This document summarizes insights from a study of 112 iPhone users in Australia. It finds that while initial iPhone purchases are often about the device itself, users quickly realize it can do much more than expected. Many report the iPhone has significantly changed how they work, entertain themselves, and connect with others. They favor apps that uniquely fulfill needs conveniently. Though free apps are most common, users still expect major brands to engage with them via the smartphone through high-quality apps or mobile websites.

1. iPhone, I am
Insights from an "
online research community
Dianne Gardiner

2. Fastest user
growth in
consumer
technology
history
Morgan Stanley: The Mobile Internet Report December 2009

3. Comscore April 2010, Nielsen Australia April 2010
25% of the smartphone market in the US
28% of mobile enabled market in Australia
What’s the fascination with
the iPhone?

4. We asked them
- 112 iPhone users across Australia
- 6 week Online Research Community
- March – April 2010

5. Why an
iPhone?
It’s the latest
gadget
It’s cool
It’s an Apple
I’m a Macfan
My old
phone died
It’s time to
change
It’s a phone
& an iPod
I’ve heard
good things

6. At point of purchase it’s about what it is, not what it can do.
Most new iPhone owners have no idea….

7. A Post-purchase revelation
It does much more than I
expected. It’s changed my
life…well parts of it.

8. Yours is different to mine,
because it’s about
me and my life.

9. Love
iPhone
- More entertained
- More efficient
- More connected
- More freedom
- More enabled
It’s about convergence,
access, usability and utility.

10. “I don’t use a street directory
anymore, I don’t take my laptop everywhere,
I’m more productive when I’m away from the office. I love
the calendar and use it extensively. I use the eBay app,
and the Paypal app too. I also use it as an entertainment
and information unit. My kids think I’ve become a nerd,
but it just provides me with so many things I need
and like, all on the go, and pretty much anywhere
I am. I know it sounds a bit grandiose, but
the iPhone has certainly changed the way
I interact with the world”
– James, 54 years, Business Manager

11. desire
When was
the last time
a brand or
product had
this effect on
you?
delight
dependency

12. It’s made a big difference!
64%
Yeah, some difference
34%
Nope, no
difference - 2%
From initially curious to
completely committed
How much difference has
owning an iPhone made
to elements of your life or
the way you do things?

13. So these 
and maybe
this 
Means less time using the
internet, on a computer 
By 2011, predictions are that 85% of handsets
shipped globally will include some sort of browser.
Gartner: Ten Mobile technologies to watch in 2010-2011

14. Less time on the computer,
more on mobile devices
Same as before
A bit less than
before
A lot less than
before
More than before
58
27
12
3
Internet use since
acquiring iPhone
2 in 5 iPhone users are
spending less time now on
the internet on a computer"

15. More time on the
smartphone using
- apps
- m.sites (if only there were more…)
- and sometimes even ‘classic’ sites

16. Classic
sites are
frustrating
Flash makes
you invisible

17. Bite size
not the ‘full meal’
There is a
difference in
information
sought

18. There are a lot of stats on apps
Gartner 2009, Apple, Distimo, Admob
99.4%
3,000,000,000+
apps downloaded since Apple app store launch
$2.86USD
average price of apps
in Australia
100,000+
Almost half of worldwide mobile internet
advertising traffic comes from iPhone OS
Estimated App store revenue
$6.8b USD
in 2010
of apps sold in 2009 were through the Apple App Store
apps in store in 77 countries in
20 categories

19. But what do we know about why
people choose and use apps ?
Are they really used?
What’s the point?

20. Latitude Insights iTalk Community: Favourite apps

21. A new door has
opened to allow
brands to engage
with customers
(and it’s not just about mobile advertising)

22. Our screens are prime
‘real estate’ for mini-
experiences, whether
they’re functional,
informative or frivolous.
It’s another way of connecting
with the brand.

23. What makes a
great app?"
 Unique"
 Fulfills an unmet need"
 Delivers what it promises"
 Makes a difference to
people in terms of factors
like:"
- Time"
- Convenience"
- Ease"
- Enjoyment"
- Knowledge"
- Access"

24. Consumers want apps that make a
difference to their lives in some way.
“Good apps are the ones that make your life
easier. They let you do things you would
normally do at home but on the run”
“The intuitive ones, that save you time on
everyday tasks”

25. “I was disappointed with Coles (app) in particular because
it looked promising at first. But there are so many
products not in it that it makes the whole thing useless.
Now it being a lame app hasn’t stopped me shopping at
Coles. Having said that if Safeway was to come out with
a really good app it might make me switch.
A long time ago I dumped Yellow Pages and decided that
if they don’t have a website than I don’t want to do
business with them anyway. I haven’t quite got to that
stage with mobile but I doubt it is too far off. ”
– Kate, 23 years, IT support

