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Apple Fails To Mention That It Sold Fewer Phones Than BlackBerry

Apple’s CEO Steve Jobs made a surprise appearance on the company’s earnings call in October to declare that “Apple (NSDQ: AAPL) outsold RIM.” But the company hasn’t been able to brag about that since, including today when it announced its latest iPhone figures.

To be sure, the company’s second-quarter results posted today were strong, and to date, it has sold a respectable 21 million iPhones; and will hit 1 billion downloads from the App store in the next few hours. But iPhone sales for the past two quarters have not been able to touch the volumes experienced by Research In Motion’s BlackBerry.

Here’s the breakdown:

—In Apple’s Q4, it sold 6.9 million iPhones, beating RIM’s 6.1 million phones.
—In Apple’s Q1, it sold 4.36 million iPhones, or less than RIM’s 6.7 million phones.
—In Apple’s Q2, it said today it sold 3.79 million iPhones, or less than half of RIM’s 7.8 million sales.

A couple of disclaimers on why these figures may not be entirely fair after the jump…

Even though Jobs started it, there’s a few reasons why these comparisons aren’t exactly comparing apples to apples.

First, in the fourth quarter when Apple first beat RIM (NSDQ: RIMM), there was likely pent up demand for the newly released iPhone 3G, which helped bump up iPhone sales temporarily. Second, the two companies have different financial periods. So, while Apple reported its second quarter today ended March 28, RIM’s most recent period was its fourth quarter, which ended Feb. 28 (and would therefore include one month of the busy holiday period). And finally, many expect Apple to release a new iPhone this summer, which may be causing customers to delay making any purchases until they know for sure. That probably also explains the sequential drop in iPhone sales. While iPhone sales jumped more than 100 percent year-over-year, Apple sold 15 percent fewer iPhones compared to the prior period.

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Apr 22, 2009 5:47 PM ET
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Posted In: Companies, Apple

  • Branden

    So many hateful apple fanbois… they are like rabid little dogs.. who cares.. the iphones over rated and over priced.. anything with a slide out keyboard > any of these phones you keep crying over.

  • I thought everyone commenting here would enjoy an article in WSJ yesterday that explores how the App Store is driving the success of the iPhone (more say then the actual hardware/phone functionalities?). It says even if most downloads are free, the store is driving purchases that cost $199 or $299 (and that's the subsidized cost!). With 1 billion apps downloaded as of yesterday, that may fuel buying decisions in months to come. The story can be found here: http://online.wsj.com/article/BT-CO-20090423-723471.html?mod=dist_smartbrief
    Cheers!
    Tricia

  • Of course if you compare iPhone OS vs Blackberry OS devices it is a different story.

    In this most recent quarter, Apple sold a combined total of 7 million iPhones and iPod Touches putting Apple neck and neck with RIM's total sales of all Blackberry models.

    -Mart

  • James

    Due to Rim's nonstop carpet bombing TV and media ads, people are sick and tired of the Rim brand. Who would be interested in a boring blackberry while so deeply worried in looking for a new job, or keeping the current job?

    As so many laid off former blackberry wielding executives reflect upon the wrong decisions made using the incomplete, incoherent, disjoint, random blackberry eMail messages, they had no one to blame but themselves in adopting the Rim eMail oriented work style which is so chaotic, dysfunctional, and damaging to their careers as well as to the organizations they worked for. The anguish at this eMail driven management work style is building as more and more business failures are mounting, citing eMail culture in a corporate environment to be against sound decision making practises and principles. Why did Rim promote this kind of product and culture to its corporate business clients?

  • AdamC

    Sorry guys RIM will be a niche player in the not too distant future… Too many better smartphones that do more than email and a much better job.

    Remember the earning warning they gave out,, wonder why they did that.

    BTW RIMM has only over 25 million subscribers - http://www.streetinsider.com/Corporate+News/Highlights+from+RIMs+(RIMM)+Q4+Conference+Call:+70%+of+New+Subscribers+Were+Non-Enterprise;+to+Focus+on+Cost+Efficiency+Rather+Than+Gaining+Market+Share/4540119.html

  • KenC

    Apple never really ever outsold RIM. In the quarter where they shipped 6.9M iPhones, 2M were to re-stock the channel. Only 4.9M were sold, so they never really surpassed RIM's sales. Sure for accounting purposes, they shipped more, but you only get that bump from stocking the channel once.

  • lrd

    Oh, did I mention the 1 Billion app downloads and the almost 90% mobile web surfacing the iphone enjoys over the BB. The BB didn't even show up in Admobs last survey- just goes to show that BB users are in love yesterday years technology. Kind of reminds me of DOS users before Windows 95 came around.

  • lrd

    Hey, if you want to buy a $99 Blackberry that does nothing but read e-mail; can't play video; you can barely make out a calendar appointment;then of course BB's will sell more than iPhones. And don't forget the two for one specials they've been running for two months now! Hey, I think I saw an add that said buy one BB and get two for free! Holy crap, no wonder they're selling more.

  • James

    Nobody failed to notice that Rim sold fewer phones than Nokia.

    Nobody failed to notice that Nokia is selling more phones than the previous quarter. As the N97 and 8800 gain traction Nokia is likely to recapture market shares from Rim than from Apple.

    In fact, as Samsung, LG, HTC, Palm, and a host of makers gain traction, the weak link would be Rim in losing market shares, not Apple which is increasingly established as the leader.

