Smartphones Still Immune to Economic Pressure - Page 2

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Such moves by Apple, Google and Nokia highlight that mobile devices' potential as software platforms is increasingly viewed as a key factor in vendors future market success, according to experts. For one thing, a robust platform is seen as the foundation for advanced, PC-like multimedia support and third-party application development -- both highly in demand by consumers.

Yet growing emphasis on the platform doesn't mean that customer service, hardware design and ease of use aren't playing into smartphone market success.

The ChangeWave report noted that Apple continues its lead as the top vendor in customer satisfaction, with 74 percent of iPhone users stating they are "very satisfied" with the device. That's a significant achievement at this juncture, given the software snags and network burps the new iPhone 3G has experienced since its arrival in early June. iPhone carrier AT&T has been under fire that network glitches aren't delivering reliable high-speed data services, and at least one lawsuit has been filed over what consumers claim have been false marketing promises.

Despite those issues, the ChangeWave report indicated little difference between the satisfaction of original iPhone users and new iPhone 3G users, with both groups reporting they were highly satisfied with their phones.

RIM ranked second in overall satisfaction, with 55 percent of its customers reporting being "very satisfied." Landing in third place is LG, with 44 percent of customers "very satisfied".

On the low end of customer service, Palm ranked worst with 22 percent of users noting "very satisfied." It trailed behind Samsung, with 28 percent, Motorola, with 32 percent and Nokia, which had 34 percent.

The market statistics don't bode well for Palm or Motorola. Palm is cited by ChangeWave as the vendor most likely to be hurt by RIM's upcoming products, with 30 percent of current Palm users indicating they will buy a BlackBerry in the future.

That statistic just adds more work to Palm CEO Ed Cooligan's "three P" to-do list, which focuses on people, products and platforms.

As the vendor's mixed earnings report illustrated in mid September Palm is clearly struggling to regain the market leading traction that its maturing Centro products once snagged.

Palm has stated its new operating system platform is on target to arrive by year's end with devices arriving in the first half of 2009. Analysts have said the time lag could sink Palm's chances for regaining market share.

That's despite Palm launching two high-end smartphones, the Treo 800W and Pro, this summer, and selling 1 million devices in the first quarter -- a 49 percent increase over the previous quarter.

Palm can take solace, however, in the fact that it's still ahead of Motorola's (NYSE: MOT) troubled mobile business, which is struggling to claw its way back into a No. 2 slot after mounting which faces not only a wide restructuring and plans to be spun-off in a sale, faces challenges in a variety of categories.

But ChangeWave found that Motorola has its work cut out for it. Not only does the company top the list of manufacturers losing out to the iPhone -- with 33 percent of iPhone owners saying they had previously owned a Motorola phone -- the survey found that an additional 19 percent of current Motorola customers reported likely plans to jump ship to a BlackBerry product in the future.