Survey: Consumers smitten with smartphones

Most new smartphone users are now consumers, a dramatic change from just a few years ago when the gadgets were primarily in the hands of business types, according to a survey released Wednesday by research firm CFI Group.

The survey "CFI Group Smartphone Satisfaction Study 2009" found that smartphone users are no longer just reading e-mail or scheduling appointments but also surfing the Web, streaming video and music, downloading games, and snapping pictures. Smartphones are now seen more by consumers as minicomputers than as cell phones, according to CFI.

Predictably, Apple's iPhone is credited with igniting the growth of smartphones, and it's the clear leader of the pack. The survey found that the iPhone has the most loyalty and praise among its users, with 92 percent of iPhone owners saying they have the ideal phone. Around 90 percent have recommended the device, while 35 percent said they bought the iPhone based on word-of-mouth advice.

The iPhone also is tops in customer satisfaction, ranking 83 on a 100-point scale, according to CFI. The newer Palm Pre and Android-based phones each scored 77 on the scale, followed by Research In Motion's Blackberry at 73 and the Palm Treo at 70. The rest of the pack, including phones running Windows Mobile and Symbian, trailed the list with an overall grade of 66.

(Credit: CFI Group)

"The iPhone is the best thing to happen to the smartphone industry because it captured the imagination of a whole new set of consumers that might not have made the smartphone jump," said Doug Helmreich, program director with CFI Group.

But the growing dependence on smartphones is a catch-22, since consumers now demand more from their devices. And wireless carriers, most notably AT&T, have struggled to provide the quality of service that people want. For this reason and others, the survey found a disparity between the most popular smartphones and the most popular providers.

Of the pack, Verizon Wireless was considered the ideal carrier among 86 percent of users questioned, and it scored 79 out of 100 for customer satisfaction. But only 38 percent of Verizon consumers said their phone is the ideal smartphone, the lowest among all carriers.

For AT&T, the situation is reversed, but more among iPhone users. Half of all iPhone owners surveyed said they would like to jump ship to another provider, but 75 percent of non-iPhone users said they would stick with AT&T. For customer satisfaction, AT&T scored 69 out of 100 among iPhone users, and 73 among non-iPhone owners.

(Credit: CFI Group)

The survey also raised the question of whether other carriers might take a hit as consumers continue to want more from the iPhone and its brethren.

"The iPhone raised the bar not only for other smartphones, but for the networks as well," said Helmreich. "The new breed of smartphone consumers expect more from their phones, and the iPhone may represent only the tip of a data-intensive iceberg."

To compile the survey, CFI Group questioned 1,074 people from August 3 to 10 about their smartphone use.

[john55440]

Smartphone satisfaction comes with a large monthly data contract bill.

[The_happy_switcher]

Quality comes with a price.

[montex66]

Do you think you are entitled to get the service for free?

[jean.luc.picard]

Actually, my data plan is far cheaper than the phone charges. The limited calling times and the ridiculously small time packages at Rogers mean that actually using my iPhone for phone calls is the price prohibitive part. I've never once gone past the limit in my data plan, even with tethering, but I always exceed my calling plan minutes and I have the top plan. Scary!

[basraw]

@happy_switcher

and from the complaints, AT&T isn't quality for their network/phone services yet.

[john55440]

>Do you think you are entitled to get the service for free?

Of course not.

In addition, I could afford a smartphone, but for me it would just be a silly, friviolus, expense.

[dhavleak]

Holy crap.. Windows Mobile and Symbian (Nokia etc.) come under "other" in that survey..

[baggyguy1218]

Im with T-Mobile and I have the MyTouch and I cant be happier. I was switching to an iPhone and had the color and day I was switching but my wife wanted to look at what T-Mobile had to offer because we have been with them for so long and were very happy. Good thing I did. The MyTouch was a pain at first but after the 1.6 upgrade a week later I was hooked. T-Mobile are the best but T-Mobile is way cheaper than Verizon. We pay 130$ a month for full internet with myfaves and 700 anytime wth free nights and weekends but I only call the people in my Myfaves regularly. We use about 300 anytime minutes a month so if you feel a switch is needed go to T-Mobile you will be happy, or Verizon they are good too.