    It has taken Rim years to build up the blackberry as the eMail phone for corporations. As Rim leave its business trying to compete against so many world class competitors it's only a matter of time before Rim lose out in both the consumer market as well as its existing business clientele.

  • Woops quick correction to last post:  RIM 7.8 million units into $3.4 Billion revenue = average price $435 across complete range.

  • I think the numbers are pretty obvious at the moment, unless both companies are deliberately hiding revenue, which is extemely doubtful after what has happened in the world in the last 12-18 months

    iPhone 3.79 million x $600 = $2.2 Billion - all phones sold at max price, no discounting.

    RIM 7.8 million x 3.4 Billion= average price $435, as was pointed out above some of the cheaper RIM range is included, so not a million miles away.

    I agree on the comment about comparing like for like as the iPhone is aimed at the high end of the consumer market where they can afford to pay.
    iPhone sales in their very first quarter were 1.1 million units
    RIM figures for the Storm I am sure are on a par, if not greater than that for its first quarter of release, especially given that it sells for $500 list.

    I think it will be more interesting to compare the numbers in 90 days time, at that stage both companies will have new quarterly numbers reported, and at this stage neither are predicting any major change to last quarter.

    Tony
    ExSafe

  • Just to be clear, these are total worldwide sales for both companies…Also, as I said in the post Steve Jobs was the first one to make the comparison, so we have to assume he finds it to be a close enough comparison.

    And, as a side note, there are discounts on refurbished iPhones. They aren't quite free, but AT&T is currently selling 8 Gig iPhones for $99, which is $100 off, and it is selling 16 Gig iPhones for $150, which is $150 off.

  • Edzso

    Scott said: "When quoting sales, could you please specify that it US-only sales?"

    Ditto. And while you're there - specify "sales" - not giveaway freebie - promo pressure "units" from my telco (name witheld, but we know who they are…)

  • slappy

    Duh.. Apple sells one model.  iPhone.  RIM sells a variety.  Why don't you compare the direct iPhone competitive product from RIM. Thats the Storm.  How many of those were sold for the quarter?  iPhone vs BB Storm sales is what you should be comparing it to.

  • jbelkin

    Of course, in the US, RIM is giving away half the phones it lists as "sold," so your numbers should reflect that while Apple gets $600 to $700 in revenue from each phone sold (rest from AT&T). Apple only lists phones sold at full price - there is no discounting or giveaways to create a market share.

  • Dave

    So, my family owns four Gen 1 iPhones. All will be replaced when the next model is releases. None will be replaced with Balckberry. I suggest you do the math again in a little over 60 days.

  • Thanks Tricia, not sure who the subsequent comments are aimed at but if they are in my direction, maybe I need to clarify a few things. I do not have any allegiance to any particular Smartphone manufacturer as we have built our application on what ever device will bring greatest revenue to the company. We have initially deployed on BlackBerry because we believed it was used more extensively in the business world, this we feel was justified. The fact that their margins are being reduced yet their share price continues to rise means that the investment community has full confidence in the management strategy. There are not too many tech companies that are hiring 3000 new employees this year, so expect decreasing margins as this seems to be a ploy to dominate the space, IMHO. I am not a shareholder but just a very interested side party. We look for handset manufacturers with devices that have great screen resolutions and that business people use to manipulate office content. The upcoming device from Nokia, the N97, which I got my hands on at CTIA 2009, is really something else and I would expect us to port our product to that platform in the short term. We would like to do the same for the iPhone but other business application providers like Dataviz and QuickOffice have been slow to implement 'full' versions of their products, something that we leverage and rely on.

    As I am based in Ireland I have not seen the local carriers provide the 2 for 1 deal, but then again we are a very small market comparatively

  • Tony, you are right. RIM's last quarter ended Feb. 28, so it's true that the period only reflected one holiday month. I've updated the post to correct that.

  • John

    What a biased creep you are!!!

  • Dave

    Why don't you mention that RIMM had a 2 for 1 sale going on and that their profit margins are a LOT skinnier than Apple's.

  • The last RIM quarter ended February 28th 2009, so their results only reflect one 'Holiday' month December 2008, which indicates obviously a very impressive record indeed. I think at this rate they are are long long way from being RIP. Even Bono and U2 are converts, look who is sponsoring their upcoming 360 Tour - BlackBerry

    Tony
    CEO
    ExSafe

  • Scott

    When quoting sales, could you please specify that it US-only sales?  Please specify regions when stating data for product sold in multiple markets.

  • James

    Since 2008, the Buy 1, Get 1 Free blackberry campaign, and the eTrade Free blackberry promotion had given away 1 blackberry for each blackberry sold. The Buy 1, Get 1 Free blackberry campaign is ongoing. At this rate of blackberry giveaways, blackberry should outnumber all the other brands added together.

    With Nokia and HTC taking away impressive shares of the mid-priced mobile phone market, and Samsung and LG rapidly taking away vast shares of the low-priced mobile phone market, Rim is facing lethal pressures in surviving the highend onslaught of iPhone, and mid to low assaults from Nokia, HTC, Samsung, LG. As corporation employments continue to shrink, Rim's revenue from corporate business continue to go down. Rim's mounting expenditures in marketing and introduction of new phones continue to eat deeper into Rim's profit margin with no end in sight as the competitions rise. Rim seems destined to RIP in the coming quarters.

  • Jamie Poitra

    Add to those facts that Apple only sells essentially one model of phone.  RIM sells a variety, some of them much more budget oriented which probably helps with that stat.

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