This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Apple iPhone Out of Touch? Not Exactly

NEW YORK ( TheStreet) -- Those in glass houses shouldn't throw stones, yet that's exactly what BlackBerry (BBRY - Get Report) CEO Thorsten Heins is doing.

In an interview with Australian Financial Review, Heins said that Apple's (AAPL - Get Report) iPhone isn't the top of the line phone anymore, and that competitors such as BlackBerry are passing it by.

"History repeats itself again I guess ... the rate of innovation is so high in our industry that if you don't innovate at that speed you can be replaced pretty quickly," Heins said during the interview. "The user interface on the iPhone, with all due respect for what this invention was all about, is now five years old."

If the user interface is old, then why have Apple's competitors, including Samsung, worked so hard to make their user interface look a lot like iOS? That patent lawsuit over the summer between Apple and Samsung (which Apple won by the way), was in part about user interface. Innovation is not about stealing competitors' ideas; it's about making your own product, and letting the customer decide who wins.

Heins also cited the fact that the iPhone doesn't allow you to run multiple apps at once, which the BlackBerry 10 does, as well as other smartphones running Google's (GOOG - Get Report) Android. The theory that the iPhone doesn't allow you to run multiple apps at the same time isn't exactly true. Users can listen to Pandora (P) while reading Twitter, Facebook, or any number of apps. The ability to run multiple apps at the same time is limited, but it's not entirely 100% accurate.

Apple reinvented the smartphone industry in 2007 by launching the iPhone, destroying BlackBerry's (then Research In Motion) market share, and forcing all of its competitors to play catch up. Apple is still the measuring stick, no matter what. Every article, every survey, every analyst note about a major company includes how that particular company is doing against Apple.

A recent IDC survey shows that Apple owned 21% of the smartphone market in the fourth quarter of 2012. While Android owns 70.1%, that's due to the fact Android is available on hundreds of devices, and iOS, is only available on one. It's not an apples-to-apples comparison. If you want that, look at BlackBerry's market share. It fell to 3.2% in the fourth quarter, shipping 7.4 million units.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.75 -1.10%
BBRY $7.06 -1.50%
FB $117.53 0.69%
GOOG $693.00 0.29%
TSLA $240.76 -2.81%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs