Mac news from outside the reality distortion field
Type Size  -  +
February 2, 2008, 4:17 pm

The iPhones of Equatorial Guinea

picture-31.jpgIt’s one of the smallest nations in Africa, roughly the size of Hawaii with a population of half a million. Yet the former Spanish colony of Equatorial Guinea tops the list of iPhone-using countries compiled by Net Applications, which issued a report on Friday that ranks them by the relative frequency with which the Web was accessed in January via an Apple (AAPL) iPhone.

“We’ve heard the rumors that many iPhones are being used outside the officially sanctioned countries,” writes the net service company in iPhones Without Border. “So, we decided to check it out and surprise, surprise, it’s true. The iPhone has a presence in almost every country on earth.”

picture-32.jpgThe full list can be seen at NetApplications.com. I’ve pasted as much of it as I could fit in a screen-grab below the fold.

Given that Apple has only sanctioned iPhone use in four countries — the U.S., the U.K., Germany and France — it’s amazing how widely it is now being used. If you were wondering where those 1 million unlocked iPhones went, this may be the answer.

In fact, there were only five countries in the survey where the iPhone did not show up — South Korea, Lithuania, Taiwan, Malta and Iran — perhaps in some cases because GSM and EDGE aren’t supported there.

It’s also surprising, at least at first glance, how many third world countries turn up near the top of this list. Two out of every 1,000 Americans now surf the Web using an iPhone, according to Net Applications, but in the Ivory Coast that number is nearly five per thousand. In Equatorial Guinea, it’s better than two per hundred. [UPDATE: It has jumped overnight to more than one in ten in Equatorial Guinea, according to the weekly stats.]

Or maybe it’s not so surprising, given the explosion of cell phone use in Africa over the past five years (see, for example, here). In countries where wi-fi and Ethernet connections are rare, a $400 iPhone may be a relatively cheap and dependable way to reach the Internet.

And it’s really not so surprising to find Equatorial Guinea in the No. 1 spot. The country’s economy has boomed since the discovery of offshore oil reserves in 1996. According to the CIA Factbook, Equatorial Guinea now has the fourth highest per capita income in the world, after Luxembourg, Bermuda and Jersey.

picture-30.jpg

Does it strike anyone as odd that ‘rogue dealers’ can actually get their hands on something like 25% of Apple’s total production? Surely this has to be going on with tacit approval from apple. They know the serial numbers of the units that are activated on supported networks, so they could easily look for patterns among the ones that are not yet activated and determine which dealers have a normal percentage of unactivated stock and which ones have a huge percentage of unactivated stock because they’re selling them abroad.

Either Apple knows where these sales are destined when they sell them, or they’re deliberately not looking too hard to work it out after the fact. (Remarkably like the international trade in arms, actually!)

Posted By Graham Toal, Edinburg TX : February 16, 2008 1:19 pm

Well, iphones will sell like hot cakes in India if available. Currently the $400 iphone is being sold here for $600. If Apple could sell it for $500, they would make a killing. The concept of phones locked to networks is not accepted here, unless the handset cost is subsidised.

Posted By Rishi, Mumbai, India : February 13, 2008 11:24 pm

Fascinating. One wonders, in this era of low airline fares and low value of the dollar, how many of the iPhones that are being purchased in the U.S. are headed to places where Apple is selling phones at a higher foreign cost than the discounted cost they may be purchased at in the US. It may be pretty substantial based upon these statistics.

Posted By Bill, Seattle WA. : February 11, 2008 3:00 pm

Bolivia, a third-world country is not listed. (adding the list: South Korea, Lithuania, Taiwan, Malta, Iran and Bolivia)

Posted By Danny, Washington DC : February 5, 2008 11:12 am

Also how many of those in Eq. Guinea are being used by US oil workers or other expats

Posted By William Boston MA : February 5, 2008 11:11 am

For your information : You can cross Iran from your list. There are plenty of iPhones in Iran which run perfectly well on its GSM (2G) network.

Posted By Marc, Paris, France : February 5, 2008 10:15 am

Isn’t Equatorial Guines a country where the ruler is some form of deity or at least a direct agent of God? Does Steve Jobs have to die before he is beatified there?

Posted By Barry, Reading, PA : February 4, 2008 6:23 pm

This is very interesting. I am a US worker currently living in W. Africa (Nigeria). I’ve definitely seen Iphones working here. However, the takeaway US computer MFRs need to get is that there is a market for their products. The key is not making new technologies, but making existing ones affordable. Cell phone & Smart phone growth has been explosive because you can buy a basic cell phone for $30 and it costs about <15 cent/min for prepaid. In a place where a 768 kbps ADSL line costs ~$400usd /mo, the future belongs to guy who makes a simple device you can use as your primary communication, internet & entertainment device.

