The document evaluates the performance and popularity of Apple iPhones, particularly focusing on the iPhone 5 and its competitive landscape. It suggests that while the iPhone has not yet peaked, its innovation may be lacking, leading to a saturation point and a shift in consumer preferences towards brands like Samsung and Blackberry. The analysis indicates a potential risk of decline for the iPhone brand if future models do not reinvigorate interest among younger consumers.

1. State of the Smartphone Battlefield
or
Has the iPhone Jumped the Shark?
2 May 2013

2. Page 2© 2013 Argus Insights, Inc. Confidential: Do Not Distribute
Jumping the Shark - a term to describe a moment
when something that was once great has reached a
point where it will now decline in quality and popularity.

3. Page 3© 2013 Argus Insights, Inc. Confidential: Do Not Distribute
How Argus Insights measures market performance (Apple iPhones)
0.69
0.7
0.71
0.72
0.73
0.74
0.75
11/14/07 2/22/08 6/1/08 9/9/08 12/18/08 3/28/09
ConsumerReportedDelight(-1to1)
Market falls out
of love with
iPhone 4S
Size of Bubble is
level of buzz
Almost half of
Apple buzz is 4S.
5 fails to delight
as much

4. Page 4© 2013 Argus Insights, Inc. Confidential: Do Not Distribute
Broken out by brand…
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
11/14/07 2/22/08 6/1/08 9/9/08 12/18/08 3/28/09
ConsumerReportedDelight(-1to1)
Apple LG Samsung HTC Motorola Nokia RIM

5. Page 5© 2013 Argus Insights, Inc. Confidential: Do Not Distribute
But Many Brands Are Offering Multiple Operating Systems
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
11/14/07 2/22/08 6/1/08 9/9/08 12/18/08 3/28/09
android iOS blackberry other windows

6. Page 6© 2013 Argus Insights, Inc. Confidential: Do Not Distribute
Not All Handsets Are Created Equal
0.6
0.65
0.7
0.75
0.8
0.85
0.9
0.95
1
11/14/07 2/22/08 6/1/08 9/9/08 12/18/08 3/28/09
Apple iPhone 5 Samsung Galaxy S III Samsung Galaxy Note® II
BlackBerry Z10 Droid Razr Maxx HTC One X
HTC Window Phone 8X Nokia Lumia 920 Apple iPhone 4S

7. Page 7© 2013 Argus Insights, Inc. Confidential: Do Not Distribute
Great But What Is The Market Talking About?
-15% 5% 25% 45% 65%
Speed/Performance
Quality/Reliability
Product Passion
Connectivity
Size/Weight
Battery
Apple
Connectivity
Display/Screen/Graphics
Apple
Operating System
Style/Design
Usability
Android
Apps
Operating System
Camera
3G/4G
Apps
Price / Value
iPhone 5
% of consumes
saying positive
things
% of consumes
saying negative
things
Allows comparison to
other experiences
Sorted by how

8. Page 8© 2013 Argus Insights, Inc. Confidential: Do Not Distribute
Z10 Shows BlackBerry is Back with a Vengeance
-15% 5% 25% 45% 65%
Speed/Performance
Quality/Reliability
Product Passion
Connectivity
Size/Weight
Battery
Apple
Connectivity
Display/Screen/Graphics
Apple
Operating System
Style/Design
Usability
Android
Apps
Operating System
Camera
3G/4G
Apps
Price / Value
iPhone 5
-15% 5% 25% 45% 65%
Speed/Performance
Quality/Reliability
Product Passion
Connectivity
Size/Weight
Battery
Apple
Connectivity
Display/Screen/Graphics
Apple
Operating System
Style/Design
Usability
Android
Apps
Operating System
Camera
3G/4G
Apps
Price / Value
BlackBerry Z10

9. Page 9© 2013 Argus Insights, Inc. Confidential: Do Not Distribute
Windows 8 Phone Also Giving Apple Grief
-15% 5% 25% 45% 65%
Speed/Performance
Quality/Reliability
Product Passion
Connectivity
Size/Weight
Battery
Apple
Connectivity
Display/Screen/Graphics
Apple
Operating System
Style/Design
Usability
Android
Apps
Operating System
Camera
3G/4G
Apps
Price / Value
iPhone 5
-15% 5% 25% 45% 65%
Speed/Performance
Quality/Reliability
Product Passion
Connectivity
Size/Weight
Battery
Apple
Connectivity
Display/Screen/Graphics
Apple
Operating System
Style/Design
Usability
Android
Apps
Operating System
Camera
3G/4G
Apps
Price / Value
Lumia 920

10. Page 10© 2013 Argus Insights, Inc. Confidential: Do Not Distribute
Samsung continues to challenge Apple the Most
-15% 5% 25% 45% 65%
Speed/Performance
Quality/Reliability
Product Passion
Connectivity
Size/Weight
Battery
Apple
Connectivity
Display/Screen/Graphics
Apple
Operating System
Style/Design
Usability
Android
Apps
Operating System
Camera
3G/4G
Apps
Price / Value
iPhone 5
-15% 5% 25% 45% 65%
Speed/Performance
Quality/Reliability
Product Passion
Connectivity
Size/Weight
Battery
Apple
Connectivity
Display/Screen/Graphics
Apple
Operating System
Style/Design
Usability
Android
Apps
Operating System
Camera
3G/4G
Apps
Price / Value
Galaxy S3

11. Page 11© 2013 Argus Insights, Inc. Confidential: Do Not Distribute
-5% 0% 5% 10%
Phone
Web Surfing
Music
Email
Movies
Gaming
Friends
Social Media
Significant Other
Family
Skype/Video…
Books
News/Weather/Spo…
Messaging
Work
Coworker
Laptop Substitute
Lumia 920
-5% 0% 5% 10%
Phone
Web Surfing
Music
Email
Movies
Gaming
Friends
Social Media
Significant Other
Family
Skype/Video…
Books
News/Weather/Spo…
Messaging
Work
Coworker
Laptop Substitute
Galaxy Note II
Usage Patterns Also Shift Across Leading Handsets
-5% 0% 5% 10%
Phone
Web Surfing
Music
Email
Movies
Gaming
Friends
Social Media
Significant Other
Family
Skype/Video…
Books
News/Weather/Spo…
Messaging
Work
Coworker
Laptop Substitute
iPhone 5
-5% 0% 5% 10%
Phone
Web Surfing
Music
Email
Movies
Gaming
Friends
Social Media
Significant Other
Family
Skype/Video…
Books
News/Weather/Spo…
Messaging
Work
Coworker
Laptop Substitute
BlackBerry Z10

12. Page 12© 2013 Argus Insights, Inc. Confidential: Do Not Distribute
The iPhone has yet to jump the shark but is
practicing ski jumps…
• The iPhone 5 has not refreshed the view of Apple
• Discussion (and sales) of the 4S are as brisk as the 5
– A cheaper iPhone is as valuable an experience as the iPhone 5
– The iPhone 5 did not innovate the experience enough to shift
demand fully
• Apple is also reaching global saturation where
fragmentation of interests and experiences is beginning
– “Think different” is not longer Apple but Samsung, Nokia, and
BlackBerry
– Always on a quest to have something different than the
masses/your mom, young buyers are shifting away from iPhone
• iPhone is in danger of jumping the shark, the iPhone
6/mini might be that moment

13. Page 13© 2013 Argus Insights, Inc. Confidential: Do Not Distribute