The 14 million iPhones that Apple sold in its latest quarter are more than a bright flare on one of Silicon Valley’s greatest stars. The iconic Apple smart phone also represents the leading edge of a wireless revolution that is finally delivering on the decade-old promise of a mobile Internet.
Analysts say smart phones’ huge success — various phones based on Google’s Android operating system are expected to outpace iPhone sales for the year — is driven by a mix of pull and push.
The pull comes from the tens of millions of cell phone users who want to own the coolest new gadgets and are finding new uses for video-on-the-go and for apps — short for “applications,” and the second new word the smart phone revolution has popularized, after “smart phone” itself.
The push comes from wireless companies that, despite a lousy economy and otherwise reluctant consumers, have found that they can dramatically boost their revenues by upgrading customers to the newest, data-hungry devices. They sell well despite prices of $200 or more.
For consumers who have money in the bank, and perhaps even for some who don’t, the lure of the newest new thing remains powerful, according to industry watchers such as Ed Finegold, chief analytics officer at Validas, a Texas company that analyzes cell phone statements to help consumers, businesses and governments control costs.
“There’s such a strong lifestyle aspect — such strong social cachet — to a smart phone,” Finegold said. “It’s the must-have toy for adults, and it makes a social statement.”
While consumers are lured by dazzle, carriers and handset makers are driven by dollars, analysts say.
Apple reported all-time records in revenue and profits for the most recent quarter, driven largely by a 91 percent jump in sales of the new iPhone 4 compared with sales of earlier models in…