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User Survey Shows iPhone is Paying Off Big for Both Apple and AT&T

Posted on: Tuesday, 1 April 2008, 12:00 CDT

A new survey shows that the iPhone is providing big benefits to both its users and the companies that sell it. US iPhone users are very satisfied with the product, and report that they're making heavy use of features like e-mail and browsing. This is driving higher mobile phone bills, producing about $2 billion a year in additional revenue for AT&T, the exclusive mobile carrier for the iPhone in the US.

But the survey also showed that most iPhone users are young early adopters, about 75% of whom are previous Apple customers. And they're not universally satisfied with everything about the device -- about 40% report that it can't display all the websites they want to visit, and many also said they would like to see physical changes to the product, such as the addition of a bigger screen or a thumb keyboard.

A full report on the survey findings is available at www.rubiconconsulting.com

"The challenge for Apple is moving iPhone demand beyond early adopters and current Apple customers," said Michael Mace, a principal at Rubicon Consulting, which conducted the survey. "The iPhone has shifted power in the US smartphone market away from carriers and mobile software companies, and toward hardware companies like Apple. But to continue its momentum, Apple needs a strategy to attract people beyond its installed base, and fix problems like the compatibility limits in the iPhone browser. Mainstream users may not be as entranced by the iPhone's many features as are early adopters."

Other key findings of the survey include:

Users are young Apple veterans. Half of US iPhone users are under 30, and 75% are prior Apple customers.

The iPhone is expanding the smartphone market. About 50% of iPhone users replaced conventional mobile phones, while 40% replaced other smartphones. The Motorola Razr was the conventional phone most often replaced, while Microsoft Windows Mobile devices and the RIM Blackberry were the smartphones most often replaced.

Email is the #1 function. The most used data function on the iPhone is reading (but not writing) email, with about 70% of users doing that at least once a day. About 60% said they browse the web on the iPhone daily.

The iPhone increases mobile browsing. Over 75% of iPhone users say they do a lot more mobile browsing on it than they did with their previous mobile phone.

Browsing compatibility problems. About 40% of iPhone users say it has trouble displaying some websites they want to visit. This is probably due at least in part to the absence of Adobe Flash on the iPhone.

The iPhone drives carrier switching. About half of iPhone users switched carriers to AT&T when they obtained the iPhone.

Download the report at: http://tinyurl.com/2rkyve

The Rubicon Consulting iPhone User Survey contacted 460 randomly-selected iPhone users in the US in March 2008, and queried them about a broad range of issues, including satisfaction, usage patterns, and expenses. The survey has a margin of error of about plus or minus 3.8 points at the 90% confidence level.

Mike Mace will moderate a panel entitled 'Operating Systems, User Interfaces and Browsers: Where is the Technology Going?' at CTIA Wireless 2008 in Las Vegas at the Las Vegas Convention Center on Wednesday, April 2, 2008, at 2:30 p.m. in Room North 115.

About Rubicon Consulting

Rubicon is a tech strategy consultancy that helps firms Win Markets. Through defining new markets, designing solid go-to-market positioning and pricing, defending against competitors and optimizing for revenue, Rubicon helps its clients thrive. Clients include Adobe, Autodesk, Hewlett-Packard, Logitech, Nokia, Symantec, Symbian, and VMware. See Rubicon at www.rubiconconsulting.com

Source: Business Wire

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