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ChangeWave Research: Consumer Smart Phone Trends

Consumer Smart Phones: 90 Day OutlookApple Leaps as iPhone 5S Dominates Smart Phone Planned Buying

Jean Crumrine and Lusy Lisyanova

Overview: A September 19-30 ChangeWave survey of 4,102 consumers – conducted in the immediate aftermath of the new iPhone 5S and 5C launches – has taken a fresh look at smart phone demand trends, including the battle between Apple and Samsung.

The survey also measures customer satisfaction, OS preferences, and future demand for other major smart phone manufacturers. We note this survey focused primarily on the North American smart phone market – with 87% of respondents from the U.S. ChangeWave Research is a service of 451 Research.

Next 90 Days: Smart Phone Buying

The survey shows a leap in planned smart phone buying going forward, with 21.0% of respondents saying they plan on buying a smart phone in the next 90 days – a 6.5-pt surge from the previous survey in June. This is the second highest reading for consumer smart phone planned buying ever registered in a ChangeWave survey.

Future Manufacturer Demand. Buying plans for the individual smart phone manufacturers show Apple driving much of the industry’s growth over the next 90 days. Nearly two-in-three (63%) respondents who plan on buying a smart phone say they’ll get an iPhone – a huge 19-pt jump over the previous survey in June.

This information is from ChangeWave Research, a service of 451 Research, LLC, and contains confidential business information.It may not be copied or distributed without permission. © 2013 451 Research, LLC. All rights reserved.

October 15, 2013


As the following chart shows, the 19-pt leap in Apple planned buying is similar to the surge during the two previous iPhone releases (e.g., up 21-pts in Sep 2012; up 17-pts in Sep 2011).

The simultaneous launch of the iPhone 5S and a lower-cost iPhone 5C are a noteworthy break from past Apple releases when only a single model was introduced.

When we asked respondents who plan on purchasing Apple smart phones to tell us which model they’re most interested in buying, we find demand for the iPhone 5S (82%) dominates.

As mentioned, the focus of this survey is on next 90 day North American smart phone demand. While North America represents a rapidly maturing market, these results do not factor in planned buying trends in other major markets outside of the U.S. and Canada where there is significant growth potential.

That said, in contrast to the surge for Apple, demand for other manufacturers has dropped – a trend we normally see in ChangeWave surveys at the time of new iPhone releases.

Samsung. As Apple’s biggest competitor in the consumer smart phone market over the past two years, Samsung’s share of planned buying (14%) is temporarily taking a hit – down from the all-time highs reached in the previous two surveys.


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We note that Samsung planned buying is still higher than a year ago. And looking back at last year’s iPhone 5 release (September 2012), Samsung also registered a big drop at the time, but rebounded to a record high six months later.

Looking at the Samsung models consumers plan on buying, the Galaxy S 4 (54%) remains the most popular, but there is also significant demand for the recently released next generation Note 3 phablet (17%).

Nokia. After a small uptick last quarter, Nokia (3%) is unchanged in planned buying – a relative accomplishment midst the iPhone 5S buying wave. Nonetheless, there are few signs of momentum for Nokia’s Windows Phone 8 Lumia devices, and the ultimate impact of Microsoft’s plans to acquire Nokia’s mobile phone business remains uncertain.

Motorola. After several recent model releases – including Moto X – Motorola (4%) is seeing a 3-pt uptick in planned buying. While encouraging, the uptick is off their lowest level since the dawn of Android and they remain a long way from being a threatening competitor in the smart phone market.

HTC (1%) has dropped 1-pt and is tied with its all-time low in a ChangeWave survey. BlackBerry’s share of planned smart phone purchases (2%) has fallen 2-pts to its second lowest level ever in a ChangeWave survey.


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Customer Satisfaction. Apple continues to outperform in smart phone customer satisfaction. A total of 68% of iPhone owners say they’re Very Satisfied with their phone. We note among iPhone 5 owners, the Very Satisfied rating jumps to 76%.

Percentage of Respondents Very Satisfied with their Smart Phone – By Manufacturer

Second place Samsung has a highly respectable 51% of its customers saying they’re Very Satisfied, followed by Nokia (45%). Motorola (39%) is edging out HTC (36%) for fourth, while BlackBerry (30%) comes in last on this measure.

