iPhone boosting interest in Cingular/AT&T, scarring Motorola

[AppleInsider]

The latest market study aimed at quantifying demand for Apple's upcoming iPhone handset has found that nearly one-in-ten respondents hold a high interest in purchasing the device upon availability. But it also shows that the Apple device is boosting the appeal of Cingular/AT&T's wireless network.

Conducted by ChangeWave, a firm which polls a network of business executives and professionals working in more than 20 industries, the April 2007 study found that 9 percent of participants are likely to buy an iPhone once it becomes available -- including 6 percent that said they are "somewhat likely" to buy and 3 percent who characterized their intent as "highly likely." Another 7 percent said they would purchase the Apple gadget as a gift for someone else.

"The excitement surrounding the mid-June release of the Apple iPhone is just as strong among consumers as it was three months ago," analysts for the firm wrote in a summary of the study's findings. "The current survey provides strong evidence that Apple should exceed its iPhone sales goals for 2008 – if its overall performance lives up to consumer expectations."

ChangeWave's study of 3,489 participants also confirms the consensus that demand for mutli-function handset will surge should Apple reduce entry-level pricing below $499. For example, a combined 10 percent said they’d consider buying a 4GB model if the price fell to the $200-$299 range, while 20 percent would be interested in an 8GB model within that range.



Perhaps the most compelling aspect of the study is the impact of the iPhone on longer term handset and provider buying intentions amongst the particpants. For the second ChangeWave survey in a row, Motorola’s future share among consumers registered a dramatic decline -- falling from 33 percent in October 2006 to just 17 percent currently.

In regards to cell phone providers, Verizon continued to hold its 30 percent market share lead among respondents, but Cingular/ATT -- iPhone's exclusive service provider in the U.S. -- gained 1-point on Verizon since January, bringing its share up to 27 percent.



What's more, Cingular has reportedly surged ahead of Verizon in terms of future buying intentions, gaining 6 percentage points to become the top wireless provider of choice among those respondents likely to switch service providers.

"Verizon (22%; down 3-pts) has continued to trend down among this critically important group -- falling to second place for the first time since we began asking this question in a ChangeWave survey," analysts for the firm wrote.

[ View this article at AppleInsider.com ]

[EruIthildur]

That's pretty good potential... Apple just might do insanely well with this iPhone.

[nagromme]

"The current survey provides strong evidence that Apple should exceed its iPhone sales goals for 2008 – if its overall performance lives up to consumer expectations."

AND IF they can make enough! I bet they won't at first.

[studiomusic]

Originally Posted by nagromme

"The current survey provides strong evidence that Apple should exceed its iPhone sales goals for 2008 – if its overall performance lives up to consumer expectations."

AND IF they can make enough! I bet they won't at first.

Of course they won't make enough... that's how you get demand up!
Debeers does it with diamonds, Apple does it with electronics.

[melgross]

Originally Posted by studiomusic

Of course they won't make enough... that's how you get demand up!
Debeers does it with diamonds, Apple does it with electronics.

While Debeers hold stones from the market, with the intent to keep prices high, Apple does it through poor estimating of demand.

Also, the diamond industry has no ramp-up problems, bugs to work out, or defective components to replace.

[JupiterOne]

Originally Posted by AppleInsider

iPhone boosting interest in Cingular/AT&T, scarring Motorola

FYI...I hear vitamin E helps prevent scarring.

[BrianAI]

I'd think the article should explain what scars Motorola has had inflicted upon it better. Its not really clear to me how scarred they can be before the iPhone releases. Its an interesting choice of terminology to say the least.

On the other hand, if this is another case of poor editing on the part of AppleInsider and they meant "scared", the content makes more sense.

Please AppleInsider staff: spellchecking is not editing. You'll be taken more professionally if you take this to heart.

I think we'll get to a point in time when proficiency with the English language is no longer highly valued in journalism - I think we'll just accept this as normal. Until that time comes, I'll keep being a pest about these things.

Editing tip: read your article (and title!) backwards. You'll wonder why the word 'scarred' was even there, otherwise the amazing human brain self-corrects it for you.

I hope this comment neither scares nor scars anyone. No English majors were harmed during the making of this comment.

[Kasper]

Originally Posted by JupiterOne

FYI...I hear vitamin E helps prevent scarring.

FWIW, there is no error there. It is intended as written.

Best,

K

[JupiterOne]

Um, OK. Carry on.