26. Some apps are
pointless
✗ Don’t fulfill their promise
✗ Not fully functional or are
‘buggy’
✗ Too slow or complicated
✗ Don’t offer any advantage
to obtaining the information
or experience from another
channel
Bad apps get trashed

27. Not all branded apps can embed themselves in
our smartphones for the long-term.
Sometimes, being around for a good time not a long time,
can be just as effective in delivering a brand experience.
Part of
my life
Look at
me!
Handy
helper

28. Part of my life
• Occupy prime real
estate on screen
• Used frequently
• Facilitates a behavioral
change

29. Handy helper
• Less frequently
accessed because less
frequent behaviour
• New touch point for
brand, but not major
distribution channel

30. Look at me!
• Short term, high impact
• May be time/occasion/
event specific

31. Part of my life
What kind of brand
experience can you deliver?
Handy helper
Look at me!
Short term
Ongoing but
infrequent
Ongoing and
frequent

32. Apps are not about generating revenue.
Brands can’t charge for apps - especially if
it’s a channel for customer engagement.
Small change really…
Pinch media estimates
the ‘average’ paid app
generates ~$12,000USD
from downloads.

33. $3.50
10 minutes
$2.29
Multiple use
app
Apps are cheaper, last longer, but harder to
spend money on…

34. 2%
22%
33%
27%
14%
2%
Free Apps dominate "
their phones
How many free
apps do you
have?
Latitude Insights iTalk Community: : How many of free Apps do you have?
Two in five have "
more than 20 "
free Apps

35. Paid for Apps are far fewer
2%
22%
33%
27%
14%
2%
10%
38%
28%
16%
6%
2%
Free Apps
Paid for Apps
Latitude Insights iTalk Community: How many of free and paid for Apps do you have?
Almost one in two
have <5 paid apps

36. If they’re doing it
why can’t you?
?
?
?
?
?
?
?
?
?
?
?
?
?
?

37. Hello apps,
where are you?
Seeking apps:
- Top 25 list
- Browsing the store
- Key word searches
- Word of mouth
- Apps about apps
But brands need to inform:
- Media / advertising
- Reviews on blogs, forums, etc

38. Not every brand needs to
be an app – mobile sites
are just as relevant.
“My favourite is Boozle, so I can find my beer at the
cheapest price at the closest bottlo”
“Qantas is on the right path with their mobile site, if only it
could be expanded more, to check flight availability, make
bookings, check your frequent flyer account…”

39. To app, or not
to app?
Apps are…
- Perceived as faster
- More self-contained
- Direct delivery of content
- Own iPhone real estate/constant presence
Mobile sites…
- Don’t clutter your screen
- Good for infrequent visits
- Good for smartphones, not just iPhones

40. “I think with many
companies, just a mobile
enabled website is enough.
I don’t want to have a huge
number of apps on my
mobile when I only use
them occasionally”
“I think it’s a great way for a
business to grow and keep
customers happy by
creating an iPhone app…it
makes it so much easier for
us as customers”
“I think there is room for both
mobile sites and apps. Personally I
prefer an app for things that are
used frequently, and a mobile site
for information accessed a little
less frequently. I don’t really like
clutter on my phone but I would
have any app that I find really
useful”
“I want to be able to interact with
businesses through my phone…I
think companies need to do their
research as to what their customers
want. I don’t believe a lot of
companies are planning for the
future or are just lazy in this area”
The point is, they expect to be able to engage
with major companies via their smartphone

41. “I’ll tell you what I want, what I really, really want”
Whether a branded app or a mobile site:
✔ Easy to use
✔ Simple
✔ Intuitive
✔ Relevant
It doesn’t have to be everything, just the bits
that are important when people are mobile.

42. Let’s let Rachael from our community have
the last say…
“I no longer wait to get on my computer to
‘Google it’. I have instant answers to all my questions!
And apps…ahh, all those apps. I was astounded by
the multitude of really useful (and not so useful) things
I could do with my iPhone. I love the ‘honeymoon’ period
when you try out all the functions and play around and
have fun with your new toy…well let me tell you,
my iPhone and I are still honeymooning nearly
a year after we met ;)…still in love…”

43. Insights Everyday
Thank you
Dianne Gardiner, Managing Director
e dianne@latitudeinsights.com.au
p 03 9571 1199
t @DiGardiner
w www.latitutdeinsights.com.au & www.parallelinsights.com