Mobile Operating Systems

Not surprisingly, Apple iOS is the number one preference among consumers planning to buy a smart phone in the next 90 days, with 63% saying they’d prefer to have iOS on their new phone – up 18-pts since June.

Android OS (23%) is still firmly in second in terms of customer preference – but with so much attention on the new iPhone 5S and iPhone 5C, it has declined 9-pts since last quarter.

Microsoft’s Windows Phone 8 (4%) has dropped 2-pts since June, and BlackBerry’s share of OS preference (2%) is now just 1-pt above its all-time low of a year ago prior to the BlackBerry 10 OS release.

OS Customer Satisfaction. Apple also remains the clear leader in OS customer satisfaction – with 71% of customers using iOS saying they’re Very Satisfied. Note the new iOS 7 was released just prior to the start of this survey.


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Windows Phone 8 operating system (54%) has moved into second ahead of the Android OS (45%), and both remain well ahead of the satisfaction rating for BlackBerry OS (29%).

Big Demand for Big Screen Smart Phones

A key finding over the past year of ChangeWave surveys has been the strong interest in larger-screen size smart phones, and the current survey is no different. A third (32%) of planned smart phone buyers say they’re most interested in buying a 5 inch screen or larger.

What screen size are you most interested in buying? Current Survey Sep ‘13

Less Than 3 Inch Screen 0%3.0-3.9 Inch Screen 12%4.0-4.9 Inch Screen 55%5 Inch Screen or Larger 32%

While this is down 4-pts from previously, it’s likely a temporary downtick as buyer demand is currently focused on the next gen Apple iPhones – with 4” screen size displays.

Several manufacturers already offer, or are planning to release, ‘phablet’ devices (i.e., smart phone with a 5 inch screen or larger). As the leader in this trend, Samsung continues to dominate the space with the just released Galaxy Note 3 (5.7” screen) joining its other ‘phablet’ devices, including the Galaxy S 4 (5”).

Indeed, nearly three-in-five planned Samsung buyers (58%) say they’re most interested in purchasing a 5 inch screen or larger device – more than double the percentage among Non-Samsung planned buyers (26%).


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Cannibalization of Tablets. There is clear evidence that the phablet phenomenon poses a threat to other products – with tablets in particular showing vulnerability.

For the second survey in a row we asked phablet owners whether they’re primarily using their device as a smart phone, a tablet or equally as both.

For those of you who currently own a “Phablet” (i.e., smart phone with a 5” screen or larger), which of the following best describes how you primarily use the device?

Current Survey Sep ‘13

Previous Survey Jun ‘13

Use Primarily as a Smart Phone 69% 72%Use Primarily as a Tablet 9% 7%Equally as Both 22% 21%

While a majority (69%) still say they use their phablet mainly as a smart phone, that’s down 3-pts from previously. Importantly, a combined 31% now say they use the phablet equally as both a smart phone and tablet (22%), or primarily as a tablet (9%) – a 3-pt increase since June.

As a follow-up we asked phablet owners who also have a tablet device about how their use of the tablet has changed since purchasing the larger-screen phone.


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By a better than three-to-one margin, those who own both devices say they’re using the tablet Less Frequently (45% Less Frequently vs. 13% More Frequently) since buying their phablet – a sign of the potential threat to the tablet market.

In another positive sign for phablets, satisfaction among owners remains very high, with 61% reporting they’re Very Satisfied with their device. Another 31% say they’re Somewhat Satisfied.

Music Streaming Services – Impact of iTunes Radio In addition to the new iPhone models, Apple recently released iOS 7, its latest smart phone operating system – which includes the new iTunes Radio music streaming service.

To gauge the potential impact of iTunes Radio, we asked consumers about their use of music streaming services over the past 90 days (before the iTunes Radio release) and what they plan on using over the next 90 days.

Past 90 Days. Pandora (57%) was the dominant music streaming service of choice over the past 90 days, followed by Sirius XM Internet Radio (16%), iHeartRadio (13%), and Spotify (12%).

Next 90 Days. Going forward, one-in-four (23%) say they’re planning to use iTunes Radio over the next 90 days – a clear sign the music streaming industry is being impacted by the release of iTunes Radio.

All-in-all, these results show strong potential for Apple iTunes Radio, but the real test will be whether consumers stick with it once initial excitement subsides.

Of course the Apple brand and existing customers represent a powerful base to help launch a new service. We took a closer look at planned future usage of the top music streaming services among iPhone owners and Non-iPhone owners.

