Is the iPhone 4S a letdown?

Apple yesterday announced the launch of their latest smartphone device, the iPhone 4S. After the months of rumours and anticipation for the iPhone 5, it’s fair to say that everyone was rather disappointed.

The iPhone 4S looks just like the iPhone 4 on the outside but with improvements on the inside. It has to be remembered that Apple has a track record of releasing products in a similar fashion in the past. After the iPhone 3G, the 3GS was released, which similarly evolved around changes to the inside of the phone. Similar behaviours can be seen in Apple’s updates to their laptops and tablet computers. Earlier on this year, the launch of iPad 2 met a similar air of disenchantment, nevertheless it ‘s how Apple operates strategically by releasing tidy regular updates before a major overhaul of the product to burst it back into life. While many feel letdown that it was an iPhone 4S released and not an iPhone 5, it does not mean that we should necessarily write the product off. Not at all, the 4S in fact has a swifter processor, an improved camera, more built-in storage and faster cellular data networking that works in a greater number of places with now both CDMA and GSM hardware built-in.

In addition the iPhone 4S-specific Siri voice recognition has added much needed spice to the launch of the iPhone 4S. It is the feature that will set tongues wagging with the ability to accurately interpret instructions and turn them into actions. Apple for now has surpassed Google with its Siri voice recognition software, taking it to the next level. The iPhone 4S seems an ideal replacement for those with 3GS models looking for an update, but not so much for those who have an iPhone 4.

Apple has been losing considerable smartphone market share over the past year. The problem is that the rest of its smartphone competitors appear to be moving at a faster rate, reaping the benefits of offering frequent new models that are running on operating systems made by other companies. Whereas Apple has to wait for an OS update before it can make any major changes to their products.

Apple’s goal is to essentially gain a greater share in not only the smartphone market but the handset market as a whole. Apple CEO Tim Cook pointed towards this at the iPhone 4S unveiling yesterday:

"Despite all of this success and all of this momentum, the iPhone has a 5 percent share of the worldwide market of handsets. I could have shown you a much larger number if I just showed you smartphones, but that's not how we look at it," Cook said. "We look at the entire market of handsets because we believe that over time, all handsets become smartphones. This market is 1.5 billion units annually. It's an enormous opportunity for Apple."

Apple’s plan of attack appears to be in full swing. In addition to the 4S, Apple will continue selling the iPhone 4 and 3GS. The firm has always been renowned for continuing to offer their previous year’s handset, but the 3GS will also be available free of charge. This is the first time that the company will be offering a device with no charge up front on a carrier contract. Apple has been suffering a decline in iPod sales over the past few years, selling 20% fewer in its third quarter than in the same period last year. Although Apple effectively dominates the MP3 market, the prominent rise of the smartphone market has led to the iPod nearing the end of its life cycle. The move to make the 3GS free of charge could potentially eat up iPod sales, but in context it appears that CEO Tim Cook has picked the right time in order to reach a wider audience.

Many took to the web to express their feelings on the iPhone 4S. Overall there appeared a mixed reaction, but there was an underlying sense of disapproval that it was not an iPhone 5, which begs the question is the iPhone 4S a letdown?...No, not in the slightest, the reason why is that people will still be queuing up around the block for it and without doubt it will go onto outsell last year’s model!

Android and iPhone Remain top dogs in the US smartphone market

In essence of Road Runner and Wile E. Coyote, Google and Apple continue to sprint ahead in the US Smartphone market leaving RIM and Windows in their dust.

New statistics from comScore showed that a mammoth 82.2 million people owned a Smartphone in the US as of July 2011, representing a 10% increase from April 2011. Google is the market leader with 41.8% of the market share, an increase in 5.4% since April. Apple follows Google with 27% of the market share, an increase in 1% since April.

In contrast, RIM, Microsoft and Nokia have continued to lose ground on their rivals. RIM’s BlackBerry market share dropped from 25.7% to 21.7% in three months and Microsoft also experience a drop in their Smartphone market share from 6.7% to 5.7%. Nokia’s Symbian Operating System evaporated from 2.3% to 1.9%.

What does the future hold?

Here is a quick roundup of the latest Smartphone news and what lies ahead in the coming months for the major players in the market.

Google

In the past month Google purchased Motorola for $12.5 billion, showing the company’s ambition to take its investment in the mobile market to the next level.

Google’s acquisition of Motorola is significant in more ways than one. Owning a handset manufacturer opens the way for Google to follow Apple’s profitable lead in controlling the software, hardware and content on its devices. It also gives Google access to a range of technology patents which it can use to defend against action by its industrial rivals.

Google’s Android operating system is a relatively new player in the mobile space. It has left Google behind in the patent game and left the company open to legal action from Apple, Microsoft, Oracle and other companies. In particular, the company has been locked in a legal battle with Microsoft since October 2010. In contrast, Motorola holds 17,000 issued patents worldwide and has another 7,500 patents in progress. The acquisition has not left Google immune to company patents, but it does have a better patent defence than Google on its own.

Apple

Apple will be looking to strengthen their position in the Smartphone market with the imminent release of the iPhone 5 on the horizon. It is predicted that the device will be available within the next couple of months with exciting new features, including Android’s drop down menu style notification. Although Steve Jobs has resigned as CEO of Apple, everyone is getting excited about the launch of the iPhone 5, so watch this space for the latest news!

RIM

Earlier this month, Research in motion (RIM), the maker of the BlackBerry Smartphone launched three new phones worldwide in order to try and win back share from Google’s Android and Apple’s iPhone. All phones will run RIM’s new BlackBerry 7 operating system, the next generation from the existing BB6 operating system. RIM has been gradually losing its market share over the past two years to Google’s Android OS and Apple’s iPhone, especially in the US, once its largest market. But the company has been gaining shares in other continents, most notably Europe, China and parts of Africa.

RIM’s custom base is split roughly 50-50 between business and personal customers, where the general Smartphone market is split 30-70. Essentially, the consumer market is larger, which has created problems for RIM in expanding its customer base, as the iPhone and Android phone having proved more popular with the first wave of consumer Smartphones.

The three new Smartphone devices are: BlackBerry Bold 9900 and 9930: Features QWERTY keyboards. BlackBerry Torch 9810: Features touch display and slide-out keyboard. Blackberry Torch 9850 and 9860: Features a 3.7in all-touch display.

The new BlackBerry 7 operating system is claimed to be 40% faster than the BlackBerry 6 Operating system and up to 100% faster than the BlackBerry 5 Operating System. The displays also feature “Liquid Graphics” technology with a high pixel density of more than 250dpi. Some business may hold off from committing to the new devices as RIM is expected to bring its products into line with the release of Smartphones using their QNX operating system next year

Windows and Nokia

Shares in Nokia and RIM jumped in the wake of the Google-Motorola announcement. The reason behind this is that beleaguered mobile giants are seen as ripe acquisition targets for companies like Microsoft. Nokia has tied its future fortunes to Microsoft’s Window Phone ship, so there is the definite potential for Microsoft to complete the takeover of Nokia sometime in the near future!

The Smartphone market is unpredictable, making it difficult to forecast what will happen in the mobile market over the next few years. Market research firm IDC predicts that the Windows Phone will overtake iOS by 2015; however we find this very unlikely. At present, Google and Apple remain top dogs in the Smartphone market and it looks set to continue that way for the immediate future.