With feature phones still the dominant mobile device, the room for iPhone growth remains substantial

Thu, Jan 27, 2011


It’s easy to look at the astronomical growth of the iPhone and conclude that the room for growth, while still substantial, is closing. That, however, couldn’t be further from the truth.

The market for the iPhone in the US is illustrative.

The reality is that most cellphone users today still use feature phones. This point was driven home in Verizon’s Q4 earning report where they noted that only 26% of their 83 million “retail postpaid” subscribers use smartphone devices. Translation? There are 60.5 million Verizon subscribers using basic feature phones, and coupled with Verizon smartphone users preparing to jump ship to the iPhone, Verizon will undoubtedly sell a boatload of iPhones to brand new iPhone owners in the coming months. Moreover, Verizon notes that more than 75% of its new subscribers are opting for smartphones. Clearly, the trend is moving towards smartphone ownership in a significant way and Apple, of course, is prepared to take advantage of this technological shift.


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