iPhone vs. Storm: The ball is back in BlackBerry's court
The momentum has shifted in the battle for smartphone supremacy, according to the results of a ChangeWave survey of 3,803 cell phone owners released Monday.
Measured by market share, Apple's (AAPL) iPhone continues what research director Paul Carton characterizes as "explosive growth." Apple's slice of the consumer smartphone market is now 23%, having grown 6 points since September and more than doubled since the introduction of the iPhone 3G in June.
Research in Motion's (RIMM) market share, meanwhile, has leveled off, while Palm's (PALM) seems to be circling the drain. See the chart below:
The picture going forward, however, looks very different. The ChangeWave survey was conducted between Dec. 9 and Dec. 15 — following the release of a slew of new BlackBerry products that culminated in the Storm, RIM's answer to the touchscreen iPhone.
When the participants who planned to purchase a smartphone over the next three months were asked which kind they hoped to get, 39% said a BlackBerry — up 9 points from September. Meanwhile, the wave of enthusiasm that greeted the iPhone 3G seems to have settled down; today, only 30% plan to buy an Apple smartphone, down 4 points from September and 26 points from June's peak. See below:
"So as we approach the 1st Quarter," Carton writes, "the ball has shifted back into BlackBerry’s court."
But there's an important difference between the iPhone's spike in interest last June and the BlackBerry Storm's December surge.
iPhone users, on the whole, have been extremely satisfied with their new toys. Storm owners are considerably less so.
For comparison purposes, Carton has stacked the Storm's favorability ratings against the original 2G iPhone, using results from a July 2007 survey taken less than a month after the iPhone's initial release.
As the chart below shows, the original iPhone — with all its flaws — drew a "very satisfied" rating (77%) that was more than double the BlackBerry Storm's (33%). More importantly, says Carton, the Storm's "unsatisfied" rating (14%) is three times higher than that of the original iPhone (5%).
Carton also notes that 4% of new Storm buyers report that they've already returned or exchanged their unit or are "very likely" to return it. Another 7% say they are "somewhat likely" to return or exchange.
"A key question for RIM," Carton concludes, "is whether their new BlackBerry products are strong enough to capitalize on the increased consumer interest."
From the Changewave Alliance Web site:
ChangeWave runs a proprietary network of 20,000 highly qualified business, technology, and medical professionals referred to as the ChangeWave Alliance. Alliance members are credentialed experts in leading companies of select industries who spend their everyday lives working on the frontline of technological change. (link)
Tried LifeInPocket on my Storm, finally a killer app to bring BlackBerry to a higher ground than iPhone.
The vivid real time restaurants/business review, cheap gas search and click to go voice GPS navigation are so amazing.
I have tried both VZ Navigator and Telenav both costs $10 per month while they are fare worse than the free LifeInPocket.
The download link is at http://lifeinpocket.com
For everyone who keeps hyping the Apple "Ecosystem" keep in mind BBs App Center has not launched yet. That will be happening in early 2009. In addition, GPS is NOT locked on the Storm. I just drove to Phoenix from San Diego using BB maps. In addition I have downloaded a couple of thrid party apps that work just fine. Verizon blocked apps in the past, but I so far have not had any problems downloading things like Instango, Viigo, and Franklin Covey products to my Storm.
As a delighted iTouch owner I would love to have an iPhone; however, that will not happen as long as Apple maintains its tie with AT&T. Apple – great product, but questionable business judgment.
Everyone that I know who owns an iPhone has managed to crack the screen almost immediately after purchasing it. The screen still responds to touch quite well, but everyone now seems to be hesitant to take their phones out in the rain at all. The damage was not through extreme use, every case was a common event like the phone falling out of an open bag or being knocked off a tabletop.
Of the 4 friends I know who use the iPhone casually, they all use them regularly still, despite the cracks.
However, the 3 friends I know that tried to the use the iPhone for business all swapped to other brands within a few months after becoming frustrated with a combination of the fiddly on-screen keyboard and overall fragility of the units. Foremost they believed that the iPhone failed to deliver what they were expecting from Apple's hype.
My father was set to purchase 5 iPhones for a new company he is setting up but had to settle for a Nokia because of the difficulty in managing the iPhone touch screens.
