iPhone outsells N-Series

Last week was quarterly reporting week, and both Apple and Nokia let us have a glimpse on whatever they did. Subsequently, some reported (via Twitter) that the iPhone outsold the N series for the first time.

Nokia first: In Q2, Nokia sold 103.2m units (down 15% year-on-year but 11% as compared to Q1). Total sales of “smartphones” amounted to 16.9m devices, of which 4.6m were N series (the balance being made up of E series and some “numbered” devices, of which the 5800 series took the biggest share). The total number of Nokia smartphones (or “converged devices”) in market was thought to be 41m. Nokia estimated its share of the smartphone market to amount to 41%, which would be up 2 points from the previous quarter. I wonder…

Apple, by contrast, reported that it sold a whopping 5.2m iPhones in Q2 (Apple’s financial Q3), which means that the iPhone outsold the Nokia flagship smartphone series for the first time. A couple of years ago, no one would have thought this was possible! It is noteworthy that this does not even include the iPhone 3GS, which only went on sale after the close of the quarter.

After all the worries about Nokia’s performance (see e.g. here, here and here) and the relevance of Apple’s “minute” market share in relation to the total handset market, this is a very important benchmark: not only does Apple beat Nokia in an important segment (the N-series traditionally spear-headed Nokia’s mass market assault on the higher-end side of handsets) but it also shows the dynamics behind Apple. Nokia’s distribution and incumbent market footprint is hugely superior than Apple’s and yet Apple manages to outsell them. Very impressive indeed!