Apple iPhone owners (38%) are five times more likely to say they’ll use the new iTunes Radio service in the next 90 days than non-iPhone owners (7%).

Bottom Line: Not surprisingly, Apple’s release of two new models – iPhone 5S and iPhone 5C – has triggered a surge in smart phone buying. The wave of Apple buying momentum has at least temporarily shifted interest away from its chief rival Samsung, as well as from other major manufacturers.


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While demand for the new 4” screen iPhone devices dominates planned buying in the current survey, there is continuing strong consumer interest in large-screen (greater than 5”) smart phones. And in this realm Samsung remains best positioned. Moreover, there are clear signals that as the lines blur across multiple mobile devices, the tablet appears particularly vulnerable to the threat from phablets.

As mentioned, the focus of this survey is on next 90 day North American smart phone demand.

Summary of Key Findings

The ChangeWave Research Network is a group of 25,000 highly qualified business, technology, and medical professionals in leading companies of select industries—credentialed professionals who spend their everyday lives working on the frontline of technological change. ChangeWave surveys its Alliance members on a range of business and investment research and intelligence topics, collects feedback from them electronically, and converts the information into proprietary quantitative and qualitative reports.


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New iPhone Models Trigger Surge in Overall Smart Phone Buying 21.0% say they plan on

buying a smart phone in next 90 days, up from 14.5% in June

iPhone 5S Dominates in North American Market Among respondents planning

to buy a smart phone in next 90 days, 63% say they plan to buy an Apple iPhone – a huge 19-pt leap

iPhone 5S (82%) is top choice among planned Apple buyers

Other Manufacturers: Planned Purchases Next 90 Days Samsung (14%; down 12-pts) Motorola (4%; up 3-pts) Nokia (3%; unchanged) BlackBerry (2%; down 2-pts) HTC (1%; down 2-pts)

Strong Demand for Big Screen Phones Continues 32% of planned smart phone

buyers say they’re most interested in a 5” or larger screen – down 4-pts from June as buyers are focused on the 4” next gen iPhones

Phablets Pose Threat to Tablets 31% now say they use their

Phablet equally as both a smart phone and tablet (22%) or primarily as a tablet (9%) – a 3-pt increase since June

Among those who own both a phablet and tablet, 45% say they’re now using the tablet Less Frequently vs. 13% More Frequently

Smart Phone Satisfaction Ratings Apple (68% Very Satisfied) Samsung (51%) Nokia (45%) Motorola (39%) HTC (36%) BlackBerry (30%)

Apple Momentum Affecting Mobile OS PreferencesOS Preferences – Next 90 Days Apple iOS (63%) is number

one for those planning to buy smart phone next 90 days – up 18-pts

Android OS (23%) firmly in second – but down 9-pts

Windows Phone OS (4%) –down 2-pts

BlackBerry OS (2%) – down 2-pts

Mobile OS ‘Very Satisfied’ Customer Ratings Apple iOS (71%) Windows Phone OS (54%) Android OS (45%) BlackBerry OS (29%)

Use of Music Streaming Services – Next 90 Days Pandora (50%) iTunes Radio (23%) Sirius XM Internet Radio

(14%) iHeart Radio (12%) Spotify (11%)


Table of Contents

Summary of Key Findings.............................................................................................8

The Findings.................................................................................................................10

Overall Smart Phone Purchasing..............................................................................10

Next 90 Days: Smart Phone Manufacturer Demand.................................................11

Smart Phone Customer Satisfaction.........................................................................15

Mobile Operating Systems .......................................................................................16

Big Demand for Big Screen Smart Phones ..............................................................18

Music Streaming Services – Impact of iTunes Radio ...............................................21

Other Smart Phone Findings ....................................................................................23

ChangeWave Research Methodology........................................................................24

About ChangeWave Research....................................................................................24

About 451 Research.....................................................................................................24


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The Findings

Introduction: A September 19-30 ChangeWave survey of 4,102 consumers – conducted in the immediate aftermath of the new iPhone 5S and 5C launches – has taken a fresh look at smart phone demand trends, including the battle between Apple and Samsung.

The survey also measures customer satisfaction, OS preferences, and future demand for other major smart phone manufacturers. We note this survey focused primarily on the North American smart phone market – with 87% of respondents from the U.S. ChangeWave Research is a service of 451 Research.

