Bear Stearns study shows iPhone overcoming corporate barrier
Although some executives still see the lack of explicit business e-mail support as an obstacle to buying the iPhone, a growing number of these users are sidestepping corporate demands and buying iPhones for their own use, Bear Stearns reports in a new survey.
Tracking a relatively small group of financial and technology leaders in the weeks following the iPhone launch, senior analyst Andrew Neff noted in his mid-August study that the lack of full support for traditional business-class e-mail is no longer as strong a deterrent to buying the Apple handset as it was in June or July.
While the absence of complete Microsoft Exchange support was still enough of a barrier to prevent 34 percent of non-iPhone users from buying the Apple device, the corporate issue was no longer the primary factor in their decision. More (41 percent) were either tied to their existing carrier or else had reservations about AT&T, according to Bear Stearns. And in what was labeled a positive new development, a small percentage of previous holdouts from July had bought the iPhone strictly for their own use, regardless of its ability to reach corporate e-mail that had kept them from buying in the past.
"We found several people who bought an iPhone as a 'personal device' for its other attributes," Neff said, referring to its iPod and personal e-mail services. "While we still view corporate e-mail as an important issue, this emerging trend could be a positive leading indicator as well."
Enthusiasm for the device also showed few signs of cooling, Neff added. Unsurprisingly, the initial surge of extremely content users had dropped after prolonged use, but a full 90 percent of customers were either "happy" (49 percent) or "very happy" (41 percent) with the iPhone roughly six weeks after its introduction. Less customers were inclined to return the phone at 5 percent, although the number of dissatisfied users had jumped to 10 percent.
Most had also come to accept the iPhone's controversial on-screen keyboard and calling ability, though again the number of extremely pleased customers had settled for both the keyboard (from 49 to 27 percent) and calls (from 90 to 33 percent).
Hardware defects weren't an issue, the study said. Complaints about battery life rose to 20 percent of owners, but significantly less users (33 percent) complained about the slow performance of AT&T's EDGE Internet serivce. The touchscreen dead spots reported by some users were absent in the survey sample, according to Neff. Only 5 percent reported issues that primarily related to freezing or lagging after touching a command.
The survey was too small to be completely representative of all executives or the population as a whole, the financial researchers warned, but the combination of a very positive overall reaction and the trend towards personal-use phones indicated to Bear Stearns that Apple was successfully building a third channel for growth beyond the iPod and the Mac.
"From a larger perspective, unlike a year ago when Apple's growth was primarily based on [the iPod], we believe that [the] Apple story has improved and can now benefit from multiple engines of growth," Neff wrote.
As a result, Bear Stearns continued to maintain an "outperform" rating for Apple's shares with a price target of $199.
Tracking a relatively small group of financial and technology leaders in the weeks following the iPhone launch, senior analyst Andrew Neff noted in his mid-August study that the lack of full support for traditional business-class e-mail is no longer as strong a deterrent to buying the Apple handset as it was in June or July.
While the absence of complete Microsoft Exchange support was still enough of a barrier to prevent 34 percent of non-iPhone users from buying the Apple device, the corporate issue was no longer the primary factor in their decision. More (41 percent) were either tied to their existing carrier or else had reservations about AT&T, according to Bear Stearns. And in what was labeled a positive new development, a small percentage of previous holdouts from July had bought the iPhone strictly for their own use, regardless of its ability to reach corporate e-mail that had kept them from buying in the past.
"We found several people who bought an iPhone as a 'personal device' for its other attributes," Neff said, referring to its iPod and personal e-mail services. "While we still view corporate e-mail as an important issue, this emerging trend could be a positive leading indicator as well."
Enthusiasm for the device also showed few signs of cooling, Neff added. Unsurprisingly, the initial surge of extremely content users had dropped after prolonged use, but a full 90 percent of customers were either "happy" (49 percent) or "very happy" (41 percent) with the iPhone roughly six weeks after its introduction. Less customers were inclined to return the phone at 5 percent, although the number of dissatisfied users had jumped to 10 percent.
Most had also come to accept the iPhone's controversial on-screen keyboard and calling ability, though again the number of extremely pleased customers had settled for both the keyboard (from 49 to 27 percent) and calls (from 90 to 33 percent).
Hardware defects weren't an issue, the study said. Complaints about battery life rose to 20 percent of owners, but significantly less users (33 percent) complained about the slow performance of AT&T's EDGE Internet serivce. The touchscreen dead spots reported by some users were absent in the survey sample, according to Neff. Only 5 percent reported issues that primarily related to freezing or lagging after touching a command.
The survey was too small to be completely representative of all executives or the population as a whole, the financial researchers warned, but the combination of a very positive overall reaction and the trend towards personal-use phones indicated to Bear Stearns that Apple was successfully building a third channel for growth beyond the iPod and the Mac.
