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iPhone's First Round Punch Lands Hardest on Treo and T-Mobile

iPhone is bridging the gap between consumer-focused feature phones and productivity-focused smartphones, according to new report

Early buyers demonstrate the iPhone is managing to bridge the gap between content-focused feature phones and productivity-focused smartphones. “The iPhone’s Internet and media capabilities have resonated with consumers -- especially those who previously owned Treos and Sidekicks,” said Ross Rubin, director of industry analysis at NPD. “Its advanced operating system makes it competitive with smartphones for many tasks, while its sleek design and lack of expandability appeals to fashion phone customers.”

Initial iPhone buyers were 10 times more likely than other new phone buyers to have previously owned a Treo and three times more likely to have owned a T-Mobile branded phone, such as the popular Sidekick model. Both the Treo and the Sidekick offer a physical keypad -- something the iPhone, with its touch screen-based interface, does not.

In contrast, iPhone buyers were no more likely than the average buyer to have previously owned a Blackberry. “The iPhone’s lack of corporate e-mail support appears to make it less appetizing to current Blackberry owners,” Rubin said.

When it comes to carrier-switching, Alltel and T-Mobile took the biggest hits from the Apple/AT&T iPhone marketing juggernaut. Consumers who switched carriers to buy an iPhone were three times more likely to switch from Alltel or T-Mobile. Sprint and Verizon also lost customers to AT&T and the iPhone, but not nearly to the same degree, due to their existing over-the-air (OTA) music offerings, rich video and data services, and 3G networks already in place.

More iPhone information and insights . . .

Information included in this bulletin is based on NPD’s iPhone Report. It provides a top-line view of initial buyers of the iPhone, including insight on how Apple’s entry into the market is affecting overall mobile phone product sales among consumers in the U.S. The report includes detailed demographic information on iPhone buyers and a comprehensive analysis of how and why they purchased the device and how many buyers switched carriers. It also features a breakdown of sales by distribution channel and highlights consumer purchase motivators and influences. The report is based on surveys completed by more than 13,000 consumers who acquired mobile phones within the prior 30 day period -- more than 200 survey respondents had purchased a new iPhone. The data was weighted, balanced, and projected to represent the total U.S. population.

To learn more about the iPhone report or to purchase, contact Charlie Camaroto at 866-444-1411 or contactnpd@npd.com.