[Police_States_of_America]

>only 38 percent of Verizon consumers said their phone is the ideal smartphone

must have android

[BackInAction777]

Verizon doesn't carry any Android phones. Yet! They will be the end of the year, I think.

[codynews]

No shock in this story... AT&T has the best phone (iphone) and crappy service (perhaps due to all the data iphone users use, but either way, it's not the best service). And Verizon has the best service and crappy "flagship" phone.

Cody

[toosday]

Actually, there is a shock to this story for me: T-Mobile. Look at that little guy go! I agree with the survey that I really miss T-Mobile. I switched to AT&T because I get a discount from my company, but it's really not worth it. I'm switching back as soon as my contract is up in a few months.

T-Mobile may not have a s good 3G service as AT&T in my area but they have way better call quality and fewer dropped calls. And a Phone - even a smartphone - isn't worth much if I can't talk on it.

[atish505]

You may think of T-Mobile as the smaller of the four 'big carriers' in USA, but T-Mobile operates in 28 countries of the world and has far greater users and revenue than A & T or Verizon in the mobile sector.

[anomalator]

I totally agree with this story. I'm on Verizon with a BB Storm, the service is great but the phone is so-so. I'd love to switch to an iPhone but there's no way I'm going to ATT. I've talked to friends that have the iPhone and they all say that the ATT service sucks. If the iPhone ever comes to Verizon I'll switch in a heartbeat. It would be a perfect match of cutting edge phone and top notch service. Now that would be a killer combo!

[NeverFade]

@anomalator

Just my story:

When the 3GS was released this summer, I switched from Sprint to ATT. My Sprint worked pretty darn well. I've heard about the trouble with ATT, but I threw caution to the wind because I really wanted an iPhone. I've found that the service is just as good with ATT than was with Sprint.

The ironic part is that Verizon does NOT come in, in my neighborhood! Very spotty, and I am in a suburb of Minneapolis! So, I guess it depends on where you live, but it comes in great where I am. Also, my friends basement, where my sprint phone would be dead with 0 bars, my iphone with att has all bars and works perfectly. Weird, I know...

[Squashman2]

Were all the people they surveyed just consumers and not business types.

[Julie_Palen]

Interesting survey, Lance; thanks for sharing. The love for the iPhone is certainly undeniable, but I?d offer another caveat to this survey and that is what impact consumers? love for the device will have on businesses. No doubt the same iPhone users who now surf the web for travel deals are also synching the phone with their work email, storing company data on it and using it as a secondary, and sometimes primary, business device. With this blurry line between both work and personal use, we have to wonder not whether the device is ready for the enterprise, but just how ready enterprises are for the device? Because all mobile devices are not created equal in their ability to be managed by the enterprise, organizations will find themselves in the midst of a logistical and technical IT nightmare if they aren?t prepared to answer this question. My advice, start preparing to manage the onslaught of iPhones now and ready the corporate mobile network for an even bigger wave in 2010. You might find this TwtPoll interesting and surprising. We asked, ?If you had to choose, what would be your primary mobile device for doing business?? The leading answer thus far: Blackberry. If you?re interested in weighing in, visit http://twtpoll.com/90jbr8.

Julie Palen, Tangoe, Inc.

[chris_d]

People are stupid for these things. They can't put them down. And the "regular" cell phones too. I'd say it's probably beat out the Internet as the biggest productivity zapper at work. LIKE OMG!!!! WHY DO UR JOB WHEN U CAN TXT ALL DAY?? LOL.

[Eddie-c]

Agree with you 100%.

The closest comparison I have found is Eddie Murphys' Ice-Cream Man sketch - replace "ice-cream" with "i-phone" and the sketch pretty much describes the actions of corporate users. (http://www.youtube.com/watch?v=u6jAqkw05co)

[sdf563]

The linking of ATT and iPhones is the reason for the robust sales of the iPod Touch. I won't touch ATT with a 10-foot pole, and therefore got the Touch last year. It's the iPhone without the phone (or the camera). Some loss of functionality, and I have to still carry around a separate phone, but it works great.

[atish505]

I have activated HTC Hero unlocked (European set not the Sprint one) on T-Mobile. I have unlimited unlimited voice and $ 20/month data plan (all together $ 69.99 + tax). I am very happy with the service and the fact that I am not in any kind of Jail.

I have had the original iPhone and BlackBerry before and I am not missing anything.