Wednesday, November 26, 2008

J.D. Power & iPhone Business User Satisfaction?: a Statistical Fluke


Apple proudly announced in a full page ad in today's Wall Street Journal that J.D. Power and Associates, which rates consumer satisfaction in numerous markets, "...ranks [Apple's iPhone] highest among business users."

Apple, however, left out two sub-headers in the J.D. Power release. "One-Fourth of Business Smartphone Users Report Experiencing a Software-Related Issue with Their Current Device."

"The study finds that one-fourth of users report experiencing at least one software-related issue or problem with their current smartphone device. The software-related issues reported most often include the need to reboot the phone, application malfunction/freeze and issues related to touch screen malfunction. Among those owners who have experienced a software problem, 44 percent report having to reboot their device at least once on a weekly basis during the past 12 months, while 34 percent report experiencing either an application malfunction or application freeze at least once per week. "

The survey of 1,388 "business smartphone users" rated six smartphone manufacturers: Apple, RIM (BlackBerry), Samsung, Motorola, HTC and Palm. The iPhone was rated 778 on a 1,000 point scale, RIM's BlackBerry's at 703 and Samsung just below RIM at 701.

J.D. Power conducted the survey before the release of RIM's BlackBerry Bold (AT&T) in July, the G1 (T-Mobile/Google) in late August and the BlackBerry Storm, which only recently hit Verizon stores. Other smartphone manufacturers such as Nokia, which holds a 38% share of the world's mobile phone market amd Sony-Ericsson at 23% were noticeably absent from the study, most likely due to low availability rates in the U.S.

J.D. Power and Apple fail to define the "business smartphone" market. Despite the iPhone supporting exchange server syncing and security protocols--mandated by IT managers--neither J.D. Power nor Apple define a "business smartphone user." Most likely, the majority of iPhone users surveyed are self-employed, work for a small business or use the iPhone along with an approved business handset, such as the BlackBerry, in larger companies, where few IT managers have yet to approve the use of iPhones on company servers.

Another statistical fluke not addressed in the survey release is skewed ratings. Apple has only released a single smartphone with fewer than 10 million in use. HTC, Samsung, Nokia and others, on the other hand, have distributed hundreds of millions smartphones worldwide.

As the number of rated smartphone handsets rises, the overall rating of the iPhone, bolstered by Apple's promotions and hype, rises higher than the rest as a whole, because the iphone ratings are based on one handset out of dozens.

I searched Phone Scoop for handsets I consider meet the minimum "business smartphone" requirements for U.S. carriers.

All phones: *
  • have Calendar
  • have Data-Capable
  • have Email Client
  • have Multiple Numbers per Name
  • have Packet Data (EDGE or 1xRTT or 1xEV-DO r0 or 1xEV-DO rA or WCDMA (UMTS) or HSDPA 1.8 or HSDPA 3.6 or HSDPA 7.2)
  • have PC Sync
  • have To-Do List
  • have WAP / Web Browser
More than 20 phones met the minimum requirements. Click here to view them.

As I've written before in MTM and elsewhere, Steve Jobs and Apple are masters of marketing hype. But they can't legitimately escape the laws of statistics. The iPhone, although a breakthrough device in many ways, represents a drop-in-the-bucket in mobile telephony.

* Some phones listed may not be available from U.S. carriers. Check eBay and other sources on the Web.

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