Why the iPhone Should Be Feared

Customers have been very happy with their iPhones and all of the reviews of the revolutionary device have been quite positive, but there is one group of people that aren't too happy with the iPhone� Apple's competitors.

While so far the overwhelming majority of Apple's competitors have downplayed the iPhone for various reasons, most of which have long been debunked, that doesn't change the fact that the device is a real threat to them. Apple announced that by the end of the next year they will sell 10 million iPhones, considering sales so far and the fact that there is still a year and a half to go, that number seems awfully low, but it isn't when you get some perspective.

Microsoft's CEO Ballmer laughed down the iPhone, saying that his company is "selling millions and millions and millions of phones a year, while Apple is selling zero phones a year." Of course, this was back at the beginning of the year, but his words don't translate as well in numbers. Microsoft has approximately 5.6% of the smart phone industry, which in turn is only approximately 6 or 7 percent of the overall cell phone industry, so that adds up to about 4 million cell phones running any version of Windows Mobile in 2006. If you double that for 2008, Apple estimates start looking like quite a chunk.
Research In Motion is another company that had a very popular product before the iPhone came along, but so far all the devices they have sold only add up to 20 million and that over the course of many, many years. Apple intends to get at least half of that by the end of 2008.

If you look at the numbers, look at the public's reaction to the iPhone and look at the analysts that are all saying Apple's estimate is a conservative one, you can see why these other companies might be scared and why they should be.