(A) Overall Smart Phone Purchasing

The survey shows a leap in planned smart phone buying going forward, with 21.0% of respondents saying they plan on buying a smart phone in the next 90 days – a 6.5-pt surge from the previous survey in June. This is the second highest reading for consumer smart phone planned buying ever registered in a ChangeWave survey.


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(B) Next 90 Days: Smart Phone Manufacturer Demand

Buying plans for the individual smart phone manufacturers show Apple driving much of the industry’s growth over the next 90 days. Nearly two-in-three (63%) respondents who plan on buying a smart phone say they’ll get an iPhone – a huge 19-pt jump over the previous survey in June.

As the following chart shows, the 19-pt leap in Apple planned buying is similar to the surge during the two previous iPhone releases (e.g., up 21-pts in Sep 2012; up 17-pts in Sep 2011).

The simultaneous launch of the iPhone 5S and a lower-cost iPhone 5C are a noteworthy break from past Apple releases when only a single model was introduced.

When we asked respondents who plan on purchasing Apple smart phones to tell us which model they’re most interested in buying, we find demand for the iPhone 5S (82%) dominates. Another 7% say iPhone 5C and 5% plan to get an iPhone 4S (which is now available for free with a two-year service contract).


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Planned AppleBuyers:

Next 90 Days


Apple iPhone 5S 82%Apple iPhone 5C 7%Apple iPhone 4S 5%Don't Know 6%

Among the planned iPhone 5S buyers, it’s a near dead heat between the 32GB iPhone 5S (38%) and the 16GB iPhone 5S (36%) as to which is attracting the most demand. Another 22% say they plan on getting the 64GB iPhone 5S.

Which iPhone 5S model are you most likely to buy?

As mentioned, the focus of this survey is on next 90 day North American smart phone demand. While North America represents a rapidly maturing market, these results do not factor in planned buying trends in other major markets outside of the U.S. and Canada where there is significant growth potential.

That said, in contrast to the surge for Apple, demand for other manufacturers has dropped – a trend we normally see in ChangeWave surveys at the time of new iPhone releases.

Samsung. As Apple’s biggest competitor in the consumer smart phone market over the past two years, Samsung’s share of planned buying (14%) is temporarily taking a hit – down from the all-time highs reached in the previous two surveys.

We note that Samsung planned buying is still higher than a year ago. And looking back at last year’s iPhone 5 release (September 2012), Samsung also registered a big drop at the time, but rebounded to a record high six months later.


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64GB iPhone 5S ($399) 22%32GB iPhone 5S ($299) 38%16GB iPhone 5S ($199) 36%Don't Know 4%


Looking at the Samsung models consumers plan on buying, the Galaxy S 4 (54%) remains the most popular, but there is also significant demand for the recently released next generation Note 3 phablet (17%).

Planned SamsungBuyers:

Next 90 Days


Samsung Galaxy S 4 54%Samsung Galaxy Note 3 17%Samsung Galaxy S III 13%Don’t Know/ Other 17%

Nokia. After a small uptick last quarter, Nokia (3%) is unchanged in planned buying – a relative accomplishment midst the iPhone 5S buying wave. Nonetheless, there are few signs of momentum for Nokia’s Windows Phone 8 Lumia devices, and the ultimate impact of Microsoft’s plans to acquire Nokia’s mobile phone business remains uncertain.

Motorola. After several recent model releases – including Moto X – Motorola (4%) is seeing a 3-pt uptick in planned buying. While encouraging, the uptick is off their lowest level since the dawn of Android and they remain a long way from being a threatening competitor in the smart phone market.


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HTC (1%) has dropped 1-pt and is tied with its all-time low in a ChangeWave survey. BlackBerry’s share of planned smart phone purchases (2%) has fallen 2-pts to its second lowest level ever in a ChangeWave survey.

Who is the manufacturer of the Smart Phone you plan on buying?