Posted By Bob Lagos, Nigeria : February 4, 2008 3:13 pm

print out this article w/ comments .
pin it up ..
wait 5 yrs .
how will the bashers spin it . when its really rocking. it is already the gold standard of phones .

apple owns all the patents ..

peace

lostplay

Posted By bruce patras nyc ny : February 4, 2008 1:47 pm

Why so hot in these other countries? One reason is that in many countries outside the US, it is NOT common to have a home desktop or laptop computer. They access the net on their phones -this is as true in Japan as in a third-world place. So the iPhone is a near ideal solution when you already expect the phone to be the internet. Americans look at internet on the phone and wonder why anyone would do that when they have a perfectly good computer at home or work, and THAT is entirely the point. No PC? No prob. Here’s the internet on your phone. Done.

Posted By Lisa, Atlanta, GA : February 4, 2008 12:10 pm

To Dan of San Mateo

Don’t under estimate Steve Jobs. If Apple were to sell their iPhone unlocked, then they would have to support it world wide. Even in those countries very few actual users. By selling the iPhone locked, Apple only has to support it in the country they were officailly released in. All those users in other countries bought an iPhone and used a third party hack to unlock it. By doing this, Apple no longer has to support it (Except for hardware failure not related to the hack.) And Apple still got the money from selling those iPhones. Apple sold over half a million iPhones that wouldn’t have been sold if it weren’t for the hack and the EDGE network in those countries (that the buyers wants to connect to). The buyers of these iPhones wouldn’t have bought an iPhone otherwise. Profit wise, this is not really an issue with Apple. As these are extra iPhones sold. It becomes a problem if there’s a shortage of iPhones. Like we saw before the xMas season. Then Apple stands to lose out if there’s not enough iPhones for the buyers that wants to connect to one of their supported carriers. These iPhones are more profitable. Apple doesn’t need to dominate the whole cell phone market. They only need to dominate the smart phone market. As the buyers in this market don’t mind spending $400 and above for a phone.

Posted By DavidW, San Bruno, CA : February 4, 2008 1:44 am

Makes you wonder why iphones are being used in the ” non- sanctioned” territories that are the rest of the world. Locking up of phones and tying them to specific carriers seems to be the way it is done in America .If only Iphone were sold like any other phones in the rest of the world . Pity , I own AAPL shares and I don’t use a computer that is not a Mac. My country ranks 7 on the quaint list.

Posted By Y Lee, BSB. Brunei : February 3, 2008 11:43 pm

To Dan of Boston

Apple goal to to have 1% of the world market. This after selling 10 million iPhones by the end of 2008. Again folks like you don’t see the bigger picture. Is not the .2% of USA shares that matters. What matters is that it’s 20% of the smart phone market. The segment of the market that is very profitable. This only after 6 months and 1 model of of iPhone. Why don’t you ask Motorola hows having all those USA market share doing for them.

Apple may only have about 7% of the computer market, for now. But it’s in the low double digit of the laptop market. And when you consider that nearly every Mac sells for $1000.00 and above. Those 7% market share is very profitable. Dell and HP can fight all they want for the $600.00 and under PC market just for the bragging rights of have more market shares. There’s hardly any money to be made in that segment of the market.

Posted By DavidW, San Bruno, CA : February 3, 2008 11:30 pm

Dan in Boston:

That .20% is not market share of cell phones. That is the percentage of ALL internet surfers, including other smart phones as well as traditional computers. One person in every 500 web surfers is on an iPhone. Tell me that doesn’t rock, and if you do tell me so, then you are a fool.

Thompson

Posted By Thompson, Tucson, Arizona : February 3, 2008 10:16 pm

Usage share in the USA = 0.20%. Keep bragging about that 2% share in Equatorial New Guinea fanboys. Yet another example where Apple’s press far outweighs its actual market share or sales. The cult would have you believe that AAPL is poised to take over the world. Of course they’ve been saying the same thing for 20 years.

Posted By Dan, Boston, MA : February 3, 2008 11:47 am

I’m Maltese and heard of a number of iPhones in use here. They did not show up in the survey because of the high cost of data transfer here.

