Wednesday, March 19, 2008

iPhone Hype and Market Research

You don't create a product like Wii or iPhone by just doing market research.

I was reading a market research report titled "iPhone Hype Holds Up". It compares the differences in usage between iPhone users and overall (including iPhone) smart phone users. It gives some interesting comparisons such as,
  • 85% of iPhone owners access web content with the device versus 58% of the overall smart phone users.
  • 31% of iPhone users watch mobile TV or video versus 14% of smart phone users.
  • 49% of iPhone users access social networks and blogs using their phone versus 19% of smart phone users.
It is nothing new at all (see my earlier blog). The numbers in the survey provide a quantifiable justification to the common-sense observation at a hindsight. But I don't think Apple created iPhone because Apple has a way to read market research data differently. In late 2005 or early 2006 when Apple created the iPhone product program (my guess), the market research data must have shown a even bleaker view of what a smart phone user might be interested in doing with the device. I don't think it is the "only-the-paranoid-survive" factor, either. Many paranoids went belly up in the Valley while Apple is doing better than surviving.

Market research data tell you only what you ask for, sometimes not even that. I would guess the team created Nintando Wii asked questions like, "what prevents you from playing video games', instead of "what new feature will make you interested in video games more". There is another market research data, Smart Phone 2007 Result, from Canalys. This report may be useful for a financial analyst covering cell phone industry for a financial institute. But for people in the cell phone industry, they have to have the ambition of asking a bigger question. Except for that, the industry can just copy iPhone, and there is no shame in doing that. There are many great examples of copy cat littering all over in the high tech industry. But be aware, it is not easy to copy either.