Current Survey Sep

‘13

Previous SurveyJun ‘13

Previous SurveyMar ‘13

Previous SurveyDec ‘12

Previous Survey Sep

‘12

PreviousSurveyJun ‘12

Apple (e.g., iPhone) 63% 44% 40% 50% 71% 50%Samsung (e.g., Galaxy S 4, Note 3) 14% 26% 27% 21% 13% 19%Motorola (e.g., Moto X, Droid Maxx) 4% 1% 5% 4% 2% 4%Nokia (e.g., Lumia 1020, Lumia 920) 3% 3% 2% 3% 2% 2%BlackBerry (e.g., Q10, Z10) 2% 4% 7% 4% 1% 2%LG (e.g., G2, Google Nexus 4, Optimus G Pro)

2% 2% 1% 3% 0% 1%

HTC (e.g., One, One mini, Windows Phone 8X)

1% 3% 2% 2% 1% 3%

Sony (e.g., Xperia M, Xperia SP) 0% 0% 0% 0% 0% 1%Don't Know /Other 11% 16% 16% 14% 11% 18%


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(C) Smart Phone Customer Satisfaction

Apple continues to outperform in smart phone customer satisfaction. A total of 68% of iPhone owners say they’re Very Satisfied with their phone. We note among iPhone 5 owners, the Very Satisfied rating jumps to 76%.

Percentage of Respondents Very Satisfied with their Smart Phone – By Manufacturer

Second place Samsung has a highly respectable 51% of its customers saying they’re Very Satisfied, followed by Nokia (45%). Motorola (39%) is edging out HTC (36%) for fourth, while BlackBerry (30%) comes in last on this measure.


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(D) Mobile Operating Systems

Not surprisingly, Apple iOS is the number one preference among consumers planning to buy a smart phone in the next 90 days, with 63% saying they’d prefer to have iOS on their new phone – up 18-pts since June.

Android OS (23%) is still firmly in second in terms of customer preference – but with so much attention on the new iPhone 5S and iPhone 5C, it has declined 9-pts since last quarter.

Microsoft’s Windows Phone 8 (4%) has dropped 2-pts since June.

*In surveys prior to Sep ‘12 the response choice was either Windows Phone 7 or Windows Mobile

BlackBerry’s share of OS preference (2%) is now just 1-pt above its all-time low of a year ago prior to the BlackBerry 10 OS release.


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OS Customer Satisfaction

Apple also remains the clear leader in OS customer satisfaction – with 71% of customers using iOS saying they’re Very Satisfied. Note the new iOS 7 was released just prior to the start of this survey.

Windows Phone 8 operating system (54%) has moved into second place ahead of the Android OS (45%), and both remain well ahead of the satisfaction rating for BlackBerry OS (29%).


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(E) Big Demand for Big Screen Smart Phones

A key finding over the past year of ChangeWave surveys has been the strong interest in larger-screen size smart phones, and the current survey is no different. A third (32%) of planned smart phone buyers say they’re most interested in buying a 5 inch screen or larger.

What screen size are you most interested in buying? Current Survey Sep ‘13


Previous Survey Mar ‘13

Previous Survey Dec ‘12

Less Than 3 Inch Screen 0% 2% 1% 3%3.0-3.9 Inch Screen 12% 12% 14% 18%4.0-4.9 Inch Screen 55% 51% 52% 52%5 Inch Screen or Larger 32% 36% 33% 27%

While this is down 4-pts from previously, it’s likely a temporary downtick as buyer demand is currently focused on the next gen Apple iPhones – with 4” screen size displays.

Several manufacturers already offer, or are planning to release, ‘phablet’ devices (i.e., smart phone with a 5 inch screen or larger). As the leader in this trend, Samsung continues to dominate the space with the just released Galaxy Note 3 (5.7” screen) joining its other ‘phablet’ devices, including the Galaxy S 4 (5”).

Indeed, nearly three-in-five planned Samsung buyers (58%) say they’re most interested in purchasing a 5 inch screen or larger device – more than double the percentage among Non-Samsung planned buyers (26%).

Cannibalization of Tablets

There is clear evidence that the phablet phenomenon poses a threat to other products – with tablets in particular showing vulnerability.

For the second survey in a row we asked phablet owners whether they’re primarily using their device as a smart phone, a tablet or equally as both.


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For those of you who currently own a “Phablet” (i.e., smart phone with a 5” screen or larger), which of the following best describes how you primarily use the device?



Use Primarily as a Smart Phone 69% 72%Use Primarily as a Tablet 9% 7%Equally as Both 22% 21%

While a majority (69%) still say they use their phablet mainly as a smart phone, that’s down 3-pts from previously. Importantly, a combined 31% now say they use the phablet equally as both a smart phone and tablet (22%), or primarily as a tablet (9%) – a 3-pt increase since June.