[Kasper]

Originally Posted by JupiterOne

Um, OK. Carry on.

It's ok, I received about a half dozen mails on it too.

Best,

K

[Ireland]

I hope Moto falls along with their crappy phones.

[-cj-]

The iPhone is scarring Motorola in that Motorola is desperately trying to find money makers now that the RAZR prices are dropping. Sure, they will have new pricey devices hitting the market all year, including just before iPhone, that tote multiple functions, but the demographic the iPhone is designed for is exactly the demographic that Motorola wants to make money from. All the anticipated interest for an iPhone leads to buyers not even considering the latest or future Motorola handset. It also scars Motorola in image and reputation. Motorola wants to be known as the innovator and is trying hard to offer more friendly interfaces, but Apple will blow the doors off both those categories.

[palex9]

Sure, everybody is switching to cingular, everybody is getting the iphone, all polls show this is going to be a big hit.

at this point i would short the iphone stock, were there such a thing. reality can never match expectations at this point. am i the only one that sees the emporer has no clothes? switching carriers based on a currently non existent product to currently non existent calling and data plans? the madness kknows no end...

[ShaneM]

Originally Posted by palex9

Sure, everybody is switching to cingular, everybody is getting the iphone, all polls show this is going to be a big hit.

at this point i would short the iphone stock, were there such a thing. the expectatlons can never match reality at this point. am i the only one that sees the emporer has no clothes? switching carriers based on a currently non existent product to currently non existent calling and data plans? the madness kknows no end...

I agree, but Verizon and Motorola are both horrible so I enjoyed reading the post

[SpamSandwich]

This is the same ChangeWave that put out a laughably inept analysis previously. I wouldn't take anything they promote as truthful or accurate.

[damiansipko]

Originally Posted by SpamSandwich

This is the same ChangeWave that put out a laughably inept analysis previously. I wouldn't take anything they promote as truthful or accurate.

Haven't read their whole report, but it seems methodologically flawed with confounds galore!

[quinney]

Originally Posted by palex9

Sure, everybody is switching to cingular, everybody is getting the iphone, all polls show this is going to be a big hit.

at this point i would short the iphone stock, were there such a thing. reality can never match expectations at this point. am i the only one that sees the emporer has no clothes? switching carriers based on a currently non existent product to currently non existent calling and data plans? the madness kknows no end...

Just go ahead and short AAPL and let us all know how it works out.

[desarc]

Originally Posted by palex9

Sure, everybody is switching to cingular, everybody is getting the iphone, all polls show this is going to be a big hit.

at this point i would short the iphone stock, were there such a thing. reality can never match expectations at this point. am i the only one that sees the emporer has no clothes? switching carriers based on a currently non existent product to currently non existent calling and data plans? the madness kknows no end...

the iPhone WILL be huge. everyone who owns an iPod [always a coule generations behind] will buy an iphone the next time they upgrade their phone, simultaneously getting a new iPod. it makes so much sense to carry one gadget in your pocket instead of two. kill two birds with 500 bucks.

[palex9]

Originally Posted by quinney

Just go ahead and short AAPL and let us all know how it works out.

of course i would not short apple itself, just the iphone side of it, were there such a thing..

[TBaggins]

Originally Posted by ShaneM

I agree, but Verizon and Motorola are both horrible so I enjoyed reading the post

Gosh,they sure aren't... perhaps you've had some atypical bad experiences? Verizon consistently whups Cingular in JD Powers and Consumer Reports surveys, and has a much lower churn (customers leaving them) rate than Cing/ATT. And Motorola is the number two phone maker in the world.

.

[ryukyu]

One of the things that I really don't like about Verizon though is their insistence on changing the interfaces and crippling some of the phones' features.
It's all greed.

[shamino]

Originally Posted by TBaggins

Gosh,they sure aren't... perhaps you've had some atypical bad experiences? Verizon consistently whups Cingular in JD Powers and Consumer Reports surveys, and has a much lower churn (customers leaving them) rate than Cing/ATT. And Motorola is the number two phone maker in the world.

I certainly don't like Verizon's business practices (crippling phones and charging for things that other carriers offer for free), but I stick with them because ultimately, these issues are not the most important. The fact that the network is reliable, with good coverage, and that the phones do everything Verizon promises, is most important. The fact that similar model phones from other carriers can do more is not very important to typical customers (and the crowd that posts here, and to SlashDot, and similar forums is far far from typical.)