Apple iPhone 3GS vs. Palm Pre: Are Consumers Satisfied? 22 comments
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Co-written by Jean Crumrine
Enough time has passed for early buyers to have acclimated themselves to the Palm (PALM) Pre and the Apple (AAPL) iPhone 3GS, so in early August ChangeWave conducted a survey of new owners to see what they think – including which features they like best and dislike the most.
The survey of 198 Apple iPhone 3GS owners and 38 Palm Pre owners also looked at overall customer satisfaction and how well each has lived up to or fallen short of user expectations.
Apple iPhone 3GS. The initial customer satisfaction results for the new Apple iPhone 3GS surpass that of any previous smart phone model we’ve measured in our ChangeWave consumer surveys over the past eight years, with 82% of new owners saying they’re Very Satisfied and 17% Somewhat Satisfied – for a combined near-perfect satisfaction rating.

Palm Pre. While the initial Palm Pre numbers are not as high, the new model’s satisfaction rating is exceptional for a new product release. Nearly half (45%) of Palm Pre owners report they are Very Satisfied with their new smart phone and another 42% say they’re Somewhat Satisfied – for a combined 87% Satisfaction Rating.
To put this in context, BlackBerry manufacturer Research In Motion (RIMM) and Apple are the only other smart phone manufacturers to attain such high Very Satisfied levels – and in this case Palm is accomplishing it with a brand new product release, a very significant achievement.
Meeting Owner Expectations
Apple iPhone 3GS. In another example of the widespread approval among early 3GS buyers, nearly two-in-five (38%) report the new iPhone exceeds their expectations and another 56% say it meets their expectations.

Palm Pre. While less robust than the 3GS, once again the Palm Pre results are quite positive – with 18% of Pre owners saying their new phone exceeds expectations and another 58% reporting it meets expectations.
Thus, the good news for Palm is its new Pre model has outperformed mightily in terms of customer satisfaction – thereby entering the pantheon of the smart phone industry previously inhabited only by its top two manufacturers, Apple and Research In Motion.
But what is it about Pre and the 3GS that leave their owners so highly satisfied? To find out, we queried users on the features they like and dislike most. Here's what they told us:
A Closer Look at the Palm Pre
Palm Pre Likes. The Pre’s Touch Screen Interface (47%), Multi-Tasking (42%) and Ease of Use (39%) rank as the top three things that owners like best about their new phone.

In addition, one-in-four (24%) say the Coverage/Speed/Quality of Sprint's 3G Network is the feature they like best – a finding that bodes well for Palm’s exclusivity agreement with Sprint (S).
Palm Pre Dislikes. By a wide margin, Short Battery Life (45%) is the thing owners dislike most about their Palm Pre. A second big issue is its weakness regarding Third Party Applications – with 24% saying they’re unhappy with them.

But in an important finding for Palm, a relatively small percentage of Pre owners say that the company’s exclusivity agreement with Sprint is one of their top dislikes – only 11% report they’re unhappy with the Requirement to use Sprint's Network and just 3% say they dislike the Coverage/Speed/ Quality of Sprint's 3G Network.
A Closer Look at the Apple iPhone 3GS
Apple iPhone 3GS Likes. Similar to what we found with the Pre, the iPhone 3GS’s Touch Screen Interface (45%) and Ease of Use (41%) rank as the top things owners like best about their new phones – followed by Faster Web Browsing (33%) and Third Party Applications (31%).

Respondent GRE5573 sums it up for the iPhone 3GS as follows:
Of all the gadgets I've used in the last 10 years, it's the only one that makes me feel like the future has arrived, by elegantly integrating so many devices in one.
The GPS works seamlessly with its maps application, the iPod can keep me entertained for days with music and video, the improved camera adds a slick video recording feature, the app store lets me do almost anything I need to with the phone – I could go on and on…
The reason the iPhone is so popular is because it can easily become whatever it needs to be to make it an integral part of a person's life ... even if you have to use AT&T's (T) less-than-stellar network.
Apple iPhone 3GS Dislikes. Short Battery Life (41%) ranks as the number one dislike for iPhone 3GS owners.

