Is the Love Affair with the iPhone Over?

For the past two years, consumers and the media alike have ‘ooh’ed and ‘ahh’ed over the iPhone. And rightfully so. The sleek design, unique interface and ease of use were characteristics not frequently seen in the US cell phone market before 2007, and drew significant traffic to Apple’s website.

But, two years later, traffic to BlackBerry’s website has slowly overtaken Apple’s online iPhone traffic. Is the love affair with the iPhone over?

Generating website traffic is important for any online business, but it is crucial for cell phone manufacturers. The vast majority of consumers do their online cell phone shopping at carrier websites (AT&T, VZW, etc.). The manufacturer has very little direct connection with the shopper and thus less influence on their purchase. For cell phone manufacturers, developing a strong online presence that is independent of carriers is an important step in creating and sustaining a dialogue with shoppers and enhancing their overall interaction with the brand. All manufacturers are working to achieve such a presence.

The chart below shows traffic to U.S. phone-specific portions* of each manufacturer’s website between July 2008 and February 2009.

As you can see, it is typical for phone manufacturers to see a bump in traffic when one of their high-profile devices launches.

• Apple: 77% increase for the iPhone 3G
• RIM: 37% increase for the Bold and Storm
• HTC: 559% increase for the T-Mobile G1
• Samsung: 92% increase for the Instinct and again in late November for the Behold

What is remarkable here is RIM’s performance. Although the launch didn’t generate a traffic bump as dramatic as some others, they were able to sustain that online momentum over the last eight months. Lifts for the other manufacturers were larger, but temporary. This trend is likely driven by RIM’s execution of a well-conceived strategy.

First, RIM decided to reinvent BlackBerry as a consumer brand, not just a work device. They have embarked on several major promotions since Spring 2008, including the ubiquitous “Life on Blackberry” campaign. Other manufacturers mainly focus advertising specifically around device launches, and not so much as a branding tool. RIM has clearly stepped up its total advertising spending in both areas.

Second, they hyped the BlackBerry App World a LOT. “Blackberry applications” was the fifth most popular search term driving traffic to blackberry.com during Q1, and the App World didn’t even launch until April 1st!

Finally, they keep it fresh. We’ve only seen one iPhone release per year, and of course it’s the only phone made by Apple (AAPL). RIM (RIMM) had a suite of popular devices launch in 2008 (Storm, Bold, Curve and Pearl on new carriers, Pearl Flip) to constantly keep their name in the news and in consumers’ minds.

What others can take from RIM’s example is the notion that, despite the hype, Apple and its iPhone are not actually invincible. Others can compete, and even conquer, the breakthrough device if they build compelling products, design smart promotional strategies and take the time and, yes, money to execute to perfection.

Who’s up for the challenge?

Comments

[waf76:]

worthless article

Apr 09 02:51 PM

[glen engelmann:]

so. apple's ONE product generates almost as much traffic as ALL of blackberry products combined. That is absolutely phenomenal news for APPLE. plus apple has computers and ipods and etc.
blackberry is great. but cell phones is all they are.

Apr 09 02:57 PM

[Don Bowey:]

Besides it's being a useless article, fit only to be in your personal website blog, I take exception to this: : "...The vast majority of consumers do their online cell phone shopping at carrier websites (AT&T, VZW, etc.). The manufacturer has very little direct connection with the shopper and thus less influence on their purchase...."

You seem to have overlooked that people who have curiosity about the iPhone can walk into one of the many Apple stores to visit with one, which beats reading about them on-line.

Apr 09 03:28 PM

[reagan:]

Absolutely worthless article.....Like Apple is only about the iPhone???

Apr 09 04:34 PM

[JamesApple:]

The love affairs were over the moment iPhone touched me......I dropped all my earthly belongings, left behind the Razr, blackberry, Sony, Nokia, Nintendo, my family, my job, my world......

iPhone....my iPhone, til death do we part.

blackberry sucks. why would anybody love a blackberry? it's so ugly.

Apr 09 06:40 PM

[typopolice:]

yeah, and how did rimm get there? by innovating? or by buy one get one free for the last two months....and get another free one from etrade....and get 40% off a storm before the buy one get one from Amazon...free here, free there, free everywhere...
and apple has one phone, no discounts, and look where they are...

imagine if apple actually comes out with products across several price demographics?
lordy...

Apr 09 06:57 PM

[Neil Anderson:]

Looking forward to another web page spike for Apple in June.