Personally I find them easy enough to navigate, but I'm also playing with my DS from time to time so maybe that has something to do with it.
ive had the storm for a week now, and its an awesome phone, granted its not the iphone(which my brother has) so me and him do have our long arguements about whats best… def update the storm the sec u get it, and there's plenty of aps that could help make it better on crackberry.com, so my take… iphone vs storm, it all comes down to service, and ill take verizon anyday…
I Played with the Storm today. i want an iphone so bad, but had ATT. but the Storm was a big disappointment. Nothing very intuitive. Took FOREVER to load simple web pages. Just simple navigation was a nightmare. Did they not test this with the general public before releasing it? I was hyped up with the potential of a decent phone form Verizon, and then let down after seeing this storm. sigh
I used the storm. It was slow and the software was clunky. It had a bad feeling to it. Thankfully for blackberry though, this is still there best model to date, as the old blackberry models were complete garbage
Free LifeInPocket voice activated navigation is a concern while WiFi is as important.
I think both are blocked by Verizon a bully.
When users figured out that they have to pay tens of dolloars permonth to Verizon for GPS apps such as VZ Navigator, they will return Storm to store.
All other carriers put no restriction to Blackberry while Verizon is the only carrier restrict 3rd party GPS apps.
Popular GPS apps such as Google Map, LifeInPocket etc cannot work with Verizon's Blackberries.
iPhone is taking advantage of 3rd party apps while Storm is in the dark shadow of Verizon. RIM probably don't have choice.
Storm is month behind the iPhone in terms of technology, support, programs and reliability. The addicted to text messaging or instant email will be disappointed with the storm touch keyboard.
I expect to see hundreds giving back the Storm. It was not ready and is not a match.
iPhone is more that a phone or a text messaging devise with tons of innovation behind.
I will short RIMM
Why is it that there are so few of us highly productive people, who understand that these devices are, in reality, nothing more than toys. They aren't needed to conduct business, nor are they needed in our private lives. Technology can solve problems, but more often than not, it creates more problems than it solves.
While some of us are focusing on our work and getting the job done, we watch others play endlessly with their Crackberries and iPhones, while they complain that there aren't enough hours in a day.
Blackberry has a slight advantage in the business market due to the fact that it has more security than the iPhone. My own company won't support the iPhone until security is beefed up for sensitive company data. This type of problem may be what is helping Blackberry currently until iPhone gets its act together and becomes a serious business competitor.
i totally agree. a coworker bought a storm recently and i tried it out. they totally figured out the touch screen piece which is my biggst difficulty with my LG Dare. i am a female with relatively small fingers and i can't tell you how many times a day i'm backspacing because the next letter over came up instead. i've even called the wrong friend by accident. since i already have the Dare, i'll hold on for a while definitely recommend that Storm over iPhone.
Sorry, the second chart has the potential buyers of smart phones, the first chart has the present smartphone owners.
But the point is still valid.
"ex ped: Sacto Joe, the charts are ChangeWave’s, not Fortune’s."
Fortune chose to reprint inaccurate charts. The x axis should have tick marks which show the total number of months, not a mark at either two or three months. Or in the case of Sep – Dec, 3 1/2 months. And a half a month for the PIVOTAL month of December just doesn't cut it. The charts shouldn't have included December data.
Bottom line, the charts are lousy.
"Also, those aren’t sales numbers. As the chart indicates, those are the percentage of smartphone owners among the respondents. The interviews took place between Dec. 9 and Dec. 15 — hence the Dec. 2008 label."
Only in the second chart. In the first chart they are POTENTIAL smart phone owners. And the timing of the interviews is crucial. The original reviews for the Blackberry were super-supportive. Then the problems were found. Then the patches were applied. When were the interviews taken?
And finally, what's with the title on money.cnn.com? "Storm gains on iPhone"? How in the world do you get that out these highly subjective charts????!
The obvious takeaway from the current market share chart is that since iPhone was introduced, Blackberry has only been growing at the same rate as the "smartphone market" while iPhone has been gaining share. Before iPhone, Blackberry was gaining smartphone share.
A second takeaway is that iPhone has been selling in the calendar 4Q roughly as well as in the calendar 3Q within the market that was surveyed. Assuming that the 4Q has seen growth in the smartphone market (i.e. more people own smartphones) despite the recession, it's possible that iPhone is selling even better.
