Instapaper sales show slow Verizon iPhone adoption from new customers

Verizon iPhone launch

There was such a clamor leading up to the Verizon iPhone launch that you’d think it would be the only thing the world is talking about. Instead, it’s been pretty quiet since the launch, which has everyone wondering, how good was the launch?

If you see things how Marco Arment, founder of the popular Instapaper app for multiple mobile platforms, the Verizon iPhone is selling mostly to existing iPhone customers. Arment used the sales of his own application, which are historically fairly steady, to analyze the current level of Verizon iPhone sales.

Here are the basics from his blog:

Since my ranks rarely change significantly, the resulting sales volumes seem to track the entire App Store’s volume. In other words, since my rank is held mostly constant, but my sales vary, it’s reasonable to extrapolate that trends in my sales indicate approximate trends in the entire App Store market.

The results are fairly obvious: I see huge spikes whenever there’s a new iPhone, iPod Touch, or iPad released, whenever they become available in a major new country, or whenever there’s a major reason for people to buy a lot of them (like the holidays).

Arment hasn’t seen any spikes surrounding the Verizon iPhone release, though. In fact, things have been surprisingly moderate. Arment’s own theory about slow adaptation among Verizon customers seems spot on to me. He thinks most of early adapters are the hardcore smartphone nerds. These are the people that wait in lines and stay up until 3AM to pre-order. These are people who put up with AT&T just so they could have the iPhone.

The next wave of iPhone owners are the casuals – people who have seen the phone and liked it but aren’t in any real hurry to buy one. Casual users always take longer to adapt new tech and the Verizon iPhone won’t likely be an exception.

Radio Shack knocks $50 off its iPhones

Radio Shack.

Radio Shack made an announcement this weekend that it would sell the Apple line of iPhone for $50 off the retail price, the only condition being that you’re eligible for a two-year commitment. The discount applies to all current iPhone models, so you can get the 3GS for $49.99, the 16GB iPhone 4 for $149.99, and the 32GB iPhone 4 for $249.99.

On top of that discount, Radio Shack runs a Trade & Save program that allows you to trade in 3G and 3GS models for an additional discount. The phones have to be in good working condition and can’t be unlocked.

As far as I know, this about the best deal you can manage on a new iPhone.

Source: BGR

T-Mobile sells an iPhone cable

T-Mobile iPhone cable.

What’s this? Oh hello iPhone cable with T-Mobile branding. A tipster sent this to Engadget, but, as Engadget points out, T-Mobile did just make an ad that digs at FaceTime and AT&T’s network, all in the same breath. It’s a weird set of circumstances, but you’d have to think T-Mobile would be happy if it got to sell the iPhone.

iPhone sales growth nearly halts

iPhone handset sales.It’s funny how one success story can send the world into a frenzy. The iPhone has been an undisputed success, gobbling up market share by the full percentage point. It’s not unstoppable, though. As the latest comScore stats show, actually, sales growth is nearly nonexistent.

Let’s start with the good news, though. Apple is sitting at 25% market share – an incredible number for such a young presence in the market. This is the number that had everyone scared. The bad news for Apple is that it has stopped growing. Relative to the market, the last three months have only been up .3% for Apple. Compare that to RIM who’s up 1.7% on its 41.3% market share in October of last year. Android more than doubled in the last three months, granted only from 2.8% to 7.1% but that is still massive growth.

Part of the problem is no doubt that Apple has conditioned the world to believe every summer will bring a new iPhone. If that’s not the case in 2010, we might see some very stagnant iPhone numbers before year’s end.

Source: comScore

Google pays Apple more than $100 million annually for iPhone search

Jobs and Schmidt.Rumors have been flying ever since Android launched that Apple will be replacing the search giant’s services on the iPhone. The latest, which seems completely ridiculous for a reason, is that Apple is going to build a search engine. The Business Insider says the biggest reason to keep Google on is that the search provider pays Apple upwards of $100 million a year for the iPhone deal.

For a company like Apple, $100 million isn’t exactly a lot. It’s more like mortgage payment, but it’s enough to keep Apple from entering an already saturated search market. There’s no denying that Google and Apple now have a contentious relationship. As Business Insider has it, it only took two weeks to nail down the original Google Maps deal for the iPhone. When the 3GS launched it took six months.

Source: Business Insider at Gizmodo