Apr 09 10:14 PM

[JamesApple:]

Perhaps all those extra Rim web traffic were people checking for more FreeBerries from Rim promotions.

Apr 09 10:56 PM

[argosy:]

Does traffic to the support or online help section of the phone specific portion of the manufacturer's web site get counted as well?

That might explain why RIMM was able to sustain the "online momentum".

Apr 10 12:42 AM

[hrant:]

NO !

Apr 10 12:46 AM

[dr booze:]

the loyalty of Iphone addicts is impressive. But if you use your phone for email, and phoning, network reliability (and time between battery charges) is the key usability factor.

Iphone is great for hipsters. Blackberry is great for people who work. There's room for both products. I'd never count Iphone out, but thinking glamour is why most people buy blackberry is just stupid.

Apr 10 09:25 AM

[SyFy:]

Blackberry has a larger installed base than the iPhone (someone correct me if I'm wrong there) since blackberries have been in existence a lot longer. So, if "blackberry applications" is a prime traffic-driver that could simply be a lot of existing blackberry owners trying to find out how to get apps for their phones.

Whereas, perhaps now the iPhone and the app store is a known quantity - and perhaps people looking for iphone apps just see them in iTunes - never go to Apple's web site. So, there are a lot of unknowns in this sort of analysis. I think pretty much no conclusions can be drawn from this data.

In any event, if there is new iPhone hardware this year, expect a new surge in traffic.

Apr 10 09:51 AM

[Ted13:]

"In any event, if there is new iPhone hardware this year, expect a new surge in traffic"

There is no IF about it -- there will be a new iPhone this summer along with the iPhone 3.0 software and an upgrade to the AT&T network. At that point the naysayers will go back to spreading rumors about Steve Jobs. Face it, Apple's smartphone competitors are screwed for the time being.

Apr 10 10:01 AM

[Jon T:]

Extra RIM traffic was only from owners trying hard to demonstrate to their iPhone friends that they can surf the web too...

"Oh well, perhaps your iPhone IS better...".

Apr 10 10:01 AM

[JamesApple:]

My iPhone is only 18 (months), she's already flying. I still have my 3 blackberries RIP in my drawer. So many people I know are just like me taking their iPhone in their pockets with old blackberries in their drawers RIM. I'm getting my iPhone her twin sister soon, she is expected sometime in June. My iPhone can do so much for me already. 30000 apps she can do for me. Now new apps are written for her first, like the Amazon Mobile which was first running on my iPhone, and it's just now made available for others like the blackberry and probably Nokia soon. My iPhone is so young and beautiful.....and so capable too.

Apr 10 10:12 AM

[Camden:]

The love affair with the iPhone is just getting started. The public has only had it's first kiss and two meaningful dates. This relationship will build for years to come.

Apr 10 12:40 PM

[argosy:]

I believe RIMM has sold something like 50 million Blackberries. Apple has sold something like 17 million iPhones. What has been unknown until recently is that Apple has sold about 13 million of the iPod Touch. This brings the grand total of basically the same hardware/OS combination to 30 million!!

How long has RIMM had to sell those 50 million BB's? About 7 years? Apple has sold 17 million +13 million Touch in just 2 years

I don't think the love affair is over, as Camden posted, it is just getting started.

Argosy

Apr 10 02:11 PM

[SyFy:]

Also, I mean in many ways this still the iPhone first era - they're still tied to AT&T. Heaven help other phone-makers when the iPhone is available on all carriers (assuming they can make a CDMA version for Verizon & sprint... assuming those two aren't going with some other protocol in the future that I'm unaware of at the moment)

Apr 10 02:35 PM

[Hayweed:]

advantage is to apple since all the iphones and ipod touches are similar screen and same touchscreen. Rimm makes about 20 different phones and now are claiming that the storm 2 will be touch with a keyboard. Thus if you are a developer do you write one app for apple that every phone and touch can use or for Rimm that maybe the storm could use but not on the bold, the curve, etc. Thus rimm's app store will be a fragmented market not 50 milliion devices.

Also check the Rimm conference calls where the management states that the phones are upgraded every 18 months thus the blackberries in use is their active subs not 50 million. (my guess is about 20-25 million units divided by 20 handset models thus the largest phone for a developer it might be 4 million) For apple it is every iphone and touch minus a few lost or broken phones.

Apr 11 07:42 PM

[sayed:]

I Think This is only the start of a very good relationship . there must be more releases of the i phones , samsung released a mobile it looks like apple i phone but it's smaller than it . i think apple should try to make the iphones with small shape .

Apr 12 11:29 AM