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The king of smartphones

17 May 2010
00:00
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Most Disruptive Technology

The iPhone by Apple Corp

Last Year (Best New Technology):App Store

Three years after its commercial launch in the US, Apple's iPhone remains a force of nature, as much for the App Store ecosystem that sits behind it as the device itself.

Start with the numbers. Three years ago, Apple wasn't even in the handset business. By Q3 2009, the iPhone commanded 18% of the global smartphone market, according to Canalys, making it the third-biggest smartphone player in the world behind Nokia and RIM.

And by all indications, that's only going to get bigger - Apple's Q2 results ending March 31 reported a 131% year-over-year growth in iPhone sales and a 124% jump in revenue, thanks to international sales, especially in China. Little wonder financial analyst firm Trefis predicts that Apple could bump RIM down a notch in the smartphone rankings by this time next year.

But it's fair to add that the iPhone would be nothing without the App Store, which indeed exists mainly to sell iPhones. The App Store single-handedly transformed the relationship between apps developers, device makers and cellcos, and has since been copied by just about everyone to the point that it's almost impossible to sell a smartphone without a storefront to go with it. Even Apple's increasingly controversial content policies haven't dampened developer enthusiasm much - a recent Ovum survey ranked the iPhone as the most popular platform for developers.

Of course, disruption isn't just about positive changes. One unintended consequence of Apple's success and subsequent influence has been the increasing fragmentation of the mobile OS market - a problem that the mobile sector has been trying to fix for the last decade, and has now been exacerbated by the rising popularity of OS-oriented apps and widgets. That's good for innovation, but costly to developers.

Between that and the massive IP traffic growth experienced by 3G operators whose data services languished for years until the iPhone came along - and with the iPad now making fresh waves - Apple looks set to remain a disruptive force in the cellco space for some time yet.

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What the judges said: "For creating the telecom industry's most innovative product, and for bringing with it an entirely new ecosystem and marketplace that is imitated by telecom, internet and IT businesses worldwide"

Winners' list:

Related video: Celebrating Asia's telecom champions
  

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