Compete has been tracking consumer interest and attitudes towards the iPhone since its original announcement in January. Now, four months post-launch & with hundreds in attendance, Compete discussed its latest research on the iPhone at CTIA IT & Entertainment last week. Joined by a panel of experts including David Ulmer from Motorola, Cyriac Roeding from CBS, Lee Ott from Yahoo! and Sam Altman from Loopt, Compete revealed insights into shoppers’ interest, behavior and attitudes towards the device and other handsets in the market. Data highlights include:

• iPhone online interest at launch eclipsed the Samsung Blackjack’s launch (AT&T’s most popular of the past year) by tenfold and more than doubled that of the Xbox 360
• Only 15% of iPhone shoppers viewed the next most popular AT&T handset, as compared to AT&T handsets’ average of 33%
• 31% of October survey respondents said they would pay extra on their cellular bill for productivity services vs. 25% for entertainment services

The panel discussion tackled topics ranging from controlling the user experience to carrier business models to privacy concerns.

Adam Guy kicked off discussion by asking the panelists, “Would you consider the iPhone a milestone, tipping point or powder keg for the wireless industry?” While there was some debate, the consensus was that the iPhone isn’t a technological marvel. Instead it should be seen as a major milestone on the way to a better mobile user experience that will create opportunities for everyone. The iPhone shook things up, and the industry is responding as a whole by renewing its focus on user experience.

Further Compete analysis shows that development by all players in this area will be well-received by consumers. We asked actively shopping consumers about the companies from which they would prefer to purchase a multimedia cellular device.

The responses were more varied than expected. Consumers showed the most interest in Apple (36%), but they were also willing to purchase from traditional handset OEMs and even consumer electronics companies. Build a device that provides a good user experience and consumers will buy it.

Watch the Compete blog for additional iPhone & smartphone insights in the coming weeks or contact us to receive more in-depth current analysis on the iPhone. Thanks to everyone who helped make Compete’s SmartPass session a big hit and CTIA IT & Entertainment a great week. We’ll see you next year!

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