Wednesday, August 8, 2007

iPhone changes the mobile landscape

According to ChangeWave's July consumer cell phone survey -- completed less than four weeks after the iPhone's release -- Apple's newest electronic device is changing the mobile landscape. ChangeWave had done us all a favor by boiling the results down to a series of easy-to-read charts which shows that less than a month after it was introduced, the iPhone has leaped to top of the phones most likely to be purchased by ChangeWave Alliance members.

The release of iPhone had further caused more bad news for Motorola (MOT), which has seen its share of what ChangeWave calls its "future market share" rise and fall over the past two years. The fall-off has been particularly steep since the iPhone was announced in January, as the following chart shows that Motorala future market share had dropped from 24% t0 14% in just a matter of 6 months from a high of 34% a year ago. Its really more and more trouble at Motorola and they really need to do something drastic to make up the sharp fall.

The ChangeWave survey also asked consumers how satisfied they were with their current phone, and found the iPhone registering the highest satisfaction levels of any device. An extraordinary 77 percent of iPhone owners said they were "Very Satisfied" with their device. The RIM Blackberry also received a relatively high rating, with one-in-two owners reporting they were "Very Satisfied."
The ChangeWave survey also showed that Apple's exclusive deal with AT&T seems likely to erode the market share of other mobile networks. 30 percent of survey respondents who said they plan to switch networks in the coming months plan to move to AT&T.
Even though dwarfed by the number of units shipped in comparison to what other mobile manufacturers are shipping , the iPhone is likely to have a disproportionately large impact on mobile landspcape. For one, it has pushed the envelope on industrial design and user interfaces for all vendors. For another, it could forever alter the structural relationship between device vendors and mobile operators who have traditionally controlled the mobile environment, especially in the US.

Apple has certainly altered the mobile landscape with iPhone and the onus now is on the other mobile manufacturers to make drastic improvements. Its going to be interesting to see how the others are going to retaliate. As consumers, we are all definitely in for good time as I m sure we will have access to better mobile devices with good industrial design and great user experience.

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