But by far the most significant pitfall for new Apple 3GS owners rests with AT&T. One-in-three (32%) say they don’t like the Requirement to Use AT&T's Network and another 23% say they dislike the Coverage/ Speed/Quality of AT&T's 3G Network.
Thus, there are no indications that Apple’s AT&T problem is going away. On the contrary, the better customers feel about their iPhones, the worse they feel about AT&T – with nearly one-in-two 3GS owners citing AT&T-related issues as their biggest dislike. These survey results suggest Apple will be forced to deal with the issue sooner than many analysts expect.
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On Sep 10 01:39 PM ifowny wrote:
> Would have been better if you had 198 Palm Pre owners to match 198
> iPhone 3Gs owners.
> iPhone 3Gs owners.
Therein lies the problem: The entire palm pre user base consisted of 38 people. My hat's off to the pollster who was able to actually track down these users. I've never seen a palm pre in the wild. And that's saying something because I've seen Bigfoot twice while skiing the backcountry.
On Sep 10 01:39 PM ifowny wrote:
> Would have been better if you had 198 Palm Pre owners to match 198
> iPhone 3Gs owners.
On Sep 10 12:34 PM PalinTologist wrote:
> You could have reduced this whole article to one, two-word sentence
> and even that would have been repetitive: AT& T sucks.
>
> Further, was it difficult to locate and round-up all 37 palm pre
> owners to gather your data?
On Sep 10 01:28 PM bobthenoob wrote:
> All the fuss about iPhone's lack of multitasking on third-party apps
> didn't even show up on the iPhone dislikes and proved to be a non-issue.
> I already know what the #1 thing the anti-AAPL and MSFT shills will
> say... all 30 million iPhone users must be drinking the kool-aid
> ;P
1) buy an iPhone 3GS for personal use, but
2) only when it is available on other providers' networks (e.g., Verizon).
Could mean that people did not have such high expectations to begin with... whereas, based on AAPL's iPhone expectations, we know people had quite high expectations. This comparison belies what is really happening.
Oh... and BTW, obviously, none of these stats reflect the opinions of users of Pre's with cracked screens. And given that the screen scratches, I wonder what the views will be in 1 year. LOL
There is still pent up demand for the iPhone...a lot of it. People where i work are starting to get them as their contracts are up. I expect Apple to keep adding consumers and this stock to keep going up. I have no idea what will happen to Palm, but i wouldn't bet the farm on it in the long run.
If you go the PALM web-site and look at buying the Pre. You actually have two options, SPRINT and AllTel. In doing a bit of Research you will find AllTel is owned by Verizon.
And on August 15, 2009, Bell South Mobility in Canada launched the Pre.
While currently in China, PALM, is speaking with China Telecom, to sell their Telephones as well.
With regards to the Pre, itself, Consumer Reports and Kim Komando confirm your findings. Specifically, that the Pre is an above average Smart Phone, sharing an overall order-of-magnitude evaluation at the same level as the I-Phone, and the Blackberry.
PALM's recent move to discount their set, I find it brilliant, in an effort to better position themselves in the market-place. i.e. a less expensive Smart Phone, with an overall above average rating.
The introduction of the Prixi, a similiar unit, at a lower price, further moves them in this direction, to get more units out into the marketplace.
Concurrently, within the last forty five days PALM has offered application developers a 70/30split, 70%(to the Developer)/30% to PALM to develop new applications for WebOs, their operating platform.
Overall, I find PALM on the move.......
IMHO: there should have been fewer Pres in the sample.
I think that's one of the key problems and sources of skepticism with regard to palm and the pre. The company has been mum on any sales data and the question remains as to "why?". Coupled with the fact that most people (me included) have never seen one and/or don't know anyone who has one (me included), yet according to all the palm cheerleaders, the pre is next in line to be knighted.
By the way, what does "shipped" mean anyway? Is it a sale? Does it mean sales AND inventory? Does it mean shipped from the mfg plant to the mainland, shipped to sprint stores, shipped to customer...etc?
On Sep 11 03:37 PM Gerard Hallaren wrote:
> At the end of july, Palm had shipped about 325 thousand Pres and
> Apple had shipped about 2.25 million units. This is a ratio of about
> 6.9 to 1. The survey's ratio was 5.2 to 1.
>
> IMHO: there should have been fewer Pres in the sample.
i agree with your statement entirely. thing is though, i think it's heading south and all of the hype that elevation partners (ep) is sanctioning/out-right-... is duping investors and potential corporate buyer outers to take ep's high risk/high reward investment dog off its hands. read what you posted, and then decide for yourself if it makes sense to invest in palm.
you wrote this:
"(consumer reports says) the Pre is an above average Smart Phone"
wow! that's compelling stuff, no? if your mom's friend was trying to set you up with her daughter and she described her as "above average" would you want to hook up with her?
you also wrote this:
"PALM's recent move to discount their set, I find it brilliant..."
where you find brilliance, i find desperation. why discount the product unless it's not selling at the level you want it to? apple quickly discounted the first iphone for only one reason: it wasn't selling at a level they wanted it to. and on this point, aapl is/was in a position financially to discount and still make a ton of money: something about having--at that time--20 billion in the bank and no debt that smooths over the rough spots. that, and aapl's ability to dictate to their suppliers what they wanted to pay for the iphone's components made sense economically to discount and still make ridiculous margins. just for fun, ncheck out the palm's balance sheet and pray the slush fund envelope in the receptionist's top drawer has .68 billion in it to offset its debt.
lastly, you wrote this:
"PALM has offered application developers a 70/30split, 70%(to the Developer)/30% to PALM to develop new applications for WebOs, their operating platform."
does that sound like palm/pre is in a position of strength?
if so, knock yourself out. bet the ranch. buy as many shares as you can. elevation partners will crack a bottle of 'bub in your honor....and then they'll promptly drink it.
cheers!
On Sep 11 01:53 PM Nestor Loredo wrote:
> Regarding the Pre...There continues to be a mis-conception that SPRINT
> is the sole carrier.
>
> If you go the PALM web-site and look at buying the Pre. You actually
> have two options, SPRINT and AllTel. In doing a bit of Research you
> will find AllTel is owned by Verizon.
>
> And on August 15, 2009, Bell South Mobility in Canada launched the
> Pre.
>
> While currently in China, PALM, is speaking with China Telecom, to
> sell their Telephones as well.
>
> With regards to the Pre, itself, Consumer Reports and Kim Komando
> confirm your findings. Specifically, that the Pre is an above average
> Smart Phone, sharing an overall order-of-magnitude evaluation at
> the same level as the I-Phone, and the Blackberry.
>
> PALM's recent move to discount their set, I find it brilliant, in
> an effort to better position themselves in the market-place. i.e.
> a less expensive Smart Phone, with an overall above average rating.
>
>
> The introduction of the Prixi, a similiar unit, at a lower price,
> further moves them in this direction, to get more units out into
> the marketplace.
>
> Concurrently, within the last forty five days PALM has offered application
> developers a 70/30split, 70%(to the Developer)/30% to PALM to develop
> new applications for WebOs, their operating platform.
>
> Overall, I find PALM on the move.......
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