As a follow-up we asked phablet owners who also have a tablet device about how their use of the tablet has changed since purchasing the larger-screen phone.

For “Phablet” owners who also own a Tablet, which of the following best describes how the use of your Tablet has changed since purchasing your “Phablet”?

By a better than three-to-one margin, those who own both devices say they’re using the tablet Less Frequently (45% Less Frequently vs. 13% More Frequently) since buying their phablet – a sign of the potential threat to the tablet market.


Use My Tablet More Frequently

13%

Use My Tablet Less Frequently 45%No Change 37%Don't Know 6%

In another positive sign for phablets, satisfaction among owners remains very high, with 61% reporting they’re Very Satisfied with their device. Another 31% say they’re Somewhat Satisfied.


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‘Phablet’ Owner Satisfaction Ratings


PreviousSurveyJun ‘13

Very Satisfied 61% 60%Somewhat Satisfied 31% 32%Somewhat Unsatisfied 5% 5%Very Unsatisfied 3% 1%Don't Know 0% 2%

What’s the draw of these large screen smart phones? We asked likely phablet buyers to tell us the most important reason why they’re interested in buying a large screen phone, and found Easier Readability in General (42%) at the top of the list. Other respondents more specifically referred to the Ease of Use of Touch Screen (12%) and Easier Viewing of Internet Websites (10%).

KFS18490 sums it up as, it’s “easier to perform non-voice tasks such as email, web search, map functions, typing – and I will not need to wear glasses to use it.” BWI25075 adds, it provides “more real estate for apps, which makes many of them more usable.”

For those most interested in buying a smart phone with a 5" screen or larger, what's the most important reason why? (Open-Ended)

Easier Readability in General 42%Ease of Use of Touch Screen 12%Easier Viewing of Internet Websites 10%Maximizes Usability 8%View Streaming Content 6%Large Screen 6%Fit More Apps on Screen Display 3%Tablet Replacement 3%Other 9%


20


(F) Music Streaming Services – Impact of iTunes Radio

In addition to the new iPhone models, Apple recently released iOS 7, its latest smart phone operating system – which includes the new iTunes Radio music streaming service.

To gauge the potential impact of iTunes Radio, we asked consumers about their use of music streaming services over the past 90 days (before the iTunes Radio release) and what they plan on using over the next 90 days.

Several companies offer music streaming services to internet connected devices such as smart phones, tablets and computers. These services allow users to customize the music they listen to based on their favorite songs, artists or albums.

Which music streaming services - if any - have you used in the past 90 days?


Pandora 57%Sirius XM Internet Radio 16%iHeartRadio 13%Spotify 12%Google Music Play All Access 6%TuneIn Radio 6%Slacker 4%Other 17%

Past 90 Days. Pandora (57%) was the dominant music streaming service of choice over the past 90 days, followed by Sirius XM Internet Radio (16%), iHeartRadio (13%), and Spotify (12%). Looking ahead to the next 90 days, which music streaming services if any do you plan on using?


Pandora 50%iTunes Radio 23%Sirius XM Internet Radio 14%iHeartRadio 12%Spotify 11%Google Play Music 6%TuneIn Radio 5%Slacker 3%Other 14%

Next 90 Days. Going forward, one-in-four (23%) say they’re planning to use iTunes Radio over the next 90 days – a clear sign the music streaming industry is being impacted by the release of iTunes Radio.


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All-in-all, these results show strong potential for Apple iTunes Radio, but the real test will be whether consumers stick with it once initial excitement subsides.

Planned Music Streaming Usage – iPhone Owners vs. Non-iPhone Owners:

Of course the Apple brand and existing customers represent a powerful base to help launch a new service. We took a closer look at planned future usage of the top music streaming services among iPhone owners and Non-iPhone owners.

Not surprisingly, Apple iPhone owners are five times more likely to say they’ll use the new iTunes Radio service in the next 90 days than non-iPhone owners (38% iPhone owners vs. 7% Non-iPhone owners).

Future Use of Music Streaming Services – iPhone Owners vs. Non-iPhone Owners:

Planning to Use in Next 90 Days


iPhoneOwners

Non- iPhoneOwners

Pandora 50% 53% 48%iTunes Radio 23% 38% 7%Sirius XM Internet Radio 14% 15% 13%iHeartRadio 12% 12% 13%Spotify 11% 12% 9%Google Play Music 6% 3% 10%TuneIn Radio 5% 5% 6%Slacker 3% 2% 4%

We note Google Play Music is the only other music streaming service showing a significant difference – with Non-iPhone owners (10%) three times more likely than iPhone owners (3%) to say they’ll use the service going forward.