I have a Sprint BB Curve with LifeInPocket and Google Nap (both are free)installed.
I can pretty much do everything iPhone can do and what iPhone cannot do for example, Voice Activated Navigation, click to go location message etc.
The curve may not be that fancy but it's small, light and long battery life.
Bet of all, I paid only $15 per month for unlimited data. I could run both apps without $30 Blackberry plan.
So driving a Hyundai to work is worst, than driving Cadillac to work even though GM produces inferior cars? Wow…if I recall correctly back in the days no one wanted to be caught using an apple computer.
Rimm will be like Creative (MP3 maker). Everyone I know who bought the iphone. Love the iphone.
Owning a Storm is like business man driving a Hyundai to work.. 
(like one of the comment here said Poor man smartphone)
It's all about apps and services available to the platform.
Blackberry is supported by many apps such as LifeInPocket and Google Map however Verizon is the only carrier blockes 3rd party apps on RIM.
iPhone has a lot of apps.
I think VZ just shot itself on the foot by blocking 3rd party apps on RIM. It's stupid and will hurt Storm badly.
If Storm can be supported by LifeInPocket then it will be superior to iPhone.
Unfortunately, VZ still lives in 20th century and doing business as past century's bully.
Also, you chart is not correct in its x axis information. You have both two and three month gaps, but they're shown as the same distance.
Finally, since you have information for many months of "projections", you should compare them to what we now know of the "actuals". That might give us some idea of how trustworthy these numbers are.
One more thing:
It's really deceptive to be listing DECEMBER SALES NUMBERS in your chart – there's NO WAY you've got all the information for that – if for no other reason than that the month isn't over.
But it sure makes Blackberry look good the way you've got it. Coincidence???
ex ped: Sacto Joe, the charts are ChangeWave's, not Fortune's. Also, those aren't sales numbers. As the chart indicates, those are the percentage of smartphone owners among the respondents. The interviews took place between Dec. 9 and Dec. 15 — hence the Dec. 2008 label.
You guys are in DREAMLAND if you think there's any way the Storm comes close to matching the iPhone's overall experience!
Reminds me of when Windoze first came out and everybody on a PC thought how great it was. But compared to the Macintosh, it was CR*P!
And before that? The put-downs of the Mac interface were unbelievable – "toy" being my personal favorite.
Yeah right. The "toy" that took over the computer interface world, is all.
When will they ever learn….
Owned both. No bias. Storm is superior. No landscape texting, dropped ATT calls, crappy iTunes DRM on the iPhone … lead me to believe that Apple enthusiasts are just mad that a superior product was released while they are all stuck on a 2 year contract with horrible service. Ever wonder why people were standing in line for miles to get the Storm two months after the iPhone was released. HINT – They wanted something better! Abeit the Storm was released too early but BB has since worked the kinks out and I seem to remember that the iPhone 3G had its share of bugs too when it first came out.
I didn't like my storm at first. The software had many bugs. Then, about two days after my purchase, it automatically downloaded a software patch. Since then, I've had no problems whatsoever. The slowness of execution and os reboots are totally gone now. Never owned an i-phone and probably never will as long as they remain tied to AT&T.
I don't believe Verizon will open GPS to popular apps such as LifeInPocket and Google Map.
After all VZ navigator and other VZ app and services represent a lot of money.
If LifeInPocket support Verizon Blackberries then I'll consider Storm because I don't want to pay Verizon $10 per months for VZ navigation.
Though WiFi is a concern for me.
My issue with verizon has been spotty service at times and lack of sim cards. I have had all services and At&t gets my money. Apple does need to get a replaceable batter and some sort for sd memory soon to stay in the game.
'at least 40-50% of their sales are being returned here in a major LA AT&T store'
Bit tricky that seeing as how AT&T dont carry the Storm.
Battery life, removable battery, SD card, world phone option. Apples technology doesnt come close to BB, though admittedly their browser is better and the iPhone does have wi-fi.
RIM made a strategic compromise in pandering to Verizons wishes on the wi-fi – however, in order to get a major carrier onboard they will have had no choice.
Blame the carriers. They're living in the dark ages.
It may take an additional generation (as did the iPhone) but RIMs infrastructure and superior technology will win in the end.
