The fallout from the release of the iPhone is starting to be seen. The breakout consumer electronic device is beggining to show other carriers and cellular manufacturers that in order to keep market share and stay in business, they will have to innovate.
NPD has released an analysis that the iPhone has had the biggest negative impact to carries Alltel and T-Mobile as well as the cell phone manufacturer Palm.
A survey conducted by NPD from a sample of 13,000 consumers who had purchased a cell phone over a 30-day period showed that 200 of them purchased an iPhone. The date of when this survey was conducted was not provided but iPhone sales have more than likely increased from their price drop to $399 from $599 for the 8GB iPhone model.
The survey found that an iPhone purchaser was ten times more likely than other new cell phone buyers to have owned a Palm Treo, and three times more likely to own a T-Mobile branded phone, such as a sidekick, MDA, or Dash.
The iPhone was never introduced specifically for the business market, so market penetration is not as strong in this sector. The study said that consumers were no more likely than an average phone buyer to have purchased a BlackBerry prior to the iPhone.
NPD industry analyst director Ross Rubin said, “The lack of business-centric functionality within the device has been point out by some analysts as an item that Apple should focus on in future interactions. While the Internet and media capabilities attract the typical consumer, it’s lack of corporate e-mail support keeps enterprise users at bay.”
Alltel and T-Mobile customers were three times as likely to have switched from either carrier than the typical cell phone consumer the survey found. While this is not to say that Verizon and Spring have not seen customers jump ship after the iPhone launch, the survey showed a rate no higher than the average. Some analysts are pointing out that since Verizon and Sprint had already rolled out their high speed data networks like 3G along with advanced multimedia enabled devices before the iPhone launch that these factors could have limited their losses.
It is also noted that T-Mobile’s loss of customers is not only from the fact that they are the only other major GSM carrier in the US but have also not introduced any new high speed data network since the EDGE roll out. GSM customers generally stay technology-loyal as well.
The reason why Alltel’s customer defection rate is higher is not as clear as T-Mobile’s however. The company serves more rural communities, where AT&T is known to have equal or better wireless coverage.
The iPhone will make its European presence known at the start of 2008. If Apple truly wants to make the iPhone a worldwide phenomenon, it will have to include 3G and launch in China, Russia, India, Australia, Japan and South America. Via BetaNews.