Posted By Reuben, Siggiewi, Malta : February 3, 2008 9:34 am

Eric Savitz, and a boy named ‘Toni’ are trying to bust Apple’s stock price regarding iPhones. Don’t do their homework… Rumor guy, wed to a non-journalist…

http://apple20.blogs.fortune.cnn.com/2008/02/02/the-iphones-of-equatorial-guinea/

Posted By Jim Richmond VA : February 3, 2008 8:21 am

Hi I didn’t find a trackback for this post, so if anyone’s interested, here’s the link to the short post I wrote on it: http://grouet.wordpress.com/2008/02/03/why-equatorial-guinea-tops-the-list-of-iphone-using-countries/

Posted By alexgrouet : February 3, 2008 7:38 am

Toni’s possible point-of-view: “Those countries don’t have Apple stores, bad for Apple sell the stock”, “They will copy the iPhone and make their own, bad for Apple, sell the stock.” “Too many countries for Apple to keep up with, bad for Apple, sell the stock.” If Apple screws up they deserve the critics but these assholes have been looking for anything bad to write about Apple. Lets flood their Emails with a billion messages, to those that are negative with no justification at all.

Posted By Mike from Cleveland : February 3, 2008 7:38 am

iPhones are perfect for third world countries for different reasons than for America and they are not that much more expensive than other unsubsidized smartphones. Mobile penetration in Africa and India is much more than double landline penetration so its a good way to have web access with iPhone. It’s kinda obvious to anyone who has traveled there! I carried 10 iPhones on my last visit there in November.

GDP/Capita has nothing to do with it, EDGE has been around in most poor countries’ networks for years, and now their customers can use it for something. Steve Jobs is an idiot for thinking he understands the global mobile business.

Posted By Dan, San Mateo, CA : February 3, 2008 5:01 am

Sure they are all unlocked iPhone.

But, the bashers will state that the figures are from people in the 4 countrymen with authorized iPhones traveling to those countries.

Posted By Jim, Rotterdam, Holland : February 3, 2008 3:13 am

I can’t understand Tony Scconaghi’s point of view. i think he is looking for the half empty glass instead of the half full glass…Apple has an extraordinary product, compared with competition, that generates a huge pull movement form consumers all around the world. All these consumers are not only potential customers for an official carrier in theri country but also excellent prospects for other Apple products..they are surely living a wonderful consumer experience considering the risk the take using a product subject to be “blocked” via internet…by the way loosing their +u$s500 investment…

Posted By fernando chain, buenos aires, argentina : February 2, 2008 11:15 pm

Yes it is, I’d like to see some reaction from the AAPL bashers of the blogosphere!

Posted By Jim. Memphis, TN : February 2, 2008 10:15 pm

i can’t wait to see how the analysts like Toni Sacconaghi try to somehow spin this into a negative. “apple’s missing out on revenues from carriers” blah, blah, blah.

they’re selling iphones every-freaking-where and there’s nothing negative about it, whether they’re extorting carriers or not

Posted By Mike O, York, PA : February 2, 2008 8:51 pm

Very interesting.
Thomas a. Gaughan

Posted By Thomas A.. Gaughan Hallstead PA : February 2, 2008 8:05 pm
CNNMoney.com Comment Policy: CNNMoney.com encourages you to add a comment to this discussion. You may not post any unlawful, threatening, libelous, defamatory, obscene, pornographic or other material that would violate the law. Please note that CNNMoney.com may edit comments for clarity or to keep out questionable or off-topic material. All comments should be relevant to the post and remain respectful of other authors and commenters. By submitting your comment, you hereby give CNNMoney.com the right, but not the obligation, to post, air, edit, exhibit, telecast, cablecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comment(s) and accompanying personal identifying information via all forms of media now known or hereafter devised, worldwide, in perpetuity. CNNMoney.com Privacy Statement.
Philip Elmer-DeWittSilicon Valley veterans like to joke that Steve Jobs must be surrounded by a reality distortion field; if you get too close to him, you start to believe what he's saying. Thanks to the success of the iPod, the launch of the iPhone and the renewed interest in the Mac, Apple has made believers out of millions of customers - and made a lot of investors rich. But Philip Elmer-DeWitt believes that an ounce of skepticism never hurts when writing about the company. He should know. He's been covering Apple - and watching Steve Jobs operate - since 1982, first for Time Magazine, then for Business 2.0, and now for Fortune.
Subscribe to Apple 2.0: RSS feed | email newsletter
* : Time reflects local markets trading time.† - Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges.• Disclaimer
Powered by WordPress.com.