The latest ChangeWave consumer cell phone survey – completed July 20, 2007 – shows a virtual upheaval occurring among cell phone manufacturers and service providers as a result of Apple’s entry into the space.
A total of 3,003 members of the ChangeWave Alliance participated in the survey, which was conducted just weeks after the much ballyhooed release of the Apple iPhone.
Although iPhone sales are still in their nascent stages, the effects on cell phone manufacturers are already beginning to take shape – and no company is bearing the brunt of this more than Motorola. While it still leads all other manufacturers in terms of current market share (31%), Motorola has dropped 2-percentage points since a previous ChangeWave survey in April to its lowest level in more than a year.
Even though it’s been on the market just a month, the Apple iPhone is already registering in the ChangeWave survey results – garnering 1% of current cell phone market share. But it’s when respondents were asked about their planned cell phone purchases over the next six months that the full transformational impact of the iPhone is seen.
Among respondents who say they plan to buy a cell phone in the next six months, an astounding 16% say they’ll purchase an iPhone – catapulting Apple ahead of all other manufacturers.
Importantly, for the third consecutive survey, Motorola’s future share of planned purchases among consumers has suffered a dramatic decline – falling from a high of 33% in October 2006 to just 14% currently.
The survey findings were more upbeat for Research in Motion, with BlackBerry sales (13%; up 3-pts) looking significantly stronger over the next six months.
“There’s no doubt about it, consumers are embracing the iPhone. And judging by the numbers, they will continue embracing it,” said Tobin Smith, founder of ChangeWave Research and editor of ChangeWave Investing, in the press release. “The ascendance of the iPhone is going to be a game-changer for both cell phone manufacturers and cellular service providers.”
The survey also asked consumers how satisfied they were with their current cell phone, and found the iPhone registering the highest satisfaction levels of any device. An extraordinary 77% of iPhone owners said they were “Very Satisfied” with their new Apple product. The RIM Blackberry also received a relatively high rating, with one-in-two owners (50%) reporting they were “Very Satisfied.”
At the other end of the spectrum, just 36% of Motorola owners, 34% of Palm owners and 29% of Sony/Ericsson owners reported that they were “Very Satisfied” with their cell phones.
The Upheaval among Cellular Service Providers
ChangeWave also looked at the cellular service providers market, where the survey found clear signs of the impact Apple’s exclusive agreement with AT&T is having on the competition.
In terms of current market share, for the first time in more than a year Verizon (29%) registered a decline – down 1-point. T-Mobile (10% down 1-pt) has also declined. AT&T, on the other hand, increased its market share by 1-pt to an all time high of 28%.
But it’s when ChangeWave queried respondents who reported they’ll switch their cellular service providers over the next six months, that the full impact of the iPhone on service providers can be seen.
AT&T (30%; up 2-pts) is once again adding to its ever growing lead over Verizon in terms of future buying, and is now the top choice among those likely to switch service providers.
At the same time – and for the third-consecutive survey – Verizon (19%; down 3-pts) is continuing to trend down among this critically important group.
The outlook going forward also appears bleaker for T-Mobile (5%; down 1-pt) and Sprint/Nextel (3%; down 1-pt).
The one bright note for Verizon is that they continue to lead in terms of customer satisfaction – with 46% of its current customers saying they are “Very Satisfied” and another 46% “Somewhat Satisfied ” with their Verizon service. In comparison, the ratings for AT&T are not nearly as high, with 31% saying they are “Very Satisfied”, and 54% “Somewhat Satisfied”.
The iPhone momentum ChangeWave identified in two previous surveys (January 2007 and April 2007), coupled with the exceptionally strong momentum found in the current survey, points to an upheaval among cell phone manufacturers and service providers as a result of Apple’s new multi-functional device.
For more on the Apple iPhone and its transformative effects on the cellular industry, please visit ChangeWave here.
The ChangeWave Alliance is a network of over 10,000 highly qualified business, technology, and medical professionals in leading companies of select industries–credentialed experts who spend their everyday lives working on the front line of technological change. ChangeWave surveys its Alliance members on a range of business and investment research and intelligence topics, collects feedback from them electronically, and converts the information into proprietary quantitative and qualitative reports.
I knew the iPhone would fail. Wait what did they say. I wish ATT had reception where my kid is going to college.
MacDailyNews:
Where Mac news occasionally comes first, buried under a torrent of iPhone news.
“Boom!”
Umm, the iPhone runs OS X so basically it is a Mac. Get used to it.
How about the survey of people who just want a simple slim cheap phone, long battery life, no gimicks, with low monthly contract?
Cameras on phones $%&$.
Music on phones $%&$ even more.
The internet on phones, even the iPhone, $%&$ because of the small screen and troublesome touchscreen (can’t see when you type) or small keyboards.
Charging phone batteries, even for any device, $%&$ big time so you want to do it as least as possible.
So IMMO the iPhone is a device that really doesn’t do much very well.
My opinion is that Apple got into the cell phone space in order to protect/enhance laptop sales.
I think Apple is going to come out with a line of laptops that have cell phone integration.
The thing with the iPhone is that regardless of how good it is, there will be people under contracts who are willing to just wait for them to expire and will then consider it then. It’s another reason why initial sales aren’t remotely the whole story.
Apple doesn’t make a basic cell phone.
If that’s what you want go rant @ motodailynews,com
Apple doesn’t make a basic cell phone.
Duh, of course they don’t.
But they do have a line of iPods from small to large right?
Apple is pretty good at stamping out these small technological wonders, a iPhone nano would be a nice touch and a direct assult on the cell phone industry by negating their only strenght.