The iPhone is amazing because of the App Store. Without it, I might consider a BlackBerry (if I was on another network), but they're still the poor mans iPhone 
GPS has been unlocked on Blackberry phones from Verizon since the 4.5 OS upgrade. Blackberry Map and 3rd party applications such as Garmin Mobile and Telenav GPS Navigator (Re branded as VZNavigator through Verizon) work fine. Google maps however has yet to make software changes to exploit this feature.
Robert in LA: The BB Storm is only available at Verizon Wireless stores, not AT&T. After the .75 update, I adore my Storm. I can sync my contacts, tasks, memos and google calendars with my storm. I receive my emails from all 4 of my accounts (the storm can handle up to 10 accounts). I enjoy using BB messenger, windows live messenger, google talk and yahoo instant messenger to keep in touch with my buddies. The battery life is fantastic, even with a bluetooth headset attached. Sure, the Storm still could use some updates to further improve the customer experience, and I'm sure RIM is working on it. I did enjoy my iPhone very much, however, for me, I had always enjoyed RIM products and am glad I made the switch.
1. First graph shows that Blackberry is not suffering at all from iPhone – iPhone is gaining market share from Palm and others (not shown). Indicates that iPhone is not (yet) breaking into the business markets that Blackberry has established.
2. Second graph indicates that the iPhone 3G release generated a much higher demand on its July release than Blackberry is for its 3 new phones in its December release. This is good news for Apple, but could also indicate that existing Blackberry owners are not upgrading their smartphones to the new phones later into this recession as fast as non-business consumers were purchasing either their first iPhone or replacing their existing inferior smartphone (likely Palm or other – not Blackberry).
3. The last graph tells us Apple continues to do what it is know for – rolling out a good product from the start with fewer flaws than others.
This article seems pretty insignificant to me, and from my recent attempt to own a BB Storm, I can tell you this phone is not a "smartphone". For the first time ever, Blackberry has released a phone that is not ready and not easy to use. When I brought it back to the store I asked the guy, "Are people really keeping these terrible phones and he said at least 40-50% of their sales are being returned here in a major LA AT&T store. All I can say is check your survey numbers in 3-6 months!!
It's amusing how the same report has idiot apple fans dancing on a Mac news site and here they try and spin it.
Reminder – Apple is tied to at&t until 2011 so there will be NO iPhone anywhere else for awhile still. Considering Verizon won't bend over like at&t they will likely be the last carrier (if ever). Meanwhile Blackberry will continue to have cross carrier support and you can bet at&t will have a Storm model WITH WiFi in 2009.
I have both and really the Storm is a solid device that once the OS issues are fixed (just like iPhone has done) will be a very solid device.
It takes a few days to adjust to the entry as it's DIFFERENT, it's not like iPhone touch or how you'd use a BB keypad. I'm prob 75% as fast which I trade off due to the screen size, Verizon network.
iPhone – where do I start. Yeah it's a neat gadget. I hardly call it iEverything as it doesn't do me much. Using it for email is still painful, the calendar functionality is a joke, internet is great – when it stays on and doesn't crash, and the phone quality is spotty. I find myself only using it as a souped up iPod with the occasional app/game on it to keep my kids busy.
I don't want the "ECOSYSTEM" – give me a solid device that works and for that it's still Blackberry. Apple will have success for those that desire that and value the other stuff over PDA/Phone functionality and meet 80% of their needs. Those that want the best functionality will continue to just use multiple devices to fit their need (BB,iPod,DS).
Got the Storm a week before you guys in the US living in the UK from Vodafone which is the UK equal and partner to Verizon. Had to wait a week longer for the update than you guys but it has improved out of all recognition. To the Guy who says he's stuck with Verizon maps I've got GoogleMaps including the street and satellite views and it works and I haven't powered up the Vodafone/Verizon maps. I can load full length feature films to watch and sending texts and emails is a dream and running Gmail and Yahoo mail with Hotmail killing itself off by not allowing this unless you want to pay for the service.
In all it's a brilliant phone which works well as a phone and the only shortcoming is lack of Wi-Fi.
Did this survey take into account that the Iphone is available in the US only to AT&T subscribers? It's amazing how many articles are out there discussing the smartphone market trends that fail to take this into account. From talking with friends and family it seems like a good number of them are ready to make the switch from blackberry to Iphone as soon as it is available on their network.
Without the App Store, no smart phone, not even the Storm can compete with the iPhone.