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(G) Other Smart Phones Industry Trends

A Closer Look at Customer Satisfaction With Specific Aspects of Smart Phones

Here’s a look at satisfaction ratings for specific smart phone and operating system features:

How satisfied are you with each of the following aspects of your current smart phone?

Customers Very Satisfied With Specific Aspects of Smart Phone by Operating System

Total iOS(Apple)

Android (Google)

BlackBerryOS

(BlackBerry)

WindowsPhone OS(Microsoft)

# of Apps Available 74% 88% 68% 13% 24%Frequency of OS Updates 39% 49% 26% 22% 26%Security Features 40% 44% 34% 48% 42%Capability to Perform Work Tasks 36% 41% 30% 35% 51%

Customers Very Satisfied With Specific Aspects of Smart Phone by Manufacturer

Total Apple Samsung BlackBerry Motorola HTC Nokia

Ease of Use 59% 72% 47% 43% 44% 43% 51%Screen Size 40% 34% 59% 20% 44% 39% 57%Processor Speed 36% 41% 38% 24% 24% 25% 43%Digital Assistant/ Voice Commands

27% 30% 22% 13% 31% 16% 30%

Battery Life 24% 25% 20% 30% 26% 19% 34%Speaker Quality 30% 32% 29% 19% 25% 27% 38%

What Will Smart Phone Purchasers Do With Their Current Phone?

When you purchase your new smart phone, what will you do with your current phone?


Give It To A Family Member/Friend 27%Keep It as a Backup 12%

Use Wireless Provider’s Trade-in Program 13%Use A Retailer’s Trade-in Program (e.g., BestBuy, Apple, Wal-Mart) 8%Sell it to an Online Trade-in/Buyback Service (e.g., Gazelle, uSell) 6%Sell It Myself 6%

Recycle It 12%Donate It 7%Other 9%

A third of planned buyers say they will trade in or sell their current phone when they purchase a new smart phone (13% Use Wireless Provider’s Trade-in Program; 8% Use a Retailer’s Trade-in Program; 6% Sell it to an Online Trade-in/Buyback Service; 6% Sell it Myself), while 39% plan to keep it (27% Give it to a Family Member/Friend; 12% Keep it as a Backup).


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ChangeWave Research MethodologyThis report presents the findings of a ChangeWave Research survey on consumer demand trends within the Smart Phone market. The survey was conducted September 19 – 30, 2013 and a total of 4,102 consumers participated.

ChangeWave's proprietary research and business intelligence gathering system is based upon the systematic gathering of valuable business and investment information directly over the Internet from accredited members of its research network.

The business and investment intelligence provided by ChangeWave provides a real-time view of companies, technologies, and consumer and business trends in key market sectors, along with an in-depth perspective of the macro economy – well in advance of other available sources.

About ChangeWave ResearchChangeWave Research, a service of 451 Research, is a survey research firm that identifies and quantifies change in corporate buying & business trends, telecom trends, and consumer spending & electronics trends.

The ChangeWave Research Network is a group of 25,000 highly qualified business, technology, and medical professionals – as well as early adopter consumers – who work in leading companies of select industries. ChangeWave surveys its Network members weekly on a range of business and consumer topics, and converts the information into a series of proprietary quantitative and qualitative reports. ChangeWave delivers its products and services on the Web at www.ChangeWaveResearch.com.

451 Research, LLC, including its ChangeWave Research service, does not make any warranties, express or implied, as to results to be obtained from using the information in this report. Investors should obtain individual financial advice based on their own particular circumstances before making any investment decisions based upon information in this report.

About 451 Research451 Research, a division of The 451 Group, is a leading global analyst and data company focused on the business of enterprise IT innovation. Clients of 451 Research – at end-user, service-provider, vendor, and investor organizations – rely on 451 Research’s insight through a range of syndicated research and advisory services to support both strategic and tactical decision-making. For additional information on 451 Research, go to: 451research.com.

For More Information:ChangeWave Research Telephone: 301-250-23637101 Wisconsin Ave. Fax: 240-200-3988Suite 1301 www.ChangeWaveResearch.comBethesda, MD 20814 [email protected]


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