wasn’t the rousing success to which we’ve become accustomed. That said, it probably wasn’t quite the bust it’s been made out to be, either.
The BlackBerry’s days as smart phone of choice among consumers in the U.S. appear to be winding down. While Research in Motion’s popular device is still the leader in the smart-phone space, with 40 percent market share, its dominance is threatened by Apple’s iPhone, according to ChangeWave Research.
Apple’s September quarter saw, among other things, the release of Snow Leopard, the latest upgrade to its OS X operating system and the first public appearance of CEO Steve Jobs, who’d been on a medical leave of absence for a liver transplant. It was also the first full period since the company launched the iPhone 3GS in late June. No wonder it was a blowout quarter.
Well this certainly doesn’t bode well for O2: The U.K. wireless carrier, which has reportedly been selling about 2,200 iPhones a day since it secured exclusive distribution rights to the device in 2007, has run out of the 3GS model. Extremely high levels of demand have emptied not just the company’s physical retail outlets, but its online store as well.
The Cliq, Motorola’s first phone based on Google’s Android operating system, is headed to market and will arrive there Nov. 2. Sales to existing customers will begin Oct. 19 and open to the general public Nov. 4. T-Mobile USA has priced the handset at $199 with a two-year contract, which seems a bit dear considering you can get a 16GB iPhone 3GS for the same price. 
Most entry-level phones in AT&T’s handset lineup have been able to send multimedia messages for years. Soon the most advanced will as well. The carrier on Thursday confirmed that it will offer MMS on Apple’s iPhone starting Sept. 25–about two months after the handset first began supporting the feature.
The rumors were true. At an invitation-only media event in New York City this morning, Sirius XM debuted the first-ever radio dock for the iPhone and iPod touch. Dubbed SkyDock, the $119.99 peripheral transforms Apple handsets into full-fledged satellite radios. And it gives users access to all XM and “Best of SIRIUS” channels–even Howard Stern.
The iPhone 3GS has been on the market just 10 days now, and already a growing number of Apple stores around the country are running short of the device. It seems that demand for the 3GS, which topped one million units sold its first weekend at market, has exceeded even the company’s presumably aggressive targets.
It’s been three weeks since the Palm Pre debuted and Sprint is still having trouble keeping it in stock. This according to Sprint Nextel CFO Bob Brust, who says that supplies of the new handset continue to be tight and that Apple’s new iPhone 3GS hasn’t really had an impact on sales.
Is Google’s Android OS a panacea for the decrepitude and irrelevance that are now the hallmark of Motorola’s handset division? The company is betting that it is. “People familiar with the matter” tell The Wall Street Journal that Verizon and T-Mobile USA both plan to offer Motorola handsets running the OS by the end of the year. 