Remember, there are a lot of mac users who already have a Mac, a decent camera and a iPod, now all they need is a reliable inexpensive, slim iPhone nano.
So completely expect Apple to produce such a device, especially to attract the parent who needs a phone for their child.
Even though it’s been on the market just a month, the Apple iPhone is already registering in the ChangeWave survey results – garnering 1% of current cell phone market share.
Um, that’s 1% of smart phones. Big diff.
@Monty — I know what you mean. I hate that I can’t buy a car without a radio, without rubber wheels (what was wrong with wood?), without windshield wipers. We’re paying extra for all that &$%# when all we want is a good, basic car experience. Idiots.
Monty
Opinions are like a$$holes everyone has one. Not everyone wants or needs an iPhone.
I double Apple will ever come out with a basic phone without iPod features.
I had used Sprint for almost 11 years, but the day the iPhone came out I switched to AT&T. I have to say that not only am I very happy with my iPhone, but I think AT&T is getting shafted a bit on customer service and coverage everywhere: coverage is actually a little better than Sprint was, data speeds are comparable (plus I get WiFi), and AT&T customer service has been fine, both at the local store and via their phone service.
I’m a pretty happy camper now–more’s the pity for Sprint, who called me up and tried to get me to switch back (hah!).
“ballyhooed”
That wod makes me chuckle everytime I hear it…
My apologies to the grammer/spelling police. Should have been doubt not double!
oops! I meant “word” Damn fingers.
Monty: So IMMO the iPhone is a device that really doesn’t do much very well.
I hate to flame somebody on a public blog, but honestly, Monty, you are obviously clueless. My iPhone is the best techno-device I have ever had (in addition to being the best cellphone). Ever person I know who has one loves it. The whole point of the article above is that consumers are very satisfied with the iPhone — much more satisfied than any competing device. In short, your assessment of the iPhone is not only baseless, it is moronic.
Apple’s major advantage is that they can make an all in one device that just works in all of it’s facets.
NO ONE ELSE CAN.
Any slightly competent company can make a basic (free) cell phone.
That’s why I sent your sorry, cheap ass to Motorola.
@Monty, if you don’t like the iPhone, don’t buy one. If you want to comment on the iPhone, or any phone, you should learn about the phone in question before doing so.
The iPhone will replace a phone/iPod purchase for many students, leaving the parent with one less purchase and more $ to purchase some other item, like maybe a MacBook.
The iPhone runs on OSX and will, over time become more functional as a device used for all of the simple things we currently use larger devices for, like billpay and so forth.
Monty apparently hasn’t ever used an iPhone:
1. Camera on the iPhone is actually very good and takes excellent pictures provided there’s enough available ambient light.
2. Music on iPhone is similar to an iPod, which is to say excellent, and has an amazing interface that rocks.
3. Internet on iPhone is great, and actually quite pleasant to use, and even better if you’re in a WIFI hot spot.
BTW, the keyboard rocks, and with a little bit of practice you can learn to type very fast on it.
4. I charge my iPhone battery less than any other cell phone I’ve owned, and I use it more frequently for more tasks.
“So IMMO the iPhone is a device that really doesn’t do much very well.”
You’re certainly welcome to your “opinion” but keep in mind your “opinion” is not fact, and is demonstrably wrong in nearly every aspect.
You don’t have to take my word for it, there are literally dozens of reviews online and in print calling the iPhone the most amazing gadget they’ve ever owned or held. Calling the iPhone something that “doesn’t do much very well” puts you in the same kook fringe as tin hat wearing black helicopter watching freakos. Your opinion is just about as nutty and unfounded.
You’re entitled to your opinion tho!
@ Monty
I fully expect them to do so. But if have followed Apple’s marketing tactics for more than a few minutes, you know how they operate:
1. Intro a profitable, top-end, premium product to build brand and customer loyalty.
2. Once top end is established, expand product lines downward (and often upward) to appeal to a wider market.
3. There is no step 3.
“So IMMO the iPhone is a device that really doesn’t do much very well.”
You’re wrong. It does everything that it does better than any other phone I’ve owned. It’s no laptop, but it doesn’t want to be. The fact that Apple has not yet made the phone that the segment of the market you belong to does not mean the current phone isn’t perfect for its target market.
You’re probably right, and Apple will release some sort of lower-end phone, but I think, in the grand scheme of things, full-featured internet phones are the future. Once people really get a taste of email in their pocket they’re just not going to want to go back. SMS messaging has never filled the need because of the stupid multi-keying you have to put up with to do it, and the monthly message allocations. Give the iPhone iChat (and someday, iChat AV) and it’s game over for the old-school phone paradigm.
Correction:
“The fact that Apple has not yet made a phone for the segment of the market you belong to, does not mean the current phone isn’t perfect for its target market.”
I hate when I discover typos after my post is posted!!
Everything C1 states is seconded here. iPhone is not perfect, and it is not for everyone (yet), but it is amazing for a first gen product and, as with many other Apple products, it is magically greater than the sum of its parts.
More paid trolls out and about… They’ll be leaving feedback everywhere that this Changewave survey is published…
Meanwhile for the rest of us, its looking like iPhone may even exceed our highest expectations.
Go Apple.
ok, even I can see that this is an unfair fight.
(laying on the mat counting Monty down, 3…. 2…)
gotta love the graph, of ATT and Verison
The Verizon iWhatever CEO, will be gone after this quarter!!
bet ya
of yea, C1 is right, as always
@Jon
Umm, the iPhone runs OS X so basically it is a Mac. Get used to it.
Umm, not it’s not…. What the hell kind of Mac did you ever hear of that developers could develop for?? Oh and don’t give me that Web 2.0 nonsense.
Get used to it.