Credit Where Credit Is Due… And Where It Isn’t

The iHype continues this morning, with the world’s press breathlessly repeating the Apple PR saying the company sold 1 million iPhones over the weekend. That’s a decent number, and eclipses by far the first-gen model, which El Jobso is keen to remind us took 74 days to hit that model. Of course, selling the new model in 21 countries versus a single-country launch will help. But back to the press reaction: A blog at Barron’s says that shares in Palm, Research in Motion, Nokia and Motorola are “Suffering an iPhone Headache”, as “Clearly, some or all of those companies are going to lose market share as Apple takes an increasingly large slice of the market.”

Just to let reality back in for a second:
– Total Q1 handset sales: 282 million (from Strategy Analytics)
– Nokia Q1 sales: 115.5 million (from Nokia PR), or roughly 1.28 million per day

Sure, Apple’s market share is growing, but “increasingly large” might be getting a little ahead of ourselves.

One thing that is worth noting, though, is that people downloaded more than 10 million apps from the new App Store over the weekend (though keep in mind this isn’t just iPhone 3G users, but first-gen and iPod touch users, too). It’s amazing what people will do when things are easy, isn’t it?

I am curious, though, to see how this works out for developers, and some sort of breakdown of free vs paid downloads. Apple says that a quarter of the App Store’s 800+ programs are free, while 90 percent cost less than $10. While the App Store simplifies discovery, download and installation, it’s not yet clear if this translates into an easier or better revenue stream for mobile developers.

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