"From a larger perspective, unlike a year ago when Apple's growth was primarily based on [the iPod], we believe that [the] Apple story has improved and can now benefit from multiple engines of growth," Neff wrote.
As a result, Bear Stearns continued to maintain an "outperform" rating for Apple's shares with a price target of $199.
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This author needs to learn the difference between "less" and "fewer," among other things.
The rule usually encountered is: use "fewer" for things you count (individually), and "less" for things you measure: "fewer apples", "less water". The author says 'less customers' and 'less users' like a jackass.
The rule usually encountered is: use "fewer" for things you count (individually), and "less" for things you measure: "fewer apples", "less water". The author says 'less customers' and 'less users' like a jackass.
Not only that, but:
Hardware defects weren't an issue, the study said. Complaints about battery life rose to 20 percent of owners, but significantly less users (33 percent) complained about the slow performance of AT&T's EDGE Internet serivce.
Isn't 33 percent more than 20 percent? I don't understand the numbering here...how is 33 "less users" than 20 percent?
-=|Mgkwho
Not only that, but:
Isn't 33 percent more than 20 percent? I don't understand the numbering here...how is 33 "less users" than 20 percent?
-=|Mgkwho
I believe that they are referring to less than in a previous survey.
I going to put wheels on my iPhone and pull it around with a leash. The survey didn't address the number of people during that or potential downsides.
The downside is iPhone is a wireless device and the leash will hurt its feelings. You will also have to watch out for poo.
This author needs to learn the difference between "less" and "fewer," among other things.
I was about to post the same thing. AI: get your copy editor an AP style book (and a journalism degree).
Not only that, but:
Isn't 33 percent more than 20 percent? I don't understand the numbering here...how is 33 "less users" than 20 percent?
-=|Mgkwho
Two different issues, I think.
Story and sentence structure leads to a little confusion but the way I see it, is issue one - battery life - complaints rose to 20% of owners from previous percentage of complaints (what ever that might have been, but apparently lower than 20%) and issue two - regarding performance of AT&T's EDGE Internet Service being "slow" decreased to 33% from what I would imagine would have been a higher percentage number regarding all the posts in forums complaining about the iPhone's lack of 3G and how EDGE stinks as a internet service prior to the iPhone launch back on June 29th, where one might say, if questioned, it would be close to 100 percent of people agreeing that AT&T's EDGE Internet Service was thought to be slow.
I could be wrong, but again, that is how I read it.
Huh? What is this analyst report saying? I don't really follow.....
The Analyst seems to be saying that iPhone may well be a great business device after all becasue some business people have bought one to use personally.
I am a businessman and whilst shopping this morning i bought a tin of sweetcorn, does that mean that a tin of sweetcorn could be now classed as a business lunch??
The Analyst seems to be saying that iPhone may well be a great business device after all becasue some business people have bought one to use personally.
I am a businessman and whilst shopping this morning i bought a tin of sweetcorn, does that mean that a tin of sweetcorn could be now classed as a business lunch??
Mmmmmmm......... tin of sweetcorn.
While the absence of complete Microsoft Exchange support was still enough of a barrier to prevent 34 percent of non-iPhone users from buying the Apple device, the corporate issue was no longer the primary factor in their decision.
WHA?
or am I missing something?
I don't know if thats Appleinsiders doing or a direct quote from the report but it sounds 100% stupid to me.
>100% of people who don't buy it, won't use it either!
>or am I missing something?
They have obviously asked people who considered buying an iPhone *why* they didn't.
One third (of all corporate users?) said it was (among other things) because of the lack of complete Microsoft Exchange support.
>... (33 percent) complained about the slow performance of AT&T's EDGE Internet serivce.
This is great news, meaning that most users find the AT&T-speed reasonable or better, despite initial claims of it being painfully slow.
>Bear Stearns continued to maintain an "outperform" rating for Apple's shares with a price target of $199.
>(08-01-2007, 07:47 PM)
Prediction:
APPL drops to <$130 (buy!) after the tuesday event (because of overreacting analysts) - but reaching a new all time high mid-september, an Apple-split in february followed by the stocks breaking the $100 (sell!) barrier spring 08.
Wow, you people are quite obnoxious.
So that is an intelligent statement, have you got anything else to add to that or do you not feel it necessary? Interesting take on the article anyway, on behalf of the Apple Insider readership i would like to thank you for your well thought out contribution to the discussion.
What's the deal with Exchange support though? I read multiple times that for example Entourage supports Exchange 'partially'. Just how do you do that? Something either supports a protocol or it doesn't, no?
Being able to get an email is only one feature. Outlook/Exchange Server provide several other features such as synchronizing schedules etc. Personally, I've never had to use either Entourage or Exchange but I can assure you it is not just a single protocol.
Wow, you people are quite obnoxious.
agreed.
Fewer complaints about grammar would be nice.