Apple developed an ecosystem around the iPhone that will continue to drive it forward to steal market share from others.
def blackberry its the best phone ever made in my opinion i feel like the new blackberry though, its nice and all but they copied apple phone, i still have my old one that i bought 3 years ago from http://www.tycromedia.com
Phillip Dewitt is a notorious Apple hater, so its not surprising that he would use highly dicey and out dated data in yet another bash piece in a long line of bash pieces.
ex ped: The name is Elmer-DeWitt, Stephens, with a hyphen and a cap W. Also, only one L in Philip.
i love my storm now. it did have a lot of bugs but all the new updates have fixed them, and another set to release within the next week or so. the updates make it WAY better than it was at launch.
Hence, my favourite phone still is HTC Touch Pro with Spb Mobile Shell software interface. Works like a charm, Google Maps, TomTom all work fine. Have installed dozens of other useful applications no problems.. Hmm! ould never have bought BBStorm No WiFi…
I also have tried the Storm. Got one for my son goin to university. After trying the two way typing input (horizontal or vertical) along with high lighted keys for confirmation. As well as going to pan mode, and once your used to using the touch screen (initial touch and then click (hard push) to select) I've found that I have fallen in love this this device. It is (for me anyways)simply a matter of getting used to the way the system operates with menus, etc. Storm vs. iphone are just two different phones. but with the click funtion, i have found it more realistic and actually easier to use than iphone. If RIMM solves their initial few bugs on the device such as being slow at times. And comes out with WiFi (Thunder). Look out iphone ! Because I Love the storms funtionality. I think it is a very cool smartphone. not to mention 3.2 camera with video.
I got a Storm and a 2nd gen iphone the same week. I tried them both–the Storm is back at Verizon. I couldn't type on it worth a darn. I loved the features, but hated the interface.
Storm will be on life support soon – it is appealing overwhelmingly to those that already have a BB, and have not really tried, nor understand the iPhone. Early trends indicate that it will not be all that successful compared to the iPhone based on customer satisfaction levels. Their day in the sun with this phone will not last long. Ultimately, its still about the OS, where Apple excels, and the total environment of the Apple system/family.
I remember telling my dad years ago that GPS was free, you just paid once for the device. He was floored, couldn't get over it. Sounds too good to be true, he said.
Leave it to cell phone carriers to take something that's too good to be true — and destroy it.
I would guess that Blackberry has some ghost writers writing these slanted reports. Compare Storm again the IPHONE 2G what stupidity or even worse…where is the objectivity. Put the Storm next to the IPHONE and compare…. but do it objectively. Blackberry has an advantage…a huge existing client base and company base, Apple has only been in this market a short time. Look 6 months, a year into the future and while RIMM will continue to grow its products and growth will be second rate.
One of the main reason for Storm's lacking of momentum is caused by Verizon's blocking of 3rd party GPS apps.
The most popular free GPS Navigation and location app LifeInPocket has officially declared that they can support Blackberry from all carriers except Verizon.
The reason Verison blocks GPS maybe because of their revenue strategy which allows them to make big money out of GPS based services with monthly fees. However this strategy has backfired and is time for Verizon to open GPS to 3rd party apps.
I have tried the storm….its about 70% as good as the iphone and the click screen…..what were they thinking….its a joke….lk
Storm, did you say Storm? Anybody who has an iphone or has talked to someone who has an iphone realizes that the phone part is secondary. They should be called ieverything because when you have an iphone, thy don't need news papers, magazines, TV's, maps, games, PCs's …
The way you say that Palm's share is circling the drain "despite today's infusion of cash" makes it sound like you thought the news today that Elevation Partners has added to their stake was somehow supposed to change these numbers.
Your numbers became obsolete the moment Palm announced the January 6th unvieling of its Nova system. There will be a large number of "wait-and-see" consumers until then.
ex ped: You're right about the infusion of cash. That was a clumsy update. I've taken it out.
Maybe RIMM can satisfy more Storm customers if they pre-install the business card behind the battery. If that goes unfixed it won't say much about RIMM's customer focus.
PS Hey PED, I liked your old layout better.
Everyone I know is using LifeInPocket on their Blackberry.
I think this thing is really pulling Blackberry ahead of iPhone as long as it remains free.
However, they do claim that they will support iPhone though.