State of the Smartphone Battlefieldor

Has the iPhone Jumped the Shark?

2 May 2013

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Jumping the Shark - a term to describe a moment when something that was once great has reached a point where it will now decline in quality and popularity.

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How Argus Insights measures market performance (Apple iPhones)

11/14/07 2/22/08 6/1/08 9/9/08 12/18/08 3/28/090.68

0.69

0.7

0.71

0.72

0.73

0.74

0.75

Cons

umer

Rep

orte

d D

elig

ht (-

1 to

1)

Market falls out of love with iPhone 4S

Size of Bubble is level of buzz Almost half of

Apple buzz is 4S. 5 fails to delight

as much

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Broken out by brand…

11/14/07 2/22/08 6/1/08 9/9/08 12/18/08 3/28/090

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

Apple LG Samsung HTC Motorola Nokia RIM

Cons

umer

Rep

orte

d D

elig

ht (

-1 to

1)

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But Many Brands Are Offering Multiple Operating Systems

11/14/07 2/22/08 6/1/08 9/9/08 12/18/08 3/28/090.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

android iOS blackberry other windows

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Not All Handsets Are Created Equal

11/14/07 2/22/08 6/1/08 9/9/08 12/18/08 3/28/090.6

0.65

0.7

0.75

0.8

0.85

0.9

0.95

1 Apple iPhone 5 Samsung Galaxy S III Samsung Galaxy Note® II BlackBerry Z10Droid Razr Maxx HTC One X HTC Window Phone 8X Nokia Lumia 920Apple iPhone 4S

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Great But What Is The Market Talking About?

Speed/PerformanceQuality/Reliability

Product PassionConnectivitySize/Weight

BatteryApple

ConnectivityDisplay/Screen/Graphics

AppleOperating System

Style/DesignUsabilityAndroid

AppsOperating System

Camera3G/4G

AppsPrice / Value

-15% 5% 25% 45% 65%

iPhone 5

% of consumes saying positive

things

% of consumes saying negative

things

Allows comparison to other experiences

Sorted by how

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Z10 Shows BlackBerry is Back with a Vengeance

Speed/Performance

Quality/Reliability

Product Passion

Connectivity

Size/Weight

Battery

Apple

Connectivity

Display/Screen/Graphics

Apple

Operating System

Style/Design

Usability

Android

Apps

Operating System

Camera

3G/4G

Apps

Price / Value

-15% -5% 5% 15% 25% 35% 45% 55% 65%

iPhone 5

Speed/Performance

Quality/Reliability

Product Passion

Connectivity

Size/Weight

Battery

Apple

Connectivity

Display/Screen/Graphics

Apple

Operating System

Style/Design

Usability

Android

Apps

Operating System

Camera

3G/4G

Apps

Price / Value

-15% -5% 5% 15% 25% 35% 45% 55% 65%

BlackBerry Z10

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Windows 8 Phone Also Giving Apple Grief

Speed/Performance

Quality/Reliability

Product Passion

Connectivity

Size/Weight

Battery

Apple

Connectivity

Display/Screen/Graphics

Apple

Operating System

Style/Design

Usability

Android

Apps

Operating System

Camera

3G/4G

Apps

Price / Value

-15% -5% 5% 15% 25% 35% 45% 55% 65%

iPhone 5

Speed/Performance

Quality/Reliability

Product Passion

Connectivity

Size/Weight

Battery

Apple

Connectivity

Display/Screen/Graphics

Apple

Operating System

Style/Design

Usability

Android

Apps

Operating System

Camera

3G/4G

Apps

Price / Value

-15% -5% 5% 15% 25% 35% 45% 55% 65%

Lumia 920

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Samsung continues to challenge Apple the Most

Speed/Performance

Quality/Reliability

Product Passion

Connectivity

Size/Weight

Battery

Apple

Connectivity

Display/Screen/Graphics

Apple

Operating System

Style/Design

Usability

Android

Apps

Operating System

Camera

3G/4G

Apps

Price / Value

-15% -5% 5% 15% 25% 35% 45% 55% 65%

iPhone 5

Speed/Performance

Quality/Reliability

Product Passion

Connectivity

Size/Weight

Battery

Apple

Connectivity

Display/Screen/Graphics

Apple

Operating System

Style/Design

Usability

Android

Apps

Operating System

Camera

3G/4G

Apps

Price / Value

-15% -5% 5% 15% 25% 35% 45% 55% 65%

Galaxy S3

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Phone

Web Surfing

Music

Email

Movies

Gaming

Friends

Social Media

Significant Other

Family

Skype/Video Chat/Phone

Books

News/Weather/Sports

Messaging

Work

Coworker

Laptop Substitute

-5% 0% 5% 10%

Lumia 920

Phone

Web Surfing

Music

Email

Movies

Gaming

Friends

Social Media

Significant Other

Family

Skype/Video Chat/Phone

Books

News/Weather/Sports

Messaging

Work

Coworker

Laptop Substitute

-5%-3%-1% 1% 3% 5% 7%

Galaxy Note II

Usage Patterns Also Shift Across Leading Handsets

Phone

Web Surfing

Music

Email

Movies

Gaming

Friends

Social Media

Significant Other

Family

Skype/Video Chat/Phone

Books

News/Weather/Sports

Messaging

Work

Coworker

Laptop Substitute

-5% 0% 5% 10%

iPhone 5

Phone

Web Surfing

Music

Email

Movies

Gaming

Friends

Social Media

Significant Other

Family

Skype/Video Chat/Phone

Books

News/Weather/Sports

Messaging

Work

Coworker

Laptop Substitute

-4%-2% 0% 2% 4% 6% 8%

BlackBerry Z10

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The iPhone has yet to jump the shark but is practicing ski jumps…• The iPhone 5 has not refreshed the view of Apple• Discussion (and sales) of the 4S are as brisk as the 5

– A cheaper iPhone is as valuable an experience as the iPhone 5– The iPhone 5 did not innovate the experience enough to shift demand

fully

• Apple is also reaching global saturation where fragmentation of interests and experiences is beginning– “Think different” is not longer Apple but Samsung, Nokia, and

BlackBerry– Always on a quest to have something different than the masses/your

mom, young buyers are shifting away from iPhone

• iPhone is in danger of jumping the shark, the iPhone 6/mini might be that moment

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