Apple bested Motorola to grab third place in global fourth-quarter sales of smart mobile  devices, according to market researcher Canalys.
With 2.3 million iPhones sold in the quarter, Apple has a 6.5 percent global market share of smart devices, still substantially behind BlackBerry maker Research in Motion, with 4 million units sold and a 11.5 percent market share, and global leader Nokia with 18.8 million unit sales and a 53 percent market share. In the U.S., the iPhone accounted for 28 percent of the market, advancing on RIM with 41 percent and blowing past Palm with only 9 percent.
"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 Pete Cunningham, Canalys senior analyst.
iPhone vs Nokia
Meanwhile, Apple on Tuesday doubled the storage capacity of the iPhone to 16GB and the iPod Touch to 32GB. Apple originally offered 4GB and 8GB versions of the iPhone. The beefed-up devices come with software previewed at Macworld last month, which among other things allows them to identity the user's location.
Can Apple build on its success to seriously compete with Nokia for dominance of the smartphone space? To do so, it will have to expand its coverage and build out its product portfolio, Cunningham said. "A broad, continually refreshed portfolio is needed to retain and grow share in this dynamic market," he said.
Apple will be a strong contender for the crown over the next several years, said Tim Bajarin, principal analyst with Creative Strategies, in an e-mail. "While Nokia is a key player, Apple is clearly going down a path to challenge them and all the other players in the area of smartphones," he said.
In addition, the iPod Touch is "one of Apple's major strategic advantages over their competitors in the smartphone and MP3 music-player markets," Bajarin said. "I expect Apple to extend this multi-touch user interface to even more Apple-created products in the future."
Gray Market in Asia
Of concern is Apple's strategy of exclusive relationships with wirless carriers. "